The efficacy of cap-and-trade water systems, augmented by seasonal forecasts, is examined as a tool for sustainable water management. Using Australia’s Murray-Darling Basin (MDB) as a case study, the presentation first analyzes how its cap-and-trade mechanism operates—covering water rights, trading, farmer adaptation strategies, and how such markets can help restore more natural flow regimes to meet ecological health objectives.

This system is then contrasted with traditional command-and-control and infrastructure-based water policies and distinguished from other environmental markets, such as the EU Emissions Trading System for CO₂.

A simplified theoretical model is presented to illustrate how seasonal weather forecasts can influence land-use decisions within a water market. Finally, motivated by the Po River’s declining summer flows, the talk outlines initial steps toward applying these concepts through an Agent-Based Model of the Adda-Lario system, integrating seasonal inflow forecasts to assess the potential of this policy framework in the Po Valley.

Fabio Ehrenhofer, University of Bologna / PSL université.

Lieu
École normale supérieure – PSL
24 rue Lhomond – aile Erasme
salle Claude Froidevaux – E314

Visio
https://cnrs.zoom.us/j/96452095544?pwd=sa5ZaThXBaTLa6diVodwXEzAmLRUIy.1