Environmental economics and the Murray-Darling river system

Much concern about the negative environmental consequences of agricultural development in Australia, including salinisation, waterlogging and algal bl ooms, has focused on the problems of the Murray-Darling Basin. The aim of t his article is to provide an overview of the environmental problems of the Murray-Darling Basin from an economic perspective, and a selective survey o f the relevant economic literature, including theoretical analysis, modelli ng and contributions to the development of water policy. In attempting to u nderstand the complex problems of the Murray-Darling Basin, an eclectic app roach drawing on externality, sustainability and property rights perspectiv es seems most appropriate.