Environmental and economic impacts of water scarcity and market reform on the Mooki catchment

Over-allocation of irrigation water has led to widespread environmental degradation in the Murray-Darling Basin (MDB) in Australia, prompting discussions of the water efficiency performance of irrigated industries. There is increasing pressure for irrigators to adopt water efficient practices in line with ecologically sustainable principles, especially with current drought conditions. However, there is great uncertainty surrounding the available practices to improve irrigation efficiency from both ecological and economic standpoints. This paper examines the economic and environmental impact of several possible water efficient practices and government policies, using an interdisciplinary approach combining biophysical modelling and economic modelling. This is done for the case-study of the Mooki catchment in the MDB, located in northern New South Wales, Australia.