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.     

Irrigation Water Allocation Using an Inexact Two‐Stage Quadratic Programming with Fuzzy Input under Climate Change

Agricultural irrigation accounts for nearly 70% of the total water use around the world. Uncertainties and climate change together exacerbate the complexity of optimal allocation of water resources for irrigation. An interval‐fuzzy two‐stage stochastic quadratic programming model is developed for determining the plans for water allocation for irrigation with maximum benefits. The model is shown to be applicable when inputs are expressed as discrete, fuzzy or random. In order to reflect the effect of marginal utility on benefit and cost, the model can also deal with nonlinearities in the objective function. Results from applying the model to a case study in the middle reaches of the Heihe River basin, China, show schemes for water allocation for irrigation of different crops in every month of the crop growth period under various flow levels are effective for achieving high economic benefits. Different climate change scenarios are used to analyze the impact of changing water requirement and water availability on irrigation water allocation. The proposed model can aid the decision maker in formulating desired irrigation water management policies in the wake of uncertainties and changing environment.     

ASSESSING THE ECONOMIC BENEFITS OF GROUND WATER FOR ENVIRONMENTAL POLICY DECISIONS1

ABSTRACT: The full range of environmental and economic services of ground water need to be accounted for in policy decisions. Non-recognition of these services imputes a lower value for the ground water resource in establishing policies. We describe a conceptual framework for identifying and measuring the economic value of groundwater. The valuation framework links changes in physical characteristics of ground water to services provided by ground water and the economic effects of changes in ground water services. In addition to the framework, we develop a general protocol to follow for assessing the benefits of ground water policies. Application of the protocol will aid in establishing structure and consistency across policy assessments and improve the accuracy and completeness of benefit estimates, avoid double-counting problems, and eliminate duplication of ground water valuation efforts.     

BIOLOGICAL AND ECONOMIC IMPLICATIONS OF SACRAMENTO WATERSHED MANAGEMENT OPTIONS1

ABSTRACT: This paper brings together spatially and temporally explicit mechanistic models of hydrodynamic, water quality, and ecological processes with an economic model to examine water management alternatives for California's Sacramento River and Delta ecosystem, a large‐scale watershed. Overallocated water supplies in most years, combined with increasing demand for water for environmental purposes, have created a politically charged atmosphere and a need for quantitative assessment of the implications of policy alternatives. By developing and analyzing a common set of policy scenarios, this integrated framework allows us to consider tradeoffs between agricultural economic factors, water quality, and population dynamics for two at‐risk fish species. We analyze two rather extreme types of policy options; one involves structural modifications to change the flow of water within the watershed but no change in water diversions, while the other reallocates water from agricultural users to fish and wildlife. Results suggest that substantial environmental improvements could be made at a relatively modest cost to farmers (1 to 4 percent reductions in revenues) but that those costs could be significant locally. In addition to tradeoffs between farmers and environmental interests, results suggest that policy makers may need to balance competing environmental objectives.     

Using environmental accounts to promote sustainable development: Experience in southern Africa

Environmental accounts bring together economic and environmental information in a common framework to measure the contribution of the environment to the economy and the impact of the economy on the environment. They enable governments to set priorities, monitor economic policies more precisely, enact more effective environmental regulations and resource management strategies, and design more efficient market instruments for environmental policies. This article uses examples from the regional environmental accounting programme in southern Africa to demonstrate the usefulness of environmental accounts to policy-making and natural resource management. The examples address the contribution of natural capital endowments (minerals and fisheries) to sustainable development in Botswana and Namibia; the economic importance of non-market forest goods and services in South Africa; and the socio-economic impact of current water allocation and pricing policies in Botswana, Namibia and South Africa. While there are many additional policy applications, these few provide a powerful argument for the use of environmental accounts in all countries.     

Corruption in natural resource management: Implications for policy makers

Corruption is the main reason why resource-rich countries perform badly in economic terms. Corruption in resource-rich countries takes two main forms, rent-seeking and patronage. Resource rents induce rent-seeking as individuals compete for a share of the rents rather than use their time and skills more productively. And resource revenues induce patronage as governments pay off supporters to stay in power, resulting in reduced accountability and an inferior allocation of public funds. This paper systematically reviews the literature on natural resources and corruption, and outlines the main policy implications for donors and domestic policy makers. A main conclusion is that priority should be given to policies that address rent-seeking and patronage. In other words, policy in resource-rich countries should be less about macro-economic management and more about institutions to prevent rent-seeking and patronage, and about giving the right incentives to players in the resource sector. Moreover, all policies need to take into account their impact on rent-seeking and patronage, and some current policies may actually be harmful in this respect.     

Cross-achievements between policies for drinking water protection

Environmental dynamics have important spatial dimensions, which calls for a spatial approach in policy analyses. Further to this, assessing agri-environmental policies involves analyses of individual measures as well as their combined effects on farmer behaviour and the environment. The integration of an economic behavioural model in a spatial framework has enabled analyses of a geographically targeted subsidy scheme for drinking water protection in combination with a uniform tax on commercial nitrogen fertilizer. Results show that policy measures for reducing nitrogen use can have combined effects (cross-achievements), thereby affecting each other's cost-effectiveness. Cross-achievements between a nitrogen fertilizer tax and a subsidy scheme based on elicitation are shown not to be additive, making partial analyses of policy measures more uncertain.     

Local economic development — the changing public/private sector relationship

The paper examines changing approaches to local economic development in the period since 1974. Initially, it proposes an ‘orthodox’ model of local economic development policies which emphasised the provision of a better industrial fabric, and of financial assistance to small, inner city firms. It suggests three recent directions of change in emphasis from this orthodox model: help in the creation of new entrepreneurs; replacement of public sector by private sector action; local authority shareholding in local firms by use of Enterprise Boards. Each approach makes different assumptions about the public/private sector relationship, the last two involve a more explicitly ideological stance on this issue.     

Inexact multistage stochastic integer programming for water resources management under uncertainty

In this study, an inexact multistage stochastic integer programming (IMSIP) method is developed for water resources management under uncertainty. This method incorporates techniques of inexact optimization and multistage stochastic programming within an integer programming framework. It can deal with uncertainties expressed as both probabilities and discrete intervals, and reflect the dynamics in terms of decisions for water allocation through transactions at discrete points of a complete scenario set over a multistage context. Moreover, the IMSIP can facilitate analyses of the multiple policy scenarios that are associated with economic penalties when the promised targets are violated as well as the economies-of-scale in the costs for surplus water diversion. A case study is provided for demonstrating the applicability of the developed methodology. The results indicate that reasonable solutions have been generated for both binary and continuous variables. For all scenarios under consideration, corrective actions can be undertaken dynamically under various pre-regulated policies and can thus help minimize the penalties and costs. The IMSIP can help water resources managers to identify desired system designs against water shortage and for flood control with maximized economic benefit and minimized system-failure risk.     

FROM FLOW TO FISH TO DOLLARS: AN INTEGRATED APPROACH TO WATER ALLOCATION1

This paper details a case study of economic and natural system responses to alternative water management policies in the Cache La Poudre River basin, Colorado, 1980–1994. The case study is presented to highlight the value and application of a conceptual integration of economic, salmonid population, physical habitat, and water allocation models. Five alternative regimes, all intended to increase low winter flows, were investigated. Habitat enhancements created by alternative regimes were translated to population responses and economic benefits. Analysis concluded that instream flows cannot compete on the northern Colorado water rental market; cooperative agreements offer an economically feasible way to enhance instream flows; and establishing an instream flow program on the Cache La Poudre River mainstem is a potentially profitable opportunity. The alliance of models is a dynamic multidisciplinary tool for use in professional settings and offers valuable insight for decision-making processes involved in water management.     

Integrating Environmental and Socio-Economic Indicators of a Linked Catchment–Coastal System Using Variable Environmental Intensity

Can we develop land use policy that balances the conflicting views of stakeholders in a catchment while moving toward long term sustainability? Adaptive management provides a strategy for this whereby measures of catchment performance are compared against performance goals in order to progressively improve policy. However, the feedback loop of adaptive management is often slow and irreversible impacts may result before policy has been adapted. In contrast, integrated modelling of future land use policy provides rapid feedback and potentially improves the chance of avoiding unwanted collapse events. Replacing measures of catchment performance with modelled catchment performance has usually required the dynamic linking of many models, both biophysical and socio-economic—and this requires much effort in software development. As an alternative, we propose the use of variable environmental intensity (defined as the ratio of environmental impact over economic output) in a loose coupling of models to provide a sufficient level of integration while avoiding significant effort required for software development. This model construct was applied to the Motueka Catchment of New Zealand where several biophysical (riverine water quantity, sediment, E. coli faecal bacteria, trout numbers, nitrogen transport, marine productivity) models, a socio-economic (gross output, gross margin, job numbers) model, and an agent-based model were linked. An extreme set of land use scenarios (historic, present, and intensive) were applied to this modelling framework. Results suggest that the catchment is presently in a near optimal land use configuration that is unlikely to benefit from further intensification. This would quickly put stress on water quantity (at low flow) and water quality (E. coli). To date, this model evaluation is based on a theoretical test that explores the logical implications of intensification at an unlikely extreme in order to assess the implications of likely growth trajectories from present use. While this has largely been a desktop exercise, it would also be possible to use this framework to model and explore the biophysical and economic impacts of individual or collective catchment visions. We are currently investigating the use of the model in this type of application.     

如何完善河长制——基于与流域综合管理比较的视角

当前,河长制已成为我国进行河湖管护的综合协调平台,但其面临一系列问题,制约了我国河湖管护效果的进一步提升。世界主要国家的跨部门、跨利益相关方河湖管理协调政策主要是流域综合管理。河长制与流域综合管理都是针对所面临的河湖管理问题,经过长期的演变,逐渐形成的跨区域、跨利益相关方的协调政策,这都是符合所在国家实际情况的。基于公共政策学的基本原理,本文构建了以"政策目标—政策执行者—政策工具"为导向的三维河湖管护协调政策比较框架。通过此框架,分析了河长制存在的主要问题,以及河长制与流域综合管理的主要差异。针对河长制存在的主要问题,基于比较结果提出了相关对策,主要包括:科学设定政策目标,推进多元共治的河湖管护模式,创新运用市场化和信息化政策工具。     

Assessment OF SURFACE WATER QUALITY at Large Watershed Scale: Land‐Use,Anthropogenic, and Administrative Impacts

Understanding the impacts that influence water quality is critical to the development of best management practices at the large watershed scale. This study describes the spatiotemporal variation in surface water quality and identifies their main impact in the Haihe River basin, China. Multivariate statistical techniques are applied to analyze the similarities among the sampling sites and to identify the main pollution sources in surface water. Results show that: (1) the basin can be clustered into two regions, water quality being better in the mountainous vs. plain regions; (2) water quality improves due to implementation of a strict state policy on environmental pollution control, prodded by the hosting of the Olympic games in the cities of Beijing and Tianjin; and (3) agricultural and residential land uses as well as livestock‐breeding are the main sources affecting water quality in the mountainous regions, whereas rural waste discharge — including domestic waste sewage, human and animal feces, and solid waste — significantly influences water quality in the plain regions. The waste discharge of industrial factories may be a significant source of water pollution in the plain regions. Results indicate that the environmental management from pollution sinks and sources, long‐lasting legal framework, and adequate economic incentives should be improved to optimize the large‐scale watershed management under the background of the rapid development of countries like China.     

Linking climate policy across economic sectors: A case for green growth in Nepal

While the energy sector is the largest global contributor to greenhouse gas (GHG) emissions, the agriculture, forestry, and other land use (AFOLU) sector account for up to 80% of GHG emissions in the least developed countries (LDCs). Despite this, the nationally determined contributions (NDCs) of LDCs, including Nepal, focus primarily on climate mitigation in the energy sector. This paper introduces green growth—a way to foster economic growth while ensuring access to resources and environmental services—as an approach to improving climate policy coherence across sectors. Using Nepal as a case country, this study models the anticipated changes in resource use and GHG emissions between 2015 and 2030, that would result from implementing climate mitigation actions in Nepal's NDC. The model uses four different scenarios. They link NDC and policies across economic sectors and offer policy insights regarding (1) energy losses that could cost up to 10% of gross domestic product (GDP) by 2030, (2) protection of forest resources by reducing the use of biomass fuels from 465 million gigajoules (GJ) in 2015 to 195 million GJ in 2030, and (3) a significant reduction in GHG emissions by 2030 relative to the business-as-usual (BAU) case by greater use of electricity from hydropower rather than biomass. These policy insights are significant for Nepal and other LDCs as they seek an energy transition towards using more renewable energy and electricity.     

The small-scale water provider in Paraguay: bringing private sector efficiency to water resource use and the provision of drinking water to the poor

This article provides a case study of small-scale private sector provision of water supply in Paraguay, where the Government has sought sector policy reforms that would encourage private investment in drinking water supply. Ironically, while the Government has focused almost entirely on garnering the interest of large private international water companies, much smaller local firms have already made significant investments in drinking water services for the poor, all without any participation or encouragement from the Government. Outside Paraguay's two major cities, Asunción and Ciudad del Este, large numbers of aguateros currently provide piped potable water to lower-income people. Though the aguateros have little legal footing — they are in many respects informal and unregulated —they have constructed as much as one third of all the new drinking water connections in these two cities over the past 20 years. The small-scale water systems in Paraguay offer a model of financial, economic, and water-use efficiency. This article asserts that an abundance of groundwater resources, cheap access to electricity for pumping, and a spirit of informal investment, among other variables, has spawned widespread use of this approach. This article documents and analyzes the features of these independent small-scale water providers in Paraguay and the efficiency they bring to the use of water resources in meeting drinking water demands among the poor. It also cautions against policies that may trample on such entrepreneurial spirit in the name of State-managed privatization.     

Water Prism: A Tool to Assess Water Availability Risk and Investigate Water Management Strategies

Water availability risk is a local issue best understood with watershed‐scale quantification of both withdrawal and consumptive demands in the context of available supply. Collectively, all water use sectors must identify, understand, and respond to this risk. A highly visual and computationally robust decision support tool, Water Prism, quantitatively explores mitigation responses to water risk on both a facility‐level and basin‐aggregated basis. Water Prism examines a basin water balance for a 40‐ to 60‐year planning horizon, distinguishes among water use sectors, and accounts for ecosystem water needs. The 2012 Texas State Water Plan was used to apply Water Prism to the Big Cypress‐Sulphur Basin (Texas). The case study showed Water Prism to be an accurate and convenient tool to provide fine‐scale understanding of water use in the context of available supply, evaluate multi‐sector combinations of conservation strategies, and quantify the effects of future demands and water availability. Analyses demonstrated water availability risks for rivers and reservoirs can vary within a basin and must be calculated independently, simulation of water balance conditions can help illuminate potential impacts of increasing demands, and scenario simulations can be used to evaluate relative conservation efficacy of different water resource management strategies for each sector. Based on case study findings, Water Prism can serve as a useful assessment tool for regional water planners.     

Approaches to integrated water resource development and management

In southern Africa institutional capacity in the water sector is severely limited by diminishing regular budget and external assistance allocations. The result has been an overall decline in operational water resource management. This is ironic given the international community's current concern with 'integrated' or 'comprehensive' water resources management. Often, so-called integrated attempts at river basin planning and development have been conceived within the framework of a river basin authority or regional master plans. Such large-scale attempts have not necessarily been compatible either with the national capacity in water resources management or the existing institutional and legislative frameworks. In many cases the actual integration of a basin's physical resources and social, economic and environmental demands is poorly executed. To examine a way forward in resolving what is clearly an unsustainable state of affairs, a diagnostic study of the Kafue Basin, Zambia, was carried out in order to identify a set of water resource management options for a basin currently under stress. A physical framework for the Kafue Basin was established and principal subcatchments and hydro-geological subsystems identified. Current water resource issues in the basin are discussed and a multiobjective approach is proposed to allow intersectoral competition for the basin's limited water resources to be reconciled.     

流域比较视角的钱塘江与黑河流域水资源问题及对策研究——基于水足迹核算分析

产品贸易及水权交易使得水资源问题"跨流域化",不再单纯是流域内部管理问题。本文从流域比较视角出发,在区分蓝、绿、灰三种水足迹的基础上,应用水足迹模型,测算了两流域典型地区的水足迹,进行流域水资源问题对比分析,并分析了经济发展模式对流域水资源可持续性的影响。结果发现,杭州市经济用水中灰色水足迹占总量的90%,而张掖市经济用水中绿色水足迹占总量的60.8%,说明钱塘江流域水资源问题在于质,而黑河流域水资源问题在于量;经济发展模式中的产业结构、水资源开发效率、工业化路径等影响流域水资源可持续利用,同时基于GDP导向的流域间的水资源逆向配置,更加剧了流域水资源矛盾。最后根据流域对比结果提出治理措施,从而形成流域间协作的良性循环。     

Multicriteria Evaluation of Water Resources Sustainability in the Context of Watershed Management1

Kang, Min‐Goo and Gwang‐Man Lee, 2011. Multicriteria Evaluation of Water Resources Sustainability in the Context of Watershed Management. Journal of the American Water Resources Association (JAWRA) 47(4):813‐827. DOI: 10.1111/j.1752‐1688.2011.00559.x Abstract: To evaluate water resources sustainability at the watershed scale within a river basin’s context, the Water Resources Sustainability Evaluation Model is developed. The model employs 4 criteria (economic efficiency, social equity, environmental conservation, and maintenance capacity) and has 16 indicators, integrating them using their relative weights. The model is applied to evaluate the water resources sustainability of watersheds in the Geum River basin, South Korea. A geographic information system is employed to efficiently build a database for the indicators, and the values of the indicators are normalized using the probability distribution functions fitted to the datasets of the indicators. The evaluation results show that, overall, the water resources sustainability of the watersheds in the upper basin is better than other areas due to the good environmental conditions and the dam management policies of South Korea. The analysis of the correlations among the model’s components and the comparison between the results of the model and the Water Poverty Index show that the model can provide reasonable evaluation results for the water resources sustainability of watersheds. Consequently, it is concluded that the model can be an effective tool for evaluating the states of water resource management from the perspective of sustainable development and provide a basis on which to create policies for improving any inadequacies in watersheds.