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Non-point pollution control & irrigation: Some Australian experience

Non-point pollution control & irrigation: Some Australian experience. Prof. Mike Young Research Chair, Water Economics and Management The University of Adelaide "Irrigation Technology to Achieve Water Conservation,” Zaragoza, Spain, 12-15 th May 2008. Main Non-Point Pollution Problems.

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Non-point pollution control & irrigation: Some Australian experience

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  1. Non-point pollution control & irrigation:Some Australian experience Prof. Mike Young Research Chair, Water Economics and ManagementThe University of Adelaide "Irrigation Technology to Achieve Water Conservation,”Zaragoza, Spain, 12-15th May 2008

  2. Main Non-Point Pollution Problems • Irrigation salinity (Murray-Darling) • Sediment & nutrient pollution (Great Barrier Reef) • Nitrate contamination of groundwater & surface water systems. Case Studies • River salinity in the Murray-Darling Basin • Hunter River • Geographe Bay • Dryland salinity trading

  3. Institutional Structures Federation • Responsibility with individual state governments States • Environmental duty of care on land users.

  4. Education & Governance • 56 Natural Resource Management Region Boards established • Accessing National money • Emerging Regional Autonomy • Employing own staff

  5. Market – Based Instrument Trial Conclusions First Round ($5 million) • Auctions, cap & trade (for point sources) & offsets work • MBI’s can deliver large savings • MBI’s require testing & adaptation for landholders to participate • MBI’s need to be tailored to individually, no one-size-fits all

  6. Interstate Salinity trading • Aim to keep river salinity at Morgan • <800 μS/cm of electrical conductivity for 95% of the time • States pay for cost of off-setting the damage they would otherwise do • Salinity impacts recorded on “A” & “B” salinity register • “A” salinity register – all recent causes of salinity change • “B” salinity register – ‘legacy of history’ impacts • Debits to the “A” salinity register charged to States according to estimate of economic impact of each unit of salinity as measured at Morgan

  7. Hunter River - tradeable salinity permit • Limited to factories in the Hunter • Factories receive permits and allowed to minimise costs of disposal • Number of permits required to discharge a unit of salt into the River is a function of ambient river salinity • Firms have incentive to store saline wastewater and discharge when ambient salinity is low • Trading is now well established

  8. Busselton Bubble Licensing • Town of Busselton wanted to expand and dispose treated sewage into Geographe Bay • Dairy industry responsible for 95% of the nitrates and phosphates that flow into Geographe Bay • 5 % only from town • Treatment of town sewage would cost • $5 million plus $200K per annum • Cheaper to reduce pollution from dairying • Needed to employ people to negotiate agreements

  9. Dryland Salinity Trading (Bet Bet, Victoria) • Bet Bet, Victoria is one of the largest contributors to salinity in River Murray System • Trial to invite farmers to participate in a program that would enable them to trade salinity reduction credits • Allow farmers to deliver the contracted outcome in the most efficient way possible • Reward payment made to all farmers if the trial delivers agreed outcome • Conclusions • More efficient and cost effective than regulation • Collective group incentive payment (a reward) increases community interest and participation • Reward “first-mover proofed” the trial

  10. Salinity Levy - Victoria Salinity levies charged for permanent trades between High Impact Zones (HIZ) & Low Impact Zones (LIZ). (No trade is allowed within or into a High Impact Zone)

  11. Salinity off-sets (SA) • SA uses off-set approach to manage salinity • Irrigation areas classified into 3 zones • Low impact • High impact • High impact zones behind a salinity interception scheme • Off-set trading has lead to increase in irrigation development opportunities at no cost

  12. Salinity off-set policy (SA)

  13. Environmental Benefit Indices • Indices enable objective evaluation of relative merits of different project outcomes • Dramatic increase in returns per public dollar invested • Experience • Most benefits of MBIs derive from the benefit index • Tenders more cost-effective if uniform payment per unit of benefit delivered is paid

  14. Applicability & recommendations • Countries should consider using market-based approaches they work! • Greater flexibility in achieving control • Leave greater opportunity for innovation • Allow non-point source control at less cost • Lessons • Underpin with regulations & implement at local scale • Focus on land use change & keep simple • Consider community reward schemes • Use indices • Point source controls can be used to deliver non-point benefits

  15. Subscribe to our droplet series at www.myoung.net.au Contact: Prof Mike Young Water Economics and Management Email: Mike.Young@adelaide.edu.au Phone: +61-8-8303.5279Mobile: +61-408-488.538 www.myoung.net.au

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