Ability of water trade to limit the impact of climate change on water pricing and industry viability

MD-WERP Theme: Climate Adaptation

Project title: Showcasing Adaptability

Research Lead: CSIRO and Deakin University

This research examined how climate change might affect irrigated farming in the southern Basin. This includes almonds, cotton, dairy, hay, rice and other crops, horticulture and livestock.

One way to adapt to climate change might be through water trading. However, up until now there has been very little evidence for how effective water trading might be. A water market (or water trading) is a system of formal rules and regulations that govern the buying, selling and leasing of water use rights (or water entitlements), often independent of land titles.

This research examined current water trading levels to a scenario where no inter-regional trade was allowed. The researchers also looked at one where unrestricted trade was allowed. For each, they modelled historical climate conditions as well as wet, moderate and dry future climate scenarios.

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Field Value
Product Purpose MD-WERP Showcasing Adaptability - Ability of water trade to limit the impact of climate change on water pricing and industry viability