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Economic Efficiency of Water Allocation

MAF Technical Paper No: 2001/7

Prepared for MAF Policy by:

Stuart Ford Agriculture New Zealand Ltd
Geoff Butcher Butcher Partners Ltd
Kathryn Edmonds & Andrew Braggins Opus Ltd

ISBN: 0-478-07649-5
ISSN: 1171-4662

November 2001

Contents

• Disclaimer
• 1. Executive Summary
  • 1.1 Background
• 2 Background
• 3 Economic Instruments For Water Allocation - Options
  • 3.1 Water Allocation Mechanisms
  • 3.2 Water Pricing Options
  • 3.3 Overseas Experience
  • 3.4 Summary and Conclusions
• 4 Economic Instruments and the RMA
  • 4.1 Introduction - Legal Issues Surrounding The Creation Of Property Rights To Water
  • 4.2 The RMA and Pure Water Rights
  • 4.3 Allocation of Water Under the RMA
  • 4.4 Potential Establishment of Water Markets
  • 4.5 Provision of Information and Knowledge of the Resource Being Allocated
  • 4.6 Conclusion
• 5 Water Consumption and Economic Impacts
  • 5.1 Water Valuation - Theory
  • 5.2 Economic Impacts of Water Use - Estimation Methods
  • 5.3 Policy Applications
  • 5.4 Conclusion
• 6 Appendix A - Functioning Water Market Example: The Northern Colorado Water Conservancy District
  • 6.1 Background
  • 6.2 The Water Market
  • 6.3 Effects of the Market
  • 6.4 Summary of a Functioning
• 7 Appendix B - Water Trading Development And Monitoring - Australian Example
  • 7.1 Background
  • 7.2 Situation Review
  • 7.3 Recommendations
  • 7.4 Summary
• 8 Appendix C - Analytical Framework
  • 8.1 Employment and Water Use Multipliers
• 9 References
• PDF Version

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