ESTIMATING THE BENEFITS OF PHOSPHORUS POLLUTION REDUCTIONS: AN APPLICATION IN THE MINNESOTA RIVER1

ABSTRACT: In order to make economically efficient decisions about water quality improvements, data on both the costs and benefits of these improvements is needed. However, there has been little research on the benefits of reducing phosphorus pollution which implies that policy decisions are not able to make the comparison of costs and benefits that is essential for economic efficiency. This research attempts to ameliorate this situation by providing an estimate of the benefits of a 40 percent reduction in phosphorus pollution in the Minnesota River. A 1997 mail survey gathered information on Minnesota residents'use of a recreational site on the Minnesota River, the Minnesota Valley National Wildlife Refuge, and their willingness to pay for phosphorus reductions in the Minnesota River. The random effects probit model used in this research to investigate household willingness to pay for phosphorus pollution reductions in the Minnesota River incorporates recent innovations in nonmarket valuation methodology by using both revealed and stated preference data. This model estimated annual household willingness to pay for phosphorus reductions in the Minnesota River at $140. These results may be used in combination with cost estimates to determine the economic efficiency of phosphorus clean up.     

USING CONTINGENT VALUATION AND BENEFIT TRANSFER TO EVALUATE WATER SUPPLY IMPROVEMENT BENEFITS1

ABSTRACT: Many water systems in small cities and rural areas throughout the United States are facing water quality and supply problems. These problems are typically not the result of an unexpected event, but are the result of growth trends or decreasing water quality experienced over several years. This analysis uses the contingent valuation and benefit transfer methods to evaluate the willingness to pay for a rural water system in northcentral Montana. Both of the procedures resulted in similar values, ranging from about $4.05 to $7.50 per household per month for urban residents and $5.40 to $11.50 per household per month for rural residents, which is equal to 11 percent to 23 percent of current average water costs. The willingness to pay estimates do not include non-household water users. This analysis shows that useful planning information can be obtained from relatively inexpensive contingent valuation mail survey data and the benefit transfer method as long as the limitations of the data are understood. The willingness to pay for ensuring good quality rural water supplies in the future is likely to be low compared to the costs of extensive diversion and treatment systems. Willingness to pay estimates provide decision makers with information that can be used to avoid building a large water supply system that water users do not want to connect to because of high costs.     

A MODEL FOR ACHIEVING CONSISTENCY FOR COST SHARING IN WATER RESOURCE PROGRAMS1

ABSTRACT: Three basic principles of responsibility have influenced the Federal/non-Federal cost sharing rates for water resources programs (1) full payment by beneficiaries (2) exclusive Federal assumption of costs and (3) joint Federal/non-Federal sharing. The efforts to determine appropriate cost sharing rates have resulted in several hundred complex arrangements involving contributions, user charges and direct sales based on many variations of payment terms. This basic present value model was developed to determine the non-Federal cost shares which are expected to be paid for 32 different functional purposes emanating from Federal water resources programs and projects for both implementation and OMR stages. The model introduces the concept of a composite (implementation plus OMR) cost share as a focus developing appropriate cost sharing rates for the private, public and mixed outputs produced through public water resources investments. The model can be used as a focus for policy decisions on cost sharing which seek to achieve consistent and equitable cost shares for purposes provided while maintaining an efficient allocation of resources within water programs.     

Will participation foster the successful implementation of the water framework directive? The case of agricultural groundwater protection in northwest Germany

The Water Framework Directive (WFD) calls for various modes of public. These participation and involvement. These are judged as key factors to support the successful implementation in terms of attaining a good water status. This paper aims to explore the role of the 'active involvement' of stakeholders for the effective implementation of the WFD regarding the specific problem of reducing agricultural nitrate pollution of groundwater. Our case of reference is the Hase river catchment in northwest Germany, which is a paradigmatic example of an intensive livestock farming region with high nitrate intakes in groundwater. Emphasis is placed on the various forms of involvement that have recently been or will soon be established in northwest Germany at different spatial and administrative scales. We argue that although the WFD refers to whole river basins as the central unit of governance, it is particularly the regional and local scales that will strongly influence the implementation process. We identify different influencing factors and scenario paths, demonstrating both the uncertainties at stake and the range of possible effects that different outcomes of participatory processes will have. These, in turn, are closely linked to the interests, perceptions and strengths of different actors. Identification of critical paths and decision points enables corridors to be mapped out regarding the anticipated success or failure of regional public participation to reduce diffuse agricultural groundwater pollution.     

Benchmark Criteria: A Tool for Selecting Appropriate Models in the Field of Water Management

A milestone in the field of European water protection policy is the European Union’s Water Framework Directive (WFD), which came into force in December 2000 and which integrates the management of European waters in many ways. In this study, we start by focusing on management issues connected to the implementation of the WFD and pose a question: “what type of models would be the most suitable for use in the context of the WFD?” With this question in mind, we aim to establish a set of operational and functional selection criteria for (computer) models whose application is intended to support decision-making related to a particular water management issue. These so-called “benchmark criteria” should help water managers and other model users in choosing appropriate models, e.g., for the WFD implementation purposes. We first describe models and their use in general and then propose an approach for setting the benchmark criteria for models, basing it on the concept of uncertainty management, while keeping firmly in mind the important role of citizens and citizen organizations in water management. The suggested benchmark criteria are in the form of 14 questions through which each model can be evaluated. Finally, the process for testing and refining the benchmark criteria is highlighted.     

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.     

CAN STATE AND LOCAL GOVERNMENTS ASSUME MORE OF THE COSTS OF WATER DEVELOPMENT?1

ABSTRACT As availability of funds in the federal budget for water development has decreased recently, pressure has increased for state and local governments to pay a larger share of the costs. In this situation a difficult question immediately arises-what is the capability of state and local governments to pay a larger share? Of course, there is no easy answer. Expenditures of public funds are policy outcomes of a government's political process in which political, economic, legal and other factors are involved in complex relationships. The traditional sources of capital funds for state and local governments include bond proceeds, tax revenues, and federal financial aid (state aid is also a major source of local government funds). The issuing of bonds is hampered by a variety of legal debt limitations, but there are means for circumventing the limitations. State and local governments vary widely in amounts of taxable resources available and in the extent to which these resources have been tapped. More effective use of revenue resources could be made in some cases. New sources of capital funds for water development ought to be considered-a fee on the use of water per se, for example. Costs associated with water use currently are imposed to cover development costs, but a state might impose additional use fees earmarked for a state water development fund.     

Proportionate and disproportionate policy responses to climate change: core concepts and empirical applications

A fresh perspective on policy-making and planning has emerged which views disproportionate policy as an intentional policy response. A disproportionate policy response is understood to be a lack of ‘fit’ or balance between the costs of a public policy and the benefits that are derived from this policy, and between policy ends and means. This paper applies this new perspective on the proportionality of policy-making to the area of climate change. The first part of the paper discusses the underlying causes of disproportionate policy responses in broad terms and then applies the theoretical reasoning to understand the conditions in which they are likely to appear in relation to climate change. These conditions are hypothesized to relate to four main factors: economic considerations; levels of public demand; focusing events; and strategic considerations. It concludes with the suggestion that societal actors may be able to manipulate these four factors to encourage politicians to adopt policies that mitigate climate change more rapidly than is currently the case in most countries.     

A COST‐BENEFIT ANALYSIS OF WATER QUALITY PROTECTION IN THE CATAWBA BASIN1

ABSTRACT: The primary objective of this study was to perform a cost‐benefit analysis of maintaining the current level of water quality in the Catawba River basin. Economic benefits were estimated using a stated preference survey method designed to value respondents' willingness to pay for a management plan to protect water quality in the Catawba basin over time. From the surveys conducted with 1,085 area residents, we calculated an annual mean willingness to pay of $139 for the management plan, or more than $75.4 million for all taxpayers in the area. Over the five‐year time horizon in which respondents were asked to pay for the management plan, this resulted in a total economic benefit of $340.1 million. The Watershed Analysis Risk Management Framework model was used to estimate the amount of management activities needed to protect the current level of water quality in the basin over time. Based on the model results, the total cost of the management plan was calculated to be $244.8 million over a ten‐year period. The resulting cost‐benefit analysis indicated that the potential benefits of this management plan would outweigh the costs by more than $95 million.     

Ecosystem Management on Public Lands: An Application of Optimal Externality to Timber Production

While there are increasing numbers of non-consumptive forest uses on public lands, some silvicultural management systems provide little flexibility for the realization of non-commodity values. Traditional economic decision-making tools, such as net present value, are often applied in a manner which inadequately accounts for the full value of the resource. As a result, sub-optimal management practices are often implemented. By applying a marginal analysis of the optimal externality of different silvicultural systems, it is possible to identify the optimal timber management strategy in terms of the total costs of the timber harvest under alternative uses. Although difficulties arise in valuing non-consumptive uses, contingent valuation with averting costs estimates can establish a lower bound on society's willingness to pay for foregone timber harvesting. Low impact harvest operations and “new forestry” techniques, such as selection harvest cuts, are helpful in reducing the external costs of timber cutting. Therefore, the implementation of such systems may actually increase the socially optimal area of public lands to be harvested under a multiple-use designation.     

ESTIMATING THE PUBLIC'S VALUES FOR INSTREAM FLOW: ECONOMIC TECHNIQUES AND DOLLAR VALUES1

ABSTRACT: Sound water resource management requires comparison of benefits and costs. Many of the perceived benefits of water relate to providing instream flow for recreation and endangered fish. These uses have value but no prices to guide resource allocation. Techniques to estimate the dollar values of environmental benefits are presented and illustrated with several case studies. The results of the case studies show that emphasis on minimum instream flow allocates far less than the economically optimum amount of water to instream uses. Studies in Idaho demonstrated that optimum flows that balance benefits and costs can be ten times greater than minimum flows. The economic benefits of preserving public trust resources outweighed the replacement cost of water and power by a factor of fifty in California. While it is important to incorporate public preferences in water resource management, these economic survey techniques provide water managers with information not just on preference but how much the public is willing to pay for as well. This facilitates comparison of the public costs and benefits of instream flows.     

Social influences on expressed willingness to pay: results of a deliberative monetary valuation study in Colombia

Deliberative monetary valuation (DMV) methods can support environmental decision making by enabling the exchange of arguments and information to produce more democratic outcomes. The product of a valuation may be an array of expressions of willingness to pay (WTP) by individuals or a collectively agreed monetary value. Concerns have been raised, however, as to whether this product is an outcome of thoughtful and independent decision-making or influenced by social pressures to conform. Our study examines this issue and addresses concerns about the use of DMV, based on a public deliberation of forest conservation in Colombia. We analyzed the impacts of social conformity on WTP under two different decision scenarios: individual and collective. The results suggest that the impacts of social conformity are greater when a collective decision is required. These findings indicate that tensions between the differing goals of DMV could undermine its democratic promise.     

Local governments in the driving seat? A comparative analysis of public and private responsibilities for adaptation to climate change in European and North-American cities

The division of responsibilities between public and private actors has become a key governance issue for adaptation to climate change in urban areas. This paper offers a systematic, comparative analysis of three empirical studies which analysed how and why responsibilities were divided between public and private actors for the governance of local urban climate adaptation. For 20 governance arrangements in European and North-American cities, the divisions of responsibilities and the underlying rationales of actors for those divisions were analysed and compared. Data were gathered through content analysis of over 100 policy documents, 97 in-depth interviews and 2 multi-stakeholder workshops. The comparative analysis reveals that local public authorities are the key actors, as they bear the majority of responsibilities for climate proofing their cities. In this stage of policy emergence, local authorities are clearly in the driving seat. It is envisaged that local public authorities need to more actively engage the different private actors such as citizens, civil society and businesses through governance networks along with the maturation of the policy field and the expected acceleration of climate impacts in the coming decades.     

Riverscape and Groundwater Preservation: A Choice Experiment

This study presents a quantitative approach to support policy decision making for the preservation of riverscapes, taking into account the EC Water Framework Directive (2000/60/EC) and the EC Nitrates Directive (91/676/EEC) concerning the protection of waters against nitrate pollution from agricultural sources. A choice experiment was applied to evaluate the benefits, as perceived by inhabitants, of the implementation of policies aiming to reduce the concentration of nitrates in groundwater, preserve the riverscape by maintaining a minimum water flow and increasing hedges and woods along the Serio River in central northern Italy. Findings suggested that people were particularly concerned about groundwater quality, probably because it is strongly linked to human health. Nevertheless, it was interesting to observe that people expressed a high willingness to pay for actions that affect the riverscape as a whole (such as the minimum water flow maintenance plus reforestation). This is probably due to the close connection between the riverscape and the functions of the river area for recreation, health purposes, and biodiversity preservation.     

A Methodology for the Evaluation of Water Policies in European Countries

Periodic assessment of progress toward established policy goals is crucial to understanding whether the applied efforts are effective. In Europe, the Water Framework Directive (WFD) adopted in year 2000 set ambitious environmental objectives to be achieved by the end of 2015 through the implementation of Integrated Water Resources Management (IWRM) principles. While at this stage it is premature to measure the impact of this Directive in terms of environmental outcomes, it is nonetheless important to develop indicators in order to monitor whether water management practices throughout Europe are aligning towards IWRM. This article presents the methodological development of the Water and Wetland Index, a comparative water policy assessment by environmental NGOs that was carried out in 2002–2003, and highlights the interest of repeating it in 2015, when the first WFD planning cycle will be completed.     

Preservation and Change in the Upland Landscape: The Public Benefits of Grazing Management

A contingent valuation survey was undertaken to estimate the public benefits of landscapechanges that could arise from reductions in grazing levels using the example of the Central Southern Uplands of Scotland. A dichotomous choice with continuous follow-up format was used to quantify the environmentalbenefit in terms of the willingness to pay of the general public and visitors. The paper discusses the merits of this format and the evidence of starting-point bias. In addition, the results are compared with the preferences of locals and interest groups as expressed through focus group sessions and subsets of the survey. A strong preference for more tree cover was evident, a landscape feature not well represented in the current landscape.     

Estimating the value of improved wastewater treatment: The case of River Ganga,India

In this paper we employ a stated preference environmental valuation technique, namely the choice experiment method, to estimate local public’s willingness to pay (WTP) for improvements in the capacity and technology of a sewage treatment plant (STP) in Chandernagore municipality, located on the banks of the River Ganga in India. A pilot choice experiment study is administered to 150 randomly selected Chandernagore residents and the data are analysed using the conditional logit model with interactions. The results reveal that residents of this municipality are willing to pay significant amounts in terms of higher monthly municipality taxes to ensure the full capacity of the STP is used for primary treatment and the technology is upgraded to enable secondary treatment. Overall, the results reported in this paper support increased investments to improve the capacity and technology of STPs to reduce water pollution, and hence environmental and health risks that are currently threatening the sustainability of the economic, cultural and religious values this sacred river generates.     

Estimating irrigation water demand in the Moroccan Drâa Valley using contingent valuation

Irrigation water management is crucial for agricultural production and livelihood security in Morocco as in many other parts of the world. For the implementation of an effective water management, knowledge about farmers' demand for irrigation water is crucial to assess reactions to water pricing policy, to establish a cost-benefit analysis of water supply investments or to determine the optimal water allocation between different users. Previously used econometric methods providing this information often have prohibitive data requirements. In this paper, the Contingent Valuation Method (CVM) is adjusted to derive a demand function for irrigation water along farmers' willingness to pay for one additional unit of surface water or groundwater. An application in the Middle Draa Valley in Morocco shows that the method provides reasonable results in an environment with limited data availability. For analysing the censored survey data, the Least Absolute Deviation estimator was found to be a more suitable alternative to the Tobit model as errors are heteroscedastic and non-normally distributed. The adjusted CVM to derive demand functions is especially attractive for water scarce countries under limited data availability.     

Public participation in municipal solid waste source-separated collection in Guilin,China: status and influencing factors

Currently, China is facing critical problems regarding the management of municipal solid waste (MSW). The failure of existing pilot programs in implementing MSW source-separated collection highlights the need to analyze the factors significantly influencing public participation in this activity. To this end, a comprehensive analysis of MSW source-separated collection in Guilin, which is representative of wider areas located in inland China and with a GDP around the national average, was conducted. The research consisted of in-person interviews involving a questionnaire and theoretical analyses in terms of public perception, public awareness, public attitude, and willingness to pay. The analytical results identify the status of waste source-separated collection and influencing factors in implementation, and provides exercisable suggestions for decision makers in both China and more generally in industrializing countries to design promotion programs and education campaigns.     

A Critical Review of Citizens' Juries: How Useful are they in Facilitating Public Participation in the EU Water Framework Directive?

Citizens' juries (CJs) are recommended as one approach that might be used to encourage the active involvement of interested parties in the implementation of the EU Water Framework Directive (WFD). In this light the paper critically reviews the citizens' jury method in the context of water resource management. It examines three strategic challenges of representation, accountability and the role of experts, and issues of scale related to geography, institutions and time. Innovative adaptations of the CJ approach and other deliberative methods are explored as means to address these challenges. The review concludes by arguing that CJs will only be suitable for use in implementation of the WFD if such adaptations are further developed and used to tailor the CJ approach to the particular needs of water resource management in different circumstances.