TERM-H2O Modeling of Droughts in Australia and California

  • Glyn WittwerEmail author
Part of the Advances in Applied General Equilibrium Modeling book series (AAGEM)


In the early years of implementation of Australia’s 2007 Water Act, analysis with TERM-H2O put water policy into perspective. Drought resulted in economic hardship, whereas legislated water buybacks provided farmers with an adjustment option. TERM-H2O predicted with reasonable accuracy the impact of abnormally dry or wet years on irrigation water prices within the Murray-Darling Basin. The theory of TERM-H2O was introduced to a version of USAGE-TERM modified to depict the impact of drought on California. The unsustainable use of ground-water in response to the Californian drought indicates a need for water policy reforms in the state.


Drought impacts Water reforms Farm factor mobility Water trading 


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Copyright information

© Springer Nature Singapore Pte Ltd. 2019

Authors and Affiliations

  1. 1.Center of Policy StudiesVictoria UniversityMelbourneAustralia

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