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Ownership structure and incentives to invest: dual-structured irrigation cooperatives in Australia

Published online by Cambridge University Press:  06 May 2010

BRADLEY PLUNKETT ,
FABIO R. CHADDAD  and
MICHAEL L. COOK
BRADLEY PLUNKETT*
Affiliation:
Trade and Market Development, Department of Agriculture and Food, Western Australia
FABIO R. CHADDAD
Affiliation:
University of Missouri and Ibmec, São Paulo, Brazil
MICHAEL L. COOK
Affiliation:
University of Missouri, Columbia, MO
*
*Email: [email protected]
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Abstract:

In the past decade, Australia has begun to privatize its irrigation system. Two general models have emerged: a single and a dual ownership structure. This paper examines the trade-offs, costs and benefits, and the attendant efficiencies regarding costs of ownership. In particular, we examine member capital investment incentives and resultant risk-bearing costs related to capital formation. The paper concludes that the dual ownership structure system has significant economic advantages relative to its single-structured counterpart.

Type
Research Article
Information
Journal of Institutional Economics , Volume 6 , Issue 2 , June 2010 , pp. 261 - 280
Copyright
Copyright © The JOIE Foundation 2010

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