An Analysis of the Returns from an Investment in Water Entitlements in Australia
Author/s: Henning Bjornlund, Peter Rossini
Date Published: 1/01/2007
Published in: Volume 13 - 2007 Issue 3 (pages 344 - 360)
Abstract
Using thirteen years of market data from the Goulburn-Murray Irrigation District in Victoria, Australia, cash-flow analyses are used to assess returns that investors could have achieved through an investment in water entitlements under different cash-flow management scenarios. Cycle factor analyses were conducted to determine the extent to which entitlement prices follow allocation prices. Returns from investments in water entitlements seem to be higher but more risky than investments in the share market. The movement in prices of water entitlements and allocations are reasonably synchronized, while price fluctuations of allocation prices are about twice that of water entitlementsDownload Full Article
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Keywords
Discounted Cash Flow - Time Series Analysis - Water Entitlements - Water Investment - Water Trading - Water ValueReferences
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