THEORY AND REALITY IN ALLOCATING FEDERAL RESOURCES TO WATER RESOURCES DEVELOPMENT1

ABSTRACT: Federal spending on water resource development projects exceeds $10 billion annually. This paper examines the economic theory and practice on which the Federal water resource development plans are based. Existing theoretical and applied problems result in overinvestment. These include 1) no standard of value for the tradeoff of environmental objectives with economic objectives; 2) benefits based on “willingness to pay,” but beneficiaries pay only a fraction of a project's costs; 3) beneficiaries “shop around” among program purposes in order to reduce their commitments; and 4) benefit/cost (B/C) analyses are based on a discount rate, which is consistently below the Federal borrowing rate. Furthermore, the Government Accounting Office (GAO) frequently finds that the agency regulations are inadequate and result in inconsistent and questionable benefit computations. The President has proposed a series of water policy reforms, to reduce some of the apparent overinvestment in water resource development, but fundmental corrective action rests with the members of Congress.     

ASSESSMENT ANALYSIS FOR WATER SUPPLY ALTERNATIVES1

ABSTRACT Providing adequate water supplies of good quality is becoming a serious problem in many areas of the United States. Some of the alternatives proposed for meeting the growing shortage of clean-water or cheap-water are reallocation, reuse, and importation. This paper outlines a methodology to assess all of these water supply alternatives by examining the amount and time-staging for development of water sources. In conceptualizing the problem, sources of supply are classified in three categories: primary or base supplies, secondary or effluent supplies, and supplementary or imported supplies. A model of the water system is formulated as a “transportation problem” in linear programming depicting the possible sources of supply which can be used to satisfy the requirements of various water users. The optimizing objective in the model is to minimize the cost of water under various assumptions for operating the system. A case study of the Salt Lake Qty, Utah, area is used to illustrate the application of the model in obtaining optimal water supply allocations for projected future demands. Assessment of alternatives in the study include redistribution of supplies, time-staging of supplies and related treatment facilities, and sensitivity of allocations to changes in costs.     

WATER AND WATER RIGHTS TRANSFERS: A NEW POLICY FOR NEBRASKA1

ABSTRACT: Nebraska has abundant supplies of high quality surface and ground water. The U.S. Supreme Court decision in 1982, declaring ground water to be an article of commerce, is widely perceived as giving neighboring states easier access to Nebraska water. Some neighboring states, particularly Colorado and Wyoming, are in water short situations. Additionally, current legal restrictions on certain types of transfers within the State could be inhibiting the “highest and best use” of Nebraska's water. Thus, in 1987 the Nebraska Legislature called for the development of a new water policy for Nebraska that would promote the economically efficient use of water, yet protect the environment as well as the rights of individuals (for example, third parties) and the public. Through an interagency study employing an extensive public involvement process, a policy to be recommended to the Legislature in 1989 emerged. The policy revises the basic definition of water rights and transfers and eliminates most of the inconsistencies in the water allocation system by treating most types of water resources, most types of water users, and most locations of use similarly in the permitting process. (The principal exception is the individual irrigator using ground water on the overlying land where overlying land is one government surveyed section; such use is not defined to be a transfer nor is a permit required.) An impact assessment would be required of most new water uses except on site uses of ground water. Compensation measures could be specified as a condition of the permit where appropriate. The permit would be issued only if the benefits of the proposed transfer clearly outweigh adverse effects that could not be avoided or effectively compensated. The policy allows for the sale or lease of “salvaged” water. It calls for the State to facilitate transfers by acting as a clearinghouse for potential buyers and sellers, and it allows the State to sponsor water projects. An annual fee to be paid by many water users, in order to provide a fund for compensation and for state sponsored water projects, was proposed. However, it met with extensive opposition. Thus, the policy recommends only that the Legislature examine potential funding programs and equitable user fees.     

COOPERATION IN WATER RESOURCES PROGRAMS: ALASKA'S EXAMPLE1

ABSTRACT: Alaska possesses a diversity and magnitude of water resources unmatched in any other state. With over 15% of the area of the whole United States, and 40% of the nation's total fresh water supply, but an extreme lack of basic hydrologic and climatologic data, cooperation among agencies and individuals concerned with evaluating, planning, and carrying out water resources programs is essential. Toward this end, the Inter-Agency Technical Committee for Alaska (IATCA) was established under charter from the Water Resources Council. Representation in IATCA includes virtually all Federal, State, and academic entities in Alaska having an interest in the water resources of the State. Existence of IATCA has permitted or facilitated numerous Alaskan water resources programs. Several are described briefly in this paper: A flood warning network in the Chena River basin; establishment of the Caribou-Poker Creeks Research Watershed in Central Alaska; preparation and periodic updating of the “Ten-Year Plan for Water Resources Data Acquisition”; current planning for an integrated “real-time reporting network” for hydrometeorological data within the State; and a framework for implementation of the Alaskan phase of the National Water Resources Assessment, currently in the initial phases. Accomplishments to date testify that it is indeed possible to “get it all together” in the broad field of “Water Resources” in the largest of our 50 states.     

WATER RESOURCES AND SOCIAL CHOICES1

ABSTRACT The problem of water resources management can be viewed as one requiring the existence and application of some type of “collective decision” mechanism. Currently, the general water resource decision problem is solved using an “individual decision” format without explicit consideration of the dominant social decision system. This paper demonstrates the need for blending technical planning activities with organized societal processes and then proposes a specific public decision framework to satisfy this requirement. The key element in this planning framework is a generalized “bargaining arena” which serves to link technical activities with the social system. Using this bargaining device we can (1) specify policy at a local level, (2) incorporate “social decision” rules into the planning process, and (3) provide local access to the decision process. A simple case of regional water quality management is used to describe the application of this planning procedure and to offer encouragement for successful use in more complex real-world cases.     

MODELING OF WATER SUPPLY/DEMAND IN THE SOUTH PLATTE RIVER BASIN, 1970–20201

ABSTRACT: The application of a water balance model in finding “solutions” to the supply/demand problem was demonstrated using the South Platte River basin as a case study. Solutions were ascertained by hand, using both “average” and “stress” supply/demand conditions, and were developed for 1980, 2000, and 2020; nonquantifiable boundary conditions were incorporated by judgement. The solution obtained for a particular set of conditions is not unique and has strong normative characteristics; thus it must be judged by various interest groups having different ethical positions. The water balance model has a tabular display format and so the “model” is merely a simple table, i.e., a “water balance table.” In this work the water balance table was displayed on an eight-foot by eight-foot color-coded magnetic board. The board provides a means to both find and display the needed supply/demand “solution.” The tabular display facilitates understanding of the systemwide solution and the formulation of value judgments. Based upon these value judgments and an initial “straw man” solution, successive negotiated solutions can be found which can minimize “conflict.”     

EXPERIMENTS IN IMPROVING RURAL WATER SUPPLIES1

ABSTRACT: A series of studies and experiments were conducted to identify rural water supply quality problems and to develop and demonstrate solutions. We found that rural people had severe and widespread problems, while state agencies held potential answers. Communications between experts and town officials were weak or absent. To bridge this gap, an information system was devised and tested. A computer program was developed to provide a printout map of the state, showing town boundaries and the quality of water supplies for each public water system monitored by the State Health Department. The map and data were published in local newspapers with an explanation of the map and its symbols. Town health officers were interviewed to determine the results of the public disclosure. We found that the news releases led to increased awareness, interest, and understanding of water quality and demands for ameliorative action. This program was supplemented by two publications: “A Layman's Guide to Eutrophication” and “A Handbook for Rural Water Uses.” The handbook explains the nature of drinking water standards, the reasons for these standards, the dangers and results of not meeting the standards, and cost-effective alternatives for improving water quality.     

CONFLICTS IN ATTAINING NATIONAL GOALS FOR BOTH WATER QUALITY AND ENERGY PRODUCTION1

ABSTRACT: The “policy environment” is defined herein as the institutional setting in which planning is conducted and policy decisions are made with regard to meeting two of the Nation's high priority goals: water quality protection and energy independence. The simultaneous pursuit of these goals has resulted in numerous conflicts among the energy industry, environmentalists, and government. An analysis of selected energy development-water quality conflicts shows that these conflicts can be described in terms of one or more of the following policy environment characteristics: resource scarcity, sense of urgency, lack of experience, administrative complexity, uncertainty about future policies and regulations, technological complexity, and uncertainty about impacts. These characterics provide a useful framework for formulating potential strategies for the resolution of energy development-water quality conflicts.     

AN EXTENSION INFORMATION PROGRAM TO IMPROVE RESIDENTIAL WELL WATER QUALITY1

ABSTRACT: Older inland lake communities in Wisconsin are more likely than many areas to have degraded water supplies. Many home sites are on sandy soils with high water tables and have shallow wells close to their own or a neighbor's septic system. Yet unless major rehabilitation is undertaken, these homes are relatively exempt from local codes and regulations. They also are beyond the application of the federal Clean Drinking Water Act. An Extension education program was created in response to the problem. At a community's request, home drinking water “screening tests” are conducted for at least coliform bacteria, chlorides, and nitrate/nitrite-N. Test results, together with explanations and recommendations are reported at a local meeting. Public response has been positive, and a surprising number of wells appear to be contaminated to some degree.     

MEETING THE CHALLENGE OF POLICY-RELEVANT SCIENCE: LESSONS FROM A WATER RESOURCE PROJECT1

ABSTRACT: Water resource scientists face complex tasks in evaluating aspects of water projects, but relatively few assessment procedures have been applied and accepted as standard applications. Decision-makers often rely on environmental assessments to evaluate the value and operation of projects. There is often confusion about scientists' role in policy decisions. The scientist can affect policy-making as an expert withess, an advocate or a surrogate. By understanding the policy process, scientists can make their work more “policy relevant.” Using the Terror Lake hydro project in Alaska as a guide, three lessons are discussed: (1) not all problems are able to be solved with technology; (2) policy-relevant technology is rarely imposed on a problem; and (3) the scientist need not just react to the policy process, but can have an impact on how that process unfolds.     

A MUNICIPAL WATER SUPPLY INVESTMENT PROBLEM IN RHODE ISLAND1

ABSTRACT: The traditional “requirements” approach to water system planning presumes perfectly inelastic demand and arbitrarily selects a fixed water requirement per capita per day as a planning target. Economists have often pointed out that such a policy leads to over-investment in water supply facilities; a superior approach would maximize some measure of net benefits incorporating price-sensitive demand. Using a dynamic programming model to depict an investment problem in Rhode Island, we find that ambiguities about how to incorporate price-sensitive demand into a decision framework may make such an approach as arbitrary as the requirements approach. Water conservation responses may be a function of other social parameters than water price; if so, variations in these social parameters should be regarded as economic alternatives to water supply investments.     

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.     

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.     

CONSTRAINTS IN WATER MANAGEMENT ON AGRICULTURAL LANDS1

ABSTRACT Whether the goal is minimizing water quality degradation in receiving streams or maximizing agricultural production on existing croplands; the solutions are identical - improved water management practices. Technology has succeeded in developing feasible solutions to improving irrigation water management, but the law has been slow to encourage or direct implementation. The villain of the western United States water problem is the property right concept of the appropriation doctrine. Improving water management also implies organizational improvements. Also, the so-called “human factor” involves questions of inefficiency and ineffectiveness, that when examined under the criteria of efficacy, may dictate a policy of continuing present practices in certain localities or regions with little technological intervention. The present effort for improving water quality management implies, therefore, a manyfold attack aimed at increasing project irrigation efficiency and effectiveness, under the larger rubric of efficacy and the achievement of larger social goals.     

ECONOMIC GROWTH THROUGH WATER RESOURCE DEVELOPMENT: INDIA1

ABSTRACT India's multidimensional water development programs have contributed significantly to the promotion of the country's economic growth. Rapid growth of irrigation has substantially increased agricultural production. Hydro power generation has doubled during the last two decades, and this has accelerated industrialization and extended rural electrification. Minor irrigation has taken on a new importance in the Fourth Five Year Plan, signifying a departure from the earlier Plans. “Green Revolution” owes a large measure of its success to the availability of assured water supplies. Water development projects have also generated tremendous employment opportunities. Despite its pronounced impact on the economy, India's water planning strategy has some glaring weaknesses: the failure to incorporate “indirect benefits” in cost-benefit calculations; the under-utilization of water potential; and, the progressive increase in the cost of irrigating an acre of land. The prevailing institutional structure in India constitutes a major deterrent to the diffusion of the benefits of water development. There are stubborn psychological factors which render the adoption of innovative irrigation practices difficult. There is thus an overwhelming need to revamp India's institutional framework. On balance, however, water development in India has made its impact felt on India's myriads of villages. And from the arid “dust bowls” of India new life has emerged.     

WATER AND WASTE WATER IN IMPERIAL ROME1

ABSTRACT: Rome is noted for its water and waste water systems which were constructed during ancient times. This paper is a discussion of the impact these systems had on living conditions in the imperial city. Rome's water system provided a constant supply to centrally located areas in contrast to modern systems which deliver water on demand to individual connections. For both water and waste water systems, access points were generally outside the household. Because of this lack of individual connections, Romans were forced to spend much of their time outside their tenements in the baths, latrines, arenas, streets, and shops of the imperial city.     

TREATING WATER INSTITUTIONS AS ENDOGENOUS VARIABLES: DEMONSTRATION OF A CONCEPTUAL MODEL1

ABSTRACT: Institutional innovation is central to many water resource problems. (In this context “institutions” refers to the laws and regulations governing water allocation and use.) Yet, typically, economic analyses treat institutions as exogenous and fixed. Unfortunately, this conventional assumption does not allow economists to address many modern problems. This paper develops an economic framework in which institutions are treated as endogenous. The model accounts for (1) factors that stimulate calls for formal institutional change, (2) the role of interest groups in policymaking, and (3) actual institutional change as it impacts choice domains and thus economic performance. The model is compared to a specific case of change in Colorado's water institutions, namely, instream water rights legislation in the 1970's. The empirical evidence is generally consistent with model hypotheses. The model promises to be useful to scholars and policymakers interested in institutional innovation.     

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.     

“Liberating” social knowledges for water management,and more broadly environmental management,through “place-change planning”

In response to the big policy problem of increasing failures of traditional, largely technical, policy approaches to constructively address transformational or radical socio-environmental problems from major facility siting, landscape modification, and/or new environmental management at the local level, this paper introduces “place-change planning”. This concept is applied to recent calls by Australian water scientists and policy-makers “to liberate the knowledge, skills and individual leadership and collaboration of all stakeholders to reflect a more decentralised, disaggregated and localised water world”. Local community stakeholders appear the most neglected stakeholder currently in such water management, despite increasing international recognition of their importance for constructive change in transitional sustainability contexts. As such, place-change policy design focuses on the importance of collaborative participatory approaches for better understanding of the underlying rationalities, and, by association, of better liberating the social knowledges, of place-based local communities for better policy input to realise new visions of sustainable water management, and beyond.     

STATE WATER CONSERVATION STRATEGIES AND ACTIVITIES1

States have the potential to play a major role in moving water conservation from conferences and reports that identify its advantages to actual practice. The research identifies four generic “strategies” that categorize the states' approaches toward conservation and reports on the states' current conservation activities. The four strategies are: reliance on agricultural advisors, leverage incentives, performance standards, and mandatory actions. Four levels of state conservation activity exist. California and Florida maintain the most extensive programs; Arizona, Massachusetts, New Jersey, North Carolina, and Oklahoma also have numerous programs but significantly lower staff commitments; eight additional states maintain more modest conservation effotts. Elsewhere, state directed conservation actions remain minimal and limited to those provided as agricultural advice. The study found support for water conservation the norm among water supply planners.