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Investing in irrigation development in North West Queensland, Australia

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  • Wittwer, Glyn
  • Banerjee, Onil
Abstract
This study uses a dynamic multi-regional Computable General Equilibrium model of the Australian economy to examine the impacts of developing irrigated agriculture in remote North West Queensland. A potential investment and operational scenario is implemented using three alternative forecast baselines. In the first run using a business-as-usual baseline, there is a welfare loss from irrigation development, even with an optimistic shift in farm productivity and factor endowments in North West Queensland. In the second run, baseline demand for Australia’s exports is assumed to grow at a faster rate and there is a small welfare gain. Simulating climate change impacts on crop yields, the forecast baseline of the third run includes a gradual reduction in farmland productivity in southern Australia. The simulations show the impacts of both supply and demand shifts on the welfare outcome, but on balance, clear welfare gains do not arise from the potential irrigation development.

Suggested Citation

  • Wittwer, Glyn & Banerjee, Onil, 2015. "Investing in irrigation development in North West Queensland, Australia," Australian Journal of Agricultural and Resource Economics, Australian Agricultural and Resource Economics Society, vol. 59(2), April.
    • Handle: RePEc:ags:aareaj:280243
    DOI: 10.22004/ag.econ.280243
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    File URL: https://ageconsearch.umn.edu/record/280243/files/ajar12057.pdf
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    References listed on IDEAS

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    1. Mullen, John D., 2007. "Productivity Growth and the Returns from Public Investment in R&D in Australian Broadacre Agriculture," 2007 Conference (51st), February 13-16, 2007, Queenstown, New Zealand 9451, Australian Agricultural and Resource Economics Society.
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    4. Mullen, John D., 2007. "Productivity growth and the returns from public investment in R&D in Australian broadacre agriculture," Australian Journal of Agricultural and Resource Economics, Australian Agricultural and Resource Economics Society, vol. 51(4), pages 1-26.
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    7. Horridge, Mark & Madden, John & Wittwer, Glyn, 2005. "The impact of the 2002-2003 drought on Australia," Journal of Policy Modeling, Elsevier, vol. 27(3), pages 285-308, April.
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    10. Wittwer, Glyn & Vere, David T. & Jones, Randall E. & Griffith, Garry R., 2005. "Dynamic general equilibrium analysis of improved weed management in Australia's winter cropping systems," Australian Journal of Agricultural and Resource Economics, Australian Agricultural and Resource Economics Society, vol. 49(4), pages 1-15.
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    Cited by:

    1. Arndt Feuerbacher & Jonas Luckmann, 2023. "Labour‐saving technologies in smallholder agriculture: An economy‐wide model with field operations," Australian Journal of Agricultural and Resource Economics, Australian Agricultural and Resource Economics Society, vol. 67(1), pages 56-82, January.
    2. Onil Banerjee & Martin Cicowiez & Mark Horridge & Renato Vargas, 2016. "A Conceptual Framework for Integrated Economic-Environmental Modelling," CEDLAS, Working Papers 0202, CEDLAS, Universidad Nacional de La Plata.
    3. Glyn Wittwer, 2022. "Preparing a multi-country, sub-national CGE model: EuroTERM including Ukraine," Centre of Policy Studies/IMPACT Centre Working Papers g-334, Victoria University, Centre of Policy Studies/IMPACT Centre.
    4. Banerjee, Onil & Alavalapati, Janaki R.R. & Lima, Eirivelthon, 2016. "A framework for ex-ante analysis of public investment in forest-based development: An application to the Brazilian Amazon," Forest Policy and Economics, Elsevier, vol. 73(C), pages 204-214.

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