THE ECONOMIC FEASIBILITY OF DUAL PURPOSE NUCLEAR DESALINATION OF GROUND WATER1

ABSTRACT: The economic feasibility of a large scale dual purpose (desalting water and power production) facility were evaluated. Although a site in the Tularosa basin of southern New Mexico was chosen as a case study for this analysis, it is believed that the approach and consequential results would be applicable to alternative sites in the Southwest. The basic project evaluated included: a) a ground water well field; b) a dual purpose, nuclear, desalination plant; c) a mineral recovery plant; and d) a reservoir for recreation and irrigation storage. Principle project outputs included electrical power, minerals, recreation, and water for either irrigated agricultural production or export to an adjoining river basin. Two alternative project designs were developed for detailed analysis. The first alternative encompassed all major project components. The results, in discounted net values used to assess the feasibility of the project, were essentially negative; that is, values were less than zero for full scale development. The net benefits ranged from $-986.57 million at a 5 percent discount rate, to $-1,137.528 million at a discount rate of 10 percent. In the second alternative, exportation of the desalted water from the Tularosa basin to two adjacent rivers was analyzed with somewhat better net benefits, ranging from $-382,527 million to $-478,612 million at the 5 and 10 percent discount rates.     

MEASURING THE SITE-SPECIFIC RECREATION BENEFITS RESULTING FROM IMPROVED WATER QUALITY: AN UPPER BOUND APPROACH1

The estimation of the value of recreation benefits resulting from improved water quality is required for many purposes. In particular, the Water Pollution Control Act of 1980 requires the consideration of the reasonableness of costs of reducing water pollution in relation to benefits to be derived from establishing effluent standards (Clean Water Act of 1977). Recreation is often the most important benefit resulting from water quality improvement. Current methods used to calculate recreation benefits are either not site-specific or are expensive and controversial. This paper presents a relatively simple, inexpensive, and less controversial method of calculating site-specific recreation benefits resulting from improved water quality. It does this by producing an upper bound estimate which often is adequate for the relevant decision. The upper bound estimates is based on two assumptions: 1) there are alternative equivalent substitute sites for the newly augmented water quality site, and 2) the new augmented recreation opportunities at the site will be used to their maximum supply capacity. Clearly, if an upper bound benefit estimate in a cost-benefit ratio does not produce a favorable ratio, no other benefit estimate will. In cases where this estimate produces an ambiguous result resort must be had to other more precise methods of estimation.     

Wildfire effects on hiking and biking demand in New Mexico: a travel cost study

We use a travel cost model to test the effects of wild and prescribed fire on visitation by hikers and mountain bikers in New Mexico. Our results indicate that net benefits for mountain bikers is $150 per trip and that they take an average of 6.2 trips per year. Hikers take 2.8 trips per year with individual net benefits per trip of $130. Both hikers' and mountain bikers' demand functions react adversely to prescribed burning. Net benefits for both groups fall as areas recover from prescribed burns. Because both visitation and annual recreation benefits decrease to these two types of visitors, this gives rise to multiple use costs associated with prescribed burning. With respect to wildfire, hikers and mountain bikers both exhibit decreased visitation as areas recover from wildfires, however, only hikers indicate an increase in per trip net benefits. Bikers' demand effectively drops to zero. These results differ from previous findings in the literature and have implications for efficient implementation of the National Fire Plan and whether prescribed burning is a cost effective tool for multiple use management of National Forests. Specifically, that fire and recreation managers cannot expect recreation users to react similarly to fire across recreation activities, or different geographic regions. What is cost effective in one region may not be so in another.     

A NET BENEFIT MODEL FOR RECREATION PLANNING AT DRINKING WATER RESERVOIRS1

A management model was developed for determining levels of recreation activities at public drinking water reservoirs. Quabbin Reservoir, located in central Massachusetts, served as a case study for the model. An interdisciplinary research team was formed to study the impact of selected recreation activities on water quality, public demand and willingness to pay for selected recreation activities, carrying capacity constraints, and the economic cost/benefits associated with increases in recreation at the Quabbin Reservation. Study variables were integrated into a quadratic programming model, producing the number of participants that corresponds to maximum net benefits for specific development packages on design days. The recreation mix associated with maximum net economic benefits was found to be cost-effective (assuming the use of reasonable entrance fees) and not deleterious to water quality. However, as a result of the findings of a related study, it was recommended that nutrients, particularly from wastewater, not be permitted to enter the reservoir, since the current phosphorous level may be at a critical point. Management techniques that would safeguard against this occurrence were recommended. The model was sensitive to management objectives; recommendations were limited to activities that would not lower the existing high quality of Quabbin water.     

Impacts of changes in water quality on recreation behavior and benefits in Finland

The implementation of the European Union Water Framework Directive (WFD) requires nationally generalizable estimates of the benefits of protecting inland and coastal waters. As an alternative to benefit transfers and meta-analyses, we utilize national recreation inventory data combined with water quality data to model recreation participation and estimate the benefits of water quality improvements. Using hurdle models, we analyze the association of water clarity in individuals' home municipalities with the three most common water recreation activities – swimming, fishing and boating. The results show no effect on boating, but improved water clarity would increase the frequency of close-to-home swimming and fishing, as well as the number of fishers. Furthermore, to value the potential benefits of the WFD, we estimate the consumer surplus of a water recreation day using a travel cost approach. A water policy scenario with a 1-m improvement in water clarity for both inland and coastal waters indicates that the consumer surplus would increase 6% for swimmers and 15% for fishers. In contrast to previously estimated abatement costs to improve water quality, net benefits could turn out to be positive. Our study is a promising example of applying existing national recreation inventory data to estimate the benefits of water quality improvements for the purposes of the WFD.     

CLEAN WATER ACT REAUTHORIZATION: HOW FAR HAVE WE COME?1

ABSTRACT: This paper first presents a brief review of an earlier effort to estimate the benefits associated with achieving the Clean Water Act objectives. It then discusses what would be involved in doing a retrospective benefit-cost analysis of the Clean Water Act and some information on changes in several measures of water quality over the past 20 years. The paper concludes with a summary of a recent effort to estimate the realized benefits associated with the Clean Water Act and some implications for policy. (KEY TERMS: benefits; benefit-cost analysis; costs; recreation; water pollution; water quality.)     

THE WATER RESOURCES COUNCIL'S PROPOSED PRINCIPLES AND STANDARDS - AN ECONOMIC COMMENT1

The way the Water Resources Council proposes to measure the beneficial effects of national economic development and recreation is questioned and alternatives suggested. In measuring the former, the assumptions specified by the Council are questioned because they do not hold true in the market place. In addition, the Council's method of simulating a price per recreation day implies that an arbitrary price be selected from a range and multiplied times the number of days at no charge for use of the facilities. It is contended that these procedures would over state the economic benefits which in the real market would be measured by the selected price times the quantity demanded at that price.     

A METHODOLOGY FOR OUTDOOR RECREATION ANALYSIS IN A STATE WATER RESOURCES PLANNING STUDY1

ABSTRACT: The paper presents a methodology for outdoor recreation analysis in a comprehensive State water resources planning study. This methodology applies to determination of recreation participation desires among the population, allocation of those desires to areas of potential resources within which they must be satisfied, comparison of the areal potential resources against the allocated desires to identify areas having recreational resource deficits or needs, and exploration of alternative solutions to the identified needs. Major elements discussed are: market area, inflow-outflow, resource desire determination and projection, resource desire allocation, facility inventory, resource desire-resource analysis and alternative solutions to identified needs of water-oriented outdoor recreation.     

Capabilities and management utility of recreation impact monitoring programs

A recreation impact monitoring system was developed and applied in 1984–1986 and in 1991 to all backcountry river-accessed campsites within Delaware Water Gap National Recreation Area, Pennsylvania and New Jersey. Results suggest that actions implemented by park managers in response to problems identified by the initial survey were highly effective in reducing resource degradation caused by camping. In particular, the elimination of some designated campsites and installation of anchored firegrates reduced the total area of disturbance by 50%. Firegrate installation provided a focal point that increased the concentration of camping activities, allowing peripheral areas to recover. As suggested by predictive models, additional resource degradation caused by increased camping intensities is more than offset by improvements in the condition of areas where use is eliminated. The capabilities and management utility of recreation impact monitoring programs, illustrated by the Delaware Water Gap monitoring program, are also presented and discussed.     

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.     

BENEFITS OF POLLUTION CONTROL ON MASSACHUSETTS’ HOUSATONIC RIVER: A HEDONIC PRICING APPROACH1

ABSTRACT: This paper illustrates one mode of analysis for estimating the benefits of water pollution control projects. Results indicate regional benefits associated with an abatement program instituted for point source pollution along the Housatonic River during the 1960's were substantial. Studies of this kind can aid regulatory and recreation resource administrators in devising and evaluating environmental programs.     

Monetary assessment of the recreational benefits of improved water quality – description of a new model and a case study

The European Union Water Framework Directive (WFD) has created a demand for comparing the benefits and costs of the remedial measures. A major part of the benefits from improved water quality relate to the increased recreational value. However, there is a lack of easily operative and widely applicable quantitative methods to assess the benefits of improved water quality for recreational use. We present a new model to link physical indicators of water quality, water feasibility indicators for different recreational uses, individuals’ perceptions concerning the current feasibility of water for recreational purposes and monetary measures of water-related recreation benefits. The model has been applied to nine lakes, three rivers and one large coastal area in Finland. In this paper, we present the principles of the method and the results from one case study. In Finland, the method has been applied for the economic analysis required in the WFD.     

PREFERENCES FOR ALLOCATING RIVER RECREATION USE1

Allocating river recreation use to commercial and private sectors on white water rivers has been highly controversial. How this process is implemented may affect not only the availability of recreation opportunities to individual users, but may also negatively impact the user's desire to escape from the pressures and stresses of everyday life. In a study of users of Idaho's Middle Fork of the Salmon River, an Even-Pool allotment technique was preferred over others by the commercial, private, and rejectee individuals sampled. A lottery technique for rationing private use permits was preferred by private users and rejectees, while commercial users preferred Advance Reservation. No relationship was found between the users' stress release/escape expectations and their preferences for the different allotment and rationing techniques studies. Such results suggest that river managers may have considerable latitude in selecting allocation techniques that do not adversely affect on-site recreation experiences.     

Uncertainty in exhaustible natural resource economics: The irreversible sunk costs of Hotelling

According to Pindyck (2007) there are three important aspects of uncertainly in environmental economics: (1) the benefits and costs of environmental policy tend to be highly non-linear, (2) environmental policy tends to involve important irreversibilities, where investment in pollution abatement can impose an irreversible, sunk cost on society, and where certain pollutants can stay in the environment forever and build up to cause even more future harm in which case investment in abatement can cause an irreversible, sunk benefit to society, and (3) environmental policy involves long time horizons and yet the discount rate society should use is uncertain for determining the net present value of costs and benefits of pollution abatement. These same uncertainties also affect non-renewable, exhaustible, natural resource economics and in particular the use of the Hotelling rule: (1) the costs, benefits and transversality conditions of using the Hotelling rule can be highly non-linear, (2) the Hotelling rule involves important sunk cost irreversibilities, which will be explained here, and (3) the Hotelling rule can involve long time horizons with uncertain discount rates. All three of these problem make it extremely difficult for a market to use in any way the Hotelling rule, yet by the sheer number of articles in non-renewable natural resource economics, one would believe that it is the basis of all resource markets. In this article, we concentrate on the sunk cost irreversibilities of using the Hotelling rule. The idea of the Hotelling rule is to optimally store a non-renewable resource, but the optimization is highly dependent on the actual reserves that are available to extract. However, reserves of underground exhaustible resources are often unobservable at the beginning stages of extraction which makes using the Hotelling Rule difficult.     

Integrating Social Marketing into Sustainable Resource Management at Padre Island National Seashore: An Attitude-Based Segmentation Approach

High demand for outdoor recreation and increasing diversity in outdoor recreation participants have imposed a great challenge on the National Park Service (NPS), which is tasked with the mission to provide open access for quality outdoor recreation and maintain the ecological integrity of the park system. In addition to management practices of education and restrictions, building a sense of natural resource stewardship among visitors may also facilitate the NPS ability to react to this challenge. The purpose of our study is to suggest a segmentation approach that is built on the social marketing framework and aimed at influencing visitor behaviors to support conservation. Attitude toward natural resource management, an indicator of natural resource stewardship, is used as the basis for segmenting park visitors. This segmentation approach is examined based on a survey of 987 visitors to the Padre Island National Seashore (PAIS) in Texas in 2003. Results of the K-means cluster analysis identify three visitor segments: Conservation-Oriented, Development-Oriented, and Status Quo visitors. This segmentation solution is verified using respondents’ socio-demographic backgrounds, use patterns, experience preferences, and attitudes toward a proposed regulation. Suggestions are provided to better target the three visitor segments and facilitate a sense of natural resource stewardship among them.     

Learning-by-catching: uncertain invasive-species populations and the value of information

This paper develops a model of invasive species control when the species’ population size is unknown. In the face of an uncertain population size, a resource manager's species-control efforts provide two potential benefits: (1) a direct benefit of possibly reducing the population of invasive species, and (2) an indirect benefit of information acquisition (due to learning about the population size, which reduces uncertainty). We provide a methodology that takes into account both of these benefits, and show how optimal management decisions are altered in the presence of the indirect benefit of learning. We then apply this methodology to the case of controlling the Brown Treesnake (Boiga irregularis) on the island of Saipan. We find that the indirect benefit—the value of information to reduce uncertainty—is likely to be quite large.     

Perceptions of Community Benefits from Two Wild and Scenic Rivers

Wild and Scenic Rivers provide a host of psychological, social, ecological, and economic benefits to local communities. In this study, we use data collected from recreational users of two Wild and Scenic Rivers to examine perceptions of the benefits provided by the rivers to local communities. Our purposes are (1) to determine if similar perceptions of community benefits exist across the two rivers, (2) to determine if individuals’ proximity to the rivers are related to the benefits they perceive, (3) to determine if individuals’ prior recreation experience on the river is related to variations in perceived benefits, (4) to determine if users’ sociodemographic characteristics are related to perceived community benefits, and (5) to determine if the influence of these characteristics on perceived community benefits is similar across the two resource areas. Perceived benefits were found to be analogous across both rivers as individuals consistently ranked ecological/affective benefits as well as tangible benefits similarly. Recreationists living further from the river ranked ecological and affective benefits as significantly less important than those individuals living closer to the river. Women perceived the community benefits produced by the resource areas to be significantly more important when compared to men. Significant relationships were also found between perceived benefits and recreationists’ previous use of the river, their age, and their level of education. With the exception of resource proximity and prior use history, the effects of user characteristics on perceived community benefits were not statistically different across the two rivers. These findings imply similar patterns of perceived community benefits exist across distinct resource areas and that the relationships between user characteristics and perceived benefits are also similar across the study rivers.     

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.     

Ranking the benefits of biodiversity: an exploration of relative values

Public concern about the alarmingly high rate of biodiversity loss has not been matched by public willingness to bear boundless costs to stem the tide of extinction. Because resources for conservation are limited, setting conservation priorities to use those resources effectively is crucial. To do so in a way that addresses people's most pressing concerns about biodiversity loss, managers and policy makers must understand those concerns. This study investigates preferences for an array of benefits associated with biodiversity and wildlife and the relative importance to people of each. A survey was administered to a sample of the US population to explore public preferences for types of benefits often associated with biodiversity: utilitarian (commodity and recreation), ecological (certain and uncertain), aesthetic, symbolic, and humanistic. Respondents were asked to rank hypothetical species presented in choice sets of three species, each described simply in terms of one type of benefit. A rank-ordered multinomial logit model was estimated to establish a ranking of the benefits and evaluate the sensitivity of the ranking to socio-demographic variables. The means of the sample predictions indicated the relative importance of each type of benefit. Confidence intervals were constructed to evaluate the extent to which the ranks could be distinguished from one another. Ecological functions were most important to survey respondents; commodity-based benefits and human attributes were of moderate importance; and recreation, aesthetics, and symbolic references in literature and art appeared to be least important.