Upgrading irrigation infrastructure in the Murray Darling Basin: is it worth it?
Infrastructure upgrades appear superficially to be a politically acceptable way of increasing environmental flows in the Murray-Darling Basin. From an economic perspective, their costs and benefits should be compared with other policy instruments. We do so using TERM-H2O, a dynamic regional CGE model with considerable basin detail. Voluntary and fully compensated buybacks are much less costly than upgrades as a means of obtaining a target volume of environmental water. Even during drought, when highly secure water created by infrastructure upgrades is more valuable, the upgrades remain too costly. As an instrument of regional economic management, infrastructure upgrades are inferior to public spending on health, education and other services in the basin. For each job created from upgrades, the money spent on services could create between three and four jobs in the basin.
Assessing the Water Parallel Pricing System against Drought in China: A Study Based on a CGE Model with Multi-Provincial Irrigation Water
The reform of water management in China is still in progress, and the pricing of water resources is undertaken in parallel, with a divide between irrigation water and pipe water associated with different users: The supply of irrigation water is regulated by local government and that of pipe water is operated by the production sector of pipe water. Based on a literature review and an interview survey of farmers, this study incorporated the water parallel pricing system of China within a computable general equilibrium (CGE) model, where the drought of 2000 is simulated. The 16 provincial irrigation water supplies and their subsidies were also estimated and introduced into this CGE model. The results demonstrated that the effects on the macro-economy were insignificant. However, the effects on agricultural production, particularly on farming production mainly cultivated in northern areas, were significant. Most farming production sectors employed more capital and labor to prevent losses in output from drought. Agricultural labor was shifted from non-farming agricultural production sectors into farming. Both urban and rural households suffered severe losses in welfare and food consumption, even though they benefited from the additional income. Moreover, rural households suffering the worst losses were located in both northern and southern areas.
Socioeconomic and Security Implications of Chinese Migration in the Russian Far East
Several dimensions of migration from China into bordering areas of the Russian Far East (primarily Primorskiy Kray) are subjected to critical assessment: scale of migration economic impacts (for migrants and host regions) attitudes of the host-region population and regional security implications. The analysis suggests that the Russian Far East generally has limited economic attraction for Chinese migrants despite the importance of migration for cross-border relations and trade. The study is based on data from Russian statistical border and migration services; extensive interviews and on-site observations; review of regional newspapers; and a large (N= 1010) opinion survey of the local population. (authors)