Historical Regulation of Victoria's Water Sector: A Case of Government Failure?

10 Pages Posted: 9 Aug 2007

See all articles by Edwyna Harris

Edwyna Harris

Monash University - Department of Economics; PERC - Property and Environment Research Center

Abstract

This paper analyses the role of government failure in Victoria's water sector between 1905 and 1984 as evidenced in the rise of in-stream salinity. It will be shown that high levels of salinity can, in part, be attributed to regulatory failure for two reasons. First, the method of water allocation, a compulsory minimum charge with the marginal cost of water being zero, encouraged over watering, resulting in increased water tables via groundwater recharge. Second, the government did not provide adequate finance for construction of appropriate removal of saline drainage water, and thereby allowed increasing in-stream salinity.

Suggested Citation

Harris, Edwyna, Historical Regulation of Victoria's Water Sector: A Case of Government Failure?. Australian Journal of Agricultural and Resource Economics, Vol. 51, No. 3, pp. 343-352, September 2007. Available at SSRN: https://ssrn.com/abstract=1005732 or http://dx.doi.org/10.1111/j.1467-8489.2007.00384.x

Edwyna Harris (Contact Author)

Monash University - Department of Economics ( email )

Wellington Road
Clayton, Victoria 3
Australia

PERC - Property and Environment Research Center

2048 Analysis Drive
Suite A
Bozeman, MT 59718
United States

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