FINANCING PRIVATE WATER RESOURCE DEVELOPMENT: ANALYSIS OF A STATE LOAN PROGRAM1

ABSTRACT. A State loan program was analyzed for its effects on groundwater development in Wyoming. The analysis focused on the effects of low-interest State financing on the economic feasibility of investments in center-pivot sprinkler irrigation systems. The feasibility analysis indicated that investments in sprinkler systems for production of cash crops are highly profitable, and would frequently be carried out whether or not the State loan program were available. Investments in sprinklers for production of forage crops are perhaps frequently made attractive by the loan program. Thus, while the program appears to have accelerated the pace of private water resource development in Wyoming, it has also subsidized some investments that would have been carried out regardless of the program's existence. Further analysis indicated that sprinkler investments carried out with State financing contribute substantially to firm growth when cast crops are grown, but have less marked, and sometimes negative, effects on growth when forage crops are produced. Some positive effects of the loan program on southeast Wyoming's regional economy were noted, though a complete empirical analysis of regional impacts was beyond the scope of the study.     

SOCIAL FEASIBILITY AS AN ALTERNATIVE APPROACH TO WATER RESOURCE PLANNING1

ABSTRACT: Research suggests that conflict over public participation in water resource planning is due, in part, to confusion over the nature of the policies involved. This article examines the roadblocks to citizen involvement in water resource planning in terms of two policy models: (1) the Social Feasibility Model and (2) the Political Feasibility Model. Each model posits a different role for public participation. Although the Political Feasibility Model has been widely accepted in water resource planning, changes in the nature of the policies involved in water resource management have weakened its appropriateness. Currently, social and redistributive policies involving value conflicts often dominate water planning and these policies are best chosen through the Social Feasibility Model. The article discusses the nature of the social feasibility model, the new types of policy decisions facing water resource managers, and how the social feasibility model can help overcome the roadblocks to increased public participation in water resource policy making.     

MULTI-CRITERION RANKING OF ALTERNATIVE LONG-RANGE WATER RESOURCE SYSTEMS1

ABSTRACT The definition and comparison of alternative water resource systems designed to meet long-range goals (say 60 years) is illustrated by a case study in Hungary. A comprehensive cost-effectiveness approach is adapted to define goals, specifications, criteria, alternatives and their capabilities. Specifications include demands given in probabilistic terms. The comparison of alternative systems is based on 12 criteria, one of which is the balance between total energy consumed and peak energy produced. Important factors involving social elements, such as flood protection and land and forest use, are described both as monetary quantities and as qualitative appreciations. Five alternative systems are defied involving flat land reservoirs, pumped storage reservoirs, interbasin transfer, and conjunctive use of surface and ground water. International cooperation is then used to rank systems and reduce the problem to a tradeoff between only two alternatives.     

A TRADE-OFF ANALYSIS OF ALTERNATIVE WATER USES1

ABSTRACT: In the western United States, hydropower and agriculture often cempete for surface waters. Since water markets are imperfect, allocations are often made through institutional arrangements and policy The purpose of this paper is to compare the gross water returns from agriculture with hydropower in terms of water use in Idaho. For the year 1986, returns from agriculture averaged $200 per acre-foot, and returns from hydropower averaged $8.00 per acre-foot.     

AN ALTERNATIVE TO WATER POLLUTION CONTROLS1

ABSTRACT: A hypothetical, although realistic, water pollution problem was studied from a property rights viewpoint. Theoretical and economic justifications were developed. A fully-liable, private owner was found to be financially profitable while improving the water quality and providing recreational potential. The example confirmed that property rights provides an answer to stream pollution problems, but contradicted the view that water pollution control must be justified by recreational benefits.     

AN ECONOMIC ANALYSIS OF ALTERNATIVE WATER USE STRATEGIES AT CATCHMENT LEVEL TAKING INTO ACCOUNT AN INSTREAM FLOW REQUIREMENT1

ABSTRACT: A mathematical model of agricultural water use and a hydrological and economic simulation model were linked to quantify the economic and hydrological impact of deficit irrigation, increased water application efficiency, and farm storage dams when maintaining an IFR (instream flow requirement) under stochastic water supply conditions. The main finding was that a water conservation policy aimed at reducing the amount of water withdrawn from the river could bring more pressure to bear on stream flow. Water can only be saved if consumptive use is reduced. Increased water application efficiency is detrimental to other users as a result of reduced return flow. The economic cost of maintaining a specific IFR increases with the use of all three strategies as the probability of maintaining the IFR increases. Because of the control that can be exercised over the supply of water, a farm storage dam is the best strategy for minimizing the costs for irrigators. The interaction between water legislation, water policy administration, technology, hydrology, and human value systems necessitates an integrated approach to facilitate water management at catchment level and to formulate policies that will be in the interest of society.     

AN INTERPRETATIVE ANALYSIS OF FAMILY AND INDIVIDUAL ECONOMIC COSTS DUE TO WATER RESOURCE DEVELOPMENT1

ABSTRACT This article reports information on the economic costs not covered by resettlement procedures to forced migrants from a flood-control reservoir. Data come from a sample of 200 families relocated due to construction of the Carr Fork Reservoir in the Coal Regions of Eastern Kentucky (Knott County). Responses indicated that economic costs were greater than the monetary settlement provided by the Corps of Engineers and that economic loss was not randomly distributed among the relocated persons. Analysis showed that persons who were more likely to be victims of greater economic costs due to relocation were landowners, older families with one or two members, persons with lower incomes and persons who were long time residents of the area. It is suggested that change angencies not only include property purchased by necessity in the cost-benefit ratio, but also other costs that have a direct affect on the welfare of the target population. In addition, it is suggested that case workers visit migrants during and after the relocation process to assist in solving various adjustment problems.     

A RETROSPECTIVE BENEFIT-COST ANALYSIS OF WATER RESOURCE PROJECTS IN THE CUMBERLAND RIVER BASIN1

ABSTRACT: A retrospective benefit-cost analysis of major water resources projects in the Cumberland River basin was conducted. The U.S. Army Corps of Engineers' projects selected were Dale Hollow, Wolf Creek, Center Hill, and J. Percy Priest Reservoirs. The ex-post performance of the evaluated reservoirs were compared to the ex-ante estimates. Benefits and costs for each project were deflated to their base year and respective average annual values for each of these components were calculated. An ex-post benefit-cost ratio was determined for each project, as well as the combined system. The benefit-cost ratio for each project surpassed unity. The actual ratio as compared to the ex-ante estimate for each project is as follows: Dale Hollow, 1.24 to 1.46; Wolf Creek, 1.40 to 1.53; Center Hill, 1.17 to 2.02; and J. Percy Priest, 1.45 to 1.6. The internal rate of return was also determined for each project. The results obtained for each project are tabulated and discussed with consideration given to factors effecting the economic evaluation of the projects.     

WATER QUALITY IMPACTS OF CONSERVATION AGRICULTURAL PRACTICES IN THE MISSISSIPPI DELTA1

ABSTRACT: Nonpoint pollution in the form of runoff generated by conventional agricultural practices is one of the major sources of environmental degradation of surface water bodies. Agricultural conservation practices including no‐tillage operations have been introduced as alternatives to cope with such challenges. This study attempts to examine the economic and environmental impacts of no‐tillage as compared to conventional agricultural practices for cotton, soybeans and corn cultivated in the Mississippi Delta. Impacts in the form of sediment, nutrient and pesticide runoff at farm level are investigated, using the Erosion Productivity Impact Calculator (EPIC).     

AN ECONOMIC ANALYSIS OF WATER CONSERVATION POLICY1

Water conservation is a much emphasized policy of the Federal government. Discussion of water conservation proposals often involves confusion between a conservation “ethic,” which is an end in itself, and conservation as a means for attaining various economic objectives. Analysis indicates that outside of ground water “mining.” water is usually a renewable and reusable resource. During periods of normal precipitation, water conservation should be employed only when the value of the water saved exceeds the cost of effecting the savings. Water conservation is most valuable as a drought contingency tactic. Water conservation as a substitute for structural provision to meet normal water demand growth is apt to prove shortsighted.     

PRIVATIZING THE GROUND WATER RESOURCE: INDIVIDUAL USE AND ALTERNATIVE SPECIFICATIONS1

ABSTRACT: While most inquiries into improving the efficiency of ground water allocation have focused upon various schemes involving centralized management, recently the focus has shifted towards exploring private property solutions to these problems. However, most of these studies, when modeling ground water use, have equated behavior under private property to that under common property conditions. This leads to the possibly mistaken conclusion that private property rights do not promote more efficient ground water use, because these models assume that producers ignore the future effects of current pumping. This paper attempts to correct this deficiency by formally modeling ground water use under common property, central management, and private property scenarios. Moreover, there are many ways that property rights can be defined over ground water, some establishing more exclusivity over the resource than others. Four specifications of property rights are analyzed for their likely effects on allocative efficiency: full stock-flow, partial stock-flow, limited stock-flow, and pure flow rights.     

FACTORS IN THE COMMUNITY PERCEPTION OF WATER RESOURCE PROBLEMS1

ABSTRACT The study explores the perception of community problems, including flooding and pollution, among leaders in four different communities, ranging in size from 10,000 to 20,000. Water-related problems were considered in the context of other community problems which were defined by these leaders. Among these leaders, water-related problems were characterized by low salience and by low consensus. In seeking solutions, these leaders see water problems as being less likely to be solved at the local community level and to necessitate extra-community assistance. They also see water-related problems as requiring a relatively low level of community coordination and as being primarily the responsibility of the public sector. Local governmental leaders were seen as being more important in problem solving in water-related problems than they were in other community problems.     

WATER CONSERVATION METHODS IN URBAN LANDSCAPE IRRIGATION: AN EXPLORATORY OVERVIEW1

ABSTRACT: The increasing use of irrigation for urban landscapes is causing new demands for efficient watering systems. Conservation techniques for irrigated agricultural fields cannot be applied to urban landscapes without amendment. This paper attempts to review methods of urban landscape water conservation in the context of the diversity and complexity of urban landscapes and the demands upon them for quality of the urban environment. A development's initial site layout and planting design fundamentally determine how much irrigation water will be required; the complexity and creativity inherent in urban design open a number of specific possibilities for reducing water demand. Irrigation hardware is then designed to deliver the required volume of water to the specified landscape efficiently by implementing a number of physical and operational principles. Maintenance of the finished development involves monitoring results and making adjustments as the plantings grow and develop. The potential for conserving urban irrigation water is large. Effective conservation need not compromise other qualities of the urban environment such as aesthetics, screening, or shade. Urban design can address both the kinds of landscapes people need, and minimal consumption of irrigation water.     

DEVOLUTION OF BUREAU OF RECLAMATION CONSTRUCTED WATER FACILITIES1

ABSTRACT: Recent years have seen an accelerating trend toward devolution and privatization of water supply and distribution infrastructure. This paper discusses and analyzes the experience to date of the federal Bureau of Reclamation's efforts to title transfer to non federal entities. The paper also discusses the concepts of federalism and devolution in the context of Reclamation's title transfer activities.     

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.     

USE OF STATE ESTIMATION TECHNIQUES IN WATER RESOURCE SYSTEM MODELING1

ABSTRACT. A relatively straightforward illustration of the potential uses of State Estimation techniques in water resources modeling is given. Background theory for Linear and Extended Kalman Filters is given; application of the filter techniques to modeling BOD and oxygen deficit in a stream illustrates the importance of model conceptualization, model completeness, uncertainty in model dynamics and incorporation of measurements and measurement errors. Potential applications of state estimation techniques to measurement system design; model building, assessment and calibration; and data extension are explored.     

A LINEAR ANALYSIS OF AN URBAN WATER SUPPLY SYSTEM1

The use of linear programming as a planning tool for determining the optimal long-range development of an urban water supply system was explored. A stochastic trace of water demand was synthesized and used as an input to the model. This permitted evaluating the feasibility of imposing demand restrictions as an effective cost reduction mechanism. The City of Lincoln, Nebraska, was used as the urban model. The fundamental problem was to allocate limited water supplies from several sources to an urban load center to minimize costs and comply with system constraints. The study period covered twenty years, and findings indicate the planning direction for stage development during this period. Sensitivity analyses were performed on cost coefficients and demands. Thirteen sources were included in the initial computations. Conclusions were that linear programming and generated demand traces are useful tools for both short- and long-term urban water supply planning. Lowering peak demands results in long-range development of fewer sources of supply and more economic and efficient use of the supplies developed.     

REGIONAL IMPACT OF WATER RESOURCE INVESTMENTS IN A DEVELOPING AREA1

ABSTRACT: Regional development and industrialization patterns are investigated and related via regression analysis to water resource investments for the island of Puerto Rico. Although results of this study indicate such investments have little immediate or short-term impact, significant relationships and variations in regional responses appear over longer time periods. This is shown by applying a variation of Zellner's method of performing seemingly unrelated regressions jointly. By this method, subsets of parameter coefficients of specific economic variables were restricted across regional equations while unrestricted coefficients were interpreted as explaining systematic regional variations in response to public investment. Regional differences, obtained by using this method, are frequently neglected when simply examining the overall development process. Among the more interesting results in terms of policy implications is the apparent significant relationship, over the period considered, between changes in the distribution of income and the pattern of water resource development.