S1 Consultant assists in defining suitability of market based instrument for resource management

The investigation assisted the client to determine that while a traditional cap and trade approach to salinity management within the Murray Darling basin was possible, it was not recommended for a number of reasons associated with the nature of how the salinity problem is manifested and distributed, the costs of implementing and operating a system relative to the benefits, and the uncertainties involved in the scientific assessment and monitoring required.

Balancing this finding, the team also developed a concept of what could be implemented by the client as a first step in advancing market based salinity management systems. This involved a possible pilot program expanding on current salinity impact zone and levy systems in operation in some areas of the Basin, combined with the use of a salt credit bank to form the basis for a trial in specific areas. Such a system would be based on real-time data, actions and outcomes, a trading system accessible to landholders and other stakeholders and could introduce significant market forces into land use choices.  

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