Dissertations / Theses on the topic 'Water consumption – Economic aspects – Australia'

Large increases in water demand with very little recharge have strained Libya’s groundwater resources, resulting in serious declines in water levels and quality, especially along the Mediterranean coast where most of the agricultural, domestic and industrial activities are concentrated. To meet these increases, Libya turned to desalination as a supplementary water resource as early as 1964. Both thermal and membrane desalination technologies have been used. This study shows that the problem of water scarcity is likely to increase further in the future. This study has three aims: first, to estimate the historical relationship between population growth and the various uses of water; second, to forecast water consumption according to the various uses; third, to estimate the elasticities of water demand and examine the effect of price, income, population and temperature on water demand in Libya in the short and long-run. To achieve these aims, an econometric model of Libyan water demand is constructed and estimated for the period 1975-2005, using the Box-Jenkins approach to forecast water demand and the Engle-Granger two-step approach to estimate the short and long-run elasticities of water demand. As a result this study provides considerable information for policy makers concerning current and future Libyan water demand. By examining the relationships between population growth and the future consumption of water in Libya, it is possible to reach the following conclusions. • Population growth in Libya will be very high. • Population elasticities for water demand are elastic for agricultural, domestic and industrial purposes. Water demand for all purposes is extremely elastic. • Most of the population and agricultural lands are concentrated in the northern part of the country. • The Libyan economy depends heavily on underground water. • In Libya, as a whole, water demand will increase. Available water in 2020 will be less than half of water demands, implying an increase in the water scarcity problem over time. • The short and long-run price elasticties are negative, suggesting that there is an inverse relationship between water demands and price. Also, these elasticities indicate that water use is generally inelastic with respect to price. • The income elasticities are all positive in the short and long-run. This result accords with demand theory, implying that water is a normal good. • The estimation results suggest that, in the long-run, water demand for agricultural, domestic and industrial use is highly elastic for population and inelastic for price and income. • The short-run elasticities are less than the long-run elasticities, as economic theory suggests. Also, all elasticities in the short-run are less than one. This implies that water demand is inelastic in the short-run.

Thesis (PhD)--Stellenbosch University, 2012.
ENGLISH ABSTRACT: Concerns about the sufficiency of freshwater supplies and the impact of water shortages have placed sustainable water management on the global agenda. This is particularly relevant in South Africa, a country with precipitation rates well below the global average and water resources that have become highly polluted. The scarcity of water for consumption use and of unpolluted water bodies as recreational and environmental good highlights the need for an economic analysis of these issues. This dissertation investigates some economic aspects of water management in the South African context in two distinctive parts. Part One (Chapters 2 to 5) aims to provide an understanding of urban water demand and analyses water pricing as demand management tool. Part Two (Chapters 6 and 7) analyses the values people attach to water resources for recreational and environmental purposes. Quantitative methodological approaches are predominantly used to inform an economic perspective on water demand management. The extent of water scarcity is discussed in Chapter Two. South Africa is approaching physical water scarcity, but many poor households do not yet have access to water and basic sanitation facilities, i.e. there is also economic water scarcity. Given this background, Chapter Three focuses on water demand management as part of an integrated water management approach. The role of water prices is discussed, in particular the Increasing Block Tariff (IBT) structure which is predominantly used in South Africa. Chapter Four estimates the price elasticity of demand for water using household water consumption records obtained from the City of Cape Town (CCT). A distinctive feature of this case study is a survey undertaken to collect household information on demographic and water-use characteristics, as water databases are severely lacking in South Africa. The results show water demand to be mostly price inelastic, which concurs with findings from international empirical literature. Furthermore, higher-income households are found to be more sensitive to price changes, thus some reduction in water consumption can be achieved by increasing marginal prices at the upper end of the IBT structure. Chapter Five analyses the IBT structure as a redistributive tool. Particular attention is given to the Free Basic Water policy of South Africa, which allows each household to receive six kilolitres of water free per month. Empirical modelling indicates that the IBT structure in its current form holds limited benefits for the poor, given the state of service delivery in South Africa: the lack of access to the water network prevents the poorest households from being the recipients of the cross-subsidisation occurring in an IBT structure. Part Two studies urban water resources as recreational and environmental goods. The literature review of environmental valuation techniques in Chapter Six places particular emphasis on the Contingent Valuation Method. This method is applied in Chapter Seven, where the value of improving the environmental quality of a freshwater urban lake is analysed in a middle- to low-income urban area. Another survey was undertaken specifically for this purpose of gauging the willingness to pay for improved recreational facilities and water quality of Zeekoevlei. The results show that low-income households do attach value to urban environmental goods, a result which adds to our knowledge of willingness to pay for environmental goods in developing countries.
AFRIKAANSE OPSOMMING: Besorgdheid oor die toereikenheid van varswaterbronne en die impak van watertekorte het volhoubare waterbestuur op die wêreldagenda geplaas. Dit is veral relevant vir Suid- Afrika, 'n land met neerslagkoerse ver onder die wêreld gemiddelde en waterbronne wat hoogs besoedeld geword het. Die skaarsheid van water vir verbruik en van onbesoedelde waterbronne as ontspannings- en omgewingsproduk, beklemtoon die noodsaaklikheid vir 'n ekonomiese analise van hierdie kwessies. Hierdie proefskrif ondersoek sekere ekonomiese aspekte van waterbestuur in die Suid-Afrikaanse konteks, in twee dele. Deel Een (Hoofstukke Twee tot Vyf) beoog om insig te verskaf oor die stedelike vraag na water en analiseer die prys van water as 'n vraagbestuursmaatstaf. Deel Twee (Hoofstukke Ses en Sewe) ontleed die waarde wat mense heg aan waterbronne vir ontspannings- en omgewingsdoeleindes. Kwantitatiewe metodologiese benaderinge word hoofsaaklik gebruik om 'n ekonomiese perspektief op watervraag bestuur toe te lig. Die omvang van waterskaarsheid in Suid-Afrika word in Hoofstuk Twee bespreek. Hierdie hoofstuk dui aan dat Suid-Afrika besig is om fisiese waterskaarste te bereik, maar die land het ook baie arm huishoudings wat nog nie toegang tot water en basiese sanitasiefasiliteite het nie, dw.s. wat daar is ook ekonomiese waterskaarsheid. Gegewe hierdie agtergrond, fokus Hoofstuk Drie op watervraagbestuur, as deel van 'n geïntegreerde waterbestuursbenadering. Die rol van waterpryse word bespreek, veral die Stygende-Blok-Tarief (SBT) struktuur wat grotendeels in Suid-Afrika gebruik word. Hoofstuk Vier bepaal die pryselastisiteit van vraag vir water met behulp van huishoudelike waterverbruiksdata, verkry vanaf die Stad Kaapstad. 'n Kenmerkende eienskap van hierdie gevallestudie is die ingesamelde huishoudelike inligting oor demografiese en waterverbruik-eienskappe, aangesien daar ‘n groot tekort aan water-databasisse in Suid- Afrika is. Die uitslae toon dat watervraag meestal prysonelasties is, wat ooreenstem met bevindinge van ander empiriese literatuur. Verder word gevind dat hoё-inkomste huishoudings meer sensitief is vir prysveranderinge. Dus sal 'n afname in waterverbruik bewerkstellig kan word deur marginale pryse aan die hoёr kant van die SBT struktuur te verhoog. Hoofstuk Vyf ondersoek die SBT struktuur as 'n effektiewe herverdelingsmaatstaf. Spesifieke aandag word aan die Gratis Basiese Water-beleid van Suid-Afrika geskenk, wat voorsiening maak dat elke huishouding ses kiloliter water per maand verniet ontvang. Die bevindinge van empiriese modellering is dat die SBT struktuur, soos dit tans in Suid-Afrika toegepas word, beperkte voordele vir die armes inhou, gegewe die huidige stand van watervoorsiening in Suid-Afrika. As gevolg van die agterstand met betrekking tot toegang tot water, ontvang die heel armes nie die voordele van kruissubsidiёring wat plaasvind onder 'n SBT struktuur nie. Deel Twee bestudeer stedelike waterbronne as ontspannings- en omgewingsprodukte. Hoofstuk Ses verskaf 'n literatuur oorsig oor omgewingswaardasie tegnieke, met 'n spesieke fokus op die Kontingente Waardasie-metode. Hierdie metode word in Hoofstuk Sewe toegepas, waar die waarde van verbeteringe in die omgewingskwaliteit van 'n varswatermeer in 'n middel- tot lae-komste stedelike gebied ondersoek word. Nog 'n opname is gedoen met die doel om die bereidwilligheid om te betaal vir verbeterde ontspanningsfasiliteite en die waterkwaliteit van Zeekoevlei te meet. Die bevindinge toon dat lae-inkomste huishoudings wel waarde heg aan stedelike omgewingsprodukte.

Balancing water demand and supply in South Africa involves high levels of uncertainty. The Department of Water and Sanitation (DWS) is responsible for making decisions to either increase water supply or decrease water demand so as to ensure that sufficient water is available, when and where it is needed. However, no retrospective analyses of such decisions have been found. One way to assess such decisions is to evaluate the associated costs and benefits thereof. Therefore the primary aim of this study is to evaluate the costs and benefits of selected water supply options, and of the decision-making associated with those options. In order to achieve this purpose, four case studies were analysed within a mixed-methods research paradigm, which used both quantitative and qualitative methods, including unit reference value (URV) analysis, inter- and intra-case analysis and content analysis to examine the success of the decisions made. The four case studies were conducted on the Inyaka, Nandoni, Berg and De Hoop dams and their catchments. Firstly, estimated and actual project costs were compared using unit reference analysis and inter-case analyses. Secondly, the reduction of mean annual runoff (MAR) caused by invasive alien plants (IAPs) and the cost of clearing them in the dam catchments were evaluated using inter-case analyses. Information thus gathered was used together with data from DWS documentation and the results of interviews with ten key specialists, to analyse the decision-making process that led to the decision to build De Hoop Dam (the most recent case study). The rational decision-making model (RDMM) was used as a framework within which to analyse and evaluate this decision-making process. This study has also demonstrated how the RDMM can be used to assess decision-making associated with water supply development. The results of this study show that there is considerable variation of estimated costs (at the time that the decision to build the dam was taken) in relation to the actual costs of building the dams and that Ministers were not put in a position to understand the full long-term costs or the opportunity costs of the proposed dams. Furthermore, the most recent IAP data (2008) shows that the impact on water security by IAPs could not offset the water security resulting from building each of the four dams. However, if IAP management is not continued in these catchments, the projected reduction of MAR by IAPs will compromise water security within 45 years. Given the almost exponential spread and densification of IAPs, together with their long-term impact on MAR and increased costs of controlling them, it is clear that IAP management should have been factored into water supply decision-making from the outset. In the analysis of the decision to build the De Hoop Dam, the results show that while the decision-making process that culminated in the decision to build the dam did not follow the steps of the RDMM, DWS appears to have followed a somewhat similar approach. It was found that while there was a need for the provision of additional water in the Olifants catchment, this need was overstated and the resulting overestimation caused the scale and size of the dam to be larger than it could and probably should have been. Additionally, it appears that DWS‘s decision to build the De Hoop Dam themselves, rather than having it built by the private sector, may have been less than optimal. It is recommended that, in future decision-making, DWS needs to incorporate multiple alternative options into the same solution, and to ensure that decision-makers are put into a position to make informed decisions, including adequate consideration of externalities. Furthermore, DWS needs to employ decision-making models such as the RDMM to facilitate retrospective analyses to improve their institutional knowledge. Keywords: water resources management, dams, invasive alien plants, decision-making, unit reference values, rational decision-making model.

Cada vez mais as atividades econômicas e recreativas demandam recursos naturais para o seu desenvolvimento. No entanto, são inevitáveis os impactos negativos causados sobre o meio ambiente e a discussão da sustentabilidade, como condição básica e indispensável para assegurar a continuidade desses processos. Esta pesquisa teve como objetivo analisar as informações de hóspedes sobre práticas ambientais relacionadas à gestão, conservação e ao uso da água em meios de hospedagem, em conformidade com a NBR 15401. Para tal, foram aplicados 166 questionários a hóspedes de três Meios de Hospedagem (MHs) do Roteiro Turístico Termas e Longevidade, em duas semanas com eventos na região. Os dados indicam que 38% dos sujeitos realizam o controle do consumo de água nos MHs em que se hospedam; 32% afirmam que a sua maior preocupação está relacionada ao desperdício e à contaminação da água; 15,1% indicam que os MHs em que se hospedam apresentam medidas de racionalização de uso de água, porém, de maneira isolada e não na forma de programas ambientais. As principais medidas, destacadas pelos hóspedes, implantadas nos MHs, são as torneiras com fechamento automático ou com restritores de vazão, reuso de toalhas de banho e troca de roupas de cama em dias alternados. Os dados também revelam que os MHs, eventualmente, apresentam informações aos hóspedes sobre a racionalização e a minimização no consumo de água e outros recursos naturais. Os resultados da pesquisa sinalizam medidas adotadas por hóspedes e MHs relacionadas à gestão da sustentabilidade, em especial a gestão dos recursos hídricos. Como continuidade, sugerem-se novos estudos sobre a gestão ambiental nesses empreendimentos, sobretudo em relação à participação dos hóspedes, colaboradores e gestores, identificando suas informações e atitudes em prol da minimização do consumo de água e do processo de construção do turismo sustentável.
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Recreational and economic activities require natural resources for theirs development, more and more. Nevertheless, negative impacts on environment and the sustainability discussion as a basic and indispensable condition are unavoidable, to ensure the continuity of these processes. This research aims to analyze the guest information about related environmental practices to the management, conservation and at the water use in lodging means, according to NBR 15401. In that case, 166 questionnaires were applied to guests of three MHs of the Longevity and Thermal Baths Tourist Route in two weeks with events in the region. The data indicate that 38% of the interviewees accomplish the water consumption control in the MHs where they are guests; 32% say that theirs biggest concern is related to waste and water contamination; 15,1% indicate that the MHs where they are guests introduce water use rationalization measures, but from isolated manner and not in the environmental programs shape. The detached main measures by guests implanted in the MHs are automatic stopcock or flow restrictors, bath towels reuse and bedclothes replace in alternated days. Occasionally, the data also reveal that the MHs introduce information to the guests about water consumption minimization and rationalization and others natural resources. The research results signalize adopted measures by guests and MHs related to sustainability management, specially the hydric resources management. As continuity, they suggest new studies about environmental management in those enterprises, especially in relation to the managers, collaborators and guests’ participation, identifying theirs information and attitudes in favor of the water consumption minimization and of the sustainable tourism construction process.

Recent studies in water management policy point to insufficient recognition of water as a scarce commodity and the failure of pricing policies to account for the full economic costs of its production and supply. These costs include opportunity costs related to alternative uses of water; user costs associated with managing a scarce resource; and costs of externalities such as ground water depletion, pollution of waterways, and greenhouse gas emissions. Existing cost recovery based pricing policies may lead to inefficiencies such as excess consumption, under-investment in water infrastructure, and unnecessary subsidisation. Water scarcity can be managed in several ways. We can increase supply by investment in additional harvesting capabilities or new technologies such as desalination; we can constrain consumption so that existing supplies last longer; or we can use water in more efficient ways. As a short term measure, most countries adopt water restrictions when supplies are at critical levels. In the future, as urban population growth continues, harvesting of storm water and reuse of grey water may become part of a sustainable water management strategy. Water trading can be used to move water to where the marginal benefits are highest. Considerable water savings are possible through the use of more efficient industrial and domestic appliances. There is evidence in some countries that higher water tariffs have reduced consumption and promoted awareness of conservation. If we accept that water is an economic good, then we need to understand the costs related to its production, the patterns of its use, and the benefits received by different users. This thesis is an examination of theoretical and applied aspects of urban water pricing based on analysis of cost, demand, and welfare. We present theoretical models of cost that include economies of scale as a parameter, and a model of water demand by households with heterogeneous preferences. We determine marginal cost at the efficient level of output based on a partial equilibrium of supply and demand. We also show that when water is produced with increasing returns to scale, the efficient price will be insufficient to recover all costs, and therefore a form of second best pricing is required. We contrast conventional notions about water suppliers being cost minimisers with an alternative frontier model of cost efficiency. Two case studies examine the provision of water services under different forms of ownership. The first case study examines the provision of water to domestic households in the state of Victoria, Australia. The second case study examines the supply of water to the residents of Manila, one of the world’s largest cities that privatised its water service in 1997 under a form of concession agreement. A third case study derives an efficient cost frontier for a sample of water utilities from Asia and Australia and proposes a form of best practice pricing. The thesis concludes with a summary of the main results and policy conclusions, and ideas for future research.
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Thesis (PhD) -- School of Economics, 2007

This thesis seeks to explain how trade develops, applying the ideas to the Australian water management and technology industry. Disparate explanations and gross generalisations at the macro-level of national economies have hindered the development of a unified theory of trade. While understanding trade at the macro-level is foundational, analysis at the level of the firm is necessary for a comprehensive understanding. Four main strands of explanation have been identified from the literature: competitive advantage and corporate strategy, innovation creation and acquisition, markets and networks, and state and institutional influence. The strands combined form a framework that can explain how and why trade occurs for firms in a particular industry. Innovation leads to competitive advantage which extends a firm’s spatial influence in the market. Networks interconnect the firm with its external environment. The state’s role is to facilitate various processes such as amplifying competitive advantage.
The framework is applied to firms representing the Australian water technology and management industry. This industry is diverse, encompassing small and large firms, and specialist manufacturers and producer services. The diversity is ideal for testing a comprehensive explanation. In addition, the water industry - as a subsector of the environmental goods and services sector – is a potentially valuable export activity.
The empirical work demonstrates that rethinking trade involves insights from the various explanatory strands. Creating competitive advantage and innovation involves processes internal and external to the firm. In the water industry, competitive advantage is a multifaceted concept and can be created by firms possessing a specialist product or service, or having a cultural affinity with clients. Corporate strategies such as inter-firm alliances and intra-firm multinational linkages also reinforce competitiveness. While the size of firms has some influence on competitiveness, size and age do not determine propensity to export. The use of innovation proxies by manufacturing firms increases propensity to export. A weak correlation is revealed between R & D proportion and export proportion; however, there is no evidence of a correlation between the proportion of patents and export proportion. Innovation expressed as appropriate technology, or embedded in specialist services, provides a more convincing explanation of export activity. Localised linkages between related and supporting industries are not a prerequisite for creating competitive advantage or innovative activity. Network theory explains how competitiveness transmits across space. Networks link the internal environment of the firm with external determinants, and explain how actual export contacts are made. Once networks and trust are established, spatial separation is not detrimental to sustaining relationships between key actors.
The quantitative evidence does not reveal significant relationships between innovation, competitive advantage and trade. Qualitative factors explain these relationships more satisfactorily. Cultural affinity, appropriate technology and networks help firms create competitive advantage, leading to trade. The state has a strong indirect influence in facilitating trade and should be an important part of a theory.
Thus an explanation of trade must shift networks to central importance and de-emphasise the role of localisation economies. The concept of innovation also needs to extend beyond an interpretation confined to technological change. The limitation of these interpretations is that they only apply to one industry in a particular place. However, the framework is flexible enough to be adapted to other industries, with certain strands being emphasised and de-emphasised accordingly. The empirical findings also have practical implications for the development of trade and industry policy; for example, flexible industry assistance that facilitates the creation of international networks by small and medium-size firms

This thesis consists of three main essays on applied econometrics, using time series and cross-sectional data. The first essay focuses on the issue of testing for Purchasing Power Parity (PPP). Given that the presence of transaction costs in trading implies a nonlinear adjustment process of real exchange rates towards PPP, the traditional tests for PPP using a linear framework may be inappropriate. The first essay models the dynamics of the adjustment towards PPP using a nonlinear exponential smooth transition autoregressive (ESTAR) process and tests for the validity of PPP in a nonlinear framework. Using quarterly data from 10 APEC countries, the study finds strong evidence of nonlinear stationary adjustment in real exchange rates. The primary contribution of this first essay is to provide evidence supporting PPP and resolve the inconclusiveness from previous empirical results in testing for PPP. The ESTAR model in the first essay is useful in modeling nonlinear adjustment processes, and is a growing part of the econometrics literature. However, it is limited by the assumption of symmetric adjustment in the transition to equilibrium. The second essay focuses on this issue and addresses the problem of asymmetry in the adjustment mechanism towards an equilibrium state. The contribution of this essay is fourfold. First, the study proposes a modification of the ESTAR model to account for cases where the adjustment mechanism towards equilibrium is not symmetric around an equilibrium point. Second, it develops a testing procedure to detect the presence of a nonlinear stationary process by establishing the limiting non-standard asymptotic distribution of the proposed test-statistic under the new ESTAR model, and finding critical values via Monte-Carlo simulation. This proposed test, which allows for both symmetric and asymmetric adjustment under the alternative hypothesis, is an improvement on the test based on the current ESTAR model. Third, it performs Monte Carlo simulations to access small sample performance and highlight the power gain of the new procedure over existing tests for a unit root. Fourth, the study applies the new test to 10 APEC real exchange rates and finds stronger evidence of nonlinear mean reversion supporting PPP. The third essay analyzes the determinants of residential water demand and determines the factors that affect water-saving behaviors using a household-based data set for 10 GECD countries. The study finds that water prices and unit water charges have significantly negative effects on water consumption. Having a dual flush toilet is also found to reduce water use. In determining the factors that affect water-saving behaviors, the study finds that water prices, unit water charges and attitudinal characteristics are important factors that have a positive effect on the likelihood of undertaking water-saving behaviors. The contribution of this essay is to provide insight into the determinants of residential water demand and propose policies to promote water conservation. This study suggests that price policies are important tools in promoting water conservation and these price policies would be more effective if implemented simultaneously with non-price policies such as subsidies for the adoption of dual flush toilets, public information and education campaigns.

Title page, table of contents and abstract only. The complete thesis in print form is available from the University of Adelaide Library.
"The Lower Murray dairy swamps were once part of a series of freshwater wetlands stretching along the Murray to the Cooring. Of the original 5700 hectares of wetlands only 500 hectares remain today. While the dairy industry that has developed on the swamp has considerable commercial value, it has destroyed the natural water filtration function that the wetlands provided. The industry also causes high levels of dairly effluent to enter the River Murray, contributing to blue-green algae outbreaks and associated economic losses for the local tourism industry. This thesis provides valuable cost-benefit results on a set of three mutually exclusive land use and management options for dealing with the joint problems of water filtration and blue-green algae. The most important options examined involve the return of this area to wetlands for water filtration rather continuing to use it for dairy farming." --p. ix.
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Thesis (Ph.D.) -- University of Adelaide, School of Economics, 2007

"The Lower Murray dairy swamps were once part of a series of freshwater wetlands stretching along the Murray to the Cooring. Of the original 5700 hectares of wetlands only 500 hectares remain today. While the dairy industry that has developed on the swamp has considerable commercial value, it has destroyed the natural water filtration function that the wetlands provided. The industry also causes high levels of dairly effluent to enter the River Murray, contributing to blue-green algae outbreaks and associated economic losses for the local tourism industry. This thesis provides valuable cost-benefit results on a set of three mutually exclusive land use and management options for dealing with the joint problems of water filtration and blue-green algae. The most important options examined involve the return of this area to wetlands for water filtration rather continuing to use it for dairy farming." --p. ix.
Thesis (Ph.D.) -- University of Adelaide, School of Economics, 2007

The primary contributions of this thesis are the economic studies of proposed water use reductions and climate change, and the development of an integrated hydro-economic model for the Murray-Darling Basin, Australia. This water model not only simulates the land and water use in the Basin, but also optimises these uses for certain targets such as environmental flows. More importantly, this model can be applied to evaluate policy options for the Basin, such as water buybacks, and provide estimates of the possible impacts of climate change. The thesis consists of three main essays focusing on issues in water modelling and management in the Basin. The first essay describes the development of a water model. This model is applied to estimate the impacts of water use reductions in the second essay; and climate change in the third essay. Other issues related to the Basin's water management, such as a review of existing water modelling, the background of the Basin, water trading, possible policy implementations and future research are also discussed. The first essay (Chapter 4) describes the construction of the Integrated Irrigated Water Model (IIA WM) including the structure of llA WM and the data sources. Using the latest hydrological data and revised catchment boundaries, llA WM can simulate and optimise land and water use in the Basin. To address the criticism that existing models have failed to consider water trading barriers, the physical constraints on water trading have been incorporated in llA WM. The model can also evaluate various water policies and estimate the impacts of physical condition changes. The second essay (Chapter 5) evaluates the impacts of proposed water use reductions by the Australian government. To balance the use of water between irrigated industries and environmental purposes, the Australian government draft plan released October 2010 proposed to reduce the volume of used water in the Basin from 3,000 to 4,000 GL/year. Simulations from IIA WM indicate that the impacts from proposed water use reductions will be modest, although there may be substantial impacts in particular locations. The third essay (Chapter 6) investigates the impacts of climate change in the Basin. A full range of climate change scenarios from modest to severe have been applied using IIA WM. This thesis finds that with water trading, profit reductions are substantially smaller than the water use reductions.

This study provides the first comprehensive quantitative assessment of Australia's pilot Hunter River Salinity Trading Scheme (PHRSTS). It casts new light on the relative merits of tradable permit system in terms of environmental and cost effectiveness under the PHRSTS, highlighting the potential benefits from an integrated regulatory instrument for management of natural resource and environmental quality. The PHRSTS was introduced by the New South Wales Environmental Protection Authority (NSW EPA) in 1995 to regulate the discharge of saline water from the coal mines and electric power generators into the Hunter River, which was affecting other uses of the River. It was made permanent in 2002, becoming the formalised HRSTS (FHRSTS). Allowing for the total permitted salt discharge to vary dynamically from day to day subject to river flow conditions, and for salt permits be traded among the mines and power generators, the Scheme is widely known as Australia's first active water quality trading program, and still appears to be the only dynamic tradable permits scheme operating in the world. The NSW EPA has claimed that the PHRSTS achieved significant environmental and economic benefits, but until now there has been no rigorous examination of its operational performance. To help fill this gap, this study investigates the origins, evolution and institutional arrangements of the PHRSTS, examines the performance of the salt credits trading market of the PHRSTS and the two credit auctions of the FHRSTS, and evaluates the environmental and economic effectiveness of the PHRSTS. In particular, this study finds that: (1) The credits trading market of the PHRSTS was active in terms of both volume of trading and number of participants, in spite of the high proportion of intra-company trading. The successful bidders in the credit auctions of the FHRSTS were a mix of sellers and buyers on the credit trading market of the PHRSTS. The low, narrowly-spread auction prices suggest that the firms did not value the credits highly and that the differentials in marginal cost of salt control across the participants are not large enough to yield significant savings from the credit trading. (2) The overall salinity objectives of the Hunter River were attained under the PHRSTS. However, the PHRSTS did not significantly improve the river salinity compared to the previous Trickle Discharge management system. The PHRSTS only generated trivial savings in social damage cost. (3) The PHRSTS generated measurable cost savings in the total control cost of saline water to its participants over its entire period. But this was minor in relation to the participants' sales revenues, and the tradability of the discharge permits accounted for only a very small proportion of the control cost savings. Dynamicism, instead oftradability, of the discharge permits was by far the main source of the cost savings. This study therefore concludes that neither the environmental effectiveness nor the economic effectiveness of the PHRSTS is as impressive as that claimed by the NSW EPA. Nevertheless, the valuable experience drawn from the experimental design and operation of the PHRSTS should prove useful for broader water quality management strategies in Australia and elsewhere.

This thesis examines the historical introduction and spatial expansion of modern water supply infrastructure in Amhara region across the three successive regimes: imperial, military, and EPRDF. It attempts to explore the institutional setup of the three governments together with their policies and strategies. The study also aims at giving an idea about the socio-economic changes registered because of improved access to safe water. Furthermore, it assesses the water consumption and conservation pattern of the society and the environmental impact of the water infrastructure development. Modern infrastructure development in Ethiopia traced its beginning back to the late 19th century. Safe drinking water supply had been one of those modern infrastructures introduced in Addis Ababa. Not long afterwards, it proliferated to the provinces. In Amhara region, drinking water supply infrastructure construction began in the early 20th century. However, this thesis inquired whether there was a programmed water supply infrastructure development before the mid-1950s or not. The water supply work started gaining momentum and became a state program in the late imperial period. However, it was affected by financial, technological and trained human resource constraints, lack of appropriate institution, defective management systems, and improper implementation methods. The military government had strengthened water supply institutions and improved workers' expertise. These developments helped the water supply infrastructure work to be executed in a programmed manner. Yet, financial restraints, the incessant political chaos of the time and the accompanied disruptive working environment had greatly impacted the temporal and spatial coverage of the water supply infrastructure development. The promising start of the Derg period did not continue with similar pace during the early years of the EPRDF rule. Despite the efforts made to set up water institutions at Regional, Zonal and Woreda (district) levels, no significant achievement was recorded in the field. The aftermath of the civil war together with internal and external challenges epitomized the transition period had impinged on the water supply work. This thesis testifies to the emergence of some socio-economic changes in the region. Yet, the slow progress of the water supply infrastructure work had stalled the socio-economic change that should have been registered through improved access to safe water supply. Despite the observable environmental degradation, the thesis argues that the retarded water supply work had nothing to do with the dearth of fresh water. While the trend shows steady growth of water consumption level across the three regimes, the conservation habit of the population remained low.
D.Litt. et Phil. (History)