Turning water into carbon: carbon sequestration and water flow in the Murray-Darling Basin

Abstract

Large scale forest plantations in the Murray-Darling Basin are a possible carbon sequestration mechanism which may be adopted in response to the introduction of a carbon price. However, increased tree plantation will be associated with reduced inflows to river systems because of increased transpiration, interception and evaporation. This could have significant implications for regions vulnerable to drought. This study examines the interaction between carbon pricing, water pricing, and agricultural land use in the Murray-Darling Basin and its impact on water flow under current and climate change settings.