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Valuing options for reserve water in the Fitzroy Basin
journal contribution
posted on 2017-12-06, 00:00 authored by John RolfeJohn Rolfe, Jill WindleJill WindleOption values may be an important component of non-use values when development options for environmental assets are considered. These are values that the community might hold for maintaining options to make future choices about allocating resources. However, option values are very difficult to define, at both theoretical and practical levels, and there has been a retreat over the past decade to the more inclusive concept of option prices. In the present paper, estimates of option values are reported for retaining unallocated water in reserve rather than using it for current development. The use of option values rather than option prices is justified on the basis that the focus is on nonuse values, and demand and supply uncertainties have been minimised. These values have been assessed through a series of nine choice modelling surveys that have been conducted over a 3-year period in the Fitzroy River Basin in central Queensland. The results are then extrapolated to the case study areas within the basin to assess whether unallocated water should be held in reserve or used for development.
Funding
Category 1 - Australian Competitive Grants (this includes ARC, NHMRC)
History
Volume
49Issue
1Start Page
91End Page
114Number of Pages
24ISSN
1467-8489Location
Oxford, UK/ Melbourne, AustraliaPublisher
BlackwellsLanguage
en-ausPeer Reviewed
- Yes
Open Access
- No
External Author Affiliations
Centre for Environmental Management; Faculty of Business and Law;Era Eligible
- Yes