WATER QUALITY ALLOCATED COST FOR MULTIPURPOSE RESERVOIRS1

ABSTRACT: Low flow augmentation from multipurpose reservoirs may yield significant water quality benefits. Cost allocation assigns a portion of reservoir expense to water quality consumers, waste water dischargers who benefit from increased receiving flow. Whereas such allocation currently is not authorized for Federal projects, the procedure is increasingly appropriate for efficient multiobjective management. Waste water treatment costs, multipurpose reservoir costs, and water quality are modeled for Oregon's Willamette River. Water quality is expressed as a function of treatment and augmentation levels. Treatment cost necessary to achieve a given water quality without augmentation less treatment cost with augmentation is an alternative cost of water quality maintenance. With a cost allocation procedure, this alternative cost is used to determine water quality's share of reservoir cost. Under current conditions, water quality beneficiaries could be charged approximately seven percent of annualized reservoir expense. This charge is one-fourth the expense of additional treatment facilities required were augmentation not provided.     

MAPS - A PLANNING TOOL FOR CORPS OF ENGINEERS REGIONAL WATER SUPPLY STUDIES1

ABSTRACT: A computer program (MAPS - Methodology for Areawide Planning Studies) has been developed by the U.S. Army Corps of Engineers, Waterways Experiment Station to assist planners in producing a comprehensive array of alternatives without sacrificing the detail and accuracy of the analyses. MAPS is a set of computer based models which can be used to simulate the water resource alternatives and to develop planning level design and cost estimates. Two application examples are discussed. The Salinas-Monterey (California) Urban Study sought to identify and determine cost of combinations of water source, transmission, and treatment to meet an array of water needs in future years. The Nashville (Tennessee) Urban Study had similar objectives but the output was prepared on a service area basis for more than 40 such units. Using MAPS it was possible to prepare planning level design and cost estimates for a very large number of alternatives.     

FINANCING FEDERAL WATER DEVELOPEMNT PROJECTS AND SHARING THE COSTS1

ABSTRACT: The Federal Government's interest and involvement in water resource development in discussed in the context of project financing and cost sharing. After drawing a clear distinction between the two issues - who puts up the money, and who repays over time - the authors survey a number of Federal acts from which have evolved nearly 200 separate cost-sharing rules. Selected cost sharing and financing issues discussed include consistency in policies, rehabilitation of urban water supply systems, multipurpose water quality projects, and ground water management. Two proposals for cost/finance sharing reform introduced in the 96th Congress are discussed in detail and their impacts compared with current policy. The joint venture approach (Administration proposal) results in an effective composite cost share which changes significantly but not drastically (from 19 to 35 percent non-Federal share for a hypothetical project). The block grant approach (Domenici-Moynihan proposal) would alter the regional distribution of Federal water developement funding from the South and West to the Northwest and North Central States.     

AN APPROACH TO MARGINAL ECONOMIC ANALYSIS OF HYDROMETRIC DATA COLLECTION1

ABSTRACT: A procedure for computing the benefit/cost ratio of a hydrometric network is outlined. It consists of two steps: firstly, establishing a relationship between hydrometric station density and error in hydrologic parameters and, secondly, relating hydrologic eror to changes in project cost. The procedure was applied to both the whole Canadian hydrometric network and the provincial networks.     

WHAT PRICE,REJECT HEAT?1

ABSTRACT: Increasing energy costs encourage more efficient energy use, including the better use of reject heat from electrical generating stations. Whether it pays to use this heat depends on the price charged. There is to date no relevant market in Canada. This paper estimates lower and upper bounds on the price for reject heat as a first step in determining market feasibility. Price would then be resolved by negotiation. For the case study of Ontario greenhouses, the differential between lower and upper bounds is substantial. An assumed price resolution is consistent with profitable use of this reject heat by this greenhouse industry.     

资源利用最优化的经济学探讨

本文假设资源作为可持续发展巨系统的一个子系统,其运行目的是经济效益最佳,从经济学角度提出了求资源最优利用水平的方法     

A MULTI-BASIN PLANNING STRATEGY1

ABSTRACT. The purpose of this paper is to present and discuss a procedure for finding an optimal staging plan for implementing a multi-basin water resource system-a system that must meet, with tolerable shortages, pre-specified but highly variable demands for water that increase over time-a system such as the proposed Texas Water System. The paper stresses that, in the past, planners have paid little attention to quantifying explicitly the impact that uncertainty has on the decision process, and in that context, presents a means for explicitly evaluating the impact that uncertainty has on finding and evaluating the performance of the optimal and several alternate staging plans. The procedure presented evaluates the impact that uncertainty, in both the hydrologic and the economic variables, has on the decisions that need to be made. The decisions requiring resolution are (1) which of an over-specified set of facilities should be constructed, (2) how large each of the facilities should be at various points in time, and (3) how should the system be operated so as to minimize the capital plus operational costs over the planning period.     

CONSERVATIONAL WATER PRICING FOR INCREASED WATER SUPPLY BENEFITS1

ABSTRACT: A study was undertaken to see if benefits from water supply could be increased by utilizing price-usage information in reservoir design studies. Three pricing policies were examined. The first policy assumed no price-use relationship, and quantity demanded was based on existing community usage with a low water rate. The price of water was set to recover system costs. A price-use relationship was assumed in the second policy and the water rate was constant. The price of water was determined from the associated system which provided maximum expected net benefits. The third policy assumed the price-use relationship and the price charged for water during each billing period was a non-linear function of storage which increased as the amount of water in storage at the beginning of the period decreased. It was found that the use of the conservation pricing policies substantially reduced storage requirements while providing demonstrable net benefits to the community and a large average supply. The conservation pricing policies substantially lowered the average price paid for water. The effect of uncertainty in consumer response to changes in price was studied by using a probabilistic price-use relationship. This uncertainty did not significantly reduce the effectiveness of the conservation policy. It was concluded that demand management by the use of a proper pricing policy could significantly increase net water supply benefits to a community.     

LINEAR PROGRAMMING USE FOR EVALUATING WATER RESOURCES AND COST AND BENEFIT ALLOCATION1

ABSTRACT A linear programming model for a river basin was developed to include almost all water-related economic activity both for consumers and producers. The model was so designated that the entire basin or basin sub-division could be analyzed. The model included seven sectors, nine objective function criteria, and three river-flow levels. Economic basis for conflicts among sectors over incidence of cost allocation and level of economic activity can be traced to some chosen objective. The disposal of untreated household waste water, particularly from the rural household, directly into the river was consistent with maximizing net benefits and minimizing costs. The optimum resource allocation, water-treatment plants, farms and industry activities would change with flow level. For each of the three industries analyzed separately, paper, wool and tanning, public treatment of industrial waste water was the optimal treatment process in one or more of the solutions. Lake shoreline was the dominant feature determining lake-resource valuation. Implied capital value varied from $126 per shoreline foot to over $250 depending on discount rate. Implied prices on lake surface ranged from $42 to $147 per acre. Strong economic forces encouraged small lot sizes for vacation cottages.     

A DESCRIPTIVE MODEL FOR ANALYZING PROPOSED COST SHARING RATE CHANGES1

ABSTRACT: This article offers a procedure for identifying the primary effects of financing and cost sharing rates on four basic levels: program, technical, incidence, and comprehensive impacts. A process is developed for identifying these effects based upon two alternative approaches. One method would follow the effects of rate changes through the four levels of impact, another would look in depth at the consequences of rate changes on a particular impact. For this study the information and suggested changes found in the Section 80(c) Study were used to illustrate possible impacts. The process suggested herein could be used in anticipating impacts of any major policy change.