cover image: Murray-Darling Basin water markets inquiry - final report (part 5)

20.500.12592/vj1gpf

Murray-Darling Basin water markets inquiry - final report (part 5)

4 May 2021

934 The inquiry terms of reference directed the ACCC to consider particular elements of Basin market architecture including the impact of carryover arrangements and the trade of water carried over; and arrangements for the management of storage and delivery constraints. [...] One complicating factor is that impacts 936 This is recognised by the Basin water market and trade objectives and principles, set out in Schedule 3 of the Water Act 2007 (Cth), which provide that the design of Basin water markets should (among other matters): facilitate the operation of efficient water markets and the opportunities for trading, within and between Basin States, where water resourc. [...] It considers where current arrangements are generating, or increasing the magnitude of, impacts from water users’ delivery and use decisions, and focuses on identifying issues with the operation of the market, and the effectiveness of the market architecture, not the operational aspects of Basin water management. [...] As noted above in 13.1.3, the ACCC has found that the way the market architecture manages the hydrological characteristics of the storages and river systems produces a series of ‘disconnects’ between the time of trade and the actual movement of water, resulting in indirect, less efficient approaches to managing the impacts of trade. [...] The ACCC considers that many of the market architecture problems identified arise from the simplifying assumptions made in the market design to enable the trade of water rights (see section 13.1.2) and from the characteristics of the underlying property rights.

Authors

Australian Competition and Consumer Commission

Pages
140
Published in
Australia

Tables

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