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Abstract: Economic analysis of climate scenarios and alternative water policies is critical for development and implementation of appropriate water policies and programs. Mathematical models have been developed to assess water resources policies due to their ability to explicitly represent the biophysical dynamics of natural systems while integrating these within social and economic constraints. These models have been criticised, however, due to the problems of simplification, overspecialisation, plausibility and lack of empirical validation. This paper introduces a mathematical programming model which uses positive mathematical programming method to calibrate and model agriculture and water use in the Murray-Darling Basin of Australia. This paper reviews the theoretical and technical details of the model development including the key steps taken in collating and scaling the biophysical and economic data, and to address model parameterisation issues. The paper summarises results of an application of the model for assessing climate change impacts in the form of reduced rainfall and water allocations and increased crop water use for agricultural production. The results show the degree of variability in gross values under different climate scenarios compared to the base case scenario, especially in very dry years. The results also show how on-farm adaptation options and water markets can mitigate these losses. [Copyright &y& Elsevier]

Abstract: Disturbance of forested catchments by fire, logging, or other natural or human induced events that alter the evapotranspiration regime may be a substantial threat to domestic, environmental and industrial water supplies. This paper describes the physically-based modelling of the long term changes in water yield from two wildfire affected catchments in north-eastern Victoria, Australia, and of fire and climate change scenarios in Melbourne''s principal water supply catchment. The effect of scale, data availability and quality, and of forest species parameterisation are explored. The modelling demonstrates the importance of precipitation inputs, with Nash and Sutcliffe Coefficients of Efficiency of predicted versus observed monthly flows increasing from 0.5 to 0.8 with a higher density of rainfall stations, and where forest types are well parameterised. Total predicted flow volumes for the calibrations were within 1% of the observed for the Mitta Mitta River catchment and <4% for the Thomson River, but almost −10% for the less well parameterised Tambo River. Despite the issues of data availability simulations demonstrated the potential for significant impacts to water supply in SE Australia from wildfire and climate change. For example, for the catchments modelled the moderate climate change impact on water yield was more pronounced than the worst fire scenario. Both modelled cases resulted in long term water yield declines exceeding 20%, with the climate change impact nearing 30%. A simulation using observed data for the first four post-fire years at the Mitta Mitta River catchment showed Macaque was able to accurately predict total flow. [Copyright &y& Elsevier]

In this paper, we undertake an empirical investigation into the possibility of climate change in Australian centres using average monthly air temperatures for six sites around the country over the period 1901:1–1998:12. By estimating a multivariate structural time series model and carrying out the appropriate tests, it is concluded that the temperature series is I(1). A graphical inspection of the extracted trends reveals that temperature has an upward trend in many centres. Given that the data may involve measurement errors, the results should be treated with caution. [Copyright &y& Elsevier]