A micro-simulation model of irrigation farms in the southern Murray-Darling Basin
Huong Dinh, Manannan Donoghoe, Neal Hughes, Tim Goesch

TL;DR
This paper develops a farm-level irrigation microsimulation model for the southern Murray-Darling Basin using survey data and profit functions to analyze water price impacts, aiming to inform policy and farm management strategies.
Contribution
It introduces a detailed farm-level microsimulation model based on survey data and profit functions to assess water price effects in the Murray-Darling Basin.
Findings
Simulated a 30% water price increase impact on costs, revenue, and profit.
Utilized detailed survey data for model calibration.
Proposed improvements for future model development.
Abstract
This paper presents a farm level irrigation microsimulation model of the southern Murray-Darling Basin. The model leverages detailed ABARES survey data to estimate a series of input demand and output supply equations, derived from a normalised quadratic profit function. The parameters from this estimation are then used to simulate the impact on total cost, revenue and profit of a hypothetical 30 per cent increase in the price of water. The model is still under development, with several potential improvements suggested in the conclusion. This is a working paper, provided for the purpose of receiving feedback on the analytical approach to improve future iterations of the microsimulation model.
Peer Reviews
No public reviews on file for this paper yet. If you reviewed it on a platform where reviews are public (OpenReview, ICLR, NeurIPS, ICML), you can paste yours below so the community can read it here.
Videos
No videos yet. Explain this paper in a talk, walkthrough, or lecture? Add one.
Taxonomy
TopicsEfficiency Analysis Using DEA · Water resources management and optimization
