Register      Login
Marine and Freshwater Research Marine and Freshwater Research Society
Advances in the aquatic sciences
RESEARCH ARTICLE

A bioeconomic analysis of conserving freshwater values in an agricultural landscape

D. M. Warfe A B and J. G. Tisdell A
+ Author Affiliations
- Author Affiliations

A Tasmanian School of Business and Economics, University of Tasmania, Private Bag 84, Hobart, Tas. 7001, Australia.

B Corresponding author. Present address: School of Biological Sciences, University of Tasmania, Private Bag 55, Hobart, Tas. 7001, Australia. Email: danielle.warfe@utas.edu.au

Marine and Freshwater Research 68(1) 34-42 https://doi.org/10.1071/MF15132
Submitted: 30 March 2015  Accepted: 19 November 2015   Published: 27 January 2016

Abstract

Water is a finite resource that must be shared among multiple users and economic and conservation objectives can often be seen as being in conflict. We explored this perception by conducting an integrated bioeconomic analysis of irrigated agriculture and the conservation of freshwater attributes in an agricultural landscape, the Tasmanian Midlands. We constructed a simple bioeconomic model based on current hydrology, water allocation, land use and freshwater ecosystem values, and quantified the economic returns from irrigation under a range of future climate, agricultural development and conservation scenarios. We found that projected climate conditions and conserving freshwater values in good condition had small effects on economic returns to irrigators, and that enterprise diversity and the area irrigated were major drivers of economic returns in this landscape. The availability of land suitable for irrigation rather than irrigation water itself appeared most likely to limit the economic returns from irrigation in the future. We provide a multi-criteria analysis for comparing development and conservation scenarios at a regional scale to inform planning and decision making in conservation and natural resource management. Our approach brings irrigation and conservation concerns into the same context and demonstrates that conservation need not necessarily limit agricultural development.

Additional keywords: bioeconomic modelling, climate projections, conservation planning, land use, optimisation, scenario comparison.


References

Akter, S., Grafton, R. Q., and Merritt, W. S. (2014). Integrated hydro-ecological and economic modeling of environmental flows: Macquarie Marshes, Australia. Agricultural Water Management 145, 98–109.
Integrated hydro-ecological and economic modeling of environmental flows: Macquarie Marshes, Australia.Crossref | GoogleScholarGoogle Scholar |

Bharati, L., Rodgers, C., Erdenberger, T., Plotnikova, M., Shumilov, S., Vlek, P., and Martin, N. (2008). Integration of economic and hydrologic models: exploring conjunctive irrigation water use strategies in the Volta Basin. Agricultural Water Management 95, 925–936.
Integration of economic and hydrologic models: exploring conjunctive irrigation water use strategies in the Volta Basin.Crossref | GoogleScholarGoogle Scholar |

Bennett, J. C., Ling, F. L. N., Graham, B., Grose, M. R., Corney, S. P., White, C. J., Holz, G. K., Post, D. A., Gaynor, S. M., and Bindoff, N. L. (2010). Climate Futures for Tasmania: water and catchments technical report. Antarctic Climate & Ecosystems Cooperative Research Centre, Hobart, Tasmania.

Bobbi, C. J., Warfe, D. M., and Hardie, S. A. (2014). Implementing environmental flows in semi-regulated and unregulated rivers using a flexible framework: case studies from Tasmania, Australia. River Research and Applications 30, 578–592.
Implementing environmental flows in semi-regulated and unregulated rivers using a flexible framework: case studies from Tasmania, Australia.Crossref | GoogleScholarGoogle Scholar |

Brooke, A., Kendrick, D., and Meeraus, A. (1996). ‘GAMS: A User’s Guide.’ (GAMS Development Corporation: Washington DC.)

Brouwer, R., and Hofkes, M. (2008). Integrated hydro-economic modelling: approaches, key issues and future research directions. Ecological Economics 66, 16–22.
Integrated hydro-economic modelling: approaches, key issues and future research directions.Crossref | GoogleScholarGoogle Scholar |

Bryan, B. A., Higgins, A., Overton, I. C., Holland, K., Lester, R. E., King, D., Nolan, M., Hatton MacDonald, D., Connor, J. D., Bjornsson, T., and Kirby, M. (2013). Ecohydrological and socioeconomic integration for the operational management of environmental flows. Ecological Applications 23, 999–1016.
Ecohydrological and socioeconomic integration for the operational management of environmental flows.Crossref | GoogleScholarGoogle Scholar | 1:STN:280:DC%2BC3sbitVyisA%3D%3D&md5=ac9299c359dec259fe2d60893e7517c1CAS | 23967571PubMed |

Burt, O. R. (1964). Optimal resource use over time with an application to groundwater. Management Science 11, 80–93.
Optimal resource use over time with an application to groundwater.Crossref | GoogleScholarGoogle Scholar |

Cai, X. (2008). Implementation of holistic water resources-economic optimization models for river basin management – reflective experiences. Environmental Modelling & Software 23, 2–18.
Implementation of holistic water resources-economic optimization models for river basin management – reflective experiences.Crossref | GoogleScholarGoogle Scholar |

CFEV (2005). Conservation of freshwater ecosystem values (CFEV) project database (Version 1.0). (Department of Primary Industries and Water: Hobart, Tasmania.) Available at https://wrt.tas.gov.au/cfev [Verified 19 February 2015].

DPIPWE (2012). Draft Macquarie River catchment water management plan. Department of Primary Industries, Parks, Water and Environment, Hobart, Tasmania.

DPIW (2008). Conservation of freshwater ecosystem values (CFEV) project technical report. Department of Primary Industries and Water, Hobart, Tasmania.

Gadsby, S., Lockwood, M., Moore, S., and Curtis, A. (2013). Tasmanian Midlands Socio-economic Profile. University of Tasmania, Hobart, Tas.

Grafton, R. Q., Chu, H. L., Stewardson, M., and Kompas, T. (2011). Optimal dynamic water allocation: irrigation extractions and environmental trade-offs in the Murray River, Australia. Water Resources Research 47, W00G08.
Optimal dynamic water allocation: irrigation extractions and environmental trade-offs in the Murray River, Australia.Crossref | GoogleScholarGoogle Scholar |

Grose, C. J. (1999). ‘Land Capability Handbook: Guidelines for the Classification of Agricultural Land in Tasmania’, 2nd edn. (Department of Primary Industries, Water and Environment: Hobart, Tasmania.)

Harou, J. J., Pulido-Velazquez, M., Rosenberg, D. E., Medellín-Azuara, J., Lund, J. R., and Howitt, R. E. (2009). Hydro-economic models: concepts, design, applications, and future prospects. Journal of Hydrology 375, 627–643.
Hydro-economic models: concepts, design, applications, and future prospects.Crossref | GoogleScholarGoogle Scholar |

Harou, J. J., Medellín-Azuara, J., Zhu, T., Tanaka, S. K., Lund, J. R., Stine, S., Olivares, M. A., and Jenkins, M. W. (2010). Economic consequences of optimized water management for a prolonged, severe drought in California. Water Resources Research 46, W05522.
Economic consequences of optimized water management for a prolonged, severe drought in California.Crossref | GoogleScholarGoogle Scholar |

Hermoso, V., Pantus, F., Olley, J., Linke, S., Mugado, J., and Lea, P. (2012). Systematic planning for river rehabilitation: integrating multiple ecological and economic objectives in complex decisions. Freshwater Biology 57, 1–9.
Systematic planning for river rehabilitation: integrating multiple ecological and economic objectives in complex decisions.Crossref | GoogleScholarGoogle Scholar |

Iftekhar, M. S., Tisdell, J. G., and Gilfedder, L. (2014). Private lands for biodiversity conservation: review of conservation covenanting programs in Tasmania, Australia. Biological Conservation 169, 176–184.
Private lands for biodiversity conservation: review of conservation covenanting programs in Tasmania, Australia.Crossref | GoogleScholarGoogle Scholar |

Ketelaar, A., Clarke, T., and Armstrong, D. (2012). Compliance and Enforcement Systems in Water Resource Management Project: Stakeholder Analysis. Final Report. AK Consultants, Launceston, Tasmania. Available at http://dpipwe.tas.gov.au/water/water-licences/our-water-our-future [Verified 3 December 2015].

Langpap, C., and Kerkvliet, J. (2012). Endangered species conservation on private land: assessing the effectiveness of habitat conservation plans. Journal of Environmental Economics and Management 64, 1–15.
Endangered species conservation on private land: assessing the effectiveness of habitat conservation plans.Crossref | GoogleScholarGoogle Scholar |

Langpap, C., Hascic, I., and Wu, J. (2008). Protecting watershed ecosystems through targeted local land use policies. American Journal of Agricultural Economics 90, 684–700.
Protecting watershed ecosystems through targeted local land use policies.Crossref | GoogleScholarGoogle Scholar |

Letcher, R. A., Croke, B. F. W., and Jakeman, A. J. (2007). Integrated assessment modelling for water resource allocation and management: a generalised conceptual framework. Environmental Modelling & Software 22, 733–742.
Integrated assessment modelling for water resource allocation and management: a generalised conceptual framework.Crossref | GoogleScholarGoogle Scholar |

Lockwood, M., Raymond, C. M., Oczkowski, E., and Morrison, M. (2015). Measuring the dimensions of adaptive capacity: a psychometric approach. Ecology and Society 20, 37.
Measuring the dimensions of adaptive capacity: a psychometric approach.Crossref | GoogleScholarGoogle Scholar |

Main, M. B., Roka, F. M., and Noss, R. F. (1999). Evaluating costs of conservation. Conservation Biology 13, 1262–1272.
Evaluating costs of conservation.Crossref | GoogleScholarGoogle Scholar |

MEA (2005). ‘Ecosystems and Human Well-being: Biodiversity Synthesis.’ (Millenium Ecosystem Assessment: Washington, DC.)

Nelson, E., Mendoza, G., Regetz, J., Polasky, S., Tallis, H., Cameron, D. R., Chan, K. M. A., Daily, G. C., Goldstein, J., Kareiva, P. M., Lonsdorf, E., Naidoo, R., Ricketts, T. H., and Shaw, R. (2009). Modeling multipl ecosystem services, biodiversity conservation, commodity production, and tradeoffs at landscape scales. Frontiers in Ecology and the Environment 7, 4–11.
Modeling multipl ecosystem services, biodiversity conservation, commodity production, and tradeoffs at landscape scales.Crossref | GoogleScholarGoogle Scholar |

Postel, S. L., Daily, G. C., and Ehrlich, P. R. (1996). Human appropriation of renewable fresh water. Science 271, 785–788.
Human appropriation of renewable fresh water.Crossref | GoogleScholarGoogle Scholar | 1:CAS:528:DyaK28Xptlyjtg%3D%3D&md5=dd70a69b19b14c570e70e3a7065a1b3cCAS |

Qureshi, M. E., Whitten, S. M., Mainuddin, M., Marvanek, S., and Elmahdi, A. (2013). A biodphysical and economic model of agriculture and water in the Murray–Darling Basing, Australia. Environmental Modelling & Software 41, 98–106.
A biodphysical and economic model of agriculture and water in the Murray–Darling Basing, Australia.Crossref | GoogleScholarGoogle Scholar |

Shandas, V. (2007). An empirical study of streamside landowners’ interest in riparian conservation. Journal of the American Planning Association 73, 173–184.
An empirical study of streamside landowners’ interest in riparian conservation.Crossref | GoogleScholarGoogle Scholar |

Stoeckl, N., Chaiechi, T., Farr, M., Jarvis, D., Alvarez-Romero, J. G., Kennard, M. J., Hermoso, V., and Pressey, R. L. (2015). Co-benefits and trade-offs between agriculture and conservation: a case study in Northern Australia. Biological Conservation 191, 478–494.
Co-benefits and trade-offs between agriculture and conservation: a case study in Northern Australia.Crossref | GoogleScholarGoogle Scholar |

Ward, F. A., and Booker, J. F. (2003). Economic costs and benefits of instream flow protection for endangered species in an international basin. Journal of the American Water Resources Association 39, 427–440.
Economic costs and benefits of instream flow protection for endangered species in an international basin.Crossref | GoogleScholarGoogle Scholar |