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Report on Transaction Costs of Water Markets and Environmental Policy Instruments

Supplementary information

Transaction costs are an important consideration when weighing up the costs and benefits of establishing water markets and related market mechanisms for managing environmental externalities.

The Commission contracted The Allens Consulting Group to help identify information on the nature and scale of transaction costs associated with water markets, and the likely transaction costs that could be anticipated in developing markets to address environmental externalities.

The Allens Consulting report is provided to inform participants of the outcomes of this research. It represents one of a number of sources of information the Commission is using to inform its report.

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