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.     

MODELING MULTIPLE-USE IN NATURAL AREAS: PART II - THE SANTEE SWAMP STUDY1

ABSTRACT: The previous paper in this two-part series presented the basic information of a newly developed mathematical model of multiple-use in natural areas. The model is a unified system for the assessment of cases where development is proposed for relatively natural areas. This paper presents the results of an application of the model to a study of the proposed timber harvest in the Great Santec Swamp in South Carolina. This was done in an effort to demonstrate the utility of the model as a planning and assessment tool. Four potential uses of the Swamp were investigated: logging of hardwood saw timber, hunting, fishing, and nature observation. The model system proved to be extremely useful in the evaluation of potential management schemes and in the selection of the most promising or optimal management plan.     

LEAKY ACRES RECHARGE FACILITY: A TEN-YEAR EVALUATION1

From 1971-1980, studies were conducted at Fresno, California, to identify and quantify, where possible, the soil and water chemistry, subsurface geologic, hydrologic, biologic, and operational factors that determine the long term (10-year) effectiveness of basin type artificial ground water recharge through alluvial soils. This paper updates previous findings and refers to publications that describe the geology beneath the basins and regional geology that determine the transmission and storage properties for local ground water management and chemical quality enhancement. High quality irrigation water from the Kings River was used for recharge. Construction and land costs for the present expanded facility 83 ha (205.2 ac) using three parcels of land were $1,457,100. The nine-year annual mean costs for only canal water, maintenance, and operation were $110.42/ha·m ($13.62/ac·ft) based on an average recharge rate of 1338 ha·m/yr (10,848 ac·ft/yr) at 86 percent facility efficiency. The measured end of season recharge rate averaged 14.97 ± 0.24 cm/day. The 10-year mean actual recharge rate based on actual water delivered, total ponded area, and total days of recharge was 12.1 cm/day.     

THE ENHANCED ROLE OF WATER CONSERVATION IN THE COST-BENEFIT ANALYSIS OF WATER PROJECTS1

The concept of water conservation has increased in importance because of revisions in the rules and procedures for performing cost-benefit analyses of federal water projects. These revisions include a requirement that nonstructural and water conservation measures be incorporated into economic assessments of projects. Project analyses will now proceed as if water supplies were allocated “most effectively,” that is, to their highest valued uses. A related requirement provides that the net benefits of any project should now be valued using willingness to pay measures. A specific cost-benefit methodology accommodating the revisions is constructed and discussed. Informational requirements for applying this methodology are identified. In addition to being consistent with federal mandates, this technique offers important advantages over the traditional “requirements” approach to water supply planning.     

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.     

SOCIO-ECONOMIC ACCOUNTING APPLIED TO WATER RESOURCE PLANNING1

ABSTRACT The growing social consciousness and concern with human well-being has resulted in numerous water resource use and control programs, the results of which must be measured not in the customary monetary terms, but rather in terms of social and human welfare. Interdisciplinary research offers the greatest promise of yielding fruitful results in establishing planning methodology that would result in a maximum utilization of funds available for water resource programs. Working with the various social science disciplines, accountants have begun research in social measurement thus opening the door to a new field of accountancy known as socio-economic accounting. The development of social accounting systems will improve water resource management by projecting heretofore unmeasureable social values into the management decision making process.     

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.     

CLIMATIC CHANGE AND U.S. WATER RESOURCES: FROM MODELED WATERSHED IMPACTS TO NATIONAL ESTIMATES1

ABSTRACT: Water is potentially one of the most affected resources as climate changes. Though knowledge and understanding has steadily evolved about the nature and extent of many of the physical effects of possible climate change on water resources, much less is known about the economic responses and impacts that may emerge. Methods and results are presented that examine and quantify many of the important economic consequences of possible climate change on U.S. water resources. At the core of the assessment is the simulation of multiple climate change scenarios in economic models of four watersheds. These Water Allocation and Impact Models (Water‐AIM) simulate the effects of modeled runoff changes under various climate change scenarios on the spatial and temporal dimensions of water use, supply, and storage and on the magnitude and distribution of economic consequences. One of the key aspects and contributions of this approach is the capability of capturing economic response and adaptation behavior of water users to changes in water scarcity. By reflecting changes in the relative scarcity (and value) of water, users respond by changing their patterns of water use, intertemporal storage in reservoirs, and changes in the pricing of water. The estimates of economic welfare change that emerge from the Water‐AIM models are considered lower‐bound estimates owing to the conservative nature of the model formulation and key assumptions. The results from the Water‐AIM models form the basis for extrapolating impacts to the national level. Differences in the impacts across the regional models are carried through to the national assessment by matching the modeled basins with basins with similar geographical, climatic, and water use characteristics that have not been modeled and by using hydro‐logic data across all U.S. water resources regions. The results from the national analysis show that impacts are borne to a great extent by nonconsumptive users that depend on river flows, which rise and fall with precipitation, and by agricultural users, primarily in the western United States, that use a large share of available water in relatively low‐valued uses. Water used for municipal and industrial purposes is largely spared from reduced availability because of its relatively high marginal value. In some cases water quality concerns rise, and additional investments may be required to continue to meet established guidelines.     

AGRICULTURAL NITRATE CONTAMINATION OF GROUND WATER: AN EVALUATION OF ENVIRONMENTAL POLICY1

ABSTRACT: The contribution of agriculture to nitrate pollution of 8Urface and ground water is a growing concern throughout the world. The objective of this article is to evaluate the current environmental policy governing nitrate contamination of ground water in the South Platte alluvial aquifer. In particular, the “best management practice” approach is assessed in its relationship to optimal policy design. First, the current physical environmental problem and existing institutional arrangements are described. Second, legal and economic criteria are brought to bear on the question of appropriate policy design. Finally, the strengths and weaknesses of the existing policy are evaluated in this context and changes in policy that would increase effectiveness are recommended. Considerable justification is found for state-initiated control because victims of ground water pollution are dispersed and risk assessment is technically demanding. However, ex post elements of existing policy must be improved, perhaps through targeting and some devolution in monitoring and enforcement responsibilities.     

A LOW COST DRIP IRRIGATION SYSTEM FOR SMALL FARMERS IN DEVELOPING COUNTRIES1

ABSTRACT: In areas where water is scarce, drip irrigation provides the most efficient way to conserve irrigation water, but its cost of £1000 an acre is prohibitive for most small farmers in developing countries. The cost was reduced by 90 percent by (1) making dripper lines moveable, so that each line reaches ten rows instead of one; (2) replacing 25-cent emitters with simple 0.70 mm holes punched by a heated needle; and (3) using £3.00 off-the-shelf 20 liter containers with cloth filters in place of expensive filter systems. This reduced the cost of a half-acre system to £50. The low cost system was field tested in the hill areas of Nepal, and in mulberry cultivation in Andhra Pradesh, India. Uniformity of flow from emitters was 73–84 percent. Small farmers reported that the low cost trickle irrigation system cut labor requirements in half, and doubled the area irrigated by the same amount of water. The low cost drip system is likely to be widely adopted by small farmers in semi-arid and hilly regions.