The supply of water is largely dependent on the amount of rainfall. With Australia going through a long-lasting drought in the first decade of the 21st century, serious concerns were raised about the possibility of running out of water. What policies can be implemented to address this issue?


1,What are the costs and benefits that need to be taken into account for each of pricing versus demand-management policies? Consider effectiveness, efficiency and potential equity implications of each of these policies (using concepts studied such as elasticity, market welfare, etc).

2,Are there any other policies that can address the concerns related to running out of water? Ex:supply side policies. Give at least one example and discuss efficiency (welfare) implications of these policies. In which situation would you support this type of policy? (Consider costs and benefits.)


Thank you

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Copous data has been provided in the Murray-Darling Plan surely a little reading wll solve your problem