Economic Value of Instream Flow for Non-Commercial Whitewater Boating Using Recreation Demand and Contingent Valuation Methods

Whitewater river kayaking and river rafting require adequate instream flows that are often adversely affected by upstream water diversions. However, there are very few studies in the USA of the economic value of instream flow to inform environmental managers. This study estimates the economic value of instream flow to non-commercial kayakers derived using a Travel Cost Method recreation demand model and Contingent Valuation Method (CVM), a type of Contingent Behavior Method (CBM). Data were obtained from a visitor survey administered along the Poudre River in Colorado. In the dichotomous choice CVM willingness to pay (WTP) question, visitors were asked if they would still visit the river if the cost of their trip was $Y higher, and the level of $Y was varied across the sample. The CVM yielded an estimate of WTP that was sensitive to flows ranging from $55 per person per day at 300 Cubic Feet per Second (CFS) to a maximum $97 per person per day at flows of 1900 CFS. The recreation demand model estimated a boater’s number of trips per season. We found the number of trips taken was also sensitive to flow, ranging from as little as 1.63 trips at 300 CFS to a maximum number of 14 trips over the season at 1900 CFS. Thus, there is consistency between peak benefits per trip and number of trips, respectively. With an average of about 100 non-commercial boaters per day, the maximum marginal values per acre foot averages about $220. This value exceeds irrigation water values in this area of Colorado.     

A GAME THEORY APPROACH TO DECIDING WHO WILL SUPPLY INSTREAM FLOW WATER1

ABSTRACT: The resource management problem for the Middle Platte ecosystem is the insufficient water available to meet both instream ecological demands and out‐of‐stream economic needs. This problem of multiple interest groups competing for a limited resource is compounded by sharp disagreement in the scientific community over endangered species' needs for instream flows. In this study, game theory was used to address one dimension of this resource management problem. A sequential auction with repeated bidding was used to determine how much instream flow water each of three states — Colorado, Nebraska, and Wyoming — will provide and at what price. The results suggest that the use of auction mechanisms can improve the prospects for reaching a multi‐state agreement on who will supply instream flow water, if the auction is structured to discourage misrepresentation of costs and if political compensation is allowed.     

HYDROLOGIC AND ECONOMIC IMPACTS OF DROUGHT UNDER ALTERNATWE POLICY RESPONSES1

ABSTRACT: A severe sustained drought in the Colorado River Basin would cause economic damages throughout the Basin. An integrated hydrologic-economic-institutional model introduced here shows that consumptive water users in headwaters states are particularly vulnerable to very large shortfalls and hence large damages because their rights are effectively junior to downstream users. Chronic shortfalls to consumptive users relying on diversions in excess of rights under the Colorado River Compact are also possible. Nonconsumptive water uses (for hydropower and recreation) are severely affected during the worst drought years as instream flows are reduced and reservoirs are depleted. Damages to these uses exceeds those to consumptive uses, with the value of lost hydropower production the single largest economic impact of a severe sustained drought. Modeling of alternative policy responses to drought suggests three general policy approaches with particular promise for reducing damages. Consumptive use damages can be reduced by over 90 percent through reallocation from low to high valued uses and through reservoir storage strategies which minimize evaporation losses. Reservoir management to preserve minimum power pool levels for hydropower production (and to maintain reservoir recreation) may reduce damages to these nonconsumptive uses by over 30 percent, but it may increase consumptive use shortfalls.     

MODELING INSTREAM RECREATIONAL BENEFITS1

ABSTRACT: A basic problem in the management of rivers has been how to balance the tradeoffs between instream and out-of-stream uses. Traditionally, the problem has been addressed by optimizing the economic benefits of flow diversions and regulated releases with instream uses as a flow constraint. An alternative method is to model the effect different river flows have on various recreational uses (e.g., boating, fishing) and then use the results as an additional function or piece of information to determine river project operations and benefits. A methodology that is based on multiobjective decision theory and that relates instream recreational preferences to river flow is proposed. The methodology consists of determining, standardizing, and combining recreational benefit functions, and incorporating potential sources of uncertainty into an estimate of total instream benefits. Thus different types of flow patterns, resulting from reservoir regulation (out-of-stream water uses), can be analyzed to determine their potential instream impact. The methodology is applied to the New River Gorge, West Virginia, which has been designated as a National River.     

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.     

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.     

COMPETING WATER USES IN THE SOUTHWESTERN UNITED STATES: VALUING DROUGHT DAMAGES1

ABSTRACT: Economic benefit functions of water resource use are estimated for all major offstream and instream uses of Colorado River water. Specific benefit estimates are developed for numerous agricultural regions, for municipal uses, and for cooling water in thermal energy generation. Economic benefits of hydropower generation are given, as are those for recreation on Colorado River reservoirs and on one free-flowing reach. Marginal and total benefit estimates for Colorado River water use are provided. The estimates presented here represent a synthesis of previous work, providing in total a comprehensive set of economic demand functions for competing uses of Colorado River water. Non-use values (e.g., benefits of preserving endangered species) are not estimated.     

Multiresource simulation for wildland management

The model presented here is a simulation of the watershed of the Little South Fork of the Cache la Poudre River system located in the Front Range of the Rocky Mountains of Colorado. This simulation model, TERRA, provides information of resource interactions, ecosystem processes, and harvest ramifications for this watershed. The information is generated through sets of difference equations to represent process flows. The model has a modular design that separates the ecologic processes—weather conditions, hydrologic functions, forage and timber production, wildlife and domestic population dynamics, recreation use, and management activities—from the simulation planning overhead—updating, plotting, and printing.The model is designed such that the output is readily usable information for an allocation model and the decision-making process. This is accomplished by allowing different levels of specified management activities as input and producing responses and output on a per unit land area basis.This simulation is a useful research tool for estimating parameter and variable values and levels of management-resource interaction. Lack of a pertinent field data base inhibits the model from actually being used as a management tool in the planning process.Submitted for publication as Paper No. 1217 in the Journal Series of the Agricultural Experiment Station, University of Florida.     

Constructing an Interdisciplinary Flow Regime Recommendation1

Bartholow, John M., 2010. Constructing an Interdisciplinary Flow Regime Recommendation. Journal of the American Water Resources Association (JAWRA) 1-15. DOI: 10.1111/j.1752-1688.2010.00461.x Abstract: It is generally agreed that river rehabilitation most often relies on restoring a more natural flow regime, but credibly defining the desired regime can be problematic. I combined four distinct methods to develop and refine month-by-month and event-based flow recommendations to protect and partially restore the ecological integrity of the Cache la Poudre River through Fort Collins, Colorado. A statistical hydrologic approach was used to summarize the river’s natural flow regime and set provisional monthly flow targets at levels that were historically exceeded 75% of the time. These preliminary monthly targets were supplemented using results from three Poudre-specific disciplinary studies. A substrate maintenance flow model was used to better define the high flows needed to flush accumulated sediment from the river’s channel and help sustain the riparian zone in this snowmelt-dominated river. A hydraulic/habitat model and a water temperature model were both used to better define the minimum flows necessary to maintain a thriving cool water fishery. The result is a range of recommended monthly flows and daily flow guidance illustrating the advantage of combining a wide range of available disciplinary information, supplemented by judgment based on ecological principles and a general understanding of river ecosystems, in a highly altered, working river.     

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.     

A modeling assessment of the thermal regime for an urban sport fishery

Water temperature is almost certainly a limiting factor in the maintenance of a self-sustaining rainbow trout (Oncorhynchus mykiss, formerlySalmo gairdneri) and brown trout (Salmo trutta) fishery in the lower reaches of the Cache la Poudre River near Fort Collins, Colorado, USA. Irrigation diversions dewater portions of the river, but cold reservoir releases moderate water temperatures during some periods. The US Fish and Wildlife Service’s Stream Network Temperature Model (SNTEMP) was applied to a 31-km segment of the river using readily available stream geometry and hydrological and meteorological data. The calibrated model produced satisfactory water temperature predictions (R ²=0.88,P<0.001, N=49) for a 62-day summer period. It was used to evaluate a variety of flow and nonflow alternatives to keep water temperatures below 23.3°C for the trout. Supplemental flows or reduced diversions of 3 m³/sec would be needed to maintain suitable summer temperatures throughout most of the study area. Such flows would be especially beneficial during weekends when current irrigation patterns reduce flows. The model indicated that increasing the riparian shade would result in little improvement in water temperatures but that decreasing the stream width would result in significant temperature reductions. Introduction of a more thermally tolerant redband trout (Oncorhynchus sp.), or smallmouth bass (Micropterus dolomieui) might prove beneficial to the fishery. Construction of deep pools for thermal refugia might also be helpful.     

DINOSAUR NATIONAL MONUMENT: THE EVOLUTION OF A FEDERAL RESERVED WATER RIGHT1

ABSTRACT: Dinosaur National Monument, in northwestern Colorado, has become a test case in the establishment of a federal reserved water right to instream flows. For the first time, the Interior Department was forced to rigorously defend its claims in a watershed where the federal government did not control the upstream reaches. Inadequate quantification of minimum flow requirements, court orders, and an apparent Congressional ban on the spending of Water Resources Program funds by the Park Service to quantify its water rights have already placed the Service in a difficult position to protect instream flows for maintaining the ecological integrity of the Monument. As late as 1983, administrators of the Park Service were divided over their legal strategy, many wanting to pursue a policy of claiming “natural, historic” flows rather than “minimum” flows. The conditional right to instream flows panted to the Park Service in 1978 was subject to quantification within five years. That deadline has been extended, but it is not likely that the case will reach final settlement this decade. Until the design and conduct of federal water rights quantifications better integrate public policy and law with science, the principle lesson from Dinosaur may have to be repeated.     

LIMITATIONS OF CONCEPTS USED TO DETERMINE INSTREAM FLOW REQUIREMENTS FOR HABITAT MAINTENANCE1

ABSTRACT: Today most rivers are not freely flowing but are highly regulated to meet both human and wildlife needs. Several models allow the determination of instream flows that are needed to meet wildlife demands. However, these models are based on assumptions that limit their applicability to certain types of rivers. While these limitations do not preclude the use of the models on other types of rivers, like the Platte River in Nebraska, their limitations should be considered and accommodated by those making instream flow planning and management decisions. Other factors affecting channel morphology and its associated wildlife habitat, such as threshold values and vegetation are not adequately considered by current concepts. If rivers are to be managed to provide wildlife habitat, these factors will have to be addressed.     

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.     

Boater preferences for beach characteristics downstream from Glen Canyon Dam, Arizona

Release flow decisions are increasingly being influenced by an array of social values, including those related to river-based recreation. A substantial portion of past recreation research on downstream impacts of dams has focused on variability of instream flows. This study complements past research by assessing user preferences for beach characteristics affected by long-term impacts of flow regimes. Based upon a study of three recreational user groups (private trip leaders, commercial passengers, and river guides) of the Colorado River in Grand Canyon, preferences for beach size, presence of shade on beach, and presence of vegetation on beach are examined. Results indicate that large size beaches with shade from trees are setting characteristics with highly reliable and strong user preferences. The multinomial regression models developed for each user group indicate that 80% of all respondents would choose beach campsites 800 m(2); results were the same regardless of respondents' past boating experience, boat type (i.e. oar or motorized), or group size. In addition, size of beach was consistently reported to be a trip feature of moderate importance to respondents' river trip. Implications of this research are related to future prospects for controlled floods (i.e. spike flows) released from Glen Canyon Dam.     

SIMULATION AND DECISIONMAKING: THE PLATTE RIVER BASIN IN NEBRASKA1

Substantial conflict exists over water management and allocation in the Platte River Basin of Nebraska. An interdisciplinary computer simulation model, representing the water quantity, water quality, environmental, and economic dimensions of the conflict, was developed in order to analyze the tradeoffs among allocation scenarios. Most importantly, decisionmakers and interest groups were involved in model development. Simulation results for a base case and two scenarios are presented. One scenario favors protection of instream flow for wildlife; the other favors water diversions for agriculture. Impacts of the instream flow scenario, as measured by the amount of land irrigated, groundwater levels, the amount of wildlife habitat for cranes and catfish, and net agricultural benefits did not differ greatly from those of the base case. However, impacts of the diversion scenario were substantial. On the negative side, instream flows and wildlife habitat declined an average of 39 percent; while, on the positive side, groundwater levels and net agricultural benefits each increased 6 percent. The modeling process was successful insofar as it promoted an understanding among the highly diverse interest groups of the systems nature of the Basin. One agreement on a water diversion schedule among three of the parties has been reached, partly as a result of this process. More comprehensive compromises have not yet been forged. Our experience, however, indicates that modeling success at the policymaking level depends more on the extent to which the policymakers understand the model than it does on model sophistication.     

Conservation Opportunities for Securing In-Stream Flows in the Platte River Basin: A Case Study Drawing on Casper,Wyoming’s MunicipalWater Strategy

The Platte River Basin consists of tributaries largely in Wyoming, Colorado and Western Nebraska, with the main stem in Central Nebraska. Critical wildlife habitat on the main stem requires additional in-stream flows. The watershed is one hosting multiple resources, a variety of users, and managed by an array of state and federal agencies. This study proposes a basis for securing in-stream flows for the Platte River. Candidate water supply mechanisms are suggested based on the way in which Casper, Wyoming secured water for its municipal needs. Canal lining is compared to a dam project, increasing reservoir storage, and purchasing water rights, with consideration also made for water pricing to reduce municipal use. Comparisons are based on economic efficiency, potential water conservation, and property rights criteria. Canal lining, coupled with demand management, is shown to conserve water best, given the set of efficiency and cost criteria for in-stream flow enhancement. The approach offers an opportunity to organize the water supply choice context in a transboundary watershed when quantitative information is limited.     

OPTIMAL WATER USE AND SALINITY CONTROL FOR ENERGY - UPPER COLORADO RIVER BASIN1

ABSTRACT: The Upper Colorado River Basin contains appreciable amounts of undeveloped fuel resources. Large quantities of oil shale, coal, and uranium have attracted recent economic and commercial interests. Development of these resources and subsequent conversion to alternative energy forms require an adequate supply of water. Water use for large scale energy development will place increasing demands on an already overstressed allocation of Colorado River water. Present water quality is at a concentration where increased salinity will result in economic detriments to holders of downstream water rights. The salt and water exchange in mining, processing, and spent fuel disposal processes has been incorporated as part of a two-level minimum cost linear programming algorithm. Mathematical simulation results provide an optimal use of Upper Colorado River water for levels of energy output such that salinity concentrations are maintained below predetermined levels.     

SALINITY ISSUES AND WATER DEVELOPMENT IN THE GREEN RIVER BASIN,WYOMING1

Water development in the Green River Basin of Wyoming is projected to increase salinity downstream in the Green River and Colorado River, and thereby increase salinity costs to users of water from these two rivers. Despite these water quality and economic impacts to downstream water users, Wyoming will probably be able to develop its currently unused but allocated water supplies of the Green River Basin. The Colorado River Compact and Upper Colorado River Basin Compact are binding, and protect Wyoming's share of the Colorado River System waters for future use. The argument that water may be used to greater profit downstream is not sufficient to reduce Wyoming's allocation. In addition, the no-injury rule under the appropriation doctrine of law does not appear to protect prior downstream appropriations from increasing salinity in this case.     

Comparing Environmental Flow Implementation Options with Structured Decision Making: Case Study from the Willamette River,Oregon

Many frameworks have been used to identify environmental flows for sustaining river ecosystems or specific taxa in the face of widespread flow alteration. However, these frameworks largely focus on identifying suitable flows and often ignore the important links between management actions, resulting flows, and valued ecosystem or social responses. Structured decision making (SDM) could assist the comparison of environmental flows by providing a mature framework to link management actions to objectives via environmental flow science. We describe SDM and illustrate its application using a case study focused on comparing environmental flow scenarios for the mainstem Willamette River, Oregon. In a short timeframe, SDM was applied to identify objectives, develop empirical and expert opinion‐based models, and compare flow scenarios while accounting for interannual flow variability and partial controllability. No scenario was clearly preferred based on available knowledge, largely because river flows could only be partially controlled through dam operations. Participants agreed that SDM was useful for comparing alternative dam operations, but that refined predictive models and additional objectives were needed to better inform basinwide flow decisions. In our view, SDM can provide more realistic comparisons of environmental flows by accounting for partial controllability and uncertainty, which may result in greater implementation of available flow management actions.