ENERGY,ENVIRONMENTAL, AND ECONOMIC IMPLICATIONS OF SOME RECENT ALBERTA WATER RESOURCES PROJECTS1

ABSTRACT: Most of us are aware, or feel we are aware, of the impacts of major water resources projects on our lives. “Dam-lovers” note the life-saving flood-risk reduction and recreational benefits of a proposed reservoir, while “dam-haters” bemoan the future drowning out of the wildlife habitat of its river valley, and the recreational disbenefits to stream (as opposed to lake) fishermen. Water supply projects can often be given such a revered status, assuming the “obvious” tenet that water, air, food, and shelter are basic requirements of decent living, that the economic viability of the project may not even be assessed. Water resources planners are supposed to impartially weigh the environmental and economic benefits, and especially now, the energy implications of all proposed water projects, but many times the partial views of political or public advocates may be hard to ignore. The assumptions used in the planning of four recent water projects in the Province of Alberta will be presented and some revisions suggested which materially affect their Benefit/Cost ratios. In one project that is still in the public hearing stage, the economic analysis will be revealed, indicating that the original B/C ratio of about 1.6:1 might be more realistically placed at 0.6:1. In another project just completed, the apparent lack of an economic or energy analysis that has resulted in a perpetual and unnecessary energy load on the province, will be described.     

THE WATER RESOURCES COUNCIL'S PROPOSED PRINCIPLES AND STANDARDS - AN ECONOMIC COMMENT1

The way the Water Resources Council proposes to measure the beneficial effects of national economic development and recreation is questioned and alternatives suggested. In measuring the former, the assumptions specified by the Council are questioned because they do not hold true in the market place. In addition, the Council's method of simulating a price per recreation day implies that an arbitrary price be selected from a range and multiplied times the number of days at no charge for use of the facilities. It is contended that these procedures would over state the economic benefits which in the real market would be measured by the selected price times the quantity demanded at that price.     

ECONOMIC POLICIES FOR REGULATING AGRICULTURAL DRAINAGE WATER1

ABSTRACT: Agricultural drainage water is a major source of environmental pollution in many areas. This paper reviews the literature on the economics of nonpoint-source pollution and applies it to the regulation of agricultural drainage water. Four types of regulatory policies are considered. The empirical analysis is carried out for cotton production in the San Joaquin Valley of California. Variable inputs are the quantity of water applied and the type of irrigation system. All four policies can achieve economic efficiency under the conditions assumed here, but the policies differ in terms of the distributional impacts and administrative requirements.     

EVALUATION OF HYDROLOGIC BENEFITS OF INFILTRATION BASED URBAN STORM WATER MANAGEMENT1

ABSTRACT: As watersheds are urbanized, their surfaces are made less pervious and more channelized, which reduces infiltration and speeds up the removal of excess runoff. Traditional storm water management seeks to remove runoff as quickly as possible, gathering excess runoff in detention basins for peak reduction where necessary. In contrast, more recently developed “low impact” alternatives manage rainfall where it falls, through a combination of enhancing infiltration properties of pervious areas and rerouting impervious runoff across pervious areas to allow an opportunity for infiltration. In this paper, we investigate the potential for reducing the hydrologic impacts of urbanization by using infiltration based, low impact storm water management. We describe a group of preliminary experiments using relatively simple engineering tools to compare three basic scenarios of development: an undeveloped landscape; a fully developed landscape using traditional, high impact storm water management; and a fully developed landscape using infiltration based, low impact design. Based on these experiments, it appears that by manipulating the layout of urbanized landscapes, it is possible to reduce impacts on hydrology relative to traditional, fully connected storm water systems. However, the amount of reduction in impact is sensitive to both rainfall event size and soil texture, with greatest reductions being possible for small, relatively frequent rainfall events and more pervious soil textures. Thus, low impact techniques appear to provide a valuable tool for reducing runoff for the events that see the greatest relative increases from urbanization: those generated by the small, relatively frequent rainfall events that are small enough to produce little or no runoff from pervious surfaces, but produce runoff from impervious areas. However, it is clear that there still needs to be measures in place for flood management for larger, more intense, and relatively rarer storm events, which are capable of producing significant runoff even for undeveloped basins.     

ECONOMIC EVALUATION OF RIPARIAN BUFFERS IN AN AGRICULTURAL WATERSHED1

ABSTRACT: This study determines the most cost effective spatial pattern of farming systems for improving water quality and evaluates the economic value of riparian buffers in reducing agricultural nonpoint source pollution in a Midwestern agricultural watershed. Economic and water quality impacts of alternative farming systems are evaluated using the CARE and SWAT models, respectively. The water quality benefits of riparian buffers are estimated by combining experimental data and simulated water quality impacts of fanning systems obtained using SWAT. The net economic value of riparian buffers in improving water quality is estimated by total watershed net return with riparian buffers minus total watershed net return without riparian buffers minus the opportunity cost of riparian buffers. Exclusive of maintenance cost, the net economic value of riparian buffers in reducing atrazine concentration from 45 to 24 ppb is $612,117 and the savings in government cost is $631,710. Results strongly support efforts that encourage farmers to develop or maintain riparian buffers adjacent to streams.     

ECONOMICS AND FEDERAL WATER PROJECTS1

While the science of economics is widely used in Federal water resource development projects, the usual procedure of applying an analytical discipline to arrive at a conclusion is reversed. The “answer” is usually provided ahead of time and economics is assigned the task of justifying the preconceived conclusion. This leads to a series of mitigatory effects in which economics as a science is not allowed to freely function. This article attempts to illustrate some of these “unusual” uses of economics in Federal water projects and note the “answers” we would logically expect from the economic discipline. Even though the theory of economics is often subverted, there are positive aspects to the role of economics in evaluating Federal water projects.     

EVALUATION OF THE SUSTAINABILITY OF WATER WITHDRAWALS IN THE UNITED STATES, 1995 TO 20251

To evaluate the long term sustainability of water withdrawals in the United States, a county level analysis of the availability of renewable water resources was conducted, and the magnitudes of human withdrawals from surface water and ground water sources and the stored water requirements during the warmest months of the year were evaluated. Estimates of growth in population and electricity generation were then used to estimate the change in withdrawals assuming that the rates of water use either remain at their current levels (the business as usual scenario) or that they exhibit improvements in efficiency at the same rate as observed over 1975 to 1995 (the improved efficiency scenario). The estimates show several areas, notably the Southwest and major metropolitan areas throughout the United States, as being likely to have significant new storage requirements with the business‐as‐usual scenario, under the condition of average water availability. These new requirements could be substantially eliminated under the improved efficiency scenario, thus indicating the importance of water use efficiency in meeting future requirements. The national assessment identified regions of potential water sustainability concern; these regions can be the subject of more targeted data collection and analyses in the future.     

EFFECTIVENESS OF WASTE MINIMIZATION PROJECTS IN REDUCING WATER DEMAND BY UK INDUSTRY1

ABSTRACT: There is growing interest in managing water demand in the UK. A series of waste minimization clubs have been set up within the country and this paper identifies the effectiveness of these clubs in reducing the demand for water within industry. Membership of these clubs is voluntary and the only incentive for industry to reduce water consumption, and consequently the production of effluent, is the almost immediate financial saving made by the company, often achieved by accounting for the water consumption and loss within site from the point of input from the water supplier to output in the form of effluent. On average, companies are able to reduce water consumption by up to 30 percent. If the entire industrial sector within the UK were to achieve this degree of savings, it is possible that approximately 1300Ml/d could be saved.     

THE PRODUCTION OF WATER FROM GEOTHERMAL RESERVOIRS: SOME ECONOMIC CONSIDERATIONS1

ABSTRACT: Liquid dominated geothermal systems are expected to account for most of the growth in geothermal energy production in the coming decades. Production of water from such systems could significantly augment fresh water supplies. The feasibility of water exploitation is clouded by potential problems related to seismic impacts, land subsidence and the composition of geothermal brines. If these problems can be overcome at little cost, desalination of brines may be feasible. Estimates of water production costs are presented for a variety of desalination technologies, plant sizes and brine water compositions. These estimates show that production costs will range from $139.10/A.F. to $436.00/A.F. at the plant boundary. Economies of scale and brine composition are important determinants of cost. Production costs are substantially in excess of the value of water in alternative uses. However, in certain unique situations, it may be efficient to desalt brines for use in upgrading the quality of municipal water, industrial process water and irrigation water. Unique situations aside, geothermal brines are not likely to provide an economical source of fresh water in the absence of striking changes in the patterns of supply and demand for water.     

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.     

INPUT-OUTPUT AND BENEFIT-COST ANALYSIS FOR WATER RESOURCE DEVELOPMENT PROJECTS1

ABSTRACT: The proper use of input-output for estimating regional benefits and costs is described for instances where project outputs go to final or intermediate demand. How that estimation is affected by the method used to value the primary project benefits and by the sector content of the input-output model compared to the primary sector affected are discussed as are points of terminological confusion between the two methods.     

ROLE OF IRRIGATION WATER IN AGRICULTURAL PRODUCTION: SOME RESOURCE USE ISSUES1

ABSTRACT: A partial production function for corn that considers the time and amount of water applications is determined. Examples are worked out by using data on site specific parameters for nine soil sites in the Great Plains Region repesenting various combinations of water holding capacity, pan evaporation, and average rainfall. It is found that soils with a low water holding capacity are more water and energy intensive in crop production and thus more vulnerable to fluctuations in net returns due to declining water tables or energy shortages. Despite this, farmers of low water holding capacity soils are likely to opt for irrigation. This points to the existence of a necessary, but sufficient, condition for socially inefficient use of ground water resources. This calls to question the property right concept in water created through the appropriation doctrine and the “law of capture.” This paper indicates the type of analysis that must be undertaken in order to make appropriate changes in laws governing water use.     

EFFECTIVENESS OF DROUGHT POLICIES FOR MUNICIPAL WATER MANAGEMENT1

During the 1976–77 drought, three principal mechanisms were used to reduce water use in Utah communities: price increases, maximum monthly use restrictions, and restrictions on outdoor watering times. A regression model was developed to explain observed changes in water use, with price, type of restriction, household size, and summer rainfall as independent variables. For an average system, a 1 percent increase in price would reduce water use by 0.07 to 0.09 percent. A 1 percent increase in outdoor watering time restriction reduces use by 0.064 to 0.075 percent. A 1 percent increase in quantity restrictions leads to a reduction in water use of 0.014 to 0.054 percent. The effectiveness of rationing policies is influenced by system characteristics. For example, outdoor watering time restrictions were less effective in systems with above average household size and below average monthly use.     

SIMULATION – A TOOL FOR WATER RESOURCE MANAGEMENT1

ABSTRACT: Proper economic evaluation of alternative plans will maximize the utility achieved from the resources available for water resource management. A knowledge of the frequency of occurrence of the events under study is necessary to fully utilize the advantages of economic evaluation in planning. Frequency information is widely used in flood control and water supply, but relatively unknown in water quality planning. A continuous, dynamic hydrologic and water quality model is presented to develop frequency curves for various water quality criteria. Results from the Denver Regional Water Quality Management Study are discussed as an example of the use of frequency analysis for economic evaluation of water quality management.     

BENEFITS FROM WATER CONSERVATION DEPEND ON COMPREHENSIVE PLANNING1

: Substantial reductions in municipal water use are feasible without reducing the quality of life. If conservation measures are preplanned, properly engineered, and coordinated, reductions in utility bills for water, waste water, and energy are estimated at $30+per person per year. Installation of devices to reduce water use, engineering plans to prevent malfunctioning of collecting sewers, and engineered process modifications of treatment facilities must be coordinated to achieve full benefits of water conservation. Pollutant discharges to the aquatic environment are reduced in direct proportion to the reduction in water use.     

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.     

AN OPTIMIZATION MODEL FOR EFFICIENT MANAGEMENT OF URBAN WATER RESOURCES1

ABSTRACT: A mathematical programming model is proposed to determine economically efficient urban water resource allocation and pricing policy by maximizing the sum of the consumer and producer surplus. The optimization of this nonlinear problem is accomplished by the use of linear programming algorithm. The feasibility of using recycled water for municipal purposes is examined in a planning context. The impact of higher water quality discharge standards on pricing and allocation of water is analyzed and the attractiveness of water reuse option is demonstrated.     

CONJUNCTIVE MANAGEMENT OF WATER RESOURCES IN THE CONTEXT OF TEXAS WATER LAW1

ABSTRACT: This paper examines the critical interaction between existing Texas water law and the state's water resources. Conjunctive use and management of interrelated water resources, though seldom practiced, is generally considered desirable. However, a significant barrier to the coordinated, efficient use and management of water resources is the legal division of water in the various phases of the hydrologic cycle into different classes and recognition of well-defined water rights in the separate phases. Several examples of the problems which relate to, or result from, present Texas water law and which prevent correlated water resource management are discussed. Any substantive revision of Texas law, particularly ground water law, will apparently be difficult to achieve in the immediate future, primarily because of the large number of recognized private water rights and the political power inherent in them. Data necessary for operation of conjunctive management systems are gradually being acquired, and perhaps someday other hydrologic phases can be integrated with surface and ground water. Nevertheless, Texas courts and the legislature have sufficient information on the interrelated hydrologic cycle so that prospective water conflicts should be anticipated and avoided. Great care must be exercised in the recognition of new types of private water rights or extension of existing rights, because this institutional structure, once established, presents a formidable obstacle to desirable revisions of the law.     

PUBLIC PERCEPTIONS IN WATER QUALITY EVALUATION1

ABSTRACT: A Visual Perception Test, consisting of photographic slides of water sites, was designed to examine laymen's water quality perceptions. The slides were taken at five water sites where the level of visual pollution was artifically altered by the investigator. Analysis of variance indicated that the water sites were evaluated differently for each of five pollution levels. Increases in water discoloration and the quality of litter were viewed as increases in level of pollution. Laymen not only evaluated visually polluted sites lower for uses such as picnicking, but they also evaluated the quality of the actual water lower. Stepwise multiple regression indicated that a combination of water color, scenic beauty appreciation, quality of the surrounding environment and industry as a pollution source explained 73 percent of the variance in predicting Overall Pollution. Application of factor analysis simplified the variables to an Overall Pollution Factor and a Boating Use Factor.     

NUTRIENT BALANCES FOR THE EVALUATION OF NUTRIENT SOURCES IN WATER QUALITY MANAGEMENT1

ABSTRACT. This paper describes the methodology for a nutrient balance to evaluate the sources and distribution of nutrients in a small river basin. Loadings for total nitrogen and phosphorus are calculated from measured nutrient concentration and river discharge data. Using a special retrieval program and a data storage and processing system, loadings are accumulated over a given time period to allow for time of passage through the basin and seasonal changes in nutrient distribution. Nutrient balances are made with the accumulated loadings to obtain the relative contribution of each nutrient source and the retention of nutrients within the basin through sedimentation and aquatic growth. The methodology has been used to study nutrients in the Qu'Appelle River Basin, Saskatchewan, Canada.