CRAWFORD SCHOOL of Economics and Government
Choice Modelling in the development of
natural resources management strategies
in NSW
Kasia Mazur
CRAWFORD SCHOOL of Economics and Government
Outline
 Issue
 Objectives
 Methodological issues
 Conclusion
Issues
CRAWFORD SCHOOL of Economics and Government
 No consistent methodology for the assessments of
NRM investments
 Previous methods: MCA, CUA, CEA
 Non-market values and community preferences for
resource allocation ignored
 Net welfare changes- difficult to identify
 Complexity of the interactions between
environmental, social and economic systems
Objectives
CRAWFORD SCHOOL of Economics and Government
 Estimate the welfare changes using
BCA
 Determine readily transferable
environmental estimates using CM
 Integrate environmental values into
a optimisation tool (MOSAIC)
Methodological issues
CRAWFORD SCHOOL of Economics and Government
 Scope effect
 Incentive compatibility issues
CRAWFORD SCHOOL of Economics and Government
Case studies
 Hawkesbury – Nepean
 Lachlan
 Namoi
Conclusion
CRAWFORD SCHOOL of Economics and Government
The study will:
identify socially–optimal NRM investments
identify easily transferable environmental values
Develop a decision making tool that can provide
future cost and time savings for similar
assessments
 Investigate new approaches for dealing with
scope and incentive compatibility issues
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