THE MEASUREMENT OF IMPACTS IN SMALL WATERSHEDS FOR FLOOD CONTROL1

ABSTRACT: An analogue method of ex post evaluation is proposed as a method of measuring the effectiveness of small watershed projects in obtaining flood control and economic benefits. Two watersheds were compared on a “with vs. without” project basis by both direct and indirect measurement of economic benefits. Direct measurements indicated that small watershed flood control projects did not generate the expected economic benefits. However, the indirect measurements of the same watersheds using land value enhancement as a surrogate suggested that the expected economic benefits were reflected in differential land values. The economic efficiency of small watershed projects should be measured ex ante and ex post on a “with vs. without” project basis rather than on a “before vs. after” basis whether using direct or surrogate variables.     

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.     

SIMULATION/OPTIMIZATION TECHNIQUES FOR MULTI-BASIN WATER RESOURCE PLANNING1

A set of simulation and optimization tools capable of analyzing the development and operation of a complex, multi-basin, interconnected water resource are explained. These models provide valuable information regarding the important questions: (1) “When should new projects be build?” (2) “How big should they be?” and (3) “How should the system be operated?” Since these tools were developed by and for practicing engineers, their applicability to real-world problems is mandatory. To assure this, testing was done on an actual proposed project, the Texas Water System.     

Wetland protection as land-use planning: The impact of section 404 in Wisconsin,USA

The ability of Section 404 of the Clean Water Act to act as an effective, efficient, and equitable land-use planning tool was assessed through a survey of Section 404 permits in Wisconsin. In a six-month period of permitting, the 404 program reduced wetland losses in the state by 15%. Several factors were examined that may affect permit decisions; these factors are water dependency, alternatives, project type, wetland type, and public or agency comments. Only the water dependency of the project had a statistically significant effect on permit decisions, although development projects that were perceived to provide public good were more likely to be permitted. Environmental impacts of a proposed fill project were not adequately assessed in any of the permit decisions. Because of the way Section 404 is interpreted and administered by the US Army Corps of Engineers, increasing net benefits and achieving an equitable distribution of those benefits is difficult. The corps does not perform any functional evaluations of wetlands nor do they attempt to measure economic value and environmental impacts. In addition, the 404 review process is, in effect, inaccessible to the public. The de facto interpretations of the Section 404 regulations and a lack of program funding and trained personnel all contribute to the program's ineffectiveness.     

Impediments to River Rehabilitation

Rehabilitation of river ecosystems is generally initiated when a river is no longer able to provide benefits to humans and other living beings. The major purposes of river rehabilitation projects are improving water quality, conserving nature, rehabilitating fisheries and riparian habitats, flood mitigation, and creating recreational opportunities. For a river rehabilitation project to be successful, it must have specific and clearly explained objectives, although these objectives will vary for each project depending upon factors such as economics, public demand, ecosystem benefits, and the like. In this article, we provide a critical analysis of the purposes that drive river rehabilitation projects and we identify and discuss impediments that can cause a project to deviate from its intended goals. We also discuss major constraints on rehabilitation efforts that can result in failed projects.     

AGRICULTURAL POLLUTION CONTROL: IMPLICATIONS FROM THE RURAL CLEAN WATER PROGRAM1

ABSTRACT: The Rural Clean Water Program has provided a unique opportunity to study the economics of agricultural nonpoint source pollution control. Several implications for improving the economic efficiency of future agricultural nonpoint source pollution control programs can be drawn from the results. First, individual projects should be targeted towards water bodies that have water quality problems causing economic damages. Considerable variation can exist among areas in the magnitude of economic damages, which may not be proportional to physical impacts. Second, the relative costs and effectiveness of the practices selected to reduce the delivery of pollutants can vary dramatically from one location to another. Early identification and emphasis on cost-effective BMPs can substantially reduce project costs and may make a project economically justifiable that would not otherwise be so. Finally, some projects that do not hive potential economic benefits from water quality improvements exceeding government cost may have on-farm benefits from reduced costs and increased long-term yields that are sufficient to make total benefits (water quality and on-farm) exceed costs.     

CONFLICT ANALYSIS AND MANAGEMENT ALTERNATWE FOR THE MANAYLJNK CANAL1

ABSTRACT: The solution of a water resource allocation problem by an alternative social arrangement is presented. Classical Austrian economic theory and the “new resources economics” provide both theoretical and practical evidence to support the development of well-defined, private property rights to the water resource in question. A conflict analysis demonstrates that management of the Manayunk Canal by a firm would reconcile existing confrontations through compromise use of the water resource. Benefit and cost calculations show that a compromise among industrial and recreational interests, currently competing in the political arena, would increase social benefits.     

WATER USE DATA – WHO NEEDS IT?1

ABSTRACT: This paper addresses problems in the design of a water use data base and valuation of water use data. An examination of the economic efficiency and distributional aspects of selected water management problems indicates that there are benefits to be obtained from water use information and, thus, there is a potential value to water use data. Water use information is viewed as being produced by combining water use data with other data in a modeling context suggested by theory relevant to the problem at hand, and a well designed water use data base will facilitate this synthesis. Data “needs” in the production of water use information via economic modeling are described to illustrate the relationship between theory and data. Some of the desirable characteristics of a water use data base and inadequacies of the existing water use data “base” are described. The fugitive nature of the water use data resource and a lack of understanding of both the information “production function” and the role of water use information in decisionmaking complicates the water use data valuation problem.     

A REGIONAL APPROACH TO PROJECT EVALUATION1

ABSTRACT. Water and related land resource planning has generally been characterized by project evaluation in isolation. Feasible alternatives have been ignored because the economic analysis did not include the interdependence of such subregional and regional variables as factor and product prices and production possibilities. This paper presents an economic framework, consistent with a regional development objective and an efficiency criterion, for proposing and evaluating resource projects. Subregional and regional derived demand curves for water are developed under alternative assumptions of subregional competition, regional market restraints, and yield and price uncertainty. The derivation of water demand curves using the proposed regional framework as compared to sub regional isolation has the desirable properties of (1) a marginal analysis that is more flexible over time is substituted for a static average analysis; (2) range estimates incorporating probabilities are substituted for point estimates; (3) approximations to functional demand curves are substituted for “needs”; and (4) fewer resources are required to meet a regional market restraint.     

INTEGRATING SOCIAL BENEFIT COST ACCOUNTING INTO WATERSHED RESTORATION AND PROTECTION PROGRAMS1

ABSTRACT: Successful watershed management requires consideration of multiple objectives and the efficient use of scarce public and private resources. One way to address these multi-faceted issues is through Social Benefit-Cost Accounting (SBCA). SBCA is a systematic method of addressing complex social and economic issues relevant to proposed watershed management projects. Benefits of using this technique include: benefits and costs of watershed projects are better understood; politically sensitive issues tend to be put into perspective; and stakeholders' interests are placed on a level playing field. An example from Bogota, Colombia demonstrates how SBCA can be used to value the benefits and costs of a proposed project. By addressing the benefits and costs to all stakeholders, the design of watershed management programs can be improved to achieve goals in a cost-effective manner.     

THE ENHANCED ROLE OF WATER CONSERVATION IN THE COST-BENEFIT ANALYSIS OF WATER PROJECTS1

The concept of water conservation has increased in importance because of revisions in the rules and procedures for performing cost-benefit analyses of federal water projects. These revisions include a requirement that nonstructural and water conservation measures be incorporated into economic assessments of projects. Project analyses will now proceed as if water supplies were allocated “most effectively,” that is, to their highest valued uses. A related requirement provides that the net benefits of any project should now be valued using willingness to pay measures. A specific cost-benefit methodology accommodating the revisions is constructed and discussed. Informational requirements for applying this methodology are identified. In addition to being consistent with federal mandates, this technique offers important advantages over the traditional “requirements” approach to water supply planning.     

AESTHETIC PREFERENCE FOR WATER RESOURCE PROJECTS: AN APPLICATION OF Q METHODOLOGY1

ABSTRACT Many of the resources generating aesthetic and visual benefits are publically owned and their optimum use and development depends upon public investment. Traditionally, public investment decisions have been couched in economic terms requiring quantitative measurement of benefits and costs. Since many of the benefits these resources provide are not consumed when they are enjoyed, the total contribution of the resource is imperfectly measured in the usual market sense. Thus, if the provision of these public goods is left to the conventional market mechanism, less than socially optimal investment may occur. This study was designed to investigate whether aesthetic preferences related to water projects could be determined, and whether they differ among different groups of people. A Q sort of 44 photographs of a wide variety of water development projects was conducted with two groups, i.e., photographers (aesthetic man) and town assessors (economic man). The resultant analysis identified two significant factors. Factor 1 provided insight into a hypothesis of nature dominant or man dominant scenes. Factor 2 indicated that the respondents had a negative preference for projects which were in varying stages of completion or appeared to be polluted. Preferences were consistent between the two groups tested. The test revealed that people do not necessarily equate only naturalness with aesthetic appeal, but will accept development as aesthetic, provided that it is designed to complement the natural landscape.     

A VIABLE METHODOLOGY TO IMPLEMENT THE PRINCIPLES AND STANDARDS1

ABSTRACT: The “principles and standards for planning water and related land resources” were made effective October 25, 1973. The document was noticeably deficient in suggestions for the necessary implementing procedures to ensure its success. Current implementing procedures are based on an incorrect premise of maximizing a single objective subject to non-quantified constraints. A successful implementation of multiple objective planning requires optimizing simultaneously several competitive goals. A system of goal programming has been developed and applied to decisionmaking situations as a test of its usefulness in planning for multiple objective water resources projects. The result is a project planning process which can be replicated for adjustments in expected resource supplies or demands to provide a tradeoff matrix between economic and environmental objectives as well as traditional functional purposes. This procedure, tested on the Cross Florida Barge Canal, is an integrated analysis of economic and environmental values which may be as effective in implementing multiple objective planning as the “Green Book” was in developing the now inappropriate benefit cost analysis.     

RESOURCE DEMANDS FOR ENERGY DEVELOPMENT IN THE YELLOWSTONE RIVER BASIN1

ABSTRACT: This paper reports on the development of a mathematical model for forecasting energy development in the Yellowstone study area for the years 1985 and 2000, and determining the associated economic demands for water, land, labor, capital, and mineral resources. The study was prepared for use by the Missouri River Basin Commission in conducting a comprehensive, “Level B” planning study of the water and related land resources in the Yellowstone River Basin. The study results indicate that the amount of coal development in the Yellowstone study area will depend primarily upon state and federal energy policies and regulations. Policies related to slurry pipeline transportation of coal will be particularly important in determining the level and pattern of future energy development in the area. Coal production under the “most probable” scenario is expected to increase from about 40 million tons in 1976 to 163 million tons per year by 1985, and 513 million tons in the year 2000. Consumptive water use for energy development in the study area could be as much as 556,000 acre-feet per year by the year 2000 (under the high scenario). A parametric analysis was conducted on the 1985 most probably scenario to determine the influence on the study results of variations in the delivered price of water. Water requirements were reduced by nearly one-fourth as water costs increased from zero to over $750 per acre-foot.     

SOCIAL GOALS AND EVALUATION OF RESOURCE COMMITMENTS1

ABSTRACT The field of water resources has become increasingly aware of public demands for evaluating alternative project commitments that consider environmental and social objectives in addition to traditional economic criteria. This has led to endeavors to identify the full array of social goals in Water Resources Council Special Task Force reports as well as in research funded through the Office of Water Resources Research and other agencies. It seems appropriate, however, to consider efforts already completed or currently underway in the social science disciplines, professional fields, and national commissions not affiliated with water resource interests. This report identifies and discusses major efforts to identify social goals as a logical input in evaluation procedures highlighted by Water Resources Council Special Task Force reports. The framework of the study was its contribution as background material for the Western Regional Social Goals Project funded by the Office of Water Resources Research of the Department of the Interior.     

THE ROLE OF ADVISORY BOARDS IN A WATER MANAGEMENT AGENCY1

ABSTRACT: Since Saskatchewan assumed the responsibility for managing the Province's water resources in 1930, the importance of the Province's water resources has been recognized by assigning the responsibility for managing the resource to higher levels in the government structure. With such recognition, there tended to be an overlapping of responsibilities that resulted in undefined areas of jurisdiction and duplication of services. Also, there was no opportunity for direct public participation in the management structure. These deficiencies were recognized, and following a series of public hearings a “Cabinet Committee on Water Concerns” in 1983 concluded that the most appropriate government structure for managing the water resources of Saskatchewan would be a Crown corporation. As a result, in 1984 the Saskatchewan Water Corporation was formed and given the responsibility to manage, administer, develop, control, and protect the water and related land resources in Saskatchewan. An important aspect of this responsibility was that the corporation should initiate a process of public involvement. Thus, six “Regional Watershed Advisory Boards” were established. The Advisory Boards provide the Corporation with a linkage to the general public by providing advice, participating in policy revision and development, and assisting Corporation staff in other related water management activities.     

STATE FINANCING OF WATER PROJECTS: THE UTAH EXPERIENCE1

ABSTRACT: Dramatic changes in Utah's economy caused by urbanization, large scale energy developments, and other influences will significantly reorient water use patterns. Thus, state water management policies and programs which have evolved over many years should be reevaluated. Several factors have influenced Utah water project financing policy. Among these have been: 1) the prominence of agriculture in the settlement of Utah and the century following, 2) dry cycles and periodic severe droughts, 3) recurring periods of economic depression, and 4) allocation of Colorado River water among the basin states and Mexico, Three revolving funds have been established. The Revolving Construction Fund, created in 1947, provides money for irrigation projects; the Cities Water Loan Fund, created in 1975, provides money to communities for developing culinary systems and improving quality to meet the demands of exploding population growth; and the Water Resources Conservation and Development Fund, created in 1978, provides money for large scale multipurpose water projects costing $1 million or more. The justification for these financing programs seems to be a mixture of rectifying market imperfections and income redistribution. However, trends in the agricultural sector and the multipurpose nature of large scale projects now being funded suggest that earlier justifications may no longer be valid. Rigorous project evaluation procedures, lacking in the past, should be adopted.     

The Arkansas Valley “Super Ditch”— An Analysis of Potential Economic Impacts1

McMahon, Tyler G. and Mark Griffin Smith, 2012. The Arkansas Valley “Super Ditch”— An Analysis of Potential Economic Impacts. Journal of the American Water Resources Association (JAWRA) 00(0):000‐000. 1‐12. DOI: 10.1111/jawr.12005 Abstract: In Colorado’s Arkansas River basin, urban growth and harsh farming conditions have resulted in water transfers from agricultural to urban uses. Several studies have shown that these transfers have significant secondary economic impacts associated with the removal of irrigated land from production. In response, new methods of sharing water are being developed to allow water transfers that benefit both farm and urban economies, compared with previous permanent transfers that negatively impacted surrounding farm communities. One such project currently under development is the Arkansas Valley “Super Ditch,” which is a rotational crop fallowing plan based on long‐term water leasing designed to provide an annual supply of 25,000 acre‐feet of water (31.6 Mm³). This article analyzes the net benefits of implementing the “Super Ditch” for both the farmers and the surrounding community.     

Compensatory Mitigation for Streams Under the Clean Water Act: Reassessing Science and Redirecting Policy1

Doyle, Martin W. and F. Douglas Shields, 2012. Compensatory Mitigation for Streams Under the Clean Water Act: Reassessing Science and Redirecting Policy. Journal of the American Water Resources Association (JAWRA) 48(3): 494-509. DOI: 10.1111/j.1752-1688.2011.00631.x Abstract: Current stream restoration science is not adequate to assume high rates of success in recovering ecosystem functional integrity. The physical scale of most stream restoration projects is insufficient because watershed land use controls ambient water quality and hydrology, and land use surrounding many restoration projects at the time of their construction, or in the future, do not provide sufficient conditions for functional integrity recovery. Reach scale channel restoration or modification has limited benefits within the broader landscape context. Physical habitat variables are often the basis for indicating success, but are now increasingly seen as poor surrogates for actual biological function; the assumption “if you build it they will come” lacks support of empirical studies. If stream restoration is to play a continued role in compensatory mitigation under the United States Clean Water Act, then significant policy changes are needed to adapt to the limitations of restoration science and the social environment under which most projects are constructed. When used for compensatory mitigation, stream restoration should be held to effectiveness standards for actual and measurable physical, chemical, or biological functional improvement. To achieve improved mitigation results, greater flexibility may be required for the location and funding of restoration projects, the size of projects, and the restoration process itself.     

The Assessment of Water Resources Projects Involving Economic, Social and Environmental Costs and Benefits: The World Bank's View

In evaluating the costs and benefits of water resources development projects, the World Bank examines the economic, social and environmental aspects of the project. Some of these aspects are more easily quantified than others. The paper reviews some aspects that have been quantified by the Bank and describes others which have not. By way of illustrating the difficulty of quantification, the Bank's efforts to quantify the health hazards resulting from the introduction of irrigation projects is examined. In addition, the Bank's requirements with respect to social and environmental factors as they affect water resources projects are described.