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'buybacks' and their use to secure environmental flows - National ...

'buybacks' and their use to secure environmental flows - National ...

This publication is a

This publication is a Final Report submitted by Michelle Scoccimarro and Drew Collins from the BDA Group, as per project requirements funded under Land & Water Australia’s Environmental Water Allocation R&D Program. Citation: Scoccimarro, M. & Collins, D., 2006 Natural resource buybacks’ and their use to secure environmental flows. Land & Water Australia, Canberra BDA Group and Land & Water Australia © August 2006 Published by: Land & Water Australia Postal address: GPO Box 2182 Canberra ACT 2601 Office Location: L1, The Phoenix 86 Northbourne Ave Braddon ACT Telephone: 02 6263 6000 Facsimile: 02 6263 6099 Email: Land&WaterAustralia@lwa.gov.au Internet: www.lwa.gov.au Disclaimer: All surveys, forecasts, projections and recommendations made in this report are made in good faith on the basis of information available at the time; and achievement of objectives, projections or forecasts set out in this report will depend among other things on the actions of Governments and their agents, over which we have no control. Notwithstanding anything contained therein, neither BDA Group nor its servants or agents will, except as the law may require, be liable for any loss or other consequences (whether or not due to the negligence of the consultants, their servants or agents) arising out of this study. Product code: ER061225 Design: Hi-Res Solutions Natural resource ‘buybacks’ and their use to secure environmental flows BDA Group 2

Acknowledgements This study has been funded under the Environmental Water Allocation R&D Program administered by Land and Water Australia. Funding support was also provided by the Murray Darling Basin Commission. In an earlier report we identified issues pertaining to the use of buybacks to secure environmental flows in the specific context of the Living Murray Initiative (BDA Group 2006). In this report we provide an overview of the use of buybacks more broadly and present the findings of a case study developed to illustrate the workability of alternative buyback instruments. Richard Davis and Nadeem Samnakay at LWA have provided important project support, and invaluable assistance has been provided by Lindsay White at the MDBC. Water market data to support our analysis was provided by the Productivity Commission and Donna Brennan. Our study has also benefited from the guidance, encouragement and feedback provided by a Project Advisory Committee, which comprised Lindsay White, Adam Jagla, Chris Schweizer, Will Fargher, and Kaye Dalton. Finally, our study has benefited from the views provided by a number of irrigators who were interviewed between 1 and 5 May 2006, and from feedback provided at a Project Workshop on 26 th May 2006 attended by several members of the Community Advisory Committee of the Murray-Darling Basin Ministerial Council. We are grateful of the assistance provided to us and acknowledge the generosity of the many people who made time to contribute to the study. The report of course does not necessarily reflect the views of LWA, MDBC, PC or others cited above. Prepared by: Michelle Scoccimarro and Drew Collins BDA Group BDA Group Economics and Environment Melbourne PO Box 6009 Hawthorn West, VIC 3122 Ph 041 268 7712 Fax (03) 9852 8969 Canberra PO Box 4022 Manuka ACT 2603 Ph (02) 6282 1443 Fax (03) 6161 9310 Natural resource ‘buybacks’ and their use to secure environmental flows BDA Group 1

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