6.1: Establishing water markets in northern Australia

Leader:

Quentin Grafton

Abstract

<p>Northern Australian Indigenous people are among the most disadvantaged in the nation.  Improved socio-economic status will depend on access to, and sustainable use of, natural resources, including water.<br /> <br /> This research will examine the potential effectiveness and durability of water markets in tropical Australia, how the transition to market-based allocation may interact with existing institutions, and the potential socio-economic impacts arising from an open trading market.</p>

Outcomes

The principal outcome sought from the research is better informed policy-makers, regulators and water users regarding the role of markets in managing water entitlements. This includes a better understanding of the constraints involved in water markets and approaches to their resolution.

Issues given particular attention will include:

Indigenous entitlements in water and their status in markets,
non-market institutions in place to protect environments,
transitions to efficient markets in presently under-allocated systems and the likely character/behaviour of markets in these circumstances.

Where is the research happening?

The project is working across all north Australian jurisdictions (Western Australia, Northern Territory and Queensland).

Who's involved

This TRaCK Project is coordinated through the North Australian Indigenous Land and Sea Management Alliance (NAILSMA). The project is supervised by Professor Quentin Grafton, Professor of Economics and Research Director at the Crawford School of Economics and Government at the Australian National University (ANU), together with a Project Advisory Committee.