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.     

ECONOMIC EVALUATION OF ON-FARM WATER MANAGEMENT PROJECTS1

ABSTRACT: During the last three decades, developing countries have invested enormous amounts of resources (running into billions of dollars) in the development of large surface irrigation systems. Investment funds were largely spent on the development of the main systems such as dams, canals and distributaries. Very little attention and resources have been spent on the development of below-the-outlet subsystems, in spite of very low levels of water use efficiency due to lack of proper land leveling, high water losses in field channels, and skewed distribution of available water among farmers served by individual water courses. This state of affairs has resulted in a lack of confidence on the part of most farmers in the reliability of surface irrigation systems to deliver water on time and in adequate quantities which, in turn, has resulted in farmers using below optimum levels of all other complementary inputs except labor. Realizing the importance of improving water use efficiency, both the domestic governments and donor agencies are increasingly paying serious attention to these problems. On-Farm Water Management (OFWM) as a strategy to improve water use efficiency and consequently agricultural production in many developing countries has been currently receiving very wide and vigorous consideration among economists, water management experts, policymakers, and donor agencies. A judicious use of the newly allocated funds of OFWM projects obviously needs proper evaluation procedures so that money could be allocated for the most deserving purposes and projects. In particular, recently, private profitability calculations due to public investments in OFWM activities have received attention from economists and decision makers in developing countries’governments and in donor agencies are very much interested in knowing the impacts of their investments in OFWM activities on farmers’income and welfare. However, the evaluation procedures commonly used in empirical studies, using a production function approach, seem to be at variance and sometimes inconsistent with proper comparative-static procedures. Thus, the primary objective of this paper is to develop consistent procedures for evaluating the impacts created by OFWM investments on farmers’income and resource use. In this context, the paper examines the critical relationship between the market price of the agricultural output and production function parameters which are affected by the OFWM investments.     

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.     

A VIABLE METHODOLOGY TO IMPLEMENT THE PRINCIPLES AND STANDARDS1

ABSTRACT: The “principles and standards for planning water and related land resources” were made effective October 25, 1973. The document was noticeably deficient in suggestions for the necessary implementing procedures to ensure its success. Current implementing procedures are based on an incorrect premise of maximizing a single objective subject to non-quantified constraints. A successful implementation of multiple objective planning requires optimizing simultaneously several competitive goals. A system of goal programming has been developed and applied to decisionmaking situations as a test of its usefulness in planning for multiple objective water resources projects. The result is a project planning process which can be replicated for adjustments in expected resource supplies or demands to provide a tradeoff matrix between economic and environmental objectives as well as traditional functional purposes. This procedure, tested on the Cross Florida Barge Canal, is an integrated analysis of economic and environmental values which may be as effective in implementing multiple objective planning as the “Green Book” was in developing the now inappropriate benefit cost analysis.     

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 ECONOMIC ASSESSMENT OF GROUND WATER RECHARGE IN THE TUCSON BASIN1

ABSTRACT: Bringing water from Colorado River via the Central Arizona Project was perceived as the sole solution for Tucson Basin's water problem. Soon after Central Arizona Project's water arrived in Tucson in 1992, its quality provoked a quarrel over its use for potable purposes. A significant outcome of that quarrel was the enactment of the 1995 Proposition 200. The Proposition 200 precludes the use of Central Arizona Project's water for potable purposes, unless it is treated. Yet, it encourages using it for non‐potable purposes and for replenishing the Tucson aquifer through recharge. This paper examines the economic issues involved in utilizing Central Arizona Project's water for recharge. Four planning scenarios were designed to measure and compare the costs and benefits with and without Central Arizona Project's water recharge. Cost‐benefit analysis was utilized to measure recharge costs and benefits and to derive a rough estimate of cost savings from preventing land subsidence. The results indicate that the institutional requirements can be met with Central Arizona Project's water recharge. The economic benefits from reducing pumping cost and saving groundwater are not economically significant. Yet, when combining the use of Central Arizona Project's water for recharge and non‐potable purposes, it demonstrates positive net economic benefits.     

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.     

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.     

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.     

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.     

AN INTERPRETATIVE ANALYSIS OF FAMILY AND INDIVIDUAL ECONOMIC COSTS DUE TO WATER RESOURCE DEVELOPMENT1

ABSTRACT This article reports information on the economic costs not covered by resettlement procedures to forced migrants from a flood-control reservoir. Data come from a sample of 200 families relocated due to construction of the Carr Fork Reservoir in the Coal Regions of Eastern Kentucky (Knott County). Responses indicated that economic costs were greater than the monetary settlement provided by the Corps of Engineers and that economic loss was not randomly distributed among the relocated persons. Analysis showed that persons who were more likely to be victims of greater economic costs due to relocation were landowners, older families with one or two members, persons with lower incomes and persons who were long time residents of the area. It is suggested that change angencies not only include property purchased by necessity in the cost-benefit ratio, but also other costs that have a direct affect on the welfare of the target population. In addition, it is suggested that case workers visit migrants during and after the relocation process to assist in solving various adjustment problems.     

AN INTEGRATED APPROACH TO WATER RESOURCES DEVELOPMENT OF THE TEHRAN REGION IN IRAN1

ABSTRACT: In this paper, a system approach to water resources development in Tehran Metropolitan Area, with its complex system of water supply and demands, is discussed. Water resources in this region include water storage in the Lar, Latyan, and Karaj reservoirs, the Tehran aquifer, as well as water discharge in local rivers and in drainage channels (mainly supplied by urban runoff and wastewater). This study consists of three phases of long‐term water resources planning and management in the Tehran metropolitan area. In each phase, a different level of details among different components of the system is considered. In the first phase, optimal operating policies for Tehran reservoirs and a decision support system are developed. In the second phase, interactions between surface and ground water resources as well as surface runoffs and wastewater disposal in different subareas are investigated. The water table fluctuations as a result of implementing sewerage collection project was also simulated. In the last phase, long‐term scenarios for water resources and agricultural development in the Southern part of Tehran are defined, and the effects of each scenario on the quality and quantity of surface and ground water resources are studied.     

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.     

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.     

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.     

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.