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Land Use Change & Water Resources – Review of Policy Options

ACIL Tasman LogoPrepared for the Victorian Department of Primary Industries

Released April 2010, © ACIL Tasman Pty Ltd

Land use changes can affect the water balance of a catchment by intercepting and using rainfall that would otherwise become surface runoff or recharge to groundwater.

This just released ACIL Tasman study addresses water interception associated with land use change and the range of policy instruments available.

This study aids discussion on this important topic and is the cornerstone of the Our Water Our Future Action 2.20 project.

The views expressed in this paper do not necessarily reflect those of the Victorian Government.

Contents

Executive Summary
Part I: Introductory

1 Purpose
2 Process
3 Introductory comments
Part II: Nature of the problem

4 Background
5 Nature of the concerns
     5.1 Overview
     5.2 More detailed consideration of key matters
6 Scope of the concerns
7 Key uncertainties
8 Timing & flexibility
     8.1 Timing principles
     8.2 Victorian model results – time effects
9 Conflicting rights to access water
10 The core problem – opportunity costs & accountability
Part III: What to do about the problem

11 Issues in developing response options
12 Alternative perspectives
13 Intervention principles
14 Options: principles & implications
15 Classes of intervention strategies
     15.1 Structure of broad options
     15.2 Pre-emptive clarification of rights and risk assignment
     15.3 Significance tests
     15.4 Monitoring
     15.5 Regulation/zoning
     15.6 Market mechanisms – one-off transaction
     15.7 Market mechanisms – adaptive requirements
16 Feasibility & sequencing
17 Regional considerations for Victoria
     17.1 Characteristics and trends
        17.1.1 Flows beyond the properties
        17.1.2 Climate trends
        17.1.3 Inter-jurisdictional linkages
        17.1.4 Regulation of flows
        17.2 Tailoring of instruments to regions
18 Management of other externalities
     18.1 Carbon
     18.2 Biodiversity values
     18.3 Salinity management
     18.4 Water quality
     18.5 The importance of transparency
     18.6 Net benefit and distribution
Part IV: Concluding material

19 Concluding comments
20 References

Reliance and Disclaimer

The professional analysis and advice in this report has been prepared by ACIL Tasman for the exclusive use of the party or parties to whom it is addressed (the addressee) and for the purposes specified in it. This report is supplied in good faith and reflects the knowledge, expertise and experience of the consultants involved. The report must not be published, quoted or disseminated to any other party without ACIL Tasman’s prior written consent. ACIL Tasman accepts no responsibility whatsoever for any loss occasioned by any person acting or refraining from action as a result of reliance on the report, other than the addressee.

In conducting the analysis in this report ACIL Tasman has endeavoured to use what it considers is the best information available at the date of publication, including information supplied by the addressee. Unless stated otherwise, ACIL Tasman does not warrant the accuracy of any forecast or prediction in the report. Although ACIL Tasman exercises reasonable care when making forecasts or predictions, factors in the process, such as future market behaviour, are inherently uncertain and cannot be forecast or predicted reliably.

ACIL Tasman shall not be liable in respect of any claim arising out of the failure of a client investment to perform to the advantage of the client or to the advantage of the client to the degree suggested or assumed in any advice or forecast given by ACIL Tasman.

ACIL Tasman Pty Ltd

ABN 68 102 652 148
Internet www.aciltasman.com.au

 

For information on this report please contact:

 

Mark Barber

Telephone (+61 2) 6103 8200
Mobile +61 427 603 433

Email m.barber@aciltasman.com.au