Water markets’ promise: the Murray–Darling Basin

Abstract The very advanced and well-designed water markets in the Murray – Darling Basin are result of long complex reforms. Using state-level export data for agricultural manufacturing sectors, we study impact on allocation through first (1994–2006) second reform periods (2007–2015), relative to when markets’ foundations were laid (1988–1993). We find trigger a shift away from water-intensive (less water-productive) sectors that is most pronounced during droughts period. However, improvements technology techniques reduce intensity (increase productivity) partially offset such shift. also document an inter-sectoral activity between agriculture manufacturing, as well address some recent criticisms effectiveness.