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Asif Zaman: Estimating regional impacts of temporary water trading through integrated hydro-economic modelling

Supervisors

• H.M. Malano The University of Melbourne
• B. Davidson The University of Melbourne

Anticipated research outcomes/products

• Development of a monthly water trading model for the Goulburn-Broken Catchment (in North Victoria)
• Integration of the trading model to a monthly allocation model
• Integration of the new allocation model to regional economic models

"Water allocation models are important tools for resources managers to match the supply and demands of our water resources. However, due to the rapid institutional changes in the water industry, existing allocation models do not incorporate the growing phenomenon of water trading in the irrigation sector. Some work in this area has already been undertaken by other researchers who are employing a 'mathematical programming' approach to model water trading, with the assumption of profit-maximising behavior by the farmers. My methodology will involve an "econometric" approach that relies on existing trading data and hence is expected to capture a more realistic representation of farmers' trading activities.

At this stage, two types of regional economic models will be investigated: input-output and cost-benefit. After integrating the new water allocation model to the regional economic model, it is anticipated that policy-makers, resource managers and stakeholders will be able to use it as a decision-support-system to make better water allocation decisions."

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