MEASURING THE SITE-SPECIFIC RECREATION BENEFITS RESULTING FROM IMPROVED WATER QUALITY: AN UPPER BOUND APPROACH1

The estimation of the value of recreation benefits resulting from improved water quality is required for many purposes. In particular, the Water Pollution Control Act of 1980 requires the consideration of the reasonableness of costs of reducing water pollution in relation to benefits to be derived from establishing effluent standards (Clean Water Act of 1977). Recreation is often the most important benefit resulting from water quality improvement. Current methods used to calculate recreation benefits are either not site-specific or are expensive and controversial. This paper presents a relatively simple, inexpensive, and less controversial method of calculating site-specific recreation benefits resulting from improved water quality. It does this by producing an upper bound estimate which often is adequate for the relevant decision. The upper bound estimates is based on two assumptions: 1) there are alternative equivalent substitute sites for the newly augmented water quality site, and 2) the new augmented recreation opportunities at the site will be used to their maximum supply capacity. Clearly, if an upper bound benefit estimate in a cost-benefit ratio does not produce a favorable ratio, no other benefit estimate will. In cases where this estimate produces an ambiguous result resort must be had to other more precise methods of estimation.     

ENERGY,ENVIRONMENTAL, AND ECONOMIC IMPLICATIONS OF SOME RECENT ALBERTA WATER RESOURCES PROJECTS1

ABSTRACT: Most of us are aware, or feel we are aware, of the impacts of major water resources projects on our lives. “Dam-lovers” note the life-saving flood-risk reduction and recreational benefits of a proposed reservoir, while “dam-haters” bemoan the future drowning out of the wildlife habitat of its river valley, and the recreational disbenefits to stream (as opposed to lake) fishermen. Water supply projects can often be given such a revered status, assuming the “obvious” tenet that water, air, food, and shelter are basic requirements of decent living, that the economic viability of the project may not even be assessed. Water resources planners are supposed to impartially weigh the environmental and economic benefits, and especially now, the energy implications of all proposed water projects, but many times the partial views of political or public advocates may be hard to ignore. The assumptions used in the planning of four recent water projects in the Province of Alberta will be presented and some revisions suggested which materially affect their Benefit/Cost ratios. In one project that is still in the public hearing stage, the economic analysis will be revealed, indicating that the original B/C ratio of about 1.6:1 might be more realistically placed at 0.6:1. In another project just completed, the apparent lack of an economic or energy analysis that has resulted in a perpetual and unnecessary energy load on the province, will be described.     

COST SHARING AND IMPLEMENTATION OF NATIONAL WATER RESOURCES POLICY1

ABSTRACT: In this article a managerial approach to developing and implementing National Water Resources policy is suggested. Proper consideration can be given to national economic development (NED), environmental quality (EQ) and conservation and still result in an implementable policy at the operational level if proper incentives are built into the process with proper attention to alternate non-Federal cost sharing rates. Not only can these multiple objectives be entertained but the Administration and Congress will have a management tool that should ensure a certain probability of success.     

AN APPLICATION OF MATHEMATICAL PROGRAMMING TO WATER RESOURCES PLANNING: AN ECONOMIC VIEW1

ABSTRACT: Individuals involved in state water resource planning generally have avoided any development of a comprehensive public water planning investment model that would set the stage for quantitative recommendations of a “what ought to be” tone for future water strategies. Three New Hampshire towns were selected to illustrate the usefulness of a mixed integer multiperiod programming model that utilizes hydrologic and economic data for identifying the discounted least cost of water supply, distribution, and scheduling. Comparisons are made regarding the feasibility of a regional water system approach versus independent “town by town” water supplies that presently prevail. To analyze the sensitivity of optimal water planning solutions to projected water demands, variations in these demands are made.     

WATER RESOURCES AND SOCIAL CHOICES1

ABSTRACT The problem of water resources management can be viewed as one requiring the existence and application of some type of “collective decision” mechanism. Currently, the general water resource decision problem is solved using an “individual decision” format without explicit consideration of the dominant social decision system. This paper demonstrates the need for blending technical planning activities with organized societal processes and then proposes a specific public decision framework to satisfy this requirement. The key element in this planning framework is a generalized “bargaining arena” which serves to link technical activities with the social system. Using this bargaining device we can (1) specify policy at a local level, (2) incorporate “social decision” rules into the planning process, and (3) provide local access to the decision process. A simple case of regional water quality management is used to describe the application of this planning procedure and to offer encouragement for successful use in more complex real-world cases.     

INCOMMENSURABLES AND TRADEOFFS IN WATER RESOURCES PLANNING1

ABSTRACT: Society has many objectives, many of which are not commensurable. This incommensurability problem is generally referred to as the multiple objective problem and leads to the notion of tradeoffs. Various approaches to calculating tradeoffs in water resource development have been advocated by several authors. Many have made errors in the context of the conceptural model presented in this paper. It is argued the correct framework for tradeoff analysis is the neoclassical economic model. The relevant tradeoffs, then, are really price ratios. These, in turn, must be calculated in such a manner as to allow comparison of product mixes where the expenditure on resources is the same. This is where several authors have erred. An empirical example which illustrates the correct application of the model is presented.     

COMPETING WATER USES IN THE SOUTHWESTERN UNITED STATES: VALUING DROUGHT DAMAGES1

ABSTRACT: Economic benefit functions of water resource use are estimated for all major offstream and instream uses of Colorado River water. Specific benefit estimates are developed for numerous agricultural regions, for municipal uses, and for cooling water in thermal energy generation. Economic benefits of hydropower generation are given, as are those for recreation on Colorado River reservoirs and on one free-flowing reach. Marginal and total benefit estimates for Colorado River water use are provided. The estimates presented here represent a synthesis of previous work, providing in total a comprehensive set of economic demand functions for competing uses of Colorado River water. Non-use values (e.g., benefits of preserving endangered species) are not estimated.     

ECONOMIC GROWTH THROUGH WATER RESOURCE DEVELOPMENT: INDIA1

ABSTRACT India's multidimensional water development programs have contributed significantly to the promotion of the country's economic growth. Rapid growth of irrigation has substantially increased agricultural production. Hydro power generation has doubled during the last two decades, and this has accelerated industrialization and extended rural electrification. Minor irrigation has taken on a new importance in the Fourth Five Year Plan, signifying a departure from the earlier Plans. “Green Revolution” owes a large measure of its success to the availability of assured water supplies. Water development projects have also generated tremendous employment opportunities. Despite its pronounced impact on the economy, India's water planning strategy has some glaring weaknesses: the failure to incorporate “indirect benefits” in cost-benefit calculations; the under-utilization of water potential; and, the progressive increase in the cost of irrigating an acre of land. The prevailing institutional structure in India constitutes a major deterrent to the diffusion of the benefits of water development. There are stubborn psychological factors which render the adoption of innovative irrigation practices difficult. There is thus an overwhelming need to revamp India's institutional framework. On balance, however, water development in India has made its impact felt on India's myriads of villages. And from the arid “dust bowls” of India new life has emerged.     

THE CONTINUING EVOLUTION OF AN AUSTRALIAN WATER RESOURCES POLICY1

ABSTRACT: Australia's extremely limited water resources highlight the need for policy guidelines for management. During the 1970s, there was the gradual evolution of a national water resources policy, facilitated by a nationally agreed statement of objectives and culminating in a federal policy statement presented in 1979. However, the Australian constitution gives major responsibility for water resources to the states. Further, the federal policy statement seems to assume that each state has a water resources policy and that it accords with the nationally agreed objectives. This is not the case, and the practical management of Australia's water resources falls short of the principles set out in the policy document. The River Murray, the nation's major water resource, provides ample evidence of this fact. With very limited water resources, Australia urgently needs to reduce the disparity between principle and practice in their management.     

FISH AND WILDLIFE ENHANCEMENT THROUGH WATER RESOURCES DEVELOPMENT1

.Fish and wildlife enhancement through water resources development implies fish and wildlife will be enhanced or benefit directly from such development. As a matter of practicality, the opposite may be the case in that wildlife lands of prime value and stream fisheries are often lost or severely altered as a result of reservoir construction or stream channelization. Additionally, estuarine fish and wildlife can also suffer from water resources development due to reductions in volume of fresh waters reaching the estuaries and adjacent marshes. In some instances waterfowl habitat can be created by reservoir construction and with good planning waterfowl habitat and use may be enhanced. To offset losses of thousands of acres of wildlife habitat when a river system is to be totally harnessed, planners could set aside sufficiently large natural areas dedicated for use by wildlife. This, however, would be replacement rather than enhancement. Reservoir fisheries can be enhanced with good planning to include timber clearing, shoreline clearing, boat road clearing, variable level drawoff devices and tailrace escapement channels. To sum up, it is possible for some species offish and wildlife to be enhanced through water resources development but only at the expense of others, and then only through careful and integrated planning.     

OBJECTIVES AND CONSTRAINTS IN FEDERAL WATER RESOURCES PLANNING1

ABSTRACT: The Water Resources Council's Principles and Standards stipulate that plans should be formulated to meet national, regional, state, and local needs or problems. It is not clear, however, how appropriate consideration can be given to both national objectives (NED and EQ) and local needs and problems. Two methods of incorporating national objectives and local problem solving into water resources planning are examined. They are plan formulation primarily in pursuit of national objectives, and plan formulation to solve local problems, but constrained by national objectives. The first of these methods is the approach which is becoming increasingly explicit in the development and elaboration of the Water Resources Council's Principles and Standards. The analysis indicates that the Water Resources Council's approach is neither the most practical nor the most desirable of the two methods examined. It creates unnecessary difficulties and fails to achieve its purpose. Plan formulation to solve local problems, but constrained by national objectives not only describes what field planners actually do, but is also more practial and more desirable.     

AN OPTIMIZATION MODEL FOR EFFICIENT MANAGEMENT OF URBAN WATER RESOURCES1

ABSTRACT: A mathematical programming model is proposed to determine economically efficient urban water resource allocation and pricing policy by maximizing the sum of the consumer and producer surplus. The optimization of this nonlinear problem is accomplished by the use of linear programming algorithm. The feasibility of using recycled water for municipal purposes is examined in a planning context. The impact of higher water quality discharge standards on pricing and allocation of water is analyzed and the attractiveness of water reuse option is demonstrated.     

DEVELOPMENT OF AN INTERDISCIPLINARY PLANNING MODEL FOR WATER AND FISHERY MANAGEMENT1

ABSTRACT: This paper describes the development of an interdisciplinary model that analyzes the effects of resource management decisions on New Mexico fishery production, yield, sportfishing effort, and economic benefit to anglers. The model recreates river flows and materials transported through reservoirs and their tailwaters from 1974 through 1987. Solar radiation, water temperature, phosphorus, nitrogen, suspended solids, and water exchange rates determine primary production. Organic loads from watershed sources, added to primary production, form a trophic base for sportfish forage. Fish production is partitioned into biomass and growth of each age class in sportfish and forage fish groups by differential responses to food type, light, water-level fluctuation and predation. Fish biomass, with angler population distribution and site condition, contributes to determining angler effort and economic benefits. Model users can vary and analyze water level and quality, stocking, fishing regulations, site access, site facilities, and site entry fees. The model (on floppy disks with a user manual) is available for operation on MS DOS compatible computers with a hard disk. Contact R. M. Wilson, NMGF, State Capitol, Santa Fe, New Mexico, 87503.     

DESIRED AND ACHIEVED OUTCOMES IN FEDERAL WATER RESOURCES PLANNING1

ABSTRACT Local or project level planning occurs within most federal water resources programs. Such planning involves both federal and local participants, and commonly involves a range of interest groups. It is necessary to know what goals these participants believe the planning process ought to achieve in order to design planning procedures which will meet their expectations. Social judgment analysis was used to elicit those goals for respondents who had participated in one of five different federal water resources programs, in one of five different roles. Respondents also evaluated the extent to which the planning activities in a recent project in which they had participated had actually attained the posited goals. The respondents believed that responsiveness to local problems was significantly more important than resolving conflicts or increasing public understanding. A fourth goal, achieving national objectives, was believed to be less important than the other three. No significant differences in these goal evaluations were associated with the type of program in which the respondents had participated. However, there were significant differences associated with the respondent's role in the planning process. Respondents' ratings of the effectiveness of actual planning projects varied by both program and respondent role.     

POTENTIAL IMPACT OF IRRIGATION ON WATER RESOURCES IN THE LITTLE WABASH BASIN OF ILLINOIS1

The level of water demand for supplemental irrigation and the impact of such demand on water supplies were estimated, as a function of the price of corn (Zea Mays L.). The method of estimation was based on an economic analysis of irrigation practice which assumed constant irrigation costs, profit maximizing behavior on the part of irrigators, and which was deliberately structured to underestimate the level of irrigation water use. The analysis was applied to and used data from the Little Wabash basin in Illinois. No irrigation was predicted at a corn price below $3.50 per bushel. Between $3.50 and about $6.50 per bushel, irrigation was estimated to be profitable for a small region of the basin where acceptable groundwater was available. Above about $6.50 to $7.50, irrigation was found to be profitable in the remainder of the basin, where impoundment storage was required. The potential impact on the water resources of the basin is significant. For a corn price between $3.50 and about $6.50, the probability of a shortfall, defined as the event where the potential demand exceeds the supply, was estimated to be between 2 percent and 20 percent during the growing season. Above about $7.50, this probability was found to be about one-third. The development of policies to control withdrawals for irrigation and other uses is endorsed.     

AN ECOLOGICAL AND RECREATIONAL USE SURVEY OF THE LUXAPALILA RIVER1

An ecological and recreational use survey was made of the Luxapalila River in Mississippi. This study was made before channelization work was started by the Army Corps of Engineers. A follow-up study is planned after channelization work is completed. Four stations were located along a 10.5 mile stretch of river where certain chemical and biological measurements were taken during the four seasons of the year. The results of this study revealed that the river is an unpolluted, biologically productive waterway relatively high in chemical constituents. Eleven families and 37 different species of fish were collected. Biomass measurements of standing crops of invertebrates ranged from a low of 0.11 grams oven dry weight per square meter to a high of 18.89 grams per square meter, with larger biomass collected from eddy areas than from riffle areas. A survey of recreational use of the river indicated relatively light use was made of the river. Fishing was the major use followed by swimming.     

OPTIMAL CAPITAL INVESTMENT IN THE EXPANSION OF AN EXISTING WATER RESOURCES SYSTEMS1

The study of the optimal expansion of existing water resources systems is of continuing importance because of the rising demand and limited supply of water in many areas of the world, particularly in the southwestern part of the United States of America. This study is concerned with the investigation of the optimal expansion of a realistic water resources system to meet an increasing demand for municipal and industrial use, irrigation, energy, and recreation over a planning horizon of T years. A number of possible dam sites are available for the further regulation of river (canal) flows in the basin and/or the regulation of imported waters into the basin. To maximize, over the set of alternative projects, the sum of discounted present value of net earnings subject to the demands and various institutional, physical and budgetary limits, an optimization problem (Problem I) was formed as a 0-1 mixed integer programming problem and was decomposed into the set of all feasible combinations (Problem II). The economic return was determined for each combination (Problem III). Problem II was solved by a branch and bound procedure which selected each feasible combination of dams while the optimal return for each such combination (Problem III) was found by a network analysis code.     

INTEGRATED MANAGEMENT OF QUANTITY AND QUALITY OF URBAN WATER RESOURCES1

ABSTRACT. This paper will present a total water quality-quantity management approach which has incorporated the costs of water pollution control and water treatment, the benefits of water-based activities, and the trade-off between low flow augmentation and water quality improvement in its consideration. The analytical framework is based on the decomposition procedures provided by dynamic programming within which the optimal management plans are developed.     

THE MILWAUKEE POLLUTION CASE - IMPLICATIONS FOR WATER RESOURCES PLANNING1

ABSTRACT: The Illinois v. Milwaukee Federal District Court decision is the most far reaching application yet of the federal common law of nuisance to interstate water pollution conflicts. Although a Federal Appelate Court recently rescinded part of the district court decision, Milwaukee must still upgrade its metropolitan sewage system to a level beyond that required by federal and state regulations. The improvements must be completed with or without federal aid. The case points out the apparent inability of the Clean Water Act, the most comprehensive federal legislation affecting the nation's water quality, to deal with certain interstate water quality conflicts. The Milwaukee decision could set a precedent for similar settlements elsewhere which may in turn affect the U.S. Environmental Protection Agency's water quality clean up program. A more integrated, ecosystem conscious approach to management of shared water resources (e.g., the Great Lakes) would help reduce the need for court decisions like Illinois v. Milwaukee.