Evaluating water quality investments using cost utility analysis

This study borrows concepts from healthcare economics and uses cost utility analysis (CUA) to select an optimum portfolio of water quality enhancement projects in Perth, Western Australia. In CUA, costs are handled via standard discounted cash flow analysis, but the benefits, being intangible, are measured with a utility score. Our novel methodology combines CUA with a binary combinatorial optimisation solver, known as a 'knapsack algorithm', to identify the optimum portfolio of projects. We show how water quality projects can be selected to maximise an aggregate utility score while not exceeding a budget constraint. Our CUA model applies compromise programming (CP) to measure utility over multiple attributes in different units. CUA is shown to provide a transparent and analytically robust method to maximise benefits from water quality remediation investments under a constrained budget.     

Farm-level irrigation and the marginal cost of water use: evidence from Georgia

We create a proxy for the cost of irrigation water in Georgia from a sample of Georgia irrigators by investigating the marginal cost of pumping groundwater. We then combine this proxy with agronomic and climatic variables to estimate the response of agricultural water use to differences in the marginal cost of irrigation. The results show that pumping costs are a significant determinant of water use, and imply that agricultural water use would be moderately affected by institutional changes that would explicitly price water.     

Water supply development and tariffs in Tanzania: From free water policy towards cost recovery

The article describes the historical development of water tariff policy in Tanzania from the colonial times to present. After gaining independence, the country introduced “free” water policy in its rural areas. Criticism against this policy was expressed already in the 1970s, but it was not until the late 1980s that change became unavoidable. All the while urban water tariffs continued to decline in real terms. In rural and periurban areas of Tanzania consumers often have to pay substantial amounts of money for water to resellers and vendors since the public utilities are unable to provide operative service. Besides, only a part of the water bills are actually collected. Now that the free water supply policy has been officially abandoned, the development of water tariffs and the institutions in general are a great challenge for the country.     

The correlation of cost and schedule variance in satellite programs: level of effort versus discrete cost accounts

Environment Systems and Decisions - This research analyzes cost account-level detail from ten similar satellite programs to assess the relationship between cost and schedule variances. A model is...     

废水处理新技术--超临界水氧化法

超临界水氧化法是一种新兴且非常有效的废水处理方法。当水处于临界点以上时,溶解在超临界水中的氧气或过氧化氢可以将超临界水中的有机污染物氧化生成水和二氧化碳等无害物质,以达到对废水进行处理的目的。本文介绍了超临界水的特点、SCWO的流程及其对设备的影响,指出了超临界水氧化法存在的问题及解决的方法。     

The Palestinian water crisis

The Middle East is renowned as a water-scarce region. The severity of the problem in Palestine is not a result of climatic misfortune, however, but of regional water allocation and distribution of these resources, especially between Palestinians and Israelis. Palestinian water supplies are currently insufficient to satisfy demand, and are increasingly degraded. Projected increases in regional population and demand are high, making it urgent to come to grips with the water shortage. Any attempt at resolution should consider three related areas within a single integrated water management formula. First, attempts must be made to resolve allocation disputes, governed by principles of international water law; second, conservation and appropriate utilization of water must be emphasized; and third, supplies must be enhanced, either through water import or other means. Only if the water shortage is analysed in an integrated manner will it be possible to ensure full resolution of the Palestinian-Israeli hydropolitical dispute .     

A preliminary cost and engineering estimate for desalinating produced formation water associated with carbon dioxide capture and storage

The risk associated with storage of carbon dioxide in the subsurface can be reduced by removal of a comparable volume of existing brines (e.g. Buscheck et al., 2011). In order to avoid high costs for disposal, the brines should be processed into useful forms such as fresh and low-hardness water. We have carried out a cost analysis of treatment of typical subsurface saline waters found in sedimentary basins, compared with conventional seawater desalination. We have also accounted for some cost savings by utilization of potential well-head pressures at brine production wells, which may be present in some fields due to CO₂ injection, to drive desalination using reverse osmosis. Predicted desalination costs for brines having salinities equal to seawater are about half the cost of conventional seawater desalination when we assume the energy can be obtained from excess pressure at the well head. These costs range from 32 to 40¢ per m³ permeate produced. Without well-head energy recovery, the costs are from 60 to 80¢ per m³ permeate. These costs do not include the cost of any brine production or brine reinjection wells, or pipelines to the well field, or other site-dependent factors.     

The real water consumption behind drinking water: the case of Italy

The real amount of drinking water available per capita is a topic of great interest for human health and the economic and political management of resources. The global market of bottled drinking water, for instance, has shown exponential growth in the last twenty years, mainly due to reductions in production costs and investment in promotion. This paper aims to evaluate how much freshwater is actually consumed when water is drunk in Italy, which can be considered a mature bottled-water market. A Water Footprint (WF) calculation was used to compare the alternatives: bottled and tap water. Six Italian brands of water sold in PET bottles were inventoried, analysed and compared with the public tap water of the city of Siena, as representative of the Italian context. Results showed that more than 3 L of water were needed to provide consumers with 1.50 L of drinking water. In particular, a volume of 1.50 L of PET-bottled water required an extra virtual volume of 1.93 L of water while an extra 2.13 L was necessary to supply the same volume of tap water. These values had very different composition and origin. The WF of tap water was mainly due to losses of water during pipeline distribution and usage, while WF of bottled water was greatly influenced by the production of plastic materials. When the contribution of cooling water was added to the calculation, the WF of bottled water rose from 3.43 to 6.92 L. Different strategies to reduce total water footprint are discussed.     

The marginal cost of public funds of mineral and energy taxes in Peru

We estimate the Marginal Cost of Public Funds (MCPF) for Peru using a detailed computable general equilibrium (CGE) model. Revenues from all major sources (including taxes on factors of production, natural resources such as energy and minerals, consumption, and imports) are examined. Our focus is on the efficiency implications of mineral and energy taxes, given their importance to Peruvian public finance. The primary data are from the Global Trade Analysis Project (GTAP) as modified to include detailed tax information from the Peruvian Ministry of Economy and Finance and the Peruvian Internal Revenue Service. Consistent with the theories of public finance, we find that the MCPF is greater for activities that face high or widely varying tax rates. The taxes on energy and mineral activities represent a clear illustration of this relationship. The results presented in this paper indicate opportunities to improved efficiency in the current tax mix, and also indicate the financing costs of proposed expenditures that would be funded with taxes on energy and natural resources.     

Environmental cost accounting: The bottom line for environmental quality management

Recent years have seen the environment emerge as one of the most pressing issues facing American business. Eventually, environmental costs will affect the bottom line of every American company. A recent study in the National Law Journal estimates that cleanup of the nation's known hazardous wastes sites will cost $752 billion over thirty years under current environmental policies. Environmental legislation and regulations impose annual compliance costs estimated by the Environmental Protection Agency at more than $30 billion. In the near future, environmental expenses for cleanup, regulatory compliance, and management are anticipated to grow to between 2.5 and 3 percent of GNP. Corporations that wish to be competitive must successfully manage these costs while maintaining or improving their role as responsible corporate citizens. Implementing a comprehensive system for identifying and managing environmental costs requires a multidisciplinary team effort. Environmental costs impact product selection, design and pricing, capital budgeting, and future strategic direction. In order to make informed and meaningful managerial decisions on environmental programs, real cost data are vital. An environmental management systems (EMS) requires information to set goals and then monitor progress towards those goals over time. This article will discuss the current cost accounting systems (CASs) available to support the myriad goals of environmental management systems. In addition, the article will outline a framework for plotting the location of your current EMS on a matrix of regulatory and information requirements and evaluating whether your corporation's CAS is adequate to support the goals and objectives set by your environmental management program. By anticipating future regulatory and information requirements, flexible systems can be developed to adapt to new and more stringent regulations and more complex information requirements.     

The conflict between first cost and recyclability in the design of manufactured goods

Materials recycling can confer substantial benefits, such as reduced dependence on foreign suppliers, extended resource life, and reduction in the quantities of residuals associated with primary extraction. Many manufactured goods contain a variety of materials that comprise a self-contaminating mixture. Moreover, modern construction methods often preclude simple and easy segregation into usable fractions. Consideration, at the design stage, of subsequent recycling could facilitate a suitable choice of material and of mode of construction to aid reclamation. Such re-design is, however, likely to involve increased cost.     

The cost of crop damage caused by ozone air pollution from motor vehicles

The effects of ozone air pollution on the agricultural sector are an important environmental challenge facing policy makers. Most studies of the economic impact of air pollution on agriculture have found that a 25% reduction in ambient ozone would provide benefits of at least $1–2 billion annually in the United States. This paper extends existing research by estimating the benefits of a reduction in emissions from a major source of ozone formation: motor-vehicle emissions. An agricultural production model is combined with an analysis of motor-vehicle emissions and air quality to estimate the impacts of emissions from six different motor-vehicle classes, at both the regional and national level. The benefits to the agricultural sector from completely eliminating ozone precursor emissions from motor vehicles ranges between $3·5 and $6·1 billion annually.     

The health and visibility cost of air pollution: a comparison of estimation methods

Air pollution from motor vehicles, electricity-generating plants, industry, and other sources can harm human health, injure crops and forests, damage building materials, and impair visibility. Economists sometimes analyze the social cost of these impacts, in order to illuminate tradeoffs, compare alternatives, and promote efficient use of scarce resource. In this paper, we compare estimates of the health and visibility costs of air pollution derived from a meta-hedonic price analysis, with an estimate of health costs derived from a damage-function analysis and an estimate of the visibility cost derived from contingent valuation. We find that the meta-hedonic price analysis produces an estimate of the health cost that lies at the low end of the range of damage-function estimates. This is consistent with hypotheses that on the one hand, hedonic price analysis does not capture all of the health costs of air pollution (because individuals may not be fully informed about all of the health effects), and that on the other hand, the value of mortality used in the high-end damage function estimates is too high. The analysis of the visibility cost of air pollution derived from a meta-hedonic price analysis produces an estimate that is essentially identical to an independent estimate based on contingent valuation. This close agreement lends some credence to the estimates. We then apply the meta hedonic-price model to estimate the visibility cost per kilogram of motor vehicle emissions.     

The pricing of water services in developing countries

This paper focuses on improving efficiency in the water and sewerage sectors through long-run marginal cost pricing, adjusted for financial needs, externalities, second best considerations, lifeline tariffs and cross subsidization within an integrated water resource planning (IWRP) framework. Supply efficiency suggests that for a given price structure, an optimal long-run investment plan and a corresponding level of supply quality should be determined which maximizes net social benefits. Supply efficiency also requires efficient operation of the water system, including optimization of losses.     

The opportunity cost of regulating phosphorus from broiler production in the Illinois River Basin

The Illinois River Basin in eastern Oklahoma and northwest Arkansas is an example of a region where significant growth in poultry production has been accompanied by water quality problems. The primary concern in the basin is the problem of phosphorus in runoff that is associated with application of litter to crops. Existing data suggest that there has been a continuing decline in the quality of water in the Illinois River, and discussions have focused on developing and implementing a phosphorus standard. The specific objectives of this study are to estimate the reduction in poultry production necessary to achieve the reduction in phosphorus runoff under a set of phosphorus constraints, including soil test phosphorus, and to estimate the opportunity costs of reducing poultry production in the basin under each phosphorus constraint on the economic activity in the watershed. A mathematical programming model that incorporates poultry production and cropping decisions is developed. The parameters for the model are identified and then it is solved to provide a base solution. Model solutions are then developed for the different policy target levels of phosphorus. The model structure is modified to account for the presence of soil test phosphorus levels and the corresponding limits on soil test phosphorus throughout the basin. This formulation includes current soil test phosphorus throughout the basin. All of the applications assume that the only disposal option for poultry litter is land application within the basin. An economic impact assessment of the effects of phosphorus limitations in the basin is also conducted for Arkansas counties only, Oklahoma counties only, and all five affected counties combined.     

TQM and the cost of environmental quality

Because management is driven largely by financial concerns, determining the cost of environmental quality is a critical step in developing an environmental TQM program for which management will actively demonstrate commitment and support. Costs of environmental quality can be grouped into three categories: failure, prevention, and appraisal. The total cost of environmental quality can be used as a benchmark to monitor the level of environmental quality and to justify the redirection of resources.     

Getting started with environmental cost accounting

Proactive corporations have been looking at methods to determine the real costs of doing business, including environmental costs using environmental cost accounting (ECA) methodology. Many companies do not track or measure environmental costs and therefore do not know their true environmental costs. Unfortunately, conventional accounting practices rarely tease out environmental costs, and the costs associated with environmental compliance remain hidden in general overhead accounts. ECA can bring the world of business and the environment closer. When we have a better handle on environmental costs, we can use this information to better prioritize environmental projects, identify cost improvement projects, and allocate environmental costs to products. In this article we explore how some companies approach ECA and show how to initiate an ECA program.     

The utilization of brackish water, protecting the quality of the upper fresh water layer in coastal aquifers

Increasing salinity is one of the most significant and widespread forms of groundwater pollution in coastal areas. This paper presents the causes and impacts of saline water intrusion in coastal areas. Various causes of salt water intrusion, and approaches for the determination of its extent and various measures to control the salt water intrusion are described. An aquifer performance test (APT) approach is presented to identify the extent of existing salt water intrusion in the study area located in the southwest coastal region of Gujarat State (India). A resistivity based experimental technique is used to identify the quality of the groundwater available at different depths. A methodology is presented to assess the extent of available fresh and saline groundwater and to find out the limit up to which lower saline groundwater can be withdrawn for industrial purposes without affecting the upper fresh water layer which can be made available for domestic purposes.