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The supply of water for irrigation is subject to climatic and policy uncertainty. The object of the present paper is to show how the linear and non‐linear programming models commonly used in modelling problems such as those arising in the Murray–Darling Basin may be adapted to incorporate a state‐contingent representation of uncertainty. Estimates showing the potential value of improved water use are also derived.
Adamson et al. (Tue,) studied this question.
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