Benefit‐Cost Analysis of Integrated Water Resource Management: Accounting for Interdependence in the Yakima Basin Integrated Plan

Integrated water resource management (IWRM) requires accounting for many interrelated facets of water systems, water uses and stakeholders, and water management activities. The consequence is that project analysis must account for the nonseparability among the component parts of IWRM plans. This article presents a benefit‐cost (B‐C) analysis of a set of projects included in the Yakima Basin Integrated Plan proposed for the Yakima Basin in south‐central Washington State. The analysis accounts for interdependence among proposed water storage projects and between water storage and water market development in the context of historical and more adverse projected future climate scenarios. Focusing on irrigation benefits from storage, we show that the value of a given proposed storage project is lower when other proposed storage projects in the basin are implemented, and when water markets are functioning effectively. We find that none of the water storage projects satisfy a B‐C criterion, and that assuring proposed instream flow augmentation is less expensive by purchasing senior diversion rights than relying on new storage to provide it.     

BIOECONOMIC ANALYSIS OF SELECTED CONSERVATION PRACTICES ON SOIL EROSION AND FRESHWATER FISHERIES1

ABSTRACT: Farmers can generate environmental benefits (improved water quality and fisheries and wildlife habitat), but they may not be able to quantify them. Furthermore, farmers may reduce their incomes from managing lands to produce these positive externalities but receive little monetary compensation in return. This study simulated the relationship between agricultural practices, water quality, fish responses to suspended sediment and farm income within two small watersheds, one of a cool water stream and one of a warm water stream. Using the Agricultural Drainage and Pesticide Transport (ADAPT) model, this study related best management practices (BMPs) to calculated instream suspended sediment concentrations by estimating sediment delivery, runoff, base flow, and streambank erosion to quantify the effects of suspended sediment exposure on fish communities. By implementing selected BMPs in each watershed, annual net farm income declined $18,000 to $28,000 (1 to 3 percent) from previous levels. “Lethal” fish events from suspended sediments in the cool water watershed decreased by 60 percent as conservation tillage and riparian buffers increased. Despite reducing suspended sediments by 25 percent, BMPs in the warm water watershed did not reduce the negative response of the fisheries. Differences in responses (physical and biological) between watersheds highlight potential gains in economic efficiency by targeting BMPs or by offering performance based “green payments.”     

POTENTIAL ECONOMIC IMPACTS OF CHANGES IN WATER AVAILABILITY ON AGRICULTURE IN THE TRUCKEE AND CARSON RIVER BASINS,NEVADA, USA1

ABSTRACT: Effects of climate change are likely to be detected in nearly all sectors and regions of the economy, with both winners and losers. One of the consequences of climatic changes could be altered regional water supplies. This paper presents an investigation of regional agricultural implications of changes in water availability. Specifically, using a profit maximization approach, the economic consequences of altered water availability in the Great Basin of Nevada are analyzed in terms of the effects on net returns of agricultural producers. Under the scenarios analyzed in this paper, it is found that with adequate water systems, increase in streamflow and consequent increase in water availability could significantly benefit agricultural producers of this region. Net returns to irrigators could increase by 8 to 13 percent, not taking into account the possibility of changes in crop yields and prices. It is also shown that the benefits from increased water availability are sensitive to likely crop yield and price changes. The potential for adverse effects of climatic changes on water supply is also considered by analyzing the effects of decreased water availability. Under decreased water availability scenarios, farmer net returns decrease substantially.     

MODELING THE IMPACT OF SUBSURFACE NUTRIENT FLUX ON WATER QUALITY IN THE LOWER TRUCKEE RWER,NEVADA1

ABSTRACT: The impacts of regional groundwater quality and local agricultural activities on in-stream water quality in the Lower Truckee River, Nevada, were assessed through a detailed program of monitoring and computer simulation. An agricultural diversion and return-flow were monitored in great detail to determine mass loading rates of nutrients from agriculture in the area. Once characterized, the cumulative impacts of agricultural diversions and return-flows were evaluated using the Water Quality Assessment Program (WASP) to model nitrogen, phosphorus, periphyton, and dissolved oxygen. Monitoring showed that a significant proportion of the water diverted for agricultural purposes returned to the river as surface point return-flow (estimated at 13.9 percent $ 0.1 percent), and as groundwater diffuse return-flow (estimated at 27 percent $ 6 percent). Modeling efforts demonstrated the significant effect of assumed regional groundwater quality (nitrate) upon predicted periphyton growth and associated diel fluctuations of dissolved oxygen.     

Application of game theory for a groundwater conflict in Mexico

Exploitation of scarce water resources, particularly in areas of high demand, inevitably produces conflict among disparate stakeholders, each of whom may have their own set of priorities. In order to arrive at a socially acceptable compromise, the decision-makers should seek an optimal trade-off between conflicting objectives that reflect the priorities of the various stakeholders. In this study, game theory was applied to a multiobjective conflict problem for the Alto Rio Lerma Irrigation District, located in the state of Guanajuato in Mexico, where economic benefits from agricultural production should be balanced with associated negative environmental impacts. The short period of rainfall in this area, combined with high groundwater withdrawals from irrigation wells, has produced severe aquifer overdraft. In addition, current agricultural practices of applying high loads of fertilizers and pesticides have contaminated regions of the aquifer. The net economic benefit to this agricultural region in the short-term lies with increasing crop yields, which requires large pumping extractions for irrigation as well as high chemical loading. In the longer term, this can produce economic loss due to higher pumping costs (i.e., higher lift requirements), or even loss of the aquifer as a viable source of water. Negative environmental impacts include continued diminishment of groundwater quality, and declining groundwater levels in the basin, which can damage surface water systems that support environmental habitats. The two primary stakeholders or players, the farmers in the irrigation district and the community at large, must find an optimal balance between positive economic benefits and negative environmental impacts. In this paper, game theory was applied to find the optimal solution between the two conflicting objectives among 12 alternative groundwater extraction scenarios. Different attributes were used to quantify the benefits and costs of the two objectives, and, following generation of the Pareto frontier or trade-off curve, four conflict resolution methods were then applied.     

Assessing the Effects of Management Alternatives on Habitat Suitability in a Forested Landscape of Northeastern China

Forest management often has cumulative, long-lasting effects on wildlife habitat suitability and the effects may be impractical to evaluate using landscape-scale field experiments. To understand such effects, we linked a spatially explicit landscape disturbance and succession model (LANDIS) with habitat suitability index (HSI) models to assess the effects of management alternatives on habitat suitability in a forested landscape of northeastern China. LANDIS was applied to simulate future forest landscape changes under four management alternatives (no cutting, clearcutting, selective cutting I and II) over a 200-year horizon. The simulation outputs were linked with HSI models for three wildlife species, the red squirrel (Sciurus vulgaris), the red deer (Cervus elaphus) and the hazel grouse (Bonasa bonasia). These species are chosen because they represent numerous species that have distinct habitat requirements in our study area. We assessed their habitat suitability based on the mean HSI values, which is a measure of the average habitat quality. Our simulation results showed that no one management scenario was the best for all species and various forest management scenarios would lead to conflicting wildlife habitat outcomes. How to choose a scenario is dependent on the trade-off of economical, ecological and social goals. Our modeling effort could provide decision makers with relative comparisons among management scenarios from the perspective of biodiversity conservation. The general simulation results were expected based on our knowledge of forest management and habitat relationships of the species, which confirmed that the coupled modeling approach correctly simulated the assumed relationships between the wildlife, forest composition, age structure, and spatial configuration of habitat. However, several emergent results revealed the unexpected outcomes that a management scenario may lead to.     

ECONOMIC COSTS AND BENEFITS OF INSTREAM FLOW PROTECTION FOR ENDANGERED SPECIES IN AN INTERNATIONAL BASIN1

ABSTRACT: The U.S. Endangered Species Act (ESA) restricts federal agencies from carrying out actions that jeopardize the continued existence of any endangered species. The U.S. Supreme Court has emphasized that the language of the ESA and its amendments permits few exceptions to the requirement to give endangered species the highest priority. This paper estimates economic costs associated with one measure for increasing instream flows to meet critical habitat requirements of the endangered Rio Grande silvery minnow. Impacts are derived from an integrated regional model of the hydrology, economics, and institutions of the upper Rio Grande Basin in Colorado, New Mexico, Texas, and Mexico. One proposal for providing minimum streamflows to protect the silvery minnow from extinction would provide guaranteed year round streamflows of at least 50 cubic feet per second in the San Acacia reach of the upper Rio Grande. These added flows can be accomplished through reduced surface diversions by New Mexico water users in dry years when flows would otherwise be reduced below the critical level required by the minnow. Based on a 44‐year simulation of future inflows to the basin, we find that some agricultural users suffer damages, but New Mexico water users as a whole do not incur damages from a policy that reduces stream depletions sufficiently to provide habitat for the minnow. The same policy actually benefits downstream users, producing average annual benefits of over $200,000 per year for west Texas agriculture, and over $1 million for El Paso municipal and industrial water users, respectively. Economic impacts of instream flow deliveries for the minnow are highest in drought years.     

IMPACTS OF A SEVERE SUSTAINED DROUGHT ON COLORADO RWER WATER RESOURCES1

ABSTRACT: The impacts of a severe sustained drought on Colorado River system water resources were investigated by simulating the physical and institutional constraints within the Colorado River Basin and testing the response of the system to different hydrologic scenarios. Simulations using Hydrosphere's Colorado River Model compared a 38-year severe sustained drought derived from 500 years of reconstructed streamflows for the Colorado River basin with a 38-year streamflow trace extracted from the recent historic record. The impacts of the severe drought on streamflows, water allocation, storage, hydropower generation, and salinity were assessed. Estimated deliveries to consumptive uses in the Upper Basin states of Colorado, Utah, Wyoming, New Mexico, and northern Arizona were heavily affected by the severe drought, while the Lower Basin states of California, Nevada, and Arizona suffered only slight shortages. Upper Basin reservoirs and streamflows were also more heavily affected than those in the Lower Basin by the severe drought. System-wide, total hydropower generation was 84 percent less in the drought scenario than in the historical stream-flow scenario. Annual, flow-weighted salinity below Lake Mead exceeded 1200 ppm for six years during the deepest portion of the severe drought. The salinity levels in the historical hydrology scenario never exceeded 1100 ppm.     

Irrigation-Dependent Wetlands Versus Instream Flow Enhancement: Economics of Water Transfers from Agriculture to Wildlife Uses

Irrigated agriculture throughout western North America faces increasing pressure to transfer water to nonagricultural uses, including instream flows for fish and wildlife management. In an important case, increased instream flows are needed in Nebraskas Platte River for recovery of threatened and endangered fish and wildlife species. Irrigated agriculture in the Laramie Basin of southeast Wyoming is a potential water source for the effort to enhance instream flow. However, flood irrigation of hayfields in the Laramie Basin has created many wetlands, both ephemeral and permanent, over the last century. Attempting to increase Platte River instream flows by purchasing water rights or improving irrigation efficiency in the Laramie Basin would transform irrigated agriculture, causing a substantial fraction of the Laramie Basins wetlands to be lost. A creative solution is needed to prevent the sacrifice of one ecosystem on behalf of another. A rotating short-term water-leasing program is proposed. The program allows Laramie Basin producers to contribute to instream flows while continuing to support local wetlands. Permanent wetland desiccation is prevented and regional environmental water needs are met without impairing local ecological resources. Budget analysis is used to provide an initial cost estimate for acquiring water from agriculture through the short-term leasing program. The proposed approach is more expensive than traditional programs but allows contribution to instream flows without major wetland loss. Short-term leasing is a more efficient approach if benefits from wetlands exceed the difference in cost between the short-term lease program and programs that do not conserve wetlands.     

ESTIMATING THE PUBLIC'S VALUES FOR INSTREAM FLOW: ECONOMIC TECHNIQUES AND DOLLAR VALUES1

ABSTRACT: Sound water resource management requires comparison of benefits and costs. Many of the perceived benefits of water relate to providing instream flow for recreation and endangered fish. These uses have value but no prices to guide resource allocation. Techniques to estimate the dollar values of environmental benefits are presented and illustrated with several case studies. The results of the case studies show that emphasis on minimum instream flow allocates far less than the economically optimum amount of water to instream uses. Studies in Idaho demonstrated that optimum flows that balance benefits and costs can be ten times greater than minimum flows. The economic benefits of preserving public trust resources outweighed the replacement cost of water and power by a factor of fifty in California. While it is important to incorporate public preferences in water resource management, these economic survey techniques provide water managers with information not just on preference but how much the public is willing to pay for as well. This facilitates comparison of the public costs and benefits of instream flows.     

Prioritizing Stream Barrier Removal to Maximize Connected Aquatic Habitat and Minimize Water Scarcity

Instream barriers, such as dams, culverts, and diversions, alter hydrologic processes and aquatic habitat. Removing uneconomical and aging instream barriers is increasingly used for river restoration. Historically, selection of barrier removal projects used score‐and‐rank techniques, ignoring cumulative change and the spatial structure of stream networks. Likewise, most water supply models prioritize either human water uses or aquatic habitat, failing to incorporate both human and environmental water use benefits. Here, a dual‐objective optimization model identifies barriers to remove that maximize connected aquatic habitat and minimize water scarcity. Aquatic habitat is measured using monthly average streamflow, temperature, channel gradient, and geomorphic condition as indicators of aquatic habitat suitability. Water scarcity costs are minimized using economic penalty functions while a budget constraint specifies the money available to remove barriers. We demonstrate the approach using a case study in Utah's Weber Basin to prioritize removal of instream barriers for Bonneville cutthroat trout, while maintaining human water uses. Removing 54 instream barriers reconnects about 160 km of quality‐weighted habitat and costs approximately US$10 M. After this point, the cost‐effectiveness of removing barriers to connect river habitat decreases. The modeling approach expands barrier removal optimization methods by explicitly including both economic and environmental water uses.     

CONJUNCTIVE SURFACE AND GROUND WATER MANAGEMENT IN THE JAKARTA REGION,INDONESIA1

ABSTRACT: This study investigates the degree of economic inefficiency of the current institutional arrangements for surface and ground water management in meeting urban water demand in the Jakarta region. A numerical model of integrated surface and ground water management is developed using GAMS (General Algebraic Modelling System) software. The model maximizes the net present value of social benefits from piped water and ground water consumption across all users over time from 1999 to 2025. Four policy scenarios are examined: the status quo, the social planner's solution, and two ground water pumping quota scenarios: an aggregate ground water pumping quota and a partial quota applied to commercial and industrial users. Three variations in each policy scenario are considered: investment in water infrastructure of the Jakarta water enterprise (PAM Jaya), water demand growth, and discount rates. The status quo, depending on the investment option, the growth of water demand, and the discount rate, results in a 7.4 to 47.8 percent loss in economic efficiency relative to the social planner's solution. The partial quota is the most feasible, applicable, and manageable scenario. The optimal investment option could increase the volume of piped water supply and reduce the cost of water production. The volume of water delivery could increase by up to 156 percent, but it implies only a 35 percent increase in the surface raw water demands above the current level. However, it does not significantly reduce cumulative ground water extraction over the time period considered.     

FROM FLOW TO FISH TO DOLLARS: AN INTEGRATED APPROACH TO WATER ALLOCATION1

This paper details a case study of economic and natural system responses to alternative water management policies in the Cache La Poudre River basin, Colorado, 1980–1994. The case study is presented to highlight the value and application of a conceptual integration of economic, salmonid population, physical habitat, and water allocation models. Five alternative regimes, all intended to increase low winter flows, were investigated. Habitat enhancements created by alternative regimes were translated to population responses and economic benefits. Analysis concluded that instream flows cannot compete on the northern Colorado water rental market; cooperative agreements offer an economically feasible way to enhance instream flows; and establishing an instream flow program on the Cache La Poudre River mainstem is a potentially profitable opportunity. The alliance of models is a dynamic multidisciplinary tool for use in professional settings and offers valuable insight for decision-making processes involved in water management.     

WATER LEVEL MANAGEMENT OPPORTUNITIES FOR ECOLOGICAL BENEFIT,POOL 5 MISSISSIPPI RWER1

ABSTRACT: This paper examines the potential to manage Mississippi River water levels for ecological benefits. The study focuses on the Weaver Bottoms, a 4,000 acre backwater marsh in southeastern Minnesota (Pool 5) highly valued for fish and wildlife habitat. The Weaver Bottoms has suffered increasing loss of aquatic vegetation and associated habitat degradation since the 1960s, largely due to persistent high water, sedimentation, wave re-suspension of sediments, and poor light penetration. In other reaches of the Mississippi River, water level reductions exposing backwater sediments have produced strong vegetative responses due to subaerial exposure of seeds and sediment compaction. Water level management scenarios for Pool 5 were developed using the HEC-2 water surface profile model. Results indicate that in many years it would be possible to reduce water levels sufficiently to expose much of the Weaver Bottoms, generating a substantial vegetative response. Additional benefits could be expected since both sediment compaction and increased vegetation would reduce re-suspension of sediments. Shifting management priorities to improve habitat would temporarily impact many river users, including both commercial and recreational boaters. Water level reductions must be coordinated with their needs.     

Instream Restoration to Improve the Ecohydrologic Function of a Subalpine Meadow: Pre‐implementation Modeling with HEC‐RAS

Vegetation in subalpine meadows in the Sierra Nevada Mountains is particularly vulnerable to lowering of groundwater levels because wet meadow vegetation is reliant upon shallow groundwater during the dry summer growing season. These ecosystems are especially vulnerable to channel incision as meadow aquifers are hydrologically connected to tributaries, and many have not yet recovered from previous anthropogenic influences. While instream restoration projects have become a common approach, lack of postrestoration monitoring and communication often result in a trial‐and‐error approach. In this study we demonstrate that preimplementation modeling of possible instream restoration solutions, chosen to raise stream stage and subsequently groundwater levels, is a useful tool for evaluating and comparing potential channel modifications. Modeling allows us to identify strategic locations and specific methods. Results show additional sediment depth and roughness on tributaries along with introduced woody debris (simulated by high roughness) on the Tuolumne River are the most effective means of raising stream stage. Results demonstrate that restoration efforts are most efficient in tributary streams. Managers and planners can more efficiently direct resources while minimizing the potential for negative impacts or failed restoration projects by modeling the possible effects of multiple restoration scenarios before implementation.     

THE ROLE OF AGRICULTURAL GROUNDWATER CONSERVATION IN ACHIEVING ZERO OVERDRAFT IN ARIZONA1

ABSTRACT: The elimination of groundwater overdraft was a key feature of the 1980 Arizona Groundwater Management Act. To achieve this goal, the Arizona Department of Water Resources identified several Active Management Areas and developed urban, industrial, and agricultural water conservation plans. This study examines the reductions in groundwater use through agricultural water conservation in the Phoenix Active Management Area (AMA). Linear programming models are developed to analyze changes in groundwater use and net returns to agriculture over a 38-year period, 1990 to 2025, for farming areas in the Phoenix AMA. Results indicate that the agricultural conservation program provides only modest groundwater savings under a wide range of scenarios. The low level of savings is partly due to the current economically efficient use of water. Other policy measures such as retiring agricultural land may be necessary if the Phoenix AMA is to meet its overdraft reduction goals; even if urban water conservation goals are met.     

Mason Valley Groundwater Model: Linking Surface Water and Groundwater in the Walker River Basin,Nevada1

Carroll, Rosemary W.H., Greg Pohll, David McGraw, Chris Garner, Anna Knust, Doug Boyle, Tim Minor, Scott Bassett, and Karl Pohlmann, 2010. Mason Valley Groundwater Model: Linking Surface Water and Groundwater in the Walker River Basin, Nevada. Journal of the American Water Resources Association (JAWRA) 46(3):554-573. DOI: 10.1111/j.1752-1688.2010.00434.x Abstract: An integrated surface water and groundwater model of Mason Valley, Nevada is constructed to replicate the movement of water throughout the different components of the demand side of water resources in the Walker River system. The Mason Valley groundwater surface water model (MVGSM) couples the river/drain network with agricultural demand areas and the groundwater system using MODFLOW, MODFLOW’s streamflow routing package, as well as a surface water linking algorithm developed for the project. The MVGSM is capable of simulating complex feedback mechanisms between the groundwater and surface water system that is not dependent on linearity among the related variables. The spatial scale captures important hydrologic components while the monthly stress periods allow for seasonal evaluation. A simulation spanning an 11-year record shows the methodology is robust under diverse climatic conditions. The basin-wide modeling approach predicts a river system generally gaining during the summer irrigation period but losing during winter months and extended periods of drought. River losses to the groundwater system approach 25% of the river’s annual budget. Reducing diversions to hydrologic response units will increase river flows exiting the model domain, but also has the potential to increase losses from the river to groundwater storage.     

Integrated urban water management modelling under climate change scenarios

The concept of integrated water management is uncommon in urban areas, unless there is a shortage of supply and severe conflicts among the users competing for limited water resources. Further, problem of water management in urban areas will aggravate due to uncertain climatic events. Therefore, an Integrated Urban Water Management Model considering Climate Change (IUWMCC) has been presented which is suitable for optimum allocation of water from multiple sources to satisfy the demands of different users under different climate change scenarios. Effect of climate change has been incorporated in non-linear mathematical model of resource allocation in term of climate change factors. These factors have been developed using runoff responses corresponding to base and future scenario of climate. Future scenarios have been simulated using stochastic weather generator (LARS-WG) for different IPCC climate change scenarios i.e. A1B, A2 and B1. Further, application of model has been demonstrated for a realistic water supply system of Ajmer urban fringe (India). Developed model is capable in developing adaptation strategies for optimum water resources planning and utilization in urban areas under different climate change scenarios.     

QUANTIFICATION OF INSTREAM FLOW NEEDS OF A WILD AND SCENIC RIVER FOR WATER RIGHTS LITIGATION1

ABSTRACT: The lower 4 miles of the Red River, a tributary of the Rio Grande in northern New Mexico, was designated as one of the “instant” components of the National Wild and Scenic River System in 1968. The Bureau of Land Management (BLM), as the managing agency of the wild and scenic river, was a participant in a general water rights adjudication of the Red River stream system. The BLM sought a federal reserved water right and asserted a claim to the instream flows necessary to protect and maintain the values of the river. Instream flows are not recognized under New Mexico water law. Instream flow requirements were determined by several methods to quantify the claims made by the United States for a federal reserved water right under the Wild and Scenic Rivers Act. The scenic (aesthetic), recreational, and fish and wildlife values are the purposes for which instream flow requirements were claimed. Since water quality is related to these values, instream flows for waste transport and protection of water quality were also included in the claim. The U.S. Fish and Wildlife Service's Instream Flow Incremental Methodology was used to quantify the relationship between various flow regimes and fish habitat. Experience in this litigation indicates the importance of using state-of-the-art methodologies in quantifying instream flow claims. The incremental methodology held up well under technical and legal scrutiny and is an example of the latest methodology that was applied successfully in an adjudication. On February 23, 1984, the parties involved in the adjudication entered a precedential stipulation recognizing a federal reserved right to instream flows for the Red River component of the National Wild and Scenic River System.