c203da2f-9f63-4b89-8be6-7d88b52029a7 urn:uuid English UTF-8 nonGeographicDataset nonGeographicDataset 2018-06-13T04:26:13 creation ISO 19115 2016 Lessons from the water market: The southern Murray-Darling Basin water allocation market 2000-01 to 2015-16 c203da2f-9f63-4b89-8be6-7d88b52029a7 ABARES Lessons from the water market report analyses trends in water allocation prices in the southern Murray-Darling Basin (sMDB), between 2000-01 and 2015-16. This report analyses the major demand and supply side drivers of water allocation prices in the sMDB, drawing on historical data for 2000-01 to 2015-16. The study disentangles the effects of climate variability (rainfall, water storage and allocation volumes) from the key policy changes (including Commonwealth purchase of entitlements for the environment) and irrigation sector changes that have occurred during the period. Key Issues • The main driver of change in water prices over this period has been variation in rainfall, storages and allocations. During the peak of the drought water prices jumped to more than $1 000 per ML, before dropping to near zero during the flood years (2010-11 and 2011-12). Between 2011-12 and 2015-16, storage volumes steadily decreased and prices steadily increased. • However, ABARES finds that even after controlling for these dry conditions, market prices during 2014-15 and 2015-16 were higher than expected from past experience. The report finds that these higher prices can be explained by a combination of demand and supply factors including: Commonwealth entitlement purchases, state carryover rule changes, interregional trade restrictions and commodity price fluctuations and irrigation land-use changes. • While Commonwealth entitlement purchases reduce the supply of water and have an upward effect on prices, these are offset to some extent by Commonwealth investments in water saving infrastructure. Further, even if water savings are ignored, Commonwealth entitlement purchases offer only a partial explanation for the increase in water prices. • Another important factor has been changes to carryover rules particularly in Victoria, which have led to large increases in carryover volumes since 2007-08. This increase carryover since 2007-08 has contributed to higher allocation prices in the market. Despite this, carryover remains a positive development that will benefit irrigators in the long run by keeping prices lower in drought years. Australia 151.122622 151.122622 -25.371968 -25.371968 AGRICULTURE Irrigation Farming MDB Murray-Darling Basin WATER WATER Surface environment environmental water irrigation water water allocation water market water markets water price water prices water trade Lessons from the water market: The southern Murray-Darling Basin water allocation market 2000-01 to 2015-16 - Report in full (revised 2017-01-03) documentDigital KeyDocument 01 ABARES Lessons from the water market report analyses trends in water allocation prices in the southern Murray-Darling Basin (sMDB), between 2000-01 and 2015-16. This report analyses the major demand and supply side drivers of water allocation prices in the sMDB, drawing on historical data for 2000-01 to 2015-16. Revised 2017-01-03: Page 44, Table 2 'Southern MDB allocation data, variables' made consistent with sMDB dataset - Row 'ALLOC_perc', units corrected to % - Row 'CARRY_perc', units corrected to % - Row 'ENV_PURCH_ENTITLE' removed - Name 'ENV_ALLOC' corrected from 'ENV_PURCH_ALLOC' PDF Lessons from the water market - data tables underlying the figures presented in the report documentDigital Data 01 A spreadsheet containing the data tables underlying the figures presented in the report 'Lessons from the water market: The southern Murray-Darling Basin water allocation market 2000-01 to 2015-16'. microsoft excel Lessons from the water market - the southern MDB dataset (sMDB dataset) documentDigital Data 02 The southern Murray-Darling Basin dataset (sMDB dataset) : a dataset covering July 2000 to June 2016 Contains the following data files in CSV (comma-separated values) format: allocations.csv : allocation/entitlement volumes, carryover, environmental purchases prices.csv : market prices for water allocations trade.csv : interregional water trade volumes storage.csv : storage volumes for major sMDB dams rainfall.csv : rainfall on irrigation farms in the sMDB README_sMDB_dataSet.txt : a text file describing the contents of this zip file. CSV Authoritative descriptive metadata for: Lessons from the water market: The southern Murray-Darling Basin water allocation market 2000-01 to 2015-16 documentDigital Metadata in ISO 19139 format XML