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Salinity and Economics

            
             - choosing economic tools to solve an environmental problem - .
             Dryland salinity results because the concentration of soluble salts near the soil surface disallows for plant growth. Economic externalities that develop from dry land salinity include loss of agricultural productivity, loss of natural biodiversity, damage to buildings, roads and other structures, and degradation of water supplies etc. Salinity is therefore arguably the greatest environment threat facing Western Australia. With limited public resources, government policies, strategic as well as cost effective methods to reduce dry land salinity is critical. .
             In this investigation some economic policies or strategies of reducing salinity and keeping a sustainable future will be discussed and highlighted;.
             1) Tradable Pollution Licenses: Environmental resources do not have a "price" paid by users hence leads to serious depletion. To solve this problem governments should set pollution limits for each industry and issue tradable licenses where farmers with less polluting or better production (less externalities) can sell their unused licenses to other more polluting farmers (more externalities). If this "licensing strategy" was to take place it means that the cost of purchasing polluting licenses will be considered a production cost and hence affecting a farmer's profit. This therefore forces faremers to use less polluting technology with fewer negative externalities. .
             2) Government Expenditure -new industries/education: The government can indirectly reduce salinity by investing in new industries and technologies. For example the government could have and can in the future help assist in the advancement of such technologies as the recent introduction of the online salinity engineering. This program allows land and water managers to log in and click in a region on a map to see the engineering options considered relevant for the area.


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