This research was conducted for SA Water over 2008-2009, out of the International Graduate School of Business, and the Sustainable Communities Innovation & Research Cluster of the University of South Australia.
Its aim was to develop a framework for valuing catchments as assets. This becomes important in evaluating proposals for capital budgeting in water utilities. Investments in dam building, for example, or dam removal are relatively straightforward to value, since most of the benefits and costs associated them are priced in markets. Catchments, however, are much more complex entities. They have hydrological, geomorphological and ecological attributes, and are drawn upon by a variety of uses, including those deriving from indigenous communities, agriculture, industry, power utilities, and so on, as well as from municipal uses, such as the demand for potable (drinking and bathing) water. Catchments are directly impacted by climate change. Valuation of catchments therefore includes approaches to both use values and non-use values, drawn from the suite of financial and economic methods and from probabilistic analysis.
Download policy briefings of the project: