POTENTIAL BENEFITS AND COSTS OF INGROUND STORAGE OF IMPORTED WATER1

ABSTRACT: In the near future, groundwater storage of imported water may become increasingly important as sites for surface storage are less available. This article explores the potential economic costs and benefits of groundwater storage. The costs include capital outlays, maintenance costs, land costs, legal costs, energy costs, and opportunity costs. The benefits include land cost savings, prevention of subsidence, aquifer protection, and higher economic use of surface lands that might be covered by a reservoir.     

WATER QUALITY ALLOCATED COST FOR MULTIPURPOSE RESERVOIRS1

ABSTRACT: Low flow augmentation from multipurpose reservoirs may yield significant water quality benefits. Cost allocation assigns a portion of reservoir expense to water quality consumers, waste water dischargers who benefit from increased receiving flow. Whereas such allocation currently is not authorized for Federal projects, the procedure is increasingly appropriate for efficient multiobjective management. Waste water treatment costs, multipurpose reservoir costs, and water quality are modeled for Oregon's Willamette River. Water quality is expressed as a function of treatment and augmentation levels. Treatment cost necessary to achieve a given water quality without augmentation less treatment cost with augmentation is an alternative cost of water quality maintenance. With a cost allocation procedure, this alternative cost is used to determine water quality's share of reservoir cost. Under current conditions, water quality beneficiaries could be charged approximately seven percent of annualized reservoir expense. This charge is one-fourth the expense of additional treatment facilities required were augmentation not provided.     

MOTIVATING REDUCTIONS IN DRAIN WATER WITH BLOCK-RATE PRICES FOR IRRIGATION WATER1

ABSTRACT: Increasing block-rate prices for irrigation water were implemented during 1989 in a 10,000-acre irrigation district in California's San Joaquin Valley. The program motivated improvements in irrigation practices that reduced the volume of water delivered to farm fields and the volume of drain water collected in on-farm drainage systems. The ratio of net crop water requirements to field deliveries increased from 0.65 in 1988 to 0.73 in 1989. The volume of drain water collected at a subset of 20 drainage systems was reduced by 351.1 acre-feet (11.5 percent). Estimated loads of salt, boron, and selenium were reduced by 2,407 tons (11.0 percent), 3.33 tons (11.0 percent), and 0.07 tons (9.2 percent).     

CAPITAL COST OF RURAL WATER DISTRIBUTION SYSTEMS1

ABSTRACT: The cost of water service to rural residents is very high compared to urban areas. This is true even after subsidization by Farmers Home Administration (FmHA) loans and grants. Capital cost data on 44 projects financed by the Ohio office of the FmHA during the period August 1968 to January 1977 are used to derive cost equations for 26 components of rural water distribution systems. These components represent 92 percent of the capital cost of the pipeline distribution systems studied. The data can be used to economically design rural water supply systems from a capital cost viewpoint. More data are needed on operation and maintenance costs as well as central and cluster well costs before totally economic system designs can be undertaken.     

IMPROVING IRRIGATION RETURN FLOW QUALITY WITH A WATER RENTAL MARKET1

ABSTRACT: Current policies for correcting the problem of irrigation return flow pollution tend to attack the symptoms of the problem, rather than its cause. The present institutional arrangement for allocating irrigation water is seen as the source of the problem. This paper examines the water quality benefits of altering the institutional arrangement to allow for irrigation water transfers through a rental market. It is conceptualized that by creating a water rental market an opportunity cost would be associated with the use of irrigation water such that profit maximizing farmers would be induced to use his water supply more efficiently and rent the surplus to other irrigators, thus reducing return flow pollution. It is shown that a water rental market could increase water quality in the Yakima River in southcentral Washington by 31 percent as well as increase farm incomes and crop production.     

PRICE BEHAVIOR IN THE WATER MARKET OF NORTHEASTERN COLORADO1

ABSTRACT Past prices of Colorado-Big Thompson water shares were analyzed using an asset pricing model which incorporated the growth rate in real returns to irrigation water and the value of potential urban water uses. A real growth rate in the returns to irrigation water was estimated at 5.3 percent. Nevertheless, market values for water shares have exceeded capitalized agricultural values since 1969. Historically, urban use potential was heavily discounted, but the implicit discount rate fell rapidly in the last decade. The expectation that water shares will eventually be sold to municipal or industrial consumers now appears to be reflected fully in water prices.     

THE ECONOMIC VALUE OF GROUND WATER RECHARGE FOR IRRIGATION USE1

ABSTRACT: Artificial recharge as a means of augmenting water sup plies for irrigation is a management alternative which policy makers in ground water decline areas are beginning to consider seriously. A conceptual model is developed to evaluate the economic benefits from ground water recharge under conditions where the major water use is irrigation. The methodology presented separates recharge benefits into two components: pumping cost savings and aquifer extension benefits. This model is then applied to a Nebraska case to approximate the value of recharge benefits as a function of aquifer response. discount rate, and commodity prices. It was found that recharge benefits vary from less than $2 to over $6 an acre foot recharged.     

A RATIONALE FOR THE REGIONALIZATION OF PUBLIC WATER SYSTEMS1

ABSTRACT. A rationale is set forth for requiring and/or encouraging the consolidation or regionalization of all systems beneath certain population size levels based on the small water systems’ capability to produce an adequate supply of safe drinking water at a reasonable cost to customers. Estimates for basic costs of water service including personnel, other operation and maintenance and capital are made and a range of water rates is suggested based on reasonableness and acceptability to customers. Guidelines are then drawn for a moderate rate of $10.00 per month and an upper limit rate of $15.00 per month to show the sizes at which public water systems might be expected to achieve fiscal viability. Finally, recommendations are made to State and Federal governmental agencies concerning possible legislation, plans and programs to achieve better public water service through the regionalization or consolidation of small public water systems.     

水污染防治领域PPP项目投资回报机制设计

在国家相关政策的支持引导下,采用政府和社会资本合作(PPP)模式实施的水污染防治项目逐渐增多。合理的投资回报是社会资本参与PPP项目的关键所在。本文通过对水污染防治项目特点、不同付费方式及适用条件进行分析,对投资回报的内在机理进行了分析,提出水污染防治PPP项目投资回报机制设计原则,包括应符合市场配置特点,充分考虑项目风险影响,确保社会资本"盈利但不暴利"、以政府财政承受能力为底线、不以保底承诺、固定回报变相融资。在此基础上,从投资回报是社会资本方服务绩效的对价、合理设计保底需求和超额收益分享机制、合理设计服务价格及调整机制、合理拓宽可行性缺口补助投资回报方式等方面对投资回报机制要点进行了探讨,以期为同类项目的实施提供参考。     

SUBSURFACE RETURN FLOW AND GROUND WATER RECHARGE OF TERRACE FIELDS IN NORTHERN TAIWAN1

ABSTRACT: This study estimates subsurface return flow and effective ground water recharge in terraced fields in northern Taiwan. Specifically, a three dimensional model, FEMWATER, was applied to simulate percolation and lateral seepage in the terraced fields under various conditions. In the terraced paddy fields, percolation mainly moves vertically downward in the central area, while lateral seepage is mainly focused around the bund. Although the simulated lateral seepage rate through the bund exceeded the percolation rate in the central area of the paddy field, annual subsurface return flow at Pei‐Chi and Shin‐Men was 0.17 × 10⁶ m³ and 0.37 × 10⁶ m³, representing only 0.17 percent and 0.21 percent of the total irrigation water required for rice growth at Pei‐Chi and Shin‐Men, respectively. For upland fields, the effective ground water recharge rate during the second crop period (July to November) exceeded that during the first crop period (January to May) because of the wet season in the second crop period. Terraced paddy fields have the most efficient ground water recharge, with 21.2 to 23.4 percent of irrigation water recharging to ground water, whereas upland fields with a plow layer have the least efficient ground water recharge, with only 4.8 to 6.6 percent of irrigation water recharging to ground water. The simulation results clearly revealed that a substantial amount of irrigation water recharges to ground water in the terraced paddy, while only a small amount of subsurface return flow seeps from the upstream to the downstream terraced paddy. The amounts of subsurface flow and ground water recharge determined in the study are useful for the irrigation water planning and management and provide a scientific basis to reevaluate water resources management in the terrace region under irrigated rice.     

POTENTIAL WATER USE AND AGRICULTURAL PRODUCTION PATTERNS UNDER ALTERNATIVE WATER PRICES1

Out study deals with the demand for water and alternative agricultural production and land use patterns under varying prices for both surface and ground water. We derive irrigation water demands for both the United States and regions of it. Not only is a different amount of water used at each set of water prices but also a different mix of crops, livestock, and production technology develops among the different regions. Under the highest set of prices used, more than fourteen million acres are converted into dryland farming. Total irrigated water use decreases by more than 25 million acre-feet. Irrigated crop yields are reduced and cropping patterns shift away from irrigation. Commodity shadow prices increase as much as 15 percent under high prices for both surface and ground water. A redistribution of farm income occurs between irrigated and dryland regions.     

THE EFFECT OF PRICE ON LONG RUN WATER SUPPLY BENEFITS AND COSTS1

ABSTRACT The long-term effects of presently used and alternatively proposed water pricing policies were studied using some tools of operations research and economics. A discrete deterministic dynamic programming model was structured and operated to determine the optimal water supply capacity expansion paths for a hypothetical residential community with a given water pricing policy. The objective of the model was the maximization of future discounted consumers'surpluses plus producer's revenues net of the long-run cost of supply. State variables were the size of system capacity in MGD and stage variables were the times of feasible capacity increase in years. Demand curves, population sizes, and growth rates for various economic sectors of the community were assumed known, as well as short-run production and capital construction costs. Several policies, including constant unit rates, decreasing or increasing block rates and summer differential rates were tested. It was concluded that price plays a major role in the short-run allocation and long-run planning and conservation of water supplies. Conservational pricing policies were advocated as means of lowering the long-run cost of water, using the water price-demand function as a planning tool. Further research in these areas was recommended.     

CAPITAL COSTS OF RURAL WATER SYSTEMS: AN EMPIRICAL APPROACH1

ABSTRACT: In the last two decades the federal government has provided substantial capital to construct rural water distribution systems. Loans at subsidized interest rates and front-end grants through the Farmers Home Administration have been the main source of this capital. Recent federal policy redirections have reduced substantially the availability of grants and subsidized loans. Because of design and material differences, capital cost estimates from urban systems are not uniformly applicable to rural water services. This study presents an econometric analysis of capital costs, using Illinois rural water system construction contract bids. Cost equations by systems components representing 90 percent of capital costs are estimated. The type of information developed here can be used in initial planning and optimization design models contributing to the efficient provision of rural water services.     

RECIRCULATING WELLS: GROUND WATER REMEDIATION AND PROTECTION OF SURFACE WATER RESOURCES1

ABSTRACT: Several chlorinated solvent plumes threaten the sole‐source aquifer underlying the Massachusetts Military Reservation at the western end of Cape Cod. Sensitive surface water features including ponds, cranberry bogs, and coastal wetlands are hydraulically connected to the aquifer. For one of the plumes (CS‐10 the original remedy of 120 extraction and reinjection wells has the potential for significant disruption of surface water hydrology, through the localized drawdown and mounding of the water table. Recirculating wells with in‐well air stripping offer a cost‐effective alternative to conventional pump‐and‐treat technology that does not adversely affect the configuration of the water table. Pilot testing of a two well system, pumping 300 gpm, showed a capture radius of > 200 feet per well, in‐well trichloroethylene (TCE) removal efficiencies of 92 to 98 percent per recirculation cycle, an average of three recirculation cycles within the capture zone, and no measurable effect on water table elevations at any point within the recirculation/treatment zone. During 120 days of operation, the mean concentration of TCE in the treatment zone was reduced by 83 percent, from 1,111 μg/l to 184 μg/l. Full‐scale design projections indicate that 60 wells at an average spacing of 160 feet, having an aggregate recirculation 11 MGD, can contain the CS‐b plume without ground water extraction or adverse hydraulic effects on surface water resources. The estimated capital costs for such a system are about $7 million, and annual operations‐and‐maintenance costs should be about $1.4 million, 40 percent of those associated with a pump and treat system over a 20‐year period.     

MUNICIPAL WATER USE AND WATER RATES DRIVEN BY SEVERE DROUGHT: A CASE STUDY1

ABSTRACT: This paper synthesizes and interprets data pertaining to the evolution of average water revenue, water use, and the average cost of water supply in the City of Santa Barbara, California, from 1986 to 1996, a period which included one of the most devastating droughts in California this century. The 1987–1992 drought hit the study area particularly hard. The City of Santa Barbara was dependent exclusively on local sources for its water supply. That made it vulnerable as the regional climate is prone to extreme variability and recurrent droughts. The 1986–1992 drought provided a rare opportunity to assess the sensitivity of municipal water use to pricing, conservation, and other water management measures under extreme drought conditions. Our analysis indicates that the average cost of water rose more than three-fold in real terms from 1986 to 1996, while the gap between the average cost of supply and the average revenue per unit of water (= 100 cubic feet) rose in real terms from $0.14 in 1986 to $ 0.75 in 1996. The rise of $3.08 in the average cost of supplying one unit of water between 1986 and 1996 measures the cost of hedging drought risk in the study area. Water use dropped 46 percent at the height of the drought relative to pro-drought water use, and remains at 61 percent of the pre-drought level. The data derived from the 1987–1992 California drought are unique and valuable insofar as shedding light on drought/water demand adaptive interactions. The experience garnered on drought management during that unique period points to the possibilities available for future water management in the Arid West where dwindling water supplies and burgeoning populations are facts that we must deal with.     

WATER PRICE RESPONSIVENESS OF COMMERCIAL ESTABLISHMENTS1

ABSTRACT: Pricing policy in water allocation has become of more concern as some areas find water is indeed a scarce resource. Demand estimates, where the quantity purchased-value in use relationships are of concern, have been made in other studies for residential, industrial, and agricultural uses in many areas of the country. The price-quantity relations for water use in commercial firms are estimated and discussed for several different types of stores in this study. A derived demand model is used to estimate commercial demand in the Miami, Florida, area. The price elasticity was generally low (inelastic) for all groups studied except for department stores. This group was found to have an elastic demand for water at all prices above $0.93 per thousand gallons purchased per month, where the mean price for this part of the sample was $1.24. The major implication of the study is that commercial establishments may be responsive to price changes over the long run, much as has already been shown for other types of user groups in other studies.     

CHANGES IN WATER POLICY IN THE PEOPLE'S REPUBLIC OF CHINA1

ABSTRACT: Ideology has predisposed the People's Republic of China against the use of prices to allocate water. Prolonged drought in north China has made the Chinese more aware of their unfavorable water resource inventory and the expense of expanding supply. Therefore, as part of the economic liberalization commenced since the death of Mao Zedong, China has started to make more active use of pricing to regulate demand and reduce the need for supply expansion.     

IMPACTS OF RESIDENTIAL WATER REUSE IN THE TUCSON AREA1

ABSTRACT: Groundwater pumping constitutes approximately 100 percent of the water supply in the Tucson Active Management Area (AMA), Arizona. The current annual overdraft approaches 250,000 acre-feet, but the goal of the AMA is to eliminate the overdraft by the year 2025. Urban water reuse, if implemented by only 30 percent of the area's projected population, would reduce the annual ground-water overdraft by 25,000 acre-feet.     

CONJUNCTIVE SURFACE AND GROUND WATER MANAGEMENT IN THE JAKARTA REGION,INDONESIA1

ABSTRACT: This study investigates the degree of economic inefficiency of the current institutional arrangements for surface and ground water management in meeting urban water demand in the Jakarta region. A numerical model of integrated surface and ground water management is developed using GAMS (General Algebraic Modelling System) software. The model maximizes the net present value of social benefits from piped water and ground water consumption across all users over time from 1999 to 2025. Four policy scenarios are examined: the status quo, the social planner's solution, and two ground water pumping quota scenarios: an aggregate ground water pumping quota and a partial quota applied to commercial and industrial users. Three variations in each policy scenario are considered: investment in water infrastructure of the Jakarta water enterprise (PAM Jaya), water demand growth, and discount rates. The status quo, depending on the investment option, the growth of water demand, and the discount rate, results in a 7.4 to 47.8 percent loss in economic efficiency relative to the social planner's solution. The partial quota is the most feasible, applicable, and manageable scenario. The optimal investment option could increase the volume of piped water supply and reduce the cost of water production. The volume of water delivery could increase by up to 156 percent, but it implies only a 35 percent increase in the surface raw water demands above the current level. However, it does not significantly reduce cumulative ground water extraction over the time period considered.     

RATIONAL INDUSTRIAL WATER REUSE RATIOS1

ABSTRACT: This work begins by defining rational water use, and then discusses important factors that most strongly influence it. A general model is then developed to enable factories to quantify the ratio of rational industrial water reuse based on the least cost method. The model is established to minimize the cost of water with reference to gross water use and three subsystems ‐ the intake, reuse, and discharge of industrial water. Discharge cost is determined using data from a 1997 survey of 38 factories, and reuse costs are ranked and expressed by a step function. The model is verified using data from a typical semiconductor factory in northern Taiwan's Hsinchu Science Based Industrial Park, whose effective rational water reuse ratio is about 38 percent. A sensitivity analysis shows that improving water reuse technology is the most important factor in determining the rational water reuse ratio, and the price of water is the second most important. When water costs over NT$30 (New Taiwan Dollar, US$1 = NT$34) per cubic meter, increasing reuse becomes significant. The model provides a step towards the scientific management of industrial water.