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.     

WATER MARKETS AND DECENTRALIZED WATER RESOURCES MANAGEMENT: INTERNATIONAL PROBLEMS AND OPPORTUNITIES1

ABSTRACT: Because of its importance and the perceived inability of private sector sources to meet water demands, many countries have depended on the public sector to provide water services for their populations. Yet this has resulted in many inefficient public water projects and in inadequate supplies of good quality and reliable water. Decentralization of water management, including the use of water markets, cannot solve all of these water problems, but it can improve the efficiency of water allocation. When given adequate responsibility and authority, water user associations have effectively taken over water management activities at a savings to tax payers. Moreover, water markets add the potential benefit of improving water efficiency within a sector as well as providing a mechanism for reallocating water among sectors. The key question involves developing innovative mechanisms for reducing the transaction costs of organizing water users and of making water trades. Water rights need to be established which are recorded, tradable, enforceable, and separate from land if markets are to operate effectively. Also, institutions are needed that effectively resolve conflicts over water rights, including third party impacts and water quality concerns.     

The Impacts of Water Conservation Strategies on Water Use: Four Case Studies1

Tsai, Yushiou, Sara Cohen, and Richard M. Vogel, 2011. The Impacts of Water Conservation Strategies on Water Use: Four Case Studies. Journal of the American Water Resources Association (JAWRA) 47(4):687‐701. DOI: 10.1111/j.1752‐1688.2011.00534.x Abstract: We assessed impacts on water use achieved by implementation of controlled experiments relating to four water conservation strategies in four towns within the Ipswich watershed in Massachusetts. The strategies included (1) installation of weather‐sensitive irrigation controller switches (WSICS) in residences and municipal athletic fields; (2) installation of rainwater harvesting systems in residences; (3) two outreach programs: (a) free home indoor water use audits and water fixture retrofit kits and (b) rebates for low‐water‐demand toilets and washing machines; and (4) soil amendments to improve soil moisture retention at a municipal athletic field. The goals of this study are to summarize the effectiveness of the four water conservation strategies and to introduce nonparametric statistical methods for evaluating the effectiveness of these conservation strategies in reducing water use. It was found that (1) the municipal WSICS significantly reduced water use; (2) residences with high irrigation demand were more likely than low water users to experience a substantial demand decrease when equipped with the WSICS; (3) rainwater harvesting provided substantial rainwater use, but these volumes were small relative to total domestic water use and relative to the natural fluctuations in domestic water use; (4) both the audits/retrofit and rebate programs resulted in significant water savings; and (5) a modeling approach showed potential water savings from soil amendments in ball fields.     

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 REDUCTIONS FROM RESIDENTIAL AUDITS1

ABSTRACT: The water reductions resulting from Contra Costa Water District's 1989 residential audit program are measured using a multivariate regression model. The model explains metered residential water use as a function of both conservation and other household variables. The principle conclusions drawn are that (1) installation of low-flow showerheads reduced indoor water use by 9.7 percent or 7.8 gallons per capita day, (2) the outdoor segment of the audit reduced irrigation needs by 18.7 percent, and (3) irrigation timers are being used inefficiently.     

Does More Storage Give California More Water?

Increasing reservoir storage is commonly proposed to mitigate increasing water demand and provide drought reserves, especially in semiarid regions such as California. This paper examines the value of expanding surface reservoir capacity in California using hydroeconomic modeling for historical conditions, a future warm‐dry climate, and California's recently adopted policy to end groundwater overdraft. Results show expanding surface storage capacity rarely provides sizable economic value in most of California. On average, expanding facilities north of California's Delta provides some benefit in 92% of 82 years modeled under historical conditions and in 61% of years modeled in a warm‐dry climate. South of California's Delta, expanding storage capacity provides no benefits in 14% of years modeled under historical conditions and 99% of years modeled with a warm‐dry climate. Results vary across facilities between and within regions. The limited benefit of surface storage capacity expansion to statewide water supply should be considered in planning California's water infrastructure.     

Finding Water for Growth: New Sources,New Tools,New Challenges1

Abstract: Rapidly growing regions such as the western United States face difficult challenges in mobilizing new water supplies to meet new demands. Environmental concerns have curtailed the scope for large new surface storage projects, and widespread basin overdraft has limited ground water’s potential as a source of expansion. Drawing on the California experience, this article explores modern water planning approaches, which focus on a portfolio of options including nontraditional sources (recycling, desalination, underground storage) and more efficient use of existing supplies (conservation and water marketing). It reviews the advantages and drawbacks of the elements of the portfolio, provides examples of innovative planning approaches, and assesses the role for supportive government policies.     

MUNICIPAL UTILIZATION OF WATER DEMAND MANAGEMENT: THE ONTARIO EXPERIENCE1

ABSTRACT: Managing the demand for municipal water supply has become a viable alternative or supplement to traditional supply management responses. Though senior governments in Canada are committed to the concept, there is a lack of knowledge concerning the level of use of the demand management concept and little promotion of water conservation. This paper assesses the extent of the use of this concept as it applies to municipal water supply across southern Ontario and examines factors that influence the variation in use of water conservation strategies. Information from 219 municipalities revealed that the concept is not in wide use in southern Ontario and that existing variation can be partially explained by the extent of problems experienced and the population size served by the municipal water supply system. Suggestions for increasing municipal use of the demand management concept are offered.     

America’s Rivers and the American Experiment1

Doyle, Martin W., 2012. America’s Rivers and the American Experiment. Journal of the American Water Resources Association (JAWRA) 48(4): 820‐837. DOI: 10.1111/j.1752‐1688.2012.00652.x Abstract:  America’s rivers are managed, over long periods of time, based on the most basic ideologies of the United States (U.S.) government. An essential notion of the U.S. government, and thus a necessity of river management, is governing as experiment. This leads to three necessary characteristics of river management: (1) adapting management practices based on experience and thus creating management and agency structures that are highly malleable and that can change directions, (2) overlapping of management roles and responsibilities between agencies which includes intentional redundancy and interagency competition, and (3) federalism — the devolution of responsibilities between national, state, and other unit governments (e.g., municipalities, counties). While these characteristics are often criticized as inefficient, in fact they have provided a surprisingly effective system for river management that has responded to the needs of society at different times and in different places. A key question for river and water resource managers is whether this particular system, so initially unappealing, is best able to meet the future needs of the U.S.     

APPLICATION OF CROP YIELD FUNCTIONS IN RESERVOIR OPERATION1

ABSTRACT: A model is developed for real-time operation of an irrigation reservoir with the objective of maximizing the value of multiple crop yields during a growing season. The model employs monthly additive and product forms of crop yield functions for dry matter and grain crops, respectively. The resulting nonlinear optimization model uses a log transform to reduce nonlinearities in the model. An application of the proposed model is compared to a common operating rule used in simulation models. The proposed model results were better in terms of net benefits from crop yields. The model uses GAMS (General Algebraic Modeling System) language. It requires an IBM-compatible microcomputer and is suitable for use by a reservoir manager.     

PLANNITG INDIANA'S WATER INFRASTRUCTURE FROM A COMPETITIVE PERSPECTIVE1

ABSTRACT: Indiana has embarked on a program to assess the condition of its infrastructure and to plan for its future. The perspective of this planning differs from the traditional “master plan” approach — instead, the focus is on competitiveness for economic development. The initial work on the water and sewerage competitiveness of the infrastructure includes: (1) a comparative analysis of the water resources and infrastructure of Indiana and its industrial midwestern neighbors; (2) a technology scan to identify possible technological opportunities that may be important for Indiana; and (3) a set of recommendations for future planning. This work is preliminary in nature but should serve as a starting point for continued strategic planning over the next decade for positioning of Indiana's water and sewerage infrastructure as a key element in the economic growth equation.     

THE ENGINEER'S ROLE IN WATER RESOURCES PLANNING1

Engineers have traditionally led the planning effort in water resources developments. The engineer's leadership role in water resources, as well as in many other planning activities, has been challenged by technical and scientific people as well as by the general public for insensitivity to social, aesthetic, ecological, and political problems created by planning. The paper draws attention to the fact that the engineer cannot continue to expect the role of leadership to fall to him unless he prepares himself properly for that role. However, it is brought out that the engineer, by his education and training, is still the best qualified among all the representatives of the various disciplines associated with water resources planning to lead the planning effort if he prepares himself for the task. The requirements for preparation for leading water resources planning are outlined.