National Market-Based Instruments Pilot Programme
What is the National Market-Based Instruments Pilot Programme?
Market-Based Instruments (MBIs) are a promising new addition to the existing suite of natural resource management tools. They use trading mechanisms, auctions and price signals to positively influence the behaviour of people managing natural resources and environmental assets. MBIs work by:
- altering market prices
- setting a cap or altering quantities of a particular good
- improving the way a market works
- creating a market where no market currently exists
MBIs are being applied to a range of complex Australian natural resource management (NRM) and environmental problems. A number of different projects in Australia are either investigating ways to improve the use of MBIs in NRM through research or actually using MBIs on the ground for NRM outcomes.
The National Action Plan for Salinity and Water Quality National MBI Pilots Programme is one example of this ongoing investigation. The National MBI Pilots Programme seeks to increase Australia's capacity to use these instruments in managing natural resource issues, in particular to address the problems of salinity and water quality.
- See Managing our Natural Resources: Can Markets Help? for an overview
Selection process
An independent Selection Advisory Panel assessed proposals for each round of funding against the published selection criteria. Each Panel member has a knowledge of market-based instruments and extensive experience in one or more of the following areas:
- economics
- biophysical processes
- land management
- public policy
- community engagement
The NRM Standing Committee appointed the following panel members for Round Two:
- Professor Hugh Possingham (Chairperson)
- Professor David Pannell
- Professor Quentin Grafton
- Drew Collins
- Steve Gatti
The panel recommended projects suitable for funding to the Natural Resource Management Ministerial Council.
National market based instruments capacity building programme
During the Round Two selection process, the selection advisory panel identified the need for a National MBI Capacity Building Programme. Capacity building is essential to increasing the potential for widespread success of well-designed MBIs for natural resource management.
Round two
The Natural Resource Management Ministerial Council agreed at its November 2006 meeting to fund nine recommended projects under Round 2.
Round one
Eleven pilot projects were funded under the $5 million first round of the National MBI Pilot Programme through to 2006. The pilot projects were selected by an independent Selection Advisory Panel. The projects trialled a range of MBIs in several of the National Action Plan's 21 priority regions.
Evaluations and review
The following documents evaluate and review the National MBI Pilot Programme:
- National Market Based Instrument Pilot Programme Round One: An Interim Report
December 2005 - This report examines the outcomes of round one of the National MBI Pilot Programme. It is an interim report as a number of final pilot reports were not completed at the time this report was published. - Evaluation of Round One of the Market Based Instrument Pilot Programme
August 2005 - This document evaluates round one of the MBI Pilot Programme in which 11 pilots were selected from locations in five different states. - Investigating new approaches - A Guide to The National Market-Based Instruments Pilots Programme
June 2002 - This guide explores a number of new approaches to addressing natural resource management and environmental problems across Australia. These approaches include the further development and practical application of MBIs. - Investigating new approaches - A Review of Natural Resource Management Pilots and Programmes in Australia that Use Market-based Instruments
June 2002 - This paper is a review of current conceptual work, pilot schemes and MBI programmes being undertaken in Australia. The paper does not contain a comprehensive list of MBI programmes but it does offer a good coverage of 24 MBI programmes.
Further information about MBIs
The National MBI Pilot Programme sponsored the 6th annual AARES national symposium on market-based tools for environmental management in Canberra in September 2003. The symposium proceedings may be of interest to professionals working on or interested in NRM MBIs.
- Market-based tools for environmental management - Proceedings of the 6 th AARES national symposium 2003 (PDF - 2 MB) or
- Purchase a hard copy of the proceedings from the Rural Industries Research and Development Corporation (search by 'market-based')
MBI projects
Other market based approaches
See also
Key
Links to another web site
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