RUNOFF IMPOUNDMENT FOR SUPPLEMENTAL IRRIGATION IN TEXAS1

ABSTRACT: The current increase in the demand for water by municipal, industrial, and other users is likely to result in approximately one-third less water being available for agricultural use in Texas by the year 2000. As water supplies diminish, the rainfall excess needs to be used more efficiently. Large amounts of runoff occur in the eastern part of Texas that could be collected in small impoundments and utilized for crop production. Farmers in water-surplus basins or subbasins can apply for a permit to divert surface water into small on-farm impoundments to be used for supplemental irrigation. The costs for runoff collection and two supplemental irrigations, which amount to a total of 4 in./yr., are estimated to be approximately $60/acre/year. Depending upon the crop produced, the estimated increase in gross income from supplemental irrigation ranges from about $80 to more than $100 per acre annually.     

ECONOMIC IMPACTS OF THE LIMITED IRRIGATION-DRYLANI) (LID) FURROW IRRIGATION SYSTEM'

ABSTRACT: Changes in cropping patterns, water use, and profitability of producing sorghum with the LID (Limited Irrigation-Dryland) furrow irrigation system were compared with conventional irrigation practices. A recursive linear programming model was used to assess the economic impacts over a ten-year period. The analysis of various water resource situations in the High Plains of Texas indicated the LID system increased irrigated sorghum acreage over conventional practices. Although less irrigated and dryland wheat was generally produced, present value of returns increased from about $18 per acre to $50 per acre. Water use was slightly higher in most situations when using the LID system.     

A hedonic model of public market transactions for open space protection

A hedonic price function is estimated that illustrates how the price per acre of open space paid by public buyers such as counties or land trusts, is influenced by local demand and supply factors. The empirical regression model is illustrated using 133 public transactions (73% are purchases and 27% are easements) of open space in the Front Range of Colorado. The mean price per acre was $13 635. If a property provides access to water bodies, this feature increases the price per acre by $937, while adjacency of the parcel to existing park or open space adds $11 039 an acre. A 1% increase in county population results in a 0.27% increase in price per acre. Easements cost $6783 less than purchases, a sizeable cost saving. The prediction capability of the hedonic price equation may be an alternative to traditional real estate appraisal techniques when agencies must determine fair market values of prospective open space parcels that vary in attributes from existing ones.     

LINEAR PROGRAMMING USE FOR EVALUATING WATER RESOURCES AND COST AND BENEFIT ALLOCATION1

ABSTRACT A linear programming model for a river basin was developed to include almost all water-related economic activity both for consumers and producers. The model was so designated that the entire basin or basin sub-division could be analyzed. The model included seven sectors, nine objective function criteria, and three river-flow levels. Economic basis for conflicts among sectors over incidence of cost allocation and level of economic activity can be traced to some chosen objective. The disposal of untreated household waste water, particularly from the rural household, directly into the river was consistent with maximizing net benefits and minimizing costs. The optimum resource allocation, water-treatment plants, farms and industry activities would change with flow level. For each of the three industries analyzed separately, paper, wool and tanning, public treatment of industrial waste water was the optimal treatment process in one or more of the solutions. Lake shoreline was the dominant feature determining lake-resource valuation. Implied capital value varied from $126 per shoreline foot to over $250 depending on discount rate. Implied prices on lake surface ranged from $42 to $147 per acre. Strong economic forces encouraged small lot sizes for vacation cottages.     

POTENTIAL IMPACT OF IRRIGATION ON WATER RESOURCES IN THE LITTLE WABASH BASIN OF ILLINOIS1

The level of water demand for supplemental irrigation and the impact of such demand on water supplies were estimated, as a function of the price of corn (Zea Mays L.). The method of estimation was based on an economic analysis of irrigation practice which assumed constant irrigation costs, profit maximizing behavior on the part of irrigators, and which was deliberately structured to underestimate the level of irrigation water use. The analysis was applied to and used data from the Little Wabash basin in Illinois. No irrigation was predicted at a corn price below $3.50 per bushel. Between $3.50 and about $6.50 per bushel, irrigation was estimated to be profitable for a small region of the basin where acceptable groundwater was available. Above about $6.50 to $7.50, irrigation was found to be profitable in the remainder of the basin, where impoundment storage was required. The potential impact on the water resources of the basin is significant. For a corn price between $3.50 and about $6.50, the probability of a shortfall, defined as the event where the potential demand exceeds the supply, was estimated to be between 2 percent and 20 percent during the growing season. Above about $7.50, this probability was found to be about one-third. The development of policies to control withdrawals for irrigation and other uses is endorsed.     

DESALTING SALINE WATER FOR IRRIGATION A CASE STUDY,COACHELLA AREA,CALIFORNIA1

ABSTRACT .A case study was performed to evaluate potential applications of desalted saline water for agriculture using 2 distillation type processes and 2 membrane type processes. The investigation determined the costs and benefits associated with desalting saline water at concentrations of 1,500, 900, 400, 200, and 50 ppm. Benefits from desalting are generated by shifts to more profitable crops, reduced costs for drainage, and reduction in fertilizer and labor requirements with better quality water. Costs are based on the project features such as desalting plants, raw water diversion facilities, storage reservoirs, conveyance and distribution systems, brine disposal, blending facilities, and gypsum addition systems. Hydrologic studies determined the crop irrigation requirements, water demand schedules, desalted water storage requirements, brine disposal requirements, and size of facilities required. Reconnaissance design layouts were made for producing desalted water using a combination of 14 schemes. The study also included a review of irrigation practices. The benefit-cost ratios range from 0.4 to 1.0 for 1,500 ppm irrigation water to 0.8 to 1.0 for 50 and 200 ppm water. Investment costs per acre are high, ranging from $12,900 to $20,900. Irrigation benefits are based on the increase in production from a desert condition with no water supply to the irrigation conditions studied.     

THE ECONOMIC VALUE OF GROUND WATER RECHARGE FOR IRRIGATION USE1

ABSTRACT: Artificial recharge as a means of augmenting water sup plies for irrigation is a management alternative which policy makers in ground water decline areas are beginning to consider seriously. A conceptual model is developed to evaluate the economic benefits from ground water recharge under conditions where the major water use is irrigation. The methodology presented separates recharge benefits into two components: pumping cost savings and aquifer extension benefits. This model is then applied to a Nebraska case to approximate the value of recharge benefits as a function of aquifer response. discount rate, and commodity prices. It was found that recharge benefits vary from less than $2 to over $6 an acre foot recharged.     

AN EVALUATION OF THE 1997 EDWARDS AQUIFER IRRIGATION SUSPENSION1

ABSTRACT: In early 1997, the Texas Edwards Aquifer Authority implemented a pilot Irrigation Suspension Program with the objectives of increasing springflow and providing relief to municipalities during drought. Irrigators were paid an average of $234 per acre to suspend water use, a price higher than regional land rental rates. Auction theory and program implementation details suggest that the program implementation partially caused inflated bids. The Irrigation Suspension Program is also compared to two alternative programs: (1) subsidizing more efficient irrigation technology and (2) buying land. The irrigation suspension is found to be more cost‐effective relative to subsidizing improved irrigation efficiency because it can be put in place only when aquifer levels are low. Land purchase is a cheaper alternative if the bid levels remain at the levels observed.     

Optimal hardwood tree planting and forest reclamation policy on reclaimed surface mine lands in the Appalachian coal region

We study the optimal hardwood tree planting decision on reclaimed surface coal mines in the Appalachian region using a mine operator-focused, expected cost model that recognizes costs of preparing the site for tree planting, unit costs of planting seedlings, and opportunity costs of reforestation treatments and the performance bond. We also consider the possibility of failed initial attempts by incorporating the probability of reforestation success, based on empirical seedling ,survival rates and regulated tree survival standards, as well as fixed and unit costs of returning for additional planting. Optimal planting levels from 319 to 780 trees per acre and expected costs from $1049 to $2338 were found using simulations over a range of unit planting costs, fixed costs of replanting, tree survival standards, and interest rates. Further simulations compared optimal planting across un-weathered gray sandstone and weathered brown sandstone substrate materials, finding gray sandstone to be associated with lower expected costs. We conclude that optimal planting density and expected reforestation cost are sensitive to economic parameters, regulations, and planting substrate materials; and those policies influencing these factors may have substantial impact on reforestation outcomes and the choice of post-mining land use by mine operators. Our study provides a framework for understanding forest reclamation decisions that incorporates incentives faced by the mine operators who develop and implement the plans for mine reclamation, including forestry.     

World phosphate supply

The Bureau of Mines investigated the resources, costs, capacities, market relationships, and short- and long-run supply of phosphate rock and phosphoric acid. The 206 mines and deposits evaluated in 30 market economy countries (MECs) contain an estimated 35.1 billion tonnes of recoverable phosphate rock (demonstrated resource level). US resources are sufficient to satisfy both the domestic market and an export market for phosphate products well beyond 2000. Resource depletion at current producers, however, means new property development (with higher costs) will be required if US production levels are to be maintained. Existing worldwide capacity can satisfy expected demand through the early 1990s. Expansion at existing mines or low demand growth could mean no new property development is required before the late 1990s. Worldwide, almost $8 billion could be required for the development of new phosphate rock properties between now and 2000, given 3% annual growth in demand. Though profit may not be the principal motivation for development of government-owned operations, most properties that could develop in the 1990s would require price increases of 20–50% to break even. To earn a 15% rate of return on investment, prices must rise to nearly double the $23–271 tonne US price level of 1988. Current US phosphate rock and phosphoric acid producers appear to be competitive (on a variable cost basis) with many other suppliers in major markets. New US properties will have higher variable costs than current producers; however, they are competitive with most projected new foreign development. The US phosphoric acid industry will most likely face increased competition as more of the foreign phosphate rock producers develop the capacity to process rock into phosphoric acid and other fertilizer products.     

Population,environment, and development

The strategies for reducing population growth include social development and improvement in the educational attainment of women. The decline in Kenya's growth rate was attributed to high female literacy and reduced infant mortality. Another strategy for enhancing fertility decline is to reduce child mortality, particularly from preventable causes such as diarrhea. The entire cost of such a strategy to reduce preventable disease would be about $1.33 per 300 million taxpayers in developed countries. Family planning services must be expanded. Prevention of maternal mortality and AIDS would bring major benefits. Strategies for environmental protection emphasized the already existing plan of action set out in the UNCED document Agenda 21 in Rio de Janeiro. The plan has suffered from inaction. The estimated cost of $625 million was considered to be several times smaller than the costs of inaction. The elimination of subsidies in tropical forests would have an immediate impact. Natural resource accounting at the national level would include the value of natural resources. Pricing would change radically for gasoline if the costs of urban smog, acid rain, low-level ozone pollution, and global warming were taken into account. Strategies for sustainable development pertained to the preceding strategies and others indicated in the Agenda 21 Action Plan. If funding were better targeted to the poorest 20% of global population with high fertility rates, the accomplishments would be heralded. 1.2 million are living in absolute poverty, and aid for nutrition, primary health care, water and sanitation, basic education, and family planning amounts to only 10% of expenditures. An increase to 20% would mean a contribution from Americans of $7.50 per person or 33% of $25 thousand million from all developed countries. Developing countries need to lower their military expenditures, privatize public enterprises, change inappropriate development policies, eliminate corruption, and improve national governance. The debt burden should be reduced.     

ECONOMIC GROWTH THROUGH WATER RESOURCE DEVELOPMENT: INDIA1

ABSTRACT India's multidimensional water development programs have contributed significantly to the promotion of the country's economic growth. Rapid growth of irrigation has substantially increased agricultural production. Hydro power generation has doubled during the last two decades, and this has accelerated industrialization and extended rural electrification. Minor irrigation has taken on a new importance in the Fourth Five Year Plan, signifying a departure from the earlier Plans. “Green Revolution” owes a large measure of its success to the availability of assured water supplies. Water development projects have also generated tremendous employment opportunities. Despite its pronounced impact on the economy, India's water planning strategy has some glaring weaknesses: the failure to incorporate “indirect benefits” in cost-benefit calculations; the under-utilization of water potential; and, the progressive increase in the cost of irrigating an acre of land. The prevailing institutional structure in India constitutes a major deterrent to the diffusion of the benefits of water development. There are stubborn psychological factors which render the adoption of innovative irrigation practices difficult. There is thus an overwhelming need to revamp India's institutional framework. On balance, however, water development in India has made its impact felt on India's myriads of villages. And from the arid “dust bowls” of India new life has emerged.     

Agricultural and recreational impacts of the conservation reserve program in rural North Dakota, USA

The Conservation Reserve Program (CRP), created in 1985, provides conservation benefits and agricultural supply control through voluntary, long-term retirement of crop land. While the effects of the CRP on the agricultural sector are well understood, the implications of its conservation benefits for rural economies remain largely undocumented. To quantify the effects on rural economies, this study addressed the net economic effects of decreased agricultural activity and increased recreational activity associated with the CRP in six rural areas of North Dakota from 1996 to 2000. Based on the level of economic activity that would have occurred in the absence of the program, net revenues from CRP land if returned to agricultural production in the six study areas were estimated at $50.2 million annually or $37 per acre of land currently enrolled in the CRP. Recreational (hunting) revenues as a result of the CRP in the study areas were estimated at $12.8 million annually or $9.45 per CRP-acre. The net economic effect of the CRP (lost agricultural revenues and gains in recreational expenditures) indicated that several areas of the state are not as economically burdened by the CRP as previous research has suggested. In addition, the net economic effects of the program would appear more favourable if revenues from all CRP-based recreation were included. The degree that recreational revenues offset agricultural losses might be further enhanced by enterprises that capitalize on the economic opportunities associated with expanded recreational activities on CRP lands.     

Valuing Water Rights in Douglas County,Oregon, Using the Hedonic Price Method1

Abstract: This paper uses the hedonic price method to estimate the value of an acre‐foot of irrigation water in Douglas County, Oregon. The analysis uses detailed information from 113 arms‐length transactions of farmland for 2000 and 2001. The estimated willingness‐to‐accept of $261 to sell an acre‐foot of irrigation water is consistent with other studies and recent transactions in the study area. Estimates for the value of leasing water are provided using a range of discount rates and leasing periods.     

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.     

Non-market valuation of off-highway vehicle recreation in Larimer County, Colorado: Implications of trail closures

Few economic studies are available to measure off-highway vehicle recreation benefits foregone when trails must be closed to protect the environment. This paper estimates the non-market benefits associated with off-highway vehicle (OHV) recreation on National Forest lands in Larimer County, Colorado. We use a contingent valuation model (CVM) to estimate benefits to OHV users, which includes dirt bike riders, all terrain vehicle (ATV) riders, and 4-wheel drive (4 × 4) users. Using CVM we find the mean consumer surplus estimates to be $78 per person per day. These results are consistent with the few previous estimates of OHV recreation benefits. This equates to a per trail per summer consumer surplus of at least between $219,467 and $296,876, and a county level surplus per summer to be at least between $796,447 and $1,077,367. These benefits can be compared to environmental costs to obtain a more complete picture of the effects of trail closure, as well as the negative spillovers to non-motorized users.     

MEASURING ECONOMIC LOSSES FROM GROUND WATER CONTAMINATION: AN INVESTIGATION OF HOUSEHOLD AVOIDANCE COSTS1

ABSTRACT: Economic losses from ground water contamination were estimated in a central Pennsylvania community. The averting expenditures method was applied via a mail survey of households in which water contained the unregulated volatile organic chemical, perchloroethylene (PCE). Expenditures were estimated at $148,900 (1987 dollars) over the six-month contamination period or approximately $252 per household annually. These costs underestimate the lower bound measure of welfare losses to households from ground water contamination. An upper bound measure of welfare losses was estimated at $383 per household annually. These estimates do not represent the full economic losses resulting from ground water contamination since the study did not address municipal-level and business avoidance costs and losses from actual health effects, increased fear and anxiety, ecological damages, and nonuser ground water benefits. The results expand the existing empirical base of information about municipal-level responses and economic losses from ground water contamination to include household-level impacts. The findings indicate that households undertake substantial averting actions in response to ground water contamination and that such actions can have significant economic consequences. The extent and magnitude of avoidance costs documented suggests that policy-makers should give greater attention to this category of economic losses.     

Incorporating Complex Adaptive Systems Theory into Strategic Planning: The Sierra Nevada Conservancy

Conservation organizations rely increasingly on integrated planning approaches that explicitly address social and economic goals while pursuing ecological conservation. Moreover, the spatial and temporal scale at which these organizations operate is growing. The Sierra Nevada Conservancy, established as a new state agency by California legislation in 2004 to pursue social, economic and ecological sustainability across a 25 million acre region, exemplifies this large-scale, integrated approach. Therefore, the new agency faces a complex set of policy objectives that must be pursued across a widely varying geography of social, economic and ecological conditions. Using the Conservancy's fire management program area as an example, the paper illustrates how application of an analytic framework from complex adaptive systems theory can guide the Conservancy to deploy its resources more effectively than broader-scale application of a single, agency-wide strategy relying on a more static model. Therefore, the complex adaptive systems framework offers promise in strategic planning. The paper illustrates how the model's four-stage cycle can be applied at the sub-regional and programmatic level to identify opportunities for agency intervention that address varying local conditions. This approach is likely to increase the effectiveness of programs for agencies facing similar complexities and challenges.     

VALUING URBAN WATER ACQUISITIONS1

ABSTRACT: Municipalities typically seek additional water supplies whenever prospective population and economic growth suggests the inadequacy of currently available water supply. The benefit of supply enhancement is usually construed as avoiding debilitating water scarcity. A more effective approach to planning is to compare the benefits and costs of supply augmentation. The net present value of benefits for a supply increase in a representative Texas community is calculated for alternative scenarios relating to population growth, rate growth, and the temporal distribution of the increased supply. Consumer surplus measures are sensitive to all three of these factors and vary from $0 to over $4000 per acre-foot. A notable finding is that the added supply may offer zero values in cases where real water prices increase at an annualized rate of 4 percent (or greater) which is half the rate occurring in Texas from 1981–1985.     

WATER AND THE ENERGY CRISIS1

ABSTRACT: Water and energy are inextricably bound. Energy is consumed and sometimes produced by every form of water resources system. Opportunities for future development and production of energy resources abound as well as those for significant reductions in energy consumption through wise water development and management. Technological, political, social, economic and environmental factors interrelate in the energy-water mix. The role of the water resources planner will have to be expanded to include assessment of water-energy impacts in addition to traditional planning considerations. An energy conservation account may well have to be added to the dimensions of national economic development and environmental quality in water resources planning. Ways must be found to reduce amounts and rates of water used and energy consumed through new manufacturing processes, improved irrigation practices, better management, new or altered social-political-economic arrangements and other procedures. To do this will require setting priorities and making difficult management decisions. The water fraternity can play a major role in alleviating the energy crisis we now face.