Water stress, water transfer and social equity in Northern China--implications for policy reforms

Water stress in Northern China is characterized with major, inefficient irrigation water use and rapidly growing non-agricultural water demands, as well as limited water quantity and declining water quality. Water use in the region is undergoing transfer from agricultural to municipal and industrial sectors. Currently, part of the economic loss and environmental damage due to water stress can be considered as a consequence of water transfer failures, including the current transfers, which hurt farmers' livelihood and income, and the needed transfers, which industry and cities have been waiting for but have not received. This paper starts with a discussion of the causes of water stress in Northern China, which is fundamental to understand the necessity and complexity of agricultural water transfers. Following that, it reviews water transfers in Northern China as a cause for concern over the social stability, economy and environment of the region. Based on an integrated analysis of economic, environmental, fiscal and social implications, this paper begins by identifying critical barriers to smooth water redistribution; and ends with implications for policy reforms, ensuring that farmers can and will save water. It is concluded that the decisions of water reallocation under water stress should be shared by communities at all levels, from the local to the national, to ensure equal access of water, especially the availability of the basic water need for all groups.     

Water scarcity: An alternative view and its implications for policy and capacity building

This article focuses on the somewhat ambiguous concept of scarce water, or, more accurately stated, on the rather more ambiguous concept of scarcity. Still today, water scarcity in a region is defined largely in physical terms, typically gallons or cubic metres per capita if a stock or per capita-year if a flow. However useful purely physical measures may be for broad comparisons, they cannot adequately reflect the variety of ways in which human beings use water — neither to their wastefulness when water is perceived as abundant nor to their ingenuity when it is not. This article argues that water scarcity should be defined according to three orders of scarcity that require, respectively, physical, economic and social adaptations. It goes on to demonstrate that perceiving scarcity mainly in physical terms limits opportunities for policy-making and approaches for capacity building.     

The economic value of water use: implications for implementing the Water Framework Directive in Scotland

The European Union Water Framework Directive (WFD) enshrines several economic principles in pursuit of 'good ecological status' for Europe's waters and rationalising water use in society. The implicit principle of maximising the social value from use of a scarce resource is reminiscent of the debate about treating water as an economic good, which has competing uses in society. This paper locates the debate about the economic value of water in the requirements of WFD. Specifically, we consider the implications of national reporting requirements for the economic characterisation report that stress the identification of relative value derived from use. As part of the Scottish contribution to the UK reporting exercise, we use a range of secondary data sources to derive economic values for water on a sector basis. We suggest whether the implications of different water values can be followed through in the WFD.     

Assessing equity and sustainability of water allocation in Colombia

Based on the national database of 28,104 water rights (concessions) granted in Colombia, this paper presents an analysis of how the principles of equity and sustainability are reflected in water allocation. Concessions appear to be an exclusionary mechanism since only a minority of small water users have concessions and the distribution of water volumes among those who have them is extremely inequitable. The 2009 Gini coefficient calculated for water concessions granted for agriculture was 0.90 compared with the rural land Gini of 0.88 (both indicators grouping holdings under the same entity). More than half of the Colombian departments have a higher Gini coefficient for water than for land, suggesting that water rights are at least as unequally distributed as land, in one of the most inequitable countries in Latin America. Water allocated to domestic, agriculture and hydropower use indicates a lack of consistency of water allocation criteria across regions. The volumetric and administrative attributes of water allocation in Colombia do not account for environmental flows or the concerns of marginalised groups of society that have limited access to the mechanism. Water allocation as a technical task, with limited transparency and secluded from public scrutiny, does not contribute to the solution of increasing water-related conflicts.     

THE POLITICAL INFLUENCE OF RESIDENTIAL CONSUMERS ON WATER RATES1

ABSTRACT: The regulatory process such as that for water rates can be viewed as a bargaining process between regulators, utility management, and consumers. This bargaining process involves both political and economic influences. In an attempt to empirically verify that utility rates are a product of both economic and political factors, a sample of publicly-owned water utilities was subjected to regression analysis. As expected, cost and cost-related factors were positive and significant determinants of residential water rates. Using an admittedly imperfect measure of residential user political influence, there was evidence that increased political activity results in lower water rates. Furthermore, the political influence and water rate linkage is more evident in small water utilities than in larger suppliers.     

Irrigated Agriculture and Wildlife Conservation: Conflict on a Global Scale

/ The demand for water to support irrigated agriculture has led to the demise of wetlands and their associated wildlife for decades. This thirst for water is so pervasive that many wetlands considered to be hemispheric reserves for waterbirds have been heavily affected; for example, the California and Nevada wetlands in North America, the Macquarie Marshes in Australia, and the Aral Sea in central Asia. These and other major wetlands have lost most of their historic supplies of water and some have also experienced serious impacts from contaminated subsurface irrigation drainage. Now mere shadows of what they once were in terms of biodiversity and wildlife production, many of the so-called "wetlands of international importance" are no longer the key conservation strongholds they were in the past. The conflict between irrigated agriculture and wildlife conservation has reached a critical point on a global scale. Not only has local wildlife suffered, including the extinction of highly insular species, but a ripple effect has impacted migratory birds worldwide. Human societies reliant on wetlands for their livelihoods are also bearing the cost. Ironically, most of the degradation of these key wetlands occurred during a period of time when public environmental awareness and scientific assertion of the need for wildlife conservation was at an all-time high. However, designation of certain wetlands as "reserves for wildlife" by international review boards has not slowed their continued degradation. To reverse this trend, land and water managers and policy makers must assess the true economic costs of wetland loss and, depending on the outcome of the assessment, use the information as a basis for establishing legally enforceable water rights that protect wetlands from agricultural development.     

Securing water for people, crops, and ecosystems: New mindset and new priorities

A fundamentally new approach to water and human development will be needed during this new century if we are to secure sufficient freshwater to meet the needs of some 9 billion people while at the same time protecting the critical ecosystem services upon which the human economy depends. Signs of unsustainable water use — including falling water tables, shrinking lakes, and the drying up of rivers and streams — are widespread and spreading. In many regions, greater modification and appropriation of freshwater systems for human purposes will yield greater costs than benefits and create the risk of irreversible losses of species and ecosystem services. A new mindset is needed to guide water use and management in this new century, one that views the human water economy as a subset of nature's water economy. Living within nature's limits will require that societies satisfy the basic needs of people and ecosystems before non-essential water demands are met. It will require on the order of a doubling of water productivity. And it will require stronger institutions to encourage equitable sharing of water to alleviate tensions within and between countries.     

WATER ALLOCATION POLICY MODELING FOR THE DONG NAI RIVER BASIN: AN INTEGRATED PERSPECTIVE1

Abstract: Recent water sector reforms and increased scarcity and vulnerability of water resources, combined with declining public funding available for large scale infrastructure investment in the sector, have led to a greater awareness by the Government of Vietnam for the need to analyze water resource allocation and use in an integrated fashion, at the basin scale, and from a perspective of economic efficiency. In this study we focus on the development, application, and selected policy analyses using an integrated economic hydrologic river basin model for the Dong Nai River Basin in southern Vietnam. The model framework depicts the sectoral structure and location of water users (agriculture, industry, hydropower, domestic, and the environment) and the institutions for water allocation in the basin. Water benefit functions are developed for the major water uses subject to physical limitations and to constraints of system control and policy. Based on this modeling framework, we will analyze policies that can affect water allocation and use at the basin level, including both basin-specific and general macroeconomic policies.     

VALIDATION OF POLITICAL SIMULATION MODELS -WATER RESOURCE PROJECTS1

ABSTRACT. The critical role of political processes in water resource projects has recently been placed in a new perspective [Hall, 1970]. The “political hassle” period of institutional interaction which serves to resolve political conflicts over such aspects as organizational growth and survival, responsibility for economic liabilities, and responsibility for economic benefits, requires systematic analysis in order to improve our capability to implement water projects. Failure to properly assess the political aspects of a proposed water project may result in extensive delays with significant economic losses. The complexities associated with water use and re-use have created the need for new institutional arrangements which can more effectively function to implement policies and programs. One tool which has recently become available for the research investigator concerned with institutional interactions and political processes associated with water resource projects is the technique of computer simulation of such institutional interaction. In theory, this new approach will enable the investigator to assess the political feasibility or political acceptability of a proposed water project given existing institutional structures. Furthermore, the investigator has the opportunity to experiment with new and innovative institutional arrangements which may in turn enhance the political acceptability of a proposed project. The specific material presented within this paper reports upon the validation of an existing computer simulation model designed to replicate political interactions in resource allocation problems-including water resource problems. This validation effort is done by taking an actual water problem and comparing what the political simulation models predicts in terms of political outcomes with what actually takes place. The case study in question is the formulation and legislative development of the Michigan Bond Issue for Water Pollution Control.     

Decision making for multiple utilization of water resources in New Zealand

The Clutha is the largest river in New Zealand. The last two decades have witnessed major conflicts centered on the utilization of the water resources of the upper Clutha river. These conflicts have by no means been finally resolved. The focus of this article is on institutional arrangements for water resource management on the Clutha, with particular reference to the decision-making processes that have culminated in the building of the high dam. It critically evaluates recent experiences and comments on future prospects for resolving resource use conflicts rationally through planning for multiple utilization in a climate of market led policies of the present government.The study demonstrates the inevitable conflicts that can arise within a public bureaucracy that combines dual responsibilities for policy making and operational functions. Hitherto, central government has been able to manipulate the water resource allocation process to its advantage because of a lack of clear separation between its two roles as a policy maker and developer. The conflicts that have manifested themselves during the last two decades over the Clutha should be seen as part of a wider public debate during the last two decades concerning resource utilization in New Zealand. The Clutha controversy was preceded by comparable concerns over the rising of the level of Lake Manapouri during the 1960s and has been followed by the debate over the think big resource development projects during the 1980s.The election of the fourth Labour government in 1983 has heralded a political and economic policy shift in New Zealand towards minimizing the role of public intervention in resource allocation and major structural reforms in the relative roles of central and regional government in resource management. The significance of these changes pose important implications for the future management of the Clutha.     

Is the National Water Commission an appropriate institutional and governance structure to address the fundamental requirements of the water and irrigation industry in Australia?

The National Water Commission (NWC) and the $2 billion Australian Government Water Fund (the fund) has drawn attention to the need for innovative and adaptive practices for water use. The NWC and the fund, whilst a critical and catalytic step in the recognition of the current water situation in Australia, has thus far neglected to consider the systemic failures of the water, irrigation and related industries that led to this point. The underlying issue of the efficient allocation of water resources can be resolved by the harmonisation of competing demands (economic, social and environmental) and the establishment of governance structures to reduce institutional impediments. The linking of the fund to National Competition Council (NCC) payments is an important consideration in this process. This paper will argue that governance reform and institutional (re)alignment to remedy the impediments to the efficient allocation of water resources needs to be embedded in and linked to national competition policy principles. This paper will consider the NWC in this context with the aim of informing future policy to consider the systemic failures of the water industry and to forge institutional change for the more effective allocation of water.     

Policy conditions for sustainable agriculture in the Netherlands

Summary Sustainability as a goal is widely accepted and ranked high on the political agenda. Although the operationalization of this concept differs, the range of opinions shows a pseudo-consensus. Sustainable agriculture is defined in this paper as an agriculture that fulfils functions with regard to food production, nature and landscape, and the development of the rural areas now and in the future. This requires a set of ecological criteria for the agricultural sector. Besides the ecological aspects, sustainable agriculture has consequences for the economic, cultural and socio-political aspects of society. This paper concentrates on the socio-political conditions for sustainable agriculture. An important strategy for the realisation of sustainable agriculture is the stimulation of sustainable initiatives of (groups of) farmers, in particular on a regional level. The future perspectives of such a bottom-upwards approach are described by giving some examples of initiatives of Dutch farmers. It will be argued that the national governmental policy has to enlarge the scope for the development of farming practices.Dr Ing L.G. (Ina) Horlings studied land and water management at the Larenstein International Agricultural College in Velp before studying geography at the University of Nijmegen. She currently works at this university as a researcher and lecturer in the Department of Environmental Policy Sciences at the University. She is writing her thesis on agricultural policy. Her publications relate to environmental aspects of spatial research, farmer's initiatives and agricultural landuse.     

Salt-induced land and water degradation in the Aral Sea basin: A challenge to sustainable agriculture in Central Asia

Expansion of irrigated agriculture in the Aral Sea Basin in the second half of the twentieth century led to the conversion of vast tracks of virgin land into productive agricultural systems resulting in significant increases in employment opportunities and income generation. The positive effects of the development of irrigated agriculture were replete with serious environmental implications. Excessive use of irrigation water coupled with inadequate drainage systems has caused large‐scale land degradation and water quality deterioration in downstream parts of the basin, which is fed by two main rivers, the Amu‐Darya and Syr‐Darya. Recent estimates suggest that more than 50% of irrigated soils are salt‐affected and/or waterlogged in Central Asia. Considering the availability of natural and human resources in the Aral Sea Basin as well as the recent research addressing soil and water management, there is cause for cautious optimism. Research‐based interventions that have shown significant promise in addressing this impasse include: (1) rehabilitation of abandoned salt‐affected lands through halophytic plant species; (2) introduction of 35‐day‐old early maturing rice varieties to withstand ambient soil and irrigation water salinity; (3) productivity enhancement of high‐magnesium soils and water resources through calcium‐based soil amendments; (4) use of certain tree species as biological pumps to lower elevated groundwater levels in waterlogged areas; (5) optimal use of fertilizers, particularly those supplying nitrogen, to mitigate the adverse effects of soil and irrigation water salinity; (6) mulching of furrows under saline conditions to reduce evaporation and salinity buildup in the root zone; and (7) establishment of multipurpose tree and shrub species for biomass and renewable energy production. Because of water withdrawals for agriculture from two main transboundary rivers in the Aral Sea Basin, there would be a need for policy level interventions conducive for enhancing interstate cooperation to transform salt‐affected soil and saline water resources from an environmental and productivity constraint into an economic asset.     

Multi-Criteria Decision Analysis of Treated Wastewater Use for Agriculture in Water Deficit Regions1

Al-Juaidi, Ahmed E., Jagath J. Kaluarachchi, and Ungtae Kim, 2010. Multi-Criteria Decision Analysis of Treated Wastewater Use for Agriculture in Water Deficit Regions. Journal of the American Water Resources Association (JAWRA) 46(2):395-411. DOI: 10.1111/j.1752-1688.2009.00409.x Abstract: Coastal regions such as the Gaza Strip of Palestine with limited freshwater supply suffer significantly due to the rapid depletion of water levels, seawater intrusion, and increased water demands. In such regions, use of treated wastewater (TWW) is a viable option if public health issues are addressed. The goal of this paper is to address the use of TWW in agriculture while considering net benefit, economic efficiency of water use (EEWU), environmental goals, and public health risks. The proposed methodology considers public health risk assessment and multi-criteria decision analysis to assess the beneficial use of TWW in agriculture. The methodology was demonstrated for the Gaza Strip. The health risk assessment suggests that increasing the elapsed time between irrigation and consumption and switching from surface to sprinkler and drip irrigation are practical measures to reduce public health risks. The optimization and decision analyses show that proper allocation of freshwater and TWW and distribution of land area by crop type can significantly increase the net benefit and EEWU. In most cases, net benefit increased by 44%, groundwater use reduced 29% while increasing the EEWU by threefold compared with the existing conditions. The multi-criteria decision analysis with weighted goal programming can develop flexible management options that considers a given decision-maker preference. When groundwater abstraction for agriculture reduced from 57 to 36 Mm³ as per decision analysis, the corresponding area below mean sea level decreased by 58% indicating significant aquifer recovery.     

EFFICIENCY IN THE USE OF WATER FOR IRRIGATION: THE ROLE OF PRICES AND REGULATIONS

Efficiency in the use of water for irrigation is normally defined in a physical sense - engineering and agronomic; and it is often assumed that higher efficiency is desirable. However, in an economic sense, there is an optimum range in the level of physical efficiency. Normally it can be said that as water prices increase, it becomes more rational to increase physical efficiency by selecting and adopting improved methods of controlling, measuring and applying water, and to design systems of pricing and regulations that will promote optimal allocation and efficient use. However, the value of water is often extremely low, in which case there may be little economic incentive to improve physical efficiency unless forced by physical factors that affect production and productivity such as soil characteristics, waterlogging or nutrient leaching.
The combination of regulations and prices that are used to allocate irrigation water reflect the conflicting goals of redistribution of income in favor of agriculture and needs to encourage efficient use of water. Regulations and pricing systems also depend on the value of water, the dependability of supplies, systems of delivery and the extent to which flows can be regulated.
Using examples and case studies, this paper discusses physical and economic efficiencies and their interrelationships. It emphasizes the role of pricing and regulations and provides general guidelines.     

Economic and Ecological Transformation Processes in East German Water Management Regimes: The Role of Property Rights and Governance Structures

As in many fen land regions in East Germany, long-standing intensive arable farming—enabled by reclamation—has caused soil deterioration and high water runoff in the Schraden region. The more than ten years of economic and political transformation that followed the breakdown of the socialist regime has worsened the situation and even added new problems. The visible consequences are droughts in the summer, waterlogged plots in the spring, and worn-down water management facilities that operate in an uncoordinated or even unauthorized way. Given the local public-good character of some features of the fen land, the common-pool character of the ecosystems intermittently scarce resource water, and the conflicting interests of regional stakeholders, it is argued that the reallocation of property rights over reclamation systems, together with ineffective coordination mechanisms, have caused the physical and institutional failure of the water management system and so impeded appropriate land use. Note: This version was published online in June 2005 with the cover date of August 2004.     

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.     

Total-factor water efficiency of regions in China

Water is a limited and unevenly distributed resource in China, with the per capita amount of water resource there only about one-fourth of the world's average. However, water is an essential resource for people's lives and economic development. Over the past two decades China has seen the fruit of its rapid economic growth; nevertheless, a severe water shortage is behind this prosperous scenario and is becoming worse. Efficient water supply is certainly essential for the sustainable development of human beings. This paper analyzes water efficiency by incorporating water as an input as well as using conventional inputs such as labor employment and capital stock. An index of a water adjustment target ratio (WATR) is established from the production frontier constructed by data envelopment analysis (DEA) including water as an input. The water efficiency of regions is obtained from a total-factor framework with both residential and productive water use. A U-shape relation is discovered between the total-factor water efficiency and per capita real income among areas in China. The central area has the worst water efficiency ranking and the total adjustment amount of water used there is around three-fourths of China's total. More efficient production processes and advanced technologies need to be adopted in the central area to improve its water efficiency, especially for its productive use of water.     

The small-scale water provider in Paraguay: bringing private sector efficiency to water resource use and the provision of drinking water to the poor

This article provides a case study of small-scale private sector provision of water supply in Paraguay, where the Government has sought sector policy reforms that would encourage private investment in drinking water supply. Ironically, while the Government has focused almost entirely on garnering the interest of large private international water companies, much smaller local firms have already made significant investments in drinking water services for the poor, all without any participation or encouragement from the Government. Outside Paraguay's two major cities, Asunción and Ciudad del Este, large numbers of aguateros currently provide piped potable water to lower-income people. Though the aguateros have little legal footing — they are in many respects informal and unregulated —they have constructed as much as one third of all the new drinking water connections in these two cities over the past 20 years. The small-scale water systems in Paraguay offer a model of financial, economic, and water-use efficiency. This article asserts that an abundance of groundwater resources, cheap access to electricity for pumping, and a spirit of informal investment, among other variables, has spawned widespread use of this approach. This article documents and analyzes the features of these independent small-scale water providers in Paraguay and the efficiency they bring to the use of water resources in meeting drinking water demands among the poor. It also cautions against policies that may trample on such entrepreneurial spirit in the name of State-managed privatization.     

Gender in integrated water management: an analysis of variation

Gender is an important variable in water use, policy, and intervention. This article explores this variation and its policy implications. Concepts are applied in several case studies to draw generic conclusions. Variation is related to the purpose of water use (consumptive or productive) and to the local, culture-specific patterns of the intra-household organization of consumption for family welfare (which includes domestic water provision) and income-generation (for which water is an input, especially in rural areas). For domestic water use, the intra-household sharing of unpaid domestic responsibilities is a key gender issue. Water for productive use, on the other hand, is embedded in the gendered organization of household economic activity, as elaborated for smallholder-irrigated agriculture. In female-managed and dual farming systems, where a high proportion of farm decision-makers are women, irrigation agencies need to better target their support. In male-managed farming systems, however, the majority of women lack their own farm enterprise in which water is an input. Women's access to land, markets and credits besides access to water, is at stake. To conclude, given the strong variation in water use along gender lines, gender analysis is indispensable for any concrete water policy and intervention.