Price elasticity of water allocations demand in the Goulburn-Murray Irrigation District

Book Title: NA
Year Published: 2008
Month Published: NA
Author: Wheeler, Sarah ; Zuo, Alec ; Shanahan, Martin ; Bjornlund, Henning
Book Group Author: NA
Abstract:

Bid prices for the demand and supply of water allocations between 2001 and 2007, and average monthly prices paid for water allocations from 1997 to 2007 in the Goulburn-Murray Irrigation District are analysed to estimate price elasticities. Based on bid prices, the price elasticity of demand for water allocations appears highly elastic, with elasticities strongly influenced by the season and drought. The price elasticity of supply for water allocations is also elastic, albeit less elastic than demand. Using actual prices paid, water demand is negatively related to price and is inelastic, and appears to be most influenced by demand the previous month, drought and seasonality factors.

Pages: 37 - 55
URL: http:////0-search.ebscohost.com.catalog.library.colostate.edu/login.aspx?direct=true&AuthType=cookie,ip,url,cpid&custid=s4640792&db=agr&AN=IND44009731&site=ehost-live
Volume: 52
Number: 1
Journal: Australian journal of agricultural and resource economics
Journal ISO: NA
Organization: NA
Publisher: NA
ISBN: NA
ISSN: 1364985X
DOI: NA
Keywords:

demand elasticities

Source: EBSCO
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