Options for rehabilitation of Australia's Snowy River: an economic perspective.

Abstract

The Snowy Mountains Scheme in southeast Australia provides a good example of the extensive changes that can occur in streams from which water is transferred. The Scheme, now 50 years old, diverts large amounts of water from the Snowy River inland to generate hydro-electricity and to supply water for irrigation. In recent years, growing criticism of the degraded condition of the Snowy River has prompted a number of investigations into the feasibility of providing increased flows in the river and of rehabilitation of the stream environment. A recent Snowy Water Inquiry recommended the partial restoration of streamflow in the Snowy River to 15% of natural levels. However, the Snowy Water Inquiry noted the considerable trade-offs involved in terms of hydro-electricity generation and irrigation, at an overall estimated cost of Australian dollars (A$) 194 million (approximately US$125 million). All monetary values are at 1998 levels (A$ converted to US$ at 0.63). The preferred option identified satisfied none of the interested parties and the matter remains unresolved. Given the complexity of the issue, the Snowy Water Inquiry must be seen as only an initial step in a lengthy process of balancing socioeconomic costs and benefits, and ecological, legal and political considerations, before rehabilitation of the Snowy River can be achieved. Copyright © 2000 John Wiley & Sons, Ltd.