THE ROLE OF ECONOMIC INSTRUMENTS IN PROMOTING SUSTAINABLE LAND USE

WAYNE GUMLEY

ABSTRACT:

Australia is facing a widescale loss of agricultural land due to salinity and related land use problems. This article considers the role of economic instruments, such as taxation and other financial incentives in promoting a transition to more sustainable land use. The article first outlines the case for economic instruments in dealing with environmental problems. It then considers the range of instruments that are available and the extent to which they are currently deployed in Australia. The article has found that the existing use of economic instruments is inadequate and, in some cases, counterproductive. It also notes that the recent federal tax reforms have largely ignored environmental management concerns and have, unfortunately, introduced a number of measures which may contribute to an expansion of unsustainable land use patterns. On a more positive note there is considerable scope for improvement and expansion of the use of economic instruments to address land use problems in Australia.