A SURVEY OF STATE WATER CONSERVATION PROGRAMS IN THE U.S.1

ABSTRACT: Adequate water supplies are critical to the maintenance of a community's health and economic well-being. Across the nation communities are struggling to meet an expanding demand for water from municipal, industrial, agricultural, recreation, water quality, and power generation users. As the demand grows and communities actively compete with one another for a limited water supply, states are being called upon to help solve the problem. One possible solution that is being used in many areas is the development and implementation of a water conservation program to stretch the limited supply as far as possible. using a mailed survey, state water conservation programs and some of the characteristics of the different programs were documented. Responses to the nationwide survey were obtained from all 50 states. The specific water conservation program elements on which information was received from the survey included laws and restricted use, community assistance, education, research, and other services. Recommendations for states developing or considering the development of a water conservation program are outlined.     

THE EFFECTWENESS OF PRICING AS A STAND-ALONE WATER CONSERVATION PROGRAM1

ABSTRACT: Economic theory clearly indicates that the use of increasing rate structures will reduce the demand for water and produce monetary incentives for consumers to conserve. One problem with estimating the effectiveness of using rate structures as a conservation program is that they are usually accompanied by other conservation efforts. Thus, it is difficult to determine the effectiveness of any one conservation component. This paper examines the effectiveness of increasing rate structures in a situation where no other conservation program was introduced. The paper uses customer data from the Spalding County (Georgia) Water Authority where an increasing rate structure replaced a descending rate structure in January 1991. Since the imposition of the increasing rate structure, the number of customers has increased 21 percent while total water demand has gone up only 15 percent and per customer water use has declined 5 percent. The daily water use per connection has declined from 243 gallons in 1990 to 231 in 1993, and monthly use has gone from 7,381 gallons to 7,028 per connection over the same period. Statistical tests indicate that water consumption during the two periods was significantly different while weather factors were not.     

IMPACT OF DROUGHT ON QUALITY IN A NEW JERSEY WATER SUPPLY SYSTEM1

ABSTRACT. New Jersey, together with other states in the northeast, was stricken with drought during 1961-66. The effect of this drought was most severe in the northern part of the State. The water quality of the Passaic River, which drains the urban, industrialized northeast, perhaps deteriorated the most among the major drainage systems. This river system is used as a raw-water source by 10 water suppliers. The impact of the drought upon the water supply of the Passaic Valley Water Commission, the most downstream of the basin's suppliers, which supplies an average of about 90 million gallons a day to more than 650,000 persons, is evaluated herein. The drought's impact on the raw-water quality is appraised by the comparison of before-and-after qualities of dissolved solids, dissolved oxygen, biochemical-oxygen demand, turbidity, and hardness. For example, at the worst point during the drought, monthly average dissolved-solids content in the raw water were about 210 percent, hardness, about 167 percent, and biochemical-oxygen demand about 270 percent higher than antecedent values. In general, the study concludes that the drought produced a deterioration in both raw and finished water quality, and is estimated to have increased chemical-treatment costs during the drought by about $650,000.     

CONSERVATION PRACTICES AND ATTITUDES AMONG MARYLAND WATER SUPPLY MANAGERS1

ABSTRACT: In addition to offsetting water supply shortages, water conservation is recognized as serving many purposes, ranging from reduced energy consumption to lower capital costs. Since the discussion of these benefits has been a recent development and has generally excluded local water supply managers, a question arises as to whether supply managers are implementing conservation programs to exploit these benefits. A survey of the managers at 35 Maryland water utilities provides insight into the prevailing attitude toward conservation in a water rich eastern state. The results indicate that most managers continue to view conservation only as a short term response to temporary supply shortages. Only 12 Maryland utilities have undertaken any form of water conservation activity and just two systems have ongoing, comprehensive conservation programs. Institutional, perceptual, economic, political, and time constraints all contribute to the managers’attitudes and general inaction. If water conservation is to be widely practiced, these issues must be addressed and the benefits attributed to conservation must be better documented and articulated to supply managers.     

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.     

IMPACT OF DROUGHT ON QUALITY OF POTENTIAL WATER SUPPLY SOURCES IN THE SANGAMON RIVER BASIN1

ABSTRACT: The analysis of stream flow and several water quality parameters in six Illinois rivers showed both deterioration and improvement in quality indicators during 1976–1977 drought. The adverse impacts were an increase of ammonia and manganese concentrations and, to a lesser degree, increased concentrations of phenol and specific conductance. At the worst point during the drought, the 12-month moving average of monthly ammonia concentration in the Sangamon River was about 620 percent higher than the antecedent value. On the other hand, average concentrations of nitrites and nitrates, total iron, and the number of coliform bacteria significantly decreased. This positive response suggests that streams which are considered unsuitable for municipal supply due to high levels of these quality indicators may be used as emergency sources during droughts.     

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.     

A RETROSPECTIVE BENEFIT-COST ANALYSIS OF WATER RESOURCE PROJECTS IN THE CUMBERLAND RIVER BASIN1

ABSTRACT: A retrospective benefit-cost analysis of major water resources projects in the Cumberland River basin was conducted. The U.S. Army Corps of Engineers' projects selected were Dale Hollow, Wolf Creek, Center Hill, and J. Percy Priest Reservoirs. The ex-post performance of the evaluated reservoirs were compared to the ex-ante estimates. Benefits and costs for each project were deflated to their base year and respective average annual values for each of these components were calculated. An ex-post benefit-cost ratio was determined for each project, as well as the combined system. The benefit-cost ratio for each project surpassed unity. The actual ratio as compared to the ex-ante estimate for each project is as follows: Dale Hollow, 1.24 to 1.46; Wolf Creek, 1.40 to 1.53; Center Hill, 1.17 to 2.02; and J. Percy Priest, 1.45 to 1.6. The internal rate of return was also determined for each project. The results obtained for each project are tabulated and discussed with consideration given to factors effecting the economic evaluation of the projects.     

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.     

PRICING IRRIGATION WATER IN DEVELOPING COUNTRIES1

ABSTRACT Alternative combinations of water pricing and regulations are possible in allocating irrigation water. The best combination will depend on the value of water, ability to control deliveries, desire to subsidize agriculture, ownership traditions, crops grown, return flows, drainage problems, staff training, ability to collect fees, the number of farmers involved, etc. Marginal cost pricing is just one possible alternative and it is more a way of thinking about prices rather than a set system. The possibilities for achieving an equitable and efficient distribution of water are improved if some form of marginal cost pricing is included in the system of water charges.     

THE ADOPTION OF MUNICIPAL WATER CONSERVATION: AN UNLIKELY EVENT?1

ABSTRACT: It is contended that water conservation measures that reduce a water system's net revenues are unlikely to be adopted. Pricing policies that induce conservation can be designed to increase net revenues. Management practices that lead to conservation and pure conservation measures may reduce net revenues; consequently, they are unlikely to be adopted. Recent experience in five southwestern cities supports these contentions. It is argued that the managers of a municipal water enterprise are particularly sensitive to short term variation in revenues. Consequently, to increase the likelihood of the adoption of measures that reduce net revenues it is necessary to remove either the decision to adopt measures that reduce net revenue or the adverse revenue effect from the water enterprise. Finally, to make higher rates for conservation palatable, imaginative use for the funds generated must be developed.     

CLUSTER ANALYSIS AND WATER PROJECT EVALUATION1

Large-scale water projects have long been undertaken for the benefit of people. Information appears to be needed as to who benefits as a result of these projects. The hypothesis was tested that regional income and employment benefits would be closely related to areas where water projects were located. The analytical procedure centered on cluster analysis used to delineate counties in the Tennessee River Watershed on the basis of changes in selected variables over different periods. The hypothesis was rejected. It was concluded that benefits of water projects were not necessarily confined to isolated areas near projects but were regional.     

EMERGING CONCEPTS FOR THE CONDUCT OF STATE WATER RESOURES PLANNING1

ABSTRACT: The development of water resources planning at the state level is discussed. Although there are significant specific differences among state planning programs, some common general principles of state water resources planning are emerging over time. In the interest of reconciling conflict over water allocation states are engaged in policy clarification, mediation of interst group conflict, and provision of baseline information.     

MEASURING THE VALUE OF POTABLE WATER IN PARTIALLY MONETIZED RURAL ECONOMIES1

ABSTRACT: A pilot study was conducted to test the potential of the Contingent Valuation Methodology (CVM) to reveal the value of non-market goods in a partially monetized subsistence economy. CVM was used to estimate the willingness to pay, in the form of labor, for potable drinking water in a rural river-based community located in the Esmeraldas state of northwest Ecuador. Surveys were administered by personal interviews with families living along the waterways of the Santiago river system who used river water for cooking, drinking, washing, and waste disposal. The mean willingness to pay represented over 23 percent of real income, or 1.4 days per week for a period of one year. Results of multiple regression analysis identified the history of water-related health problems and the number of working adults in a household as significant determinants of willingness to pay. Using a non-monetary, rather than a monetary measure of willingness to pay may provide a more accurate representation of value in a subsistence economy where the use of money is limited. The potential for CVM to measure the benefits of non-market goods in rural developing regions whose economies are only partially monetized is demonstrated.     

PERCEIVED WATER QUALITY AND THE VALUE OF SEASONAL HOMES1

ABSTRACT: The impact of degraded water quality on the value of seasonal homes adjacent to St. Albans Bay on Lake Champaign in northern Vermont is estimated using hedonic price functions. The Value of properties located adjacent to the bay are depressed by about 20 percent, or $4,500 on average, compared with similar nearby properties on the larger but cleaner lake. Water quality degradation resulted in decressed property values of approximately two million dollars in the area surrounding the Bay.     

IMPACT OF WATER CUTBACK ON SUGARCANE PRODUCTION IN THE FLORIDA EVERGLADES1

ABSTRACT: Sugarcane (Saccharum spp.) was planted in six lysimeters containing Pahokee muck (Lithic Mediaprist) where water tables were maintained at 30, 60, and 90 cm depths. The main objective was to study the impact of a 40 percent water cutback (108 mm) on sugarcane production during the period near the end of the dry season (i.e., May). The water cutback treatment was simulated through manipulation of water table depth. Due to the high available water capacity of the muck soil and selection of a sugarcane cultivar ‘CP63-588’ (which has a high tolerance of water table fluctuations), the sugarcane growth, and the yields of sugarcane biomass and sugar were not significantly different as a result of the treatments with and without 40 percent water cutback during a period of two months. This result is in good agreement with the 1981 cane yield in the Everglades Agricultural Area where a 35 percent water cutback was imposed during the 1981 drought.     

CASE STUDIES OF AGRICULTURAL WATER CONSERVATION1

Farmers from four irrigation districts in Texas and California were questioned about water conservation practices they are now using, those they plan to adopt, and potential incentives that government might offer to induce still further water conservation on their part. While responses differed somewhat from place to place and among individual farmers, the general results were: a) farmers reported that “water conservation” is not new to them, it is something they practice regularly; b) recent innovations such as laser controlled land leveling devices have permitted some substantial water use reductions in recent years; and c) even greater incentive mechanisms that government could provide and that farmers would accept as useful incentives, such as long term low interest loans for water saving equipment, would probably not be able to reduce water use in agriculture much further than 15 percent below current levels. It is recommended nonetheless that Federal agencies and local water districts and individuals should nonetheless pursue water conservation training and education programs, demonstrations of conjunctive use and water banking opportunities for water saving, and increased loan programs for installation of water saving equipment.     

WATER SUPPLY FORECASTING IN REAL-TIME1

ABSTRACT: A strategy is developed for making seasonal water supply forecasts in real time. It links the traditional regression based forecasting techniques to real-time data acquired by systems such as the Soil Conservation Service SNOTEL and the U.S. Bureau of Reclamation Hydromet networks. The concept is based on interpolating between the forecast values obtained by using real-time data in the forecast equations that bracket the real time. Different interpolation procedures were examined and the procedure for calculating confidence intervals about the forecast estimates is developed. The entire conceptual procedure is demonstrated using data from the Reynolds Creek, Idaho, experimental watershed maintained by the USDA-ARS Northwest Watershed Research Center in Boise, Idaho.     

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.     

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.