Cities vs. agriculture: A review of intersectoral water re-allocation

Water demand management, or making better use of the water we have — as opposed to augmenting supply — is increasingly proposed as a way of mitigating water-scarcity problems. Moving water away from agriculture to uses with higher economic value is one of the main measures widely seen as desirable. Sectoral "allocation stress" is seen as resulting from the disproportionate share, and inefficient use of water in the agricultural sector. This apparent misallocation is often attributed to the failure of government to allocate water rationally.
This paper revisits this commonly-accepted wisdom and examines the nature of urban water scarcity, showing the importance of economic and political factors, shaped by incentives to decision-makers, and sometimes compounded by climatic conditions. It shows that cities' growth is not generally constrained by competition with agriculture. In general, rather than using a narrow financial criterion, cities select options that go along the "path of least resistance," whereby economic, social and political costs are considered in conjunction. The question of allocation stress is thus reframed into an inquiry of how transfers effectively occur and can be made more effective.     

The economic value of water use: implications for implementing the Water Framework Directive in Scotland

The European Union Water Framework Directive (WFD) enshrines several economic principles in pursuit of 'good ecological status' for Europe's waters and rationalising water use in society. The implicit principle of maximising the social value from use of a scarce resource is reminiscent of the debate about treating water as an economic good, which has competing uses in society. This paper locates the debate about the economic value of water in the requirements of WFD. Specifically, we consider the implications of national reporting requirements for the economic characterisation report that stress the identification of relative value derived from use. As part of the Scottish contribution to the UK reporting exercise, we use a range of secondary data sources to derive economic values for water on a sector basis. We suggest whether the implications of different water values can be followed through in the WFD.     

Temporal and Spatial Variability of Water Supply Stress in the Haihe River Basin,Northern China1

Ji, Yuhe, Liding Chen, and Ranhao Sun, 2012. Temporal and Spatial Variability of Water Supply Stress in the Haihe River Basin, Northern China. Journal of the American Water Resources Association (JAWRA) 48(5): 999‐1007. DOI: 10.1111/j.1752‐1688.2012.00671.x Abstract: Water resources are becoming increasingly stressed under the influence of climate change and population growth in the Haihe River Basin, Northern China. Assessing the temporal and spatial variability of water supply stress is urgently needed to mitigate water crisis caused by water resource reallocation. Water supply and use data were compiled for the time period of 1998‐2003 in this synthesis study. The Water Supply Stress Index (WSSI) as defined as Water Demand/Water Supply was used to quantitate whether water supply could meet the demand of human activities across the study region. We found a large spatial gradient of water supply stress in the study region, being much higher in the eastern subbasins (ranging from 2.56 to 4.31) than the west subbasins (ranging from 0.56 to 1.92). The eastern plain region not only suffered more serious water supply stress but also had a much higher interannual variability than the western hilly region. The uneven spatial distribution of water supply stress might result from the distribution of land use, population, and climate. Future climate change and rapid economic development are likely to aggravate the existing water crisis in the study region.     

Water transfers,agriculture, and groundwater management: a dynamic economic analysis

Water transfers from agricultural to urban and environmental uses will likely become increasingly common worldwide. Many agricultural areas rely heavily on underlying groundwater aquifers. Out-of-basin surface water transfers will increase aquifer withdrawals while reducing recharge, thereby altering the evolution of the agricultural production/groundwater aquifer system over time. An empirical analysis is conducted for a representative region in California. Transfers via involuntary surface water cutbacks tilt the extraction schedule and lower water table levels and net benefits over time. The effects are large for the water table but more modest for the other variables. Break-even prices are calculated for voluntary quantity contract transfers at the district level. These prices differ considerably from what might be calculated under a static analysis which ignores water table dynamics. Canal-lining implies that districts may gain in the short-run but lose over time if all the reduction in conveyance losses is transferred outside the district. Water markets imply an evolving quantity of exported flows over time and a reduction in basin net benefits under common property usage. Most aquifers underlying major agricultural regions are currently unregulated. Out-of-basin surface water transfers increase stress on the aquifer and management benefits can increase substantially in percentage terms but overall continue to remain small. Conversely, we find that economically efficient management can mitigate some of the adverse consequences of transfers, but not in many circumstances or by much. Management significantly reduced the water table impacts of cutbacks but not annual net benefit impacts. Neither the break-even prices nor the canal-lining impacts were altered by much. The most significant difference is that regional water users gain from water markets under efficient management.     

The new regime for managing US—Mexican water resources

United States-Mexican transboundary water resources management is presently experiencing significant reform resulting from long-term demographic processes in the border region and greater economic integration. The recently concluded North American Free Trade Agreement and supplementary environmental accord modify existing agreements and provide old institution with new mandates. Particularly affected is the International Boundary and Water Commission (IBWC), long the lead agency in binational water management. This essay reviews the development of the new water management regime against the two preceding phases of management reform and considers its implications for improved water management in the border region.     

Virtues of simple hydro-economic optimization: Baja California, Mexico

This paper uses simple hydro-economic optimization to investigate a wide range of regional water system management options for northern Baja California, Mexico. Hydro-economic optimization models, even with parsimonious model formulations, enable investigation of promising water management portfolios for supplying water to agricultural, environmental and urban users. CALVIN, a generalized hydro-economic model, is used in a case study of Baja California. This drought-prone region faces significant challenges to supply water to agriculture and its fast growing border cities. Water management portfolios include water markets, wastewater reuse, seawater desalination and infrastructure expansions. Water markets provide the flexibility to meet future urban demands; however conveyance capacity limits their use. Wastewater reuse and conveyance expansions are economically promising. At current costs desalination is currently uneconomical for Baja California compared to other alternatives. Even simple hydro-economic models suggest ways to increase efficiency of water management in water scarce areas, and provide an economic basis for evaluating long-term water management solutions.     

A multicriteria model for planning agricultural regions within a context of groundwater rational management

Current international research focuses on topics like sustainable development, regional planning, environmental decision making and implementation, biodiversity conservation plus a number of other relevant issues, especially at times of economic crisis as today. Economic growth and environmental protection can go hand in hand, provided that decision makers develop and use tools and insights targeting in the implementation of successful and robust long term policies. This paper was developed in the framework of a European research project and implements a Multicriteria Mathematical Programming model that optimises the sustainable management of agricultural regions taking in account the available resources (land, labour, capital) and environmental parameters (agrochemicals, water consumption). The model achieves the optimum farm plan in the area combining different criteria to a utility function under a set of constraints and the spatial integration of the vulnerability maps of the regions into the model enables the regional authorities to design policies for the optimal agricultural development and the groundwater protection from the agricultural land uses. Furthermore, the model is used to simulate different scenarios and policies by the local stakeholders, due to changes on different social, economic and environmental parameters. In this way the decision makers can achieve alternative farm plans and agricultural land uses as well as to estimate economic, social and environmental impacts of different policies. The model has been applied to an agricultural region in Northern Greece and proved to be a valuable tool in the implementation of environmental policies and actions, especially in agricultural regions in a delicate balance as the study area.     

AN IMPLICIT APPROACH TO PRICING AGRICULTURAL WATER TRANSFERS TO URBAN USES1

ABSTRACT: The increased agricultural efficiency of the American farmer has been a substantial impetus to this nation's rapid urbanization. In many western regions where total water supplies are limited, urbanization has required the transfer of heretofore agricultural water rights to the urban use. A major problem in such transfers has been the value or price of the water. A management level model of a typical urban water system was developed to optimize water supply, distribution, and wastewater treatment alternatives. The values of agricultural transfers were determined as the cost advantages of increasing allowable reuse levels of urban effluents which imply the use of a downstream right. This procedure is justified by the economic theory of alternative cost. Results for a test application to the Denver, Colorado area indicate values on the order of $1,000 per acre-foot of transferable water depending on effluent water quality restrictions and operational policies.     

Efficient and Practical Approaches to Ground‐Water Right Transfers Under the Prior Appropriation Doctrine and the Snake River Example1

Abstract: Water right transfers are one of the basic means of implementing changes in water use in the highly appropriated water resource systems of the western United States. Many of these systems are governed by the Prior Appropriation Doctrine, which was not originally intended for application to ground‐water pumping and the conjunctive management of ground water and surface water, and thus creates an administrative challenge. That challenge results from the fact that ground‐water pumping can affect all interconnected surface‐water bodies and the effects may be immeasurably small relative to surface water discharge and greatly attenuated in time. Although we may have the ability to calculate the effects of ground‐water pumping and transfers of pumping location on surface‐water bodies, mitigating for all the impacts of each individual transfer is sufficiently inefficient that it impedes the transfer process, frustrates water users, and consequently inhibits economic development. A more holistic approach to ground‐water right transfers, such as a ground‐water accounting or banking scheme, may adequately control transfer third‐party effects while reducing mitigation requirements on individual transfers. Acceptance of an accounting scheme can accelerate the transfer process, and possibly reduce the administrative burden.     

Feasibility of water purification technology in rural areas of developing countries

Water scarcity is threatening social and economic growth in rural areas of developing countries. There are potential markets for water purification technologies in these regions. The main focus of this article is to evaluate the social, economic and political feasibilities of providing water purification technologies to rural areas of developing countries. The findings of this research can serve as the basis for private investors interested in entering this market. Four representative regions were selected for the study. Economic, demographic, and environmental variables of each region were collected and analyzed along with domestic markets and political information. Rural areas of the developing world are populated with poor people unable to fulfill the basic needs for clean water and sanitation. These people represent an important group of potential users. Due to economic, social, and political risks in these areas, it is difficult to build a strong case for any business or organization focusing on immediate returns on capital investment. A plausible business strategy would be to approach the water purification market as a corporate responsibility and social investing in the short term. This would allow an organization to be well positioned once the economic ability of individuals, governments, and donor agencies are better aligned.     

WATER TRANSFERS AND THEIR IMPACTS: LESSONS FROM THREE COLORADO WATER MARKETS1

ABSTRACT: This paper presents an analysis of the effects of different institutional arrangements and economic environments on water markets. Characteristics of water rights transfers in the South Platte Basin of Colorado and transfers of shares of the Northern Colorado Water Conservancy District (NCWCD) are compared to show how different institutional arrangements can affect the types and size distributions of transfers. The characteristics of water rights transfers in the prosperous South Platte are then compared with water rights transfer characteristics in the economically marginal Arkansas River basin of Colorado to identify the effects of different economic environments. Finally, the economic losses from reductions in irrigated acreage resulting from water transfers are estimated for the South Platte and Arkansas and compared with purchase prices by municipalities. Transfers in the South Platte were to new uses in the same basin, while more recent transfers in the Arkansas were to out of basin users. Transfers of South Platte rights and especially NCWCD shares were small and continuous over time, while transfers in the Arkansas were dominated by a few very large transfers. The negative impacts are judged to be more severe in the Arkansas basin than in the South Platte. Purchase prices paid by municipalities substantially exceeded capitalized transitional losses in the selling areas. In the South Platte, gains and losses were in the same basin, while the Arkansas absorbed the losses, with the benefits going to the purchasing basin.     

废水资源化是解决水资源紧缺的有效途径

我国水资源人均占有量少,污染严重,综合利用程度低,水资源的短缺已成为制约区域经济社会发展重要因素。本文结合实例分析,提出了提高水资源的综合利用程度,推行废水资源化是解决这一问题的有效途径。     

DPSIR模型在西北水资源可持续利用评价中的应用

水作为人类生存和经济发展的生命线,已成为制约西部经济社会发展及生态环境改善的主要因素。为实现西部经济可持续发展,针对当前西北地区水资源利用中出现的问题,建立了基于“驱动力-压力-状态-影响-响应”模型的西北地区水资源可持续利用综合评价指标体系。同时采用熵值法。结合2004年西北五省相关评价指标值对该指标体系进行综合评价。评价结果表明,人均水资源量、水资源开发利用率、农业用水效率等十个指标为影响西北水资源可持续利用的关键因素。其中,新疆在五省区中可持续利用综合水平最高。宁夏最低。     

Trust in Sources of Soil and Water Quality Information: Implications for Environmental Outreach and Education

Public trust in organizations focused on improving environmental quality is important for increasing awareness and changing behaviors that have water quality implications. Few studies have addressed trust in soil and water quality information sources, particularly for both agricultural and nonagricultural respondents of the same watersheds. Surveys in 19 watersheds across five states in the Midwest assessed trust in, and familiarity with, soil and water quality information sources. Overall, respondents most trusted University Extension, Soil and Water Conservation Districts, and the Natural Resource Conservation Service, while lawn care companies, environmental groups, and land trusts were less trusted. Significant differences in trusted sources were found between watersheds, and between agricultural and nonagricultural respondents across and within watersheds. Among agricultural respondents, a clear relationship exists between familiarity and trust; as familiarity with an organization increases, so too does level of trust. This relationship is less clear‐cut for nonagricultural respondents in this region. We highlight implications of these findings for soil and water quality outreach efforts.     

水质基准与标准对我国环保产业的拉动分析

水质基准与标准是国家环境保护工作的根本,是进行环境管理的重要技术依据。随着我国水环境形势的变化和管理目标的改变,为准确、客观地反映我国当前的地表水环境状况,强化水污染防治,有效引导水环境质量改善的方向,提高水环境管理的效率,要求基于水质基准研究开展《地表水环境质量标准》的修订工作,以满足新的管理需求。预测表明,"十三五"期间我国环保投资将达到约6.8万亿,为达到修订《标准》后的目标,我国水污染防治至少需投资2.04万亿。另外,修订《标准》,将带动工业和城镇水污染防治投资超过一万亿元,能够加快环保产业的技术成果转化与应用推广。水质基准与标准对环保产业创新和社会经济发展具有积极促进作用,将在我国水环境质量改善和科技进步促进方面产生重大而深远的影响。     

Variable Irrigation District Action in Water Trading

Irrigation districts (IDs) in the American west are highly diverse in their economic attributes and local water scarcity circumstances. This diversity may affect reallocative action via water transactions as scarcity rises. The institutional background defining and constraining IDs is described here. For a Texas study region the progress of permanent water right transfers involving IDs is documented and examined. An econometric analysis of multiple decades of ID water transfer activities in the Lower Rio Grande Valley finds that IDs with larger initial water right holdings and higher populations in nearby cities are more likely to participate in agricultural‐to‐municipal water transfer activities. The findings suggest that consolidation of smaller water right holding IDs may be an avenue for quickening the pace of reallocation, especially in more populated areas.     

An assessment of Spain's Programa AGUA and its implications for sustainable water management in the province of Almería, southeast Spain

Spain's Programa AGUA was proposed in 2004 as a replacement for the Spanish National Hydrological Plan and represented a fundamental policy shift in national water management from large inter-basin water transfers to a commitment to desalination. Twenty-one desalination facilities are planned for six provinces on the Spanish Mediterranean coast to supplement their water needs. These include the province of Almería that for the last 30 years has endured a net water abstraction overdraft leading to serious reservoir depletion and groundwater imbalances. Rising water use is a result of increasing demand to support irrigated agriculture (e.g. greenhouse horticulture) and for domestic needs (e.g. rapid urban growth and tourism development), which has led observers to question Almería's long-term water sustainability. Desalinated water alone is unlikely to be sufficient to make up these water deficits and water-users will have to accept a move to full-price water recovery by 2010 under the European Union (EU) Water Framework Directive of which Spain is a signatory. Anticipated water efficiencies resulting from higher water tariffs, increasing water reuse and water infrastructure improvements (including inter-basin transfers), in conjunction with increasing use of desalinated water, are expected to address the province's current water overdraft. However, Almería will need to balance its planned initiatives against long-term estimates of projected agricultural and domestic development and the environmental consequences of adopting a desalination-supported water future.     

跨流域调水的公正问题——基于环境正义的分析视角

水资源时空分布不均造成的水资源短缺问题已成为阻碍区域发展的重要因素。为了应对区域间的水资源短缺问题,跨流域调水工程作为不同流域水资源优化配置的一种手段,被广泛用于解决水资源分配不均和区域需水不平衡问题。调水工程虽然短期内缓解了水资源压力,平衡了区域间用水需求,但其建设和运营过程对工程所涉区域的地方经济、地理环境、人文环境以及生态环境也造成不同程度的压力。本文通过对当前世界范围内跨流域调水工程的文献回顾,围绕跨流域调水工程所引发的社会公平正义层面的争议,借助环境正义理论的分析方法,通过对国内外调水案例的实践分析,追踪相关环境不公的现象和争议,剖析当前社会—生态冲突的产生机制。最后从我国水生态文明建设实际出发,提出以建立健全水权交易市场,构建"赋权—认同—合作"参与机制和树立"人类命运共同体"理念的解决对策,以期降低调水工程对环境和社会所造成的负面影响,推进水生态正义体系的建设。     

Toward Integrated Environmental Management for Challenges in Water Environmental Protection of Lake Taihu Basin in China

Lake Taihu is the third largest freshwater lake in China. It serves many social, economic, and ecological purposes in the drainage basin. Unfortunately, the water has been heavily polluted due to rapid industrialization and urbanization during the last two decades. Notwithstanding great efforts made so far to improve the water quality, the environmental situation is still far from being optimistic. The basin and the lake are facing a range of severe environmental challenges: rapid socio-economic development continues to place great pressures on the environment, current pollution control projects have many problems from the viewpoint of effectiveness and efficiency of their implementations, and the non-point sources of pollution such as agricultural fields, for which control is more difficult than for industrial point sources, have become the main contributors to serious eutrophication of the lake. Considering the characteristics of the environmental challenges and problems confronting the basin and the lake, we focus on integrated environmental management (IEM) as a promising and effective approach to overcome these predicaments. Current practices and problems of environmental management in the basin are examined, and potential future developments are discussed. Three aspects of the IEM are emphasized: institutional cooperation, public participation, and internalization of environmental externalities. We think these are the most critical for not only the basin but also for the whole of China to achieve a sustainable society.     

ECONOMIC INCENTIVES FOR AGRICULTURAL NONPOINT SOURCE POLLUTION CONTROL1

ABSTRACT. The limited success of command-and-control policies for reducing nonpoint source (NPS) water pollution mandated under the Federal Water Pollution Control Act (FWPCA) has prompted increased interest in economic incentive policies as an alternative control mechanism. A variety of measures have been proposed ranging from fairly minor modifications of existing policies to substantial revisions including watershed-wide polices that rely on economic incentives. While greater use of economic incentive policies, such as environmental bonds and point/nonpoint source trading is being advocated in the reauthorization of the CWA, the expected effects of individual proposals will be modest. The characteristics of NPS pollution, namely uncertainty and asymmetrical information, underscores that there is no single, ideal policy instrument for controlling the many types of agricultural NPS water pollution. Some of the usual incentive-based policies, such as effluent taxes, are not well suited to the task. Individual incentive policies proposed for the reauthorized CWA, such as pollution trading or deposit/refund systems, are not broadly applicable for heterogeneous pollution situations. Economic incentive policies may be appropriate in some cases, and command-and-control policies will be preferable in others and may in fact complement incentive policies.