SOCIAL OVERHEAD CAPITAL COSTS OF IRRIGATION DEVELOPMENT IN WASHINGTON STATE1

ABSTRACT: Increased irrigation as a means of achieving economic development can impose significant social costs on the state or region of growth. The growth in population induced by additional irrigation will require new roads, water and sewage facilities, schools, fire and police protection, etc. Also the increased energy demands due to irrigation and growth in economic activity must be met. Capital investments required to service these needs of new development can become very large. This study attempts to measure such social overhead costs or irrigation development for some specific irrigation project areas of Eastern Washington. It is shown that investment costs in overhead items can reach $2,000 per acre irrigated or $70,000 per job created. Alternatively, the annual costs can equal $180 per acre or $6,700 per worker. These costs must be paid locally through increased taxes, utility rates, or costs for services.     

THE AMERICAN INDIAN AND MISSOURI RIVER WATER DEVELOPMENTS1

ABSTRACT: The construction of three Missouri River main stem dams, Garrison, Oahe and Fort Randall, and the related reservoir taking caused social and economic changes on five Indian reservations, Fort Berthold, Cheyenne River, Standing Rock, Crow Creek and Lower Brute. The inundation of Missouri River riparian lands caused the loss of important cultural, social and economic environments. Ninety percent of the reservations timber, seventy-five percent of its wildlife and most of the fertile cropland were in the reservoir taking area. Urban and more fertile environments downstream and to the east received most of the projects benefits. The Indian minority on the five reservations received few economic and social benefits after bearing a disporportionate share of the social and economic costs of the developments. Relocation was forced upon those who had the longest historic and cultural claim to the land. The social costs to the American Indian occasioned by the Missouri River water developments illustrates two broad areas seldom considered during the decision process. First, the unique historic, cultural or religious values of minorities affected by developments. Second, the disproportionate spacial allocation of both benefits and costs. The second item includes social, economic and cultural considerations in not just a geographic framework but a cultural framework as well.     

Place attachment in a foreign settlement

This paper examines issues arising from the involuntary relocation of Turkish Cypriot refugees from the southern to the northern portion of the island of Cyprus. After the ceasefire in 1974, participants in this study were relocated into homes originally built and occupied by Greek Cypriots. Using data obtained from questionnaires, semi-structured interviews and drawings, the study analyses their place attachment under the unusual circumstances of their own forced relocation coupled with their occupation of homes abandoned by residents also displaced by war and interethnic hostility. The study compares the place attachment of refugees to their children, who were born and brought up in the new community. The results of this study suggest that participants' future expectations shaped their attachment to their new homes and community, whilst their degree of attachment to their previous environments also played an important role in the attachment process. Younger generations, on the other hand, were more attached to their current environment than older generations; however they did not wish to be identified with their current environment.     

MEASURING ECONOMIC LOSSES FROM GROUND WATER CONTAMINATION: AN INVESTIGATION OF HOUSEHOLD AVOIDANCE COSTS1

ABSTRACT: Economic losses from ground water contamination were estimated in a central Pennsylvania community. The averting expenditures method was applied via a mail survey of households in which water contained the unregulated volatile organic chemical, perchloroethylene (PCE). Expenditures were estimated at $148,900 (1987 dollars) over the six-month contamination period or approximately $252 per household annually. These costs underestimate the lower bound measure of welfare losses to households from ground water contamination. An upper bound measure of welfare losses was estimated at $383 per household annually. These estimates do not represent the full economic losses resulting from ground water contamination since the study did not address municipal-level and business avoidance costs and losses from actual health effects, increased fear and anxiety, ecological damages, and nonuser ground water benefits. The results expand the existing empirical base of information about municipal-level responses and economic losses from ground water contamination to include household-level impacts. The findings indicate that households undertake substantial averting actions in response to ground water contamination and that such actions can have significant economic consequences. The extent and magnitude of avoidance costs documented suggests that policy-makers should give greater attention to this category of economic losses.     

Analysis of willingness for relocation of the local communities living in the Critical Tiger Habitat of the Sariska Tiger Reserve,India

Many Indian Protected Areas (PAs) act as a support system for the communities living in and around them. Large-scale human interventions in these PAs have resulted in biodiversity loss, threat to wildlife and habitat fragmentation. The Sariska Tiger Reserve (STR) is no exception. In this reserve, tiger (Panthera tigris) became extinct in 2004.To create inviolate space for the reintroduced tigers, government has planned voluntary relocation of villages located inside Critical Tiger Habitat. The voluntary relocation plan will be more challenging if people are not willing to get relocated from PAs. Therefore, we have empirically analysed the identified factors influencing local communities’ willingness in getting relocated outside the STR using logit model. Results revealed that “restriction of access” and “market access” are the most influential factors and positively associated while forest dependency is negatively associated with local communities’ willingness. Based on these results, it was recommended that policy should be directed towards restriction on accessing forest resources along with reduction in forest dependency by nurturing and strengthening villagers’ livelihood to ensure successful relocation. Displacement of existed small markets around the reserve will also persuade them to relocate in areas more connected to market and other facilities.     

Optimal hardwood tree planting and forest reclamation policy on reclaimed surface mine lands in the Appalachian coal region

We study the optimal hardwood tree planting decision on reclaimed surface coal mines in the Appalachian region using a mine operator-focused, expected cost model that recognizes costs of preparing the site for tree planting, unit costs of planting seedlings, and opportunity costs of reforestation treatments and the performance bond. We also consider the possibility of failed initial attempts by incorporating the probability of reforestation success, based on empirical seedling ,survival rates and regulated tree survival standards, as well as fixed and unit costs of returning for additional planting. Optimal planting levels from 319 to 780 trees per acre and expected costs from $1049 to $2338 were found using simulations over a range of unit planting costs, fixed costs of replanting, tree survival standards, and interest rates. Further simulations compared optimal planting across un-weathered gray sandstone and weathered brown sandstone substrate materials, finding gray sandstone to be associated with lower expected costs. We conclude that optimal planting density and expected reforestation cost are sensitive to economic parameters, regulations, and planting substrate materials; and those policies influencing these factors may have substantial impact on reforestation outcomes and the choice of post-mining land use by mine operators. Our study provides a framework for understanding forest reclamation decisions that incorporates incentives faced by the mine operators who develop and implement the plans for mine reclamation, including forestry.     

AN ANALYSIS OF RISING IRRIGATION COSTS IN THE GREAT PLAINS1

ABSTRACT: Irrigation costs are rising rapidly on the 32 million acres irrigated with ground water. Ground water levels are declining under about 15 million of those acres adding to increased costs. However, from 1975 to 1982, 75 to 80 percent of increased ground water irrigation costs were due to higher nominal energy prices and interest rates. In real dollars, adjusted for inflation, these costs have risen faster than other irrigation costs and the real rise in commodity prices has been very small. A continuation of rapidly rising costs and slowly rising prices will shorten the economic life of those aquifers experiencing declining water levels. That same condition of prices and costs place all ground water irrigators in a disadvantaged position compared to nonirrigators and could cause a decline in ground water irrigation.     

Residential mobility and personal well-being

This research examines the relationship between personal mobility rate (number of lifetime moves/respondent's age) and health status. A contextual analysis is proposed in which the health consequences of relocation depend not only on the immediate circumstances surrounding a move, but also on the broader context of the individual's residential history, current life situation, and aspirations for the future. Two hundred and forty-two adult employees completed an initial survey of lifetime residential history, current residential desirability, employment experience, and perceived housing options for the future. Three months later, a panel group of 121 respondents completed a follow-up survey of emotional and physical well-being. Frequent relocation was directly associated with a greater number of illness-related symptoms, but the impact of mobility rate was largely mediated by psychological factors. Health problems were more prevalent among high-mobility individuals characterized by low rather than high levels of environmental exploratory tendency; among low-mobility persons reporting low versus high levels of residential choice and congruence; and among low residential-quality individuals who perceived future residential options to be unavailable rather than available.     

MISSOURI RIVER DEVELOPMENT POLICY AND RURAL COMMUNITY DEVELOPMENT1

ABSTRACT: Federal planners, in proposing the massive main stem Missouri River water developments in Montana and North Dakota, promised economic and social benefits to the local residents. Five main stem dams, Fort Peck, Garrison, Oahe, Big Bend and Fort Randall, were evaluated for community and rural development effectiveness. Thirty-seven development factors were examined and improvements noted. Only small differences were noted between areas with water developments and the control area. Further analysis revealed that water development benefits moved downstream and to existing urban areas. The Missouri River's rural areas and small communities were not developed significantly by the water projects. Several problems associated with water development policy were illustrated by the study. Cultural differences between planners and the population impacted were ignored. Second, the allocation of social costs was not considered and related to this, serious geographic maldistribution of benefits and costs resulted. The differences between pre-development promises and development performance was dramatic. While the large dams remain as landmarks to engineering prowess, the projects need to be evaluated for their success in meeting humanistic development objectives. Major redevelopment may be warranted by such an ex-post evaluation.     

ESTIMATING THE PUBLIC'S VALUES FOR INSTREAM FLOW: ECONOMIC TECHNIQUES AND DOLLAR VALUES1

ABSTRACT: Sound water resource management requires comparison of benefits and costs. Many of the perceived benefits of water relate to providing instream flow for recreation and endangered fish. These uses have value but no prices to guide resource allocation. Techniques to estimate the dollar values of environmental benefits are presented and illustrated with several case studies. The results of the case studies show that emphasis on minimum instream flow allocates far less than the economically optimum amount of water to instream uses. Studies in Idaho demonstrated that optimum flows that balance benefits and costs can be ten times greater than minimum flows. The economic benefits of preserving public trust resources outweighed the replacement cost of water and power by a factor of fifty in California. While it is important to incorporate public preferences in water resource management, these economic survey techniques provide water managers with information not just on preference but how much the public is willing to pay for as well. This facilitates comparison of the public costs and benefits of instream flows.     

RURAL HOUSEHOLD RESPONSE TO WATER CONTAMINATION IN WEST VIRGINIA1

ABSTRACT: About one-third of all West Virginians obtain domestic water from private water wells. In this research, mail and telephone surveys were used to investigate household responses to bacteria, mineral, and organic chemical contamination of domestic water supplies. Of households who were informed of contamination and acknowledged the problem, over 85 percent took action to avoid exposure to water contamination problems. The most common action was to clean and/or repair the water system (55.9 percent of valid surveys). Approximately 45 percent of households made investments of either a water treatment system, a new water source, or correction of contamination source. The average, annual economic cost of rural household actions was $320 for bacteria, $357 for minerals, and $1,090 for organic contamination. These economic costs represent a lower bound estimate for rural household willingness-to-pay (WTP) for a reduction in domestic water contamination from government action. On average, investment actions had lower annual economic costs than noninvestment actions of boiling and hauling water so that households who undertook investment actions in response to water contamination would have a lower WTP for government action to reduce water contamination. When effectiveness of water treatment systems was evaluated, treatment systems which require minimal household maintenance were found to reduce exposure to water contamination to safe levels as households intended when they installed the system. Treatment systems which were commonly ineffective included those which required continual maintenance (e.g., chiorinators) or were not designed to solve the contaminant problem for which they were purchased (e.g., filter systems for bacteria).     

The hidden costs of relocating sand and gravel mines

Mining of construction aggregate is often unwelcome near communities because of its disamenities or because it can destroy prime farmland and displace other desirable land uses. Such conflicts have led to prohibitions against mining near cities or on high-value farmland, causing these operations to be relocated to more distant locations. The cost of this relocation may go unnoticed if they are indirect, diffused and rise gradually over time, but they may be significant due to the high transportation cost of moving these materials long distances.     

External cost internalisation of urban transport: a case study of Dublin

Transport users do not currently pay all costs associated with their transport activities and in particular do not pay the costs they impose on the environment. Case studies on Dublin, Amsterdam, Brussels and London have been conducted to evaluate how best to meet the requirement of the European Commission in its fair and efficient pricing aims in the transport sector, i.e. where transport users are made to pay all costs they impose. The paper presents the results of Do Nothing (DN) and Do Something (DS) scenarios for 2005 where in the latter case each transport user pays for all costs they impose including pollution, noise, accidents etc. The Dublin results, from an economics model used in the study, are examined in detail; the findings are compared with those of parallel studies conducted in the other cities to demonstrate the international relevance of this work. The comparison between the DN and DS scenarios indicates that taxes on all transport modes should be increased substantially, particularly in the morning and evening peak periods. As a result of the price increases, travel demand is reduced. A practical example where transport users could be made to pay for all their costs is road use pricing, i.e. charging individuals for the use of road space. The taxation levels suggested in the DS scenario have been used in a road use pricing trial in Dublin, the results of which were published in O'Mahony, Geraghty and Humphreys (Transportation 27, 269-283, 2000), to see if the reductions in the travel requirements of individuals proposed by the economics model are in fact true. The principles of the work presented in this paper are not only relevant to environmental impact management in the transport sector but can also be applied to other sectors.     

Rising recreancy: flood control and community relocation in Houston,TX, from an environmental justice perspective

This article looks at issues of recreancy, environmental justice, and relocation as they relate to a flood control infrastructure project in inner city Houston. The main research questions were “What forms would recreancy take?” and “Can a project be environmentally just if recreancy is present?” Through the structural coding of 53 semi-structured interviews, recreancy was found even in a project where the sponsors used community cohesion as a guideline. This article illuminates the difficulties flood control project engineers face when working in local communities and argues that engineering issues are also social issues. Further, the relocatees within this flood control project voice some of the same concerns experienced by people relocated in other involuntary infrastructure development projects. The case outlined in this article could be used to better help those involuntarily relocated for flood control.     

EFFECT OF SYSTEM LAYOUT ON SUBSURFACE DRAINAGE COST IN FLAT IRRIGATED LAND1

ABSTRACT: The economic feasibility of large-scale subsurface drainage projects in irrigated land is affected by construction costs. This study was conducted to evaluate the effect of two different types of subsurface drainage system layout on construction costs for a 1000 ha pilot area located in the Nile Delta of Egypt. The two types of layout studied were the conventional layout currently used in Egypt and the modified layout that was developed for reducing water losses from rice fields. When compared to the conventional layout, the modified layout resulted in a reduction of 6.74 percent in construction costs (714,464 US$ versus 766,142 US$). This cost reduction is explained by the need for lesser lengths of large diameter collector pipes with the modified layout, which results from the smaller drainage area of subsurface drainage systems (average 23.7 versus 30.8 ha). We have found that the cost of subsurface drainage can be minimized by reducing the area drained by each subsurface drainage system.     

Recognizing hidden environmental and social costs and reducing ecological and societal damage through tax, price, and subsidy reform

Indirect, unpriced environmental and social costs of human activities in the United States amount to several trillion dollars each year. By accounting for these costs and shifting some of the tax burden from work to waste, it would be possible to protect the environment and benefit society and the economy.     

COST COMPARISON BETWEEN CESSPOOL AND SANITARY SEWERAGE SYSTEMS IN SAUDI URBAN AREAS1

ABSTRACT: Extensive use is made of on-site wastewater disposal systems of cesspools due to the absence of a sanitary sewerage system in Saudi urban areas. This system has caused the groundwater table to rise to a public nuisance level. A health risk has also evolved. There are several infrastructural, environmental, and social impacts from this, resulting in great financial losses. Examples are: surface water flooding, damage to foundations of buildings and asphalt street pavements, flooded basements and added construction costs required for excavation, dewatering, insulation materials, and special cements. Most of these costs are indirectly being paid by the private and public sectors. This study compares the estimated costs of damage and losses with the estimated costs of building, operating, and maintaining sanitary sewerage systems in the cesspool-served areas. The annual cost of the cesspool system, depending on the severity of the adverse impacts, ranges from 2.2 to 4.4 times the annual cost of the sanitary sewerage system. Remedies for these impacts are very expensive, and delays in the implementation of the sanitary sewerage facility will make the damage recovery more expensive, and in some cases, impossible. Thus, it is recommended that highest priority to be given to the sanitary sewerage systems in Saudi urban areas.     

Economical assessment of the design,construction and operation of open-bed biofilters for waste gas treatment

A protocol was developed with the purpose of assessing the main costs implied in the set-up, operation and maintenance of a waste gas-treating conventional biofilter. The main operating parameters considered in the protocol were the empty bed residence time and the gas flow rate. A wide variety of investment and operating costs were considered. In order to check its reliability, the protocol was applied to a number of scenarios, with biofilter volumes ranging from 8.3 to 4000 m³. Results show that total annualized costs were between 20?000 and 220?000 €/year and directly dependent, among other factors, on the size of the system. Total investment and operating costs for average-size compost biofilters were around 60?000 € and 20?000 €/year, respectively, which are concordant with actual costs. Also, a sensitivity analysis was performed in order to assess the relative influence of a series of selected costs. Results prove that operating costs are those that influence the total annual costs to a higher extent. Also, packing material replacement costs contribute significantly to the total yearly costs in biofilters with a volume higher than 800 m³. Among operating costs, the electricity consumption is the main influencing factor in biofilters with a gas flow rate above 50?000 m³/h, while labor costs are critical at lower gas flow rates. In addition, the use of a variety of packing materials commonly employed in biofiltration was assessed. According to the results obtained, special attention should be paid to the packing material selected, as it is the main parameter influencing the medium replacement costs, and one of the main factors affecting investment costs.     

PROFITS,JOINT COSTS AND WATER QUALITY CONTROL1

ABSTRACT. Federal guidelines for the establishment of water quality standards prohibit degradation of the properties of all or part of the nation's aquatic resources. It is probably correct that streams, lakes and aquifers should be free of toxic substances while non-poisonous deposits should be abated. However, an extreme opposing position is held by some proponents of pollution who intend to continue discharging waste materials until forced to stop. Although it would seem otherwise, the underlying problem is that polluters' points of altercation possess merit in particular instances. Accordingly, efficient abatement will require that appropriate laws be formulated in such a manner that the nature of economic reasons for the disposal of waste materials be disclosed. Moreover, the technological ability to create byproducts from these particular elements or compounds can advance only over time. This, coupled with the fact that scientists have not developed inexpensive treatment methods which are totally effective, justifies more flexible formal regulations. Excessive rigidity of standards could impose a burden on polluters that is greater than the cost to society which the damaging firm or individual is generating. On the other hand, uniform rules in some cases could be considered so lenient as to allow flagrant contamination which unduly injures downstream users.     

Transaction costs and community-based natural resource management in Nepal

Transaction costs in community-based resource management are incurred by households attempting to enforce property right rules over common resources similar to those inherent in private property rights. Despite their importance, transaction costs of community-based management of common pool resources (CPRs) are often not incorporated into the economic analysis of participatory resource management. This paper examines the transaction costs incurred by forest users in community forestry (CF) based on a survey of 309 households belonging to eight different forest user groups (FUGs) in the mid hills of Nepal. The analysis reveals that the average 'poor' household incurred Nepalese rupees (NRS) 1265 in transaction costs annually, while wealthier 'rich' households incurred an average of NRS 2312 per year. Although richer households bear higher proportions of such costs, transaction costs for CF management as a percentage of resource appropriation costs are higher for poorer households (26%) than those of middle-wealth (24%) or rich households (14%). There are also village differences in the level of transaction costs. The results show that transaction costs are a major component of resource management costs and vary according to socio-economic status of resource users and characteristics of the community.