Questions relating to the allocation and management of risk have played a central role in the development of the National Water Initiative, particularly as it has applied to the Murray-Darling Basin. The central issues of efficiency and equity in allocations are best understood by considering...

In the past year, climate change has moved from political controversy to political consensus; at least, in relation for price-based policies the need to limit emissions. Uncertainties remain but with both major parties proposing to develop an emissions trading regime, it is timely to highlight...

We present a definition of increasing uncertainty, in which an elementary increase in the uncertainty of any act corresponds to the addition of an `elementary bet' that increases consumption by a fixed amount in (relatively) `good' states and decreases consumption by a fixed (and possibly...

Abstract. We define and discuss Savage games, which are ordinal games that are set in L. J. Savage’s framework of purely subjective uncertainty. Every Bayesian game is ordinally equivalent to a Savage game. However, Savage games are free of priors, prob- abilities and payoffs. Players’...

Quiggin and Chambers have introduced the notion of invariant preferences, and shown that the only invariant expected-utility functionals are those associated with a quadratic utility function. This note identifies the class of preferences which simultaneously satisfy invariance, two-fund...

The Murray-Darling Basin comprises over 1 million km2; it lies within four states and one territory; and over 12, 800 GL of irrigation water is used to produce over 40% of the nation's gross value of agricultural production. This production is used by a diverse collection of some-times mutually...

The economic impacts of altering quarantine policies are divided into two main areas: trade evaluations, utilising a partial equilibrium approach to determine the benefits of market liberalisation; or pest management economics, used to determine the on-ground impacts of introduced species. This...

Farmers are well known to be risk-averse. Although a considerable literature has focused on the role water markets play to allocate water more efficiently, none has explicitly studied the risk management role water markets play in irrigators’ decision making. We used a two-step empirical...

Bodies concerned with conservation need funds to carry out their conservation activities. This requires them to communicate effectively with potential donors or lenders. Economic factors can influence choices in this regard. Most donors like to see value for money or resources used so it is...

Most settled parts of Australia, notably including the Murray-Darling Basin, experience low and highly variable rainfall levels. Both medium-term cycles such as the Southern Oscillation and longer term climate change contribute uncertainty in additional to that arising from seasonal...