AGRICULTURAL POLLUTION CONTROL: IMPLICATIONS FROM THE RURAL CLEAN WATER PROGRAM1

ABSTRACT: The Rural Clean Water Program has provided a unique opportunity to study the economics of agricultural nonpoint source pollution control. Several implications for improving the economic efficiency of future agricultural nonpoint source pollution control programs can be drawn from the results. First, individual projects should be targeted towards water bodies that have water quality problems causing economic damages. Considerable variation can exist among areas in the magnitude of economic damages, which may not be proportional to physical impacts. Second, the relative costs and effectiveness of the practices selected to reduce the delivery of pollutants can vary dramatically from one location to another. Early identification and emphasis on cost-effective BMPs can substantially reduce project costs and may make a project economically justifiable that would not otherwise be so. Finally, some projects that do not hive potential economic benefits from water quality improvements exceeding government cost may have on-farm benefits from reduced costs and increased long-term yields that are sufficient to make total benefits (water quality and on-farm) exceed costs.     

RUNOFF IMPOUNDMENT FOR SUPPLEMENTAL IRRIGATION IN TEXAS1

ABSTRACT: The current increase in the demand for water by municipal, industrial, and other users is likely to result in approximately one-third less water being available for agricultural use in Texas by the year 2000. As water supplies diminish, the rainfall excess needs to be used more efficiently. Large amounts of runoff occur in the eastern part of Texas that could be collected in small impoundments and utilized for crop production. Farmers in water-surplus basins or subbasins can apply for a permit to divert surface water into small on-farm impoundments to be used for supplemental irrigation. The costs for runoff collection and two supplemental irrigations, which amount to a total of 4 in./yr., are estimated to be approximately $60/acre/year. Depending upon the crop produced, the estimated increase in gross income from supplemental irrigation ranges from about $80 to more than $100 per acre annually.     

SOIL CONSERVATION PRACTICES AND WATER QUALITY: IS EROSION CONTROL THE ANSWER?1

ABSTRACT: This paper is a computer simulation analysis of an agricultural nonpoint pollution problem. Computer modeling is a universally applicable tool that can be used for establishing the linkages between and the quality of agricultural runoff in both surface and subsurface flow. The tradeoffs between the costs of soil conservation practices and water quality are reported, and the economic implications of such tradeoffs are discussed. Soil and nutrient losses resulting from crop production practices are analyzed using a field-scale computer simulation model (CREAMS). No-till planting, reduced tillage, and sod waterway systems are more cost effective than other practices for controlling soil and nutrient runoff losses. Nitrate leaching losses are increased slightly by most soil conservation practices. Terrace systems and permanent vegetative cover impose the greatest societal cost for water quality protection. Public cost sharing and tax incentives encourage farmers to adopt expensive structural practices, and policies are needed to get cost-effective practices implemented on critical acreage. Extensive treatment of land is necessary for agricultural best management practices (BMPs) to significantly improve water quality in areas that are intensively farmed.     

A RATIONALE FOR THE REGIONALIZATION OF PUBLIC WATER SYSTEMS1

ABSTRACT. A rationale is set forth for requiring and/or encouraging the consolidation or regionalization of all systems beneath certain population size levels based on the small water systems’ capability to produce an adequate supply of safe drinking water at a reasonable cost to customers. Estimates for basic costs of water service including personnel, other operation and maintenance and capital are made and a range of water rates is suggested based on reasonableness and acceptability to customers. Guidelines are then drawn for a moderate rate of $10.00 per month and an upper limit rate of $15.00 per month to show the sizes at which public water systems might be expected to achieve fiscal viability. Finally, recommendations are made to State and Federal governmental agencies concerning possible legislation, plans and programs to achieve better public water service through the regionalization or consolidation of small public water systems.     

ON THE CENTRALIZATION OF WASTEWATER TREATMENT FACILITIES1

ABSTRACT. Two factors affecting the centralization of wastewater treatment facilities were investigated; the cost of collection and treatment systems and the performance of treatment plants. Based on computer-generated minimum cost designs, wastewater collection networks were found to be characterized by diseconomies of scale of magnitude similar to the reported economies of scale for wastewater treatment works. The combined costs of collection and treatment are U-shaped functions from which the least cost size of collection and treatment systems were found for particular values of population density. Examination of the day-to-day performance of five metropoitan-area waste-water treatment plants revealed that, for time series shorter than one month, the day-to-day variation in effluent quality was random, although the variation in quantity discharged was distinctly non-random. The performances of all five plants on any given day showed little correlation. This suggests that the decentralization of treatment facilities can produce benefits both through the reduction in quantities of waste discharged at a given point and through in-stream averaging of the varying performances of several treatment plants. Since the cost function of collection and treatment combined is generally flat in the region of the minimum-cost size, little penalty is invoked to gain the potential benefits of treatment plant decentralization.     

ALTERNATIVES FOR SALINITY MANAGEMENT IN THE COLORADO RIVER BASIN1

ABSTRACT The Colorado River Basin faces the dilemma of an increasing demand for water while presently struggling with salinity concentrations approaching critical levels for some water uses. Based upon projected development salinity concentrations are predicted to exceed 1200 mg/1 at Imperial Dam by the year 2010. Annual losses to the basin economy associated with increased salinity will exceed $50 million by the year 2010. Although methods of controlling salt discharges are relatively unrefined, certain conclusions, based upon Bayesian statistical methods, can be reached. Five basic alternatives for coping with the problem are presented and evaluated in this paper: (1) do nothing; (2) adopt arbitrary salinity standards; (3) limit development; (4) control salt discharges at a cost equal to the cost of doing nothing, or (5) minimize total costs to the basin. Total costs associated with any given alternative, or the given salinity resulting, are the sum of salinity detriments (cost to users for water of increased salinity plus economic multiplier effects) plus the cost of constructing salt discharge control works. These impacts upon basin economy and Colorado River water quality for each alternative are presented and related to questions of equity which will play a role in arriving at any long-term solution to the Basin's problem.     

REUSE OF AGRICULTURAL DRAINAGE WATERS: AN ECONOMIC ANALYSIS1

ABSTRACT The profitability of reusing agricultural drainage water for crop production depends on the salt tolerance of the crop being grown the salt concentration of the drainage water, the cost of obtaining it and price of good water. In the this paper the economics of drainwater resue is examined for six crops in two areas of southern California. The results suggest that drainwater reuse is not profitable for the fruit and vegetable crops considered but is profitable for the field crops considered when the price of good water is relatively high and cost of obtaining the draingage water is low.     

EVALUATING DIRECT BENEFIT ESTIMATION PROCEDURES FOR IRRIGATION PROJECTS: A SIMPLIFIED APPROACH1

ABSTRACT: An integral part of evaluating the net benefits generated by an existing or proposed irrigation project is the assessment of the associated impacts in commodity markets. Traditionally, these impacts have been measured by either assuming no change in commodity prices and calculating net returns to project farmers, or by allowing commodity prices to fall in accordance with a given elasticity of demand and subtracting commodity production costs from the associated area under the commodity demand curve. In either case, it is implicitly assumed that supply is perfectly inelastic. This article establishes that traditional approaches to measuring direct benefits are biased. Formulae are presented for calculating the maximum absolute and relative error which may result from using these techniques as a function of project size. Direct benefit estimates are then evaluated for three irrigation projects in Nebraska, illustrating how these results can be used to improve project evaluation procedures.     

环境投资理论研究与发展

本文以现代投资理论和环境经济学的发展需要为线索,认为环境投资理论是两者相结合的产物,并对环境投资理论产生和发展过程进行了分析和评价,从而指出了其今后的研究方向。     

Choices of ecosystem capital without discounting and prices

In the last decade, neo-classical economists have used the Consumption-Growth Based Utility (CGBU) framework to suggestan appropriate discount rate for eco-system capital. The CGBU framework, being based on the simplicity and single-valued nature of man-made capital, is subject to many limitations. Three general limitations of the framework, irrespective of its use for man-made capital or ecosystem capital, paradox of consumption growth, expectations' insensitive utility specification, and insensitivity to the nature of returns, arediscussed. With respect to its use for ecosystem capital, the framework has two limitations: ecosystems cannot be commoditizedand ecosystem capital satisfies differentiated needs, and, hence, gross substitution between different components of ecosystem capital or between ecosystem capital and man-made capital is not possible. Therefore, the rate of discount for ecosystem capital suggested on the basis of the framework is arbitrary. In the context of international security, choices ofecosystem capital are similar to the choices of military decisions. Similar to military decisions, ecosystem choices should be made without discounting and prices. The neo-classicalframework does not have appropriate tools for such decision analyses, and other streams of economics, specifically post-Keynesian economics, may assist decision- makers in analysing ecosystem choices without prices and discounting.