water where is your future headed?

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Prof. Mike Young Research Chair, Water Economics and Management The University of Adelaide Water Where is your future headed?

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Water Where is your future headed?. Prof. Mike Young Research Chair, Water Economics and Management The University of Adelaide. - 1%. - 3%. Changes in rain and water supply. Sydney. - 25%. - 75%. If it gets drier. Less rain means - PowerPoint PPT Presentation

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Page 1: Water Where is your future headed?

Prof. Mike Young

Research Chair, Water Economics and ManagementThe University of Adelaide

WaterWhere is your future headed?

Page 2: Water Where is your future headed?

2

0

500

1000

1500

2000

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65

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01

20

04

Ra

infa

ll (

mm

)

14% less 20% less

Rainfall for Jarrahdale

0

100

200

300

400

500

600

700

800

900

1000

19

11

19

14

19

17

19

20

19

23

19

26

19

29

19

32

19

35

19

38

19

41

19

44

19

47

19

50

19

53

19

56

19

59

19

62

19

65

19

68

19

71

19

74

19

77

19

80

19

83

19

86

19

89

19

92

19

95

19

98

20

01

20

04

Str

ea

mfl

ow

(G

L)

N o te s : S tre a m flo w is fro m Ma y o f la b e lle d ye a r to th e fo l lo w in g Ap ri l

48% less

66% less

S tre a m in flo w fo r P e rth d a m s (P rio r to S tirlin g D a m )

PERTH

Changes in rain and water supply

- 1%

- 3%

Page 3: Water Where is your future headed?

3

Warragamba + 3 Nepean Dams (Inflows & annual rainfall)

0

1,000

2,000

3,000

4,000

5,000

6,000

7,000

8,000

9,000

10,000

1910 1915 1920 1925 1930 1935 1940 1945 1950 1955 1960 1965 1970 1975 1980 1985 1990 1995 2000 2005

Year

Inflow

GL

0

500

1000

1500

2000

2500

3000

3500

4000

4500

5000

Rainf

all (m

m)

892 GL pa

2,027 GL pa

572 GL pa

780 mm pa 907 mm pa 681 mm pa

Sydney

- 25%

- 75%

Page 4: Water Where is your future headed?

4

If it gets drier

Less rain

means

much less run-off

much less water

Page 5: Water Where is your future headed?

5

Melbourne

Page 6: Water Where is your future headed?

6

Total River Murray System Inflows (including Darling River)

DRY WET

Page 7: Water Where is your future headed?

7

Total River Murray System Inflows (including Darling River)with post 1938 sequence imposed from 2002

0

5 000

10 000

15 000

20 000

25 000

1892 1902 1912 1922 1932 1942 1952 1962 1972 1982 1992 2002 2012 2022

Ann

ual In

flow

<= 25

000 G

L (G

L)

Re-live from 1938

2014

Page 8: Water Where is your future headed?

8

Page 9: Water Where is your future headed?

9

Murray System Inflows Excluding Menindee & Snowy Plus 1 June Active storage (approx.)(as at 27/8/2007)

0

500

1000

1500

2000

2500

3000

3500

4000

4500

Jun

Jul

Au

g

Se

p

Oct

No

v

De

c

Jan

Feb

Mar

Ap

r

May

Start of Month

Cu

mu

lati

ve

In

flo

w +

Sta

rtin

g A

cti

ve

S

tora

ge

(GL

)

2007/08 2006/07

Inflows plus Starting StorageSeason to date and last year

> 2,500 GL storage used last year

Page 10: Water Where is your future headed?

10

Lake Alexandrina Level

- 0.5 m

Page 11: Water Where is your future headed?

11

Salinity Lake Alexandrina

Page 12: Water Where is your future headed?

12

Problems

1. Over-allocation

2. Over-entitlement

3. Interception

4. Inefficient storage management

5. Policy failure

6. Governance and administrative failure

Page 13: Water Where is your future headed?

13

Adverse climate change

Mean supply 10,000

River & Storage Evap 2,000

Flow to sea 2,000

Deliverable water 6,000

Environment Use 1,500

Consumptive Use 4,500

0

Mean supply 7,000

River & Storage Evap 2,000

Flow to sea 2,000

Deliverable water 3,000

Environment Use 1,500

Consumptive Use 1,500

0

In Mediterranean climates, a 10% decline in mean rainfall results in around a 30% decline in mean storage inflow

10% less rain water means a 67% reduction in allocations unless the system is resized

Page 14: Water Where is your future headed?

14

Underlying problems

A dredge was put in the Murray Mouth in October 2002 – before the drought!

Nature’s solution to this problem has been to debase the reliability of your entitlements until some-one fixes the system

In a closed system when-ever one person takes more someone else or something else must get less

Page 15: Water Where is your future headed?

15

Flow & allocation interception

Reliability debasing activities1. Increased forestry2. More farm dams3. Increased irrigation efficiency4. More groundwater development5. More lined channels and more piped water6. More salinity interception

All high security impacts

Two Risks1. Climate change2. Bushfires

Page 16: Water Where is your future headed?

16

Elements of a solution

1. Hydrological integrity - Complete and full accounting for all water use

2. Connected groundwater defined as part of the system

3. An amount set aside for evaporation and minimum flow to the sea

4. Remainder formally shared between the environment and users

5. A Cap such that the River gets the really big spills

6. Expertise-based governance

Page 17: Water Where is your future headed?

17

Some Important Detail

1. An expertise-based Authority allocating according to clear objectives

2. A system entitlement register to define state and other entitlements

3. Entitlements defined as shares of high security and general security pools

4. Size of high security pool changes defined using a moving average

5. 100% carry forward of all unused allocations adjusted for evaporative losses + tradeable delivery entitlements

6. Entitlement trading as fast and cheaply as the ASX

7. Allocation trading like internet banking

8. One central and several independent river environmental trusts

9. No difference between environmental and other entitlements

10.Groundwater close to the river defined as surface water

11.Salinity credits assigned to those who create them

12.Distribution system managed by existing private and government corporations

13.Land-use control managed by states

Page 18: Water Where is your future headed?

18

A three year agenda

1. Robust design and governance

• A new system designed to cope with and facilitate change

2. Re-store reliability

• Purchase and tear up water entitlements to offset the impact of interception

3. Re-balance the share

• Water for the environment without wrecking the market

4. Review river-configuration

• Explore opportunities to reduce evaporative losses and facilitate efficient management of environmental water

Page 19: Water Where is your future headed?

19

Investing in the future

Putting money on the table

1. Pay now for a percentage reduction to be implemented in 3 years time (~$2-3 billion now)

Tear up entitlements equivalent to interception and restore reliability and integrity

Transfer the remaining entitlements to local and a central environmental trusts

2. Pay well above market price, say, 150%

3. Pay all exit fees to your water supply company

4. Waive all Govt. water trading charges for next 3 years

5. No capital gains tax if money rolled over

Page 20: Water Where is your future headed?

Contact:

Prof Mike YoungWater Economics and ManagementEmail: [email protected]: +61-8-8303.5279Mobile: +61-408-488.538 www.myoung.net.au

Subscribe to our Droplets at www.myoung.net.au

Page 21: Water Where is your future headed?

21

Adverse climate change

Mean supply 10,000

Evap 2,000

Flow to sea 2,000 4,000

Deliverable water 6,000

Environment Use 1,500

Consumptive Use 4,500

0

In Mediterranean climates, a 20% decline in mean rainfall results in around a 60% decline in mean supply

20% less rain water means almost no allocationunless evaporation and environment is resized

Mean supply 4,000

Evap 2,000

Flow to sea 200 2,200

Deliverable water 1,800

Environment Use 1,500

Consumptive Use 300

0

Page 22: Water Where is your future headed?

227

Mean and median inflows

Annual Inflows ranked

0

5000

10000

15000

20000

25000

30000

35000

40000

45000

GL Mean = 11,229

Median = 9,033

Page 23: Water Where is your future headed?

23

Salinity and Flow