A. Juutinen , Z. Virk , H. Huuki , E. Ruokamo , M. Kopsakangas-Savolainen , A. Torabi Haghighi , H. Marttila
{"title":"Impact of environmental flow policy on power system balancing costs and river ecosystem service benefits","authors":"A. Juutinen , Z. Virk , H. Huuki , E. Ruokamo , M. Kopsakangas-Savolainen , A. Torabi Haghighi , H. Marttila","doi":"10.1016/j.wre.2025.100269","DOIUrl":"10.1016/j.wre.2025.100269","url":null,"abstract":"<div><div>Sustainable river regulations require more information on the costs and benefits of environmental flow constraints. This paper presents a case study focusing on the Nordic electricity market and ecosystem service situation. We impose tighter flow ramping constraints on a hydropower plant situated in the Kemijoki River and quantify the effects of the environmental flow policy on hydropower balancing services, river hydraulics and ecosystem services. Our findings reveal that as the environmental flow policy becomes more stringent, the optimal level of balancing market flexibility for the hydropower operator decreases. In addition, a hydrological flow analysis indicates that ecological improvements resulted from the policy. We compare the costs and benefits of the environmental flow policy. The findings indicate that the costs, hydropower revenue loss and increased system balancing costs are comparable to the willingness to pay for environmental improvements. If system balancing can be achieved without an increase in <span><math><mrow><msub><mrow><mi>C</mi><mi>O</mi></mrow><mn>2</mn></msub></mrow></math></span> emissions, the willingness to pay for the improved river state increases, widening the gap between local benefits and system costs. The study insights can inform policymakers and private companies to better incorporate environmental concerns in the management of regulated rivers while acknowledging the value of hydropower in the power system.</div></div>","PeriodicalId":48644,"journal":{"name":"Water Resources and Economics","volume":"52 ","pages":"Article 100269"},"PeriodicalIF":1.9,"publicationDate":"2025-10-01","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"145220533","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":3,"RegionCategory":"经济学","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
{"title":"The impact of water pollution on health expenditures of residents:Evidence from urban sewage in China","authors":"Junkai Sun , Xin Fang , Guilin Dai , Xinyue Gao","doi":"10.1016/j.wre.2025.100268","DOIUrl":"10.1016/j.wre.2025.100268","url":null,"abstract":"<div><div>Controlling the negative externalities of environmental pollution and reducing living costs of residents have long been main societal concerns. With the ongoing deterioration of the ecological environment, understanding the relationship between urban sewage pollution and health expenditures of residents has become increasingly critical. Drawing on extensive theoretical analysis, this study employs data from 266 Chinese cities spanning the period from 2012 to 2022 to investigate the health cost effect of urban sewage pollution. The findings reveal that urban sewage pollution not only significantly increases health expenditures of local residents but also exerts a positive spatial spillover effect on the health expenditures of surrounding residents. Education, advanced industrial structure, medical insurance, and agricultural mechanization can linearly and negatively mitigate the impact of urban sewage pollution. The local and spatial moderating effect of economic development exhibit an inverted U-shape. Furthermore, advanced industrial structure, agricultural mechanization and highly coordinated river management systems with clear accountability effectively suppress the negative externalities associated with urban sewage pollution. This study, which provides a scientific basis for accurately assessing the health costs of urban sewage pollution, is conducive to building a \"green defense line\" for residents' health expenditures and facilitating the achievement of the Sustainable Development Goals of United Nations.</div></div>","PeriodicalId":48644,"journal":{"name":"Water Resources and Economics","volume":"52 ","pages":"Article 100268"},"PeriodicalIF":1.9,"publicationDate":"2025-09-19","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"145105775","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":3,"RegionCategory":"经济学","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
Daniel Crespo , Mehdi Nemati , Ariel Dinar , Zachary Frankel , Nicholas Halberg
{"title":"Assessing the economic value of water in the Colorado River Basin: A hydroeconomic analysis","authors":"Daniel Crespo , Mehdi Nemati , Ariel Dinar , Zachary Frankel , Nicholas Halberg","doi":"10.1016/j.wre.2025.100266","DOIUrl":"10.1016/j.wre.2025.100266","url":null,"abstract":"<div><div>As in many basins worldwide, the imbalance between water supply and demand in the Colorado River Basin, which spans parts of the United States and Mexico, is intensifying due to factors such as climate change and population growth. This paper introduces a novel hydro-economic model encompassing 2.2 million acres of irrigated farmland, 379 cities with a combined population of 33.4 million, and nearly 90 % of the basin's hydropower capacity. The model offers a robust framework for evaluating policy interventions by estimating the value of water across regions and sectors. We find that water use in the basin generates $20.6 billion in annual benefits, $18.3 billion from urban use, $1.4 billion from agriculture, and $874 million from hydropower. Results reveal substantial variation in the marginal value of water within and across states and sectors, providing key insights for designing compensation-based policies and supporting the development of efficient water trading systems.</div></div>","PeriodicalId":48644,"journal":{"name":"Water Resources and Economics","volume":"52 ","pages":"Article 100266"},"PeriodicalIF":1.9,"publicationDate":"2025-09-17","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"145158174","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":3,"RegionCategory":"经济学","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
Yenjae Chang , Ki-Dong Kwon , Dae-Wook Kim , Man-Keun Kim , Moon Joon Kim
{"title":"Water savings subsidy during 2015 drought in Korea","authors":"Yenjae Chang , Ki-Dong Kwon , Dae-Wook Kim , Man-Keun Kim , Moon Joon Kim","doi":"10.1016/j.wre.2025.100265","DOIUrl":"10.1016/j.wre.2025.100265","url":null,"abstract":"<div><div>To address water shortages arising from the 2015 drought in Korea, the water authority (K-water) implemented a water savings subsidy between October 2015 and January 2016. This policy incentivized reduced consumption by offering households a rebate for each unit of water saved compared to the same month in the previous year. The rate of subsidy was 1240 KRW/m<sup>3</sup> (<span><math><mo>≈</mo></math></span>$1.10/m<sup>3</sup>) which was roughly 2.5–3 times larger than the water rate for the first block in most of municipalities. This study attempts to measure the effectiveness of the intervention and finds that it generated a roughly 4%–6% reduction in water use. We find that households consuming relatively more water (3rd and 4th quartiles in terms of baseline water consumption) reduced their use by 6.1% but households consuming relatively less water (1st quartile) reduced their use by 4%. Interestingly, there is little evidence that property value affects the reduction in water use with the intervention.</div></div>","PeriodicalId":48644,"journal":{"name":"Water Resources and Economics","volume":"52 ","pages":"Article 100265"},"PeriodicalIF":1.9,"publicationDate":"2025-09-12","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"145050077","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":3,"RegionCategory":"经济学","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
Roshan Adhikari , Timothy Foster , Gokul P. Paudel , Anton Urfels , Subash Adhikari , Timothy J. Krupnik
{"title":"Impact of irrigation pump ownership on farm productivity in rice-wheat cropping systems of Nepal Terai","authors":"Roshan Adhikari , Timothy Foster , Gokul P. Paudel , Anton Urfels , Subash Adhikari , Timothy J. Krupnik","doi":"10.1016/j.wre.2025.100264","DOIUrl":"10.1016/j.wre.2025.100264","url":null,"abstract":"<div><div>Groundwater irrigation is critical for supporting food security, rural livelihoods, and economic development in the Eastern Indo-Gangetic Plains (EIGP) of South Asia. However, groundwater resources in the EIGP remain underutilized due to farmers' reliance on expensive diesel pumps for accessing water. This study uses primary household survey data from the Terai region of Nepal to analyse the drivers of variability in irrigation access costs across farms, and how these cost variabilities influence agricultural outcomes. We employ an endogenous switching regression model to assess the impacts of pump ownership on farm productivity and profitability. Our findings show that pump ownership reduces irrigation costs rice and wheat cultivation, the region's two major crops, by 72 % and 76 %, respectively, and increases rice and wheat productivity by 37 % and 20 %, respectively. Our findings provide empirical evidence of the positive impact of technology ownership on agricultural productivity and highlight the opportunities for policy interventions focused on improving performance of existing technologies for enabling long-term sustainable intensification of irrigated agriculture in the EIGP.</div></div>","PeriodicalId":48644,"journal":{"name":"Water Resources and Economics","volume":"52 ","pages":"Article 100264"},"PeriodicalIF":1.9,"publicationDate":"2025-08-15","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"144904014","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":3,"RegionCategory":"经济学","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
{"title":"Household perception bias on water price in China: Asymmetric impacts and policy treatment","authors":"Jun–Jun Jia , Li Luo , Maorong Jiang , Huaqing Wu","doi":"10.1016/j.wre.2025.100262","DOIUrl":"10.1016/j.wre.2025.100262","url":null,"abstract":"<div><div>Residents tend to respond to perceived water price rather than the true water price when making household water consumption decisions. The paper estimates household perception bias on the average water price and explores its impact on the adoption of daily water-saving practices, by using the unique 5449 household survey data across 50 cities in China. The bias refers to the discrepancy between perceived price and the true average price. Results from the multi-level regression model show that households can hardly perceive the true average water price accurately. Approximately 71.5 % of households underestimate the true average price to varying degrees. On average, households underestimate the true average water price by 19.3 %, which is equivalent to 0.761 Yuan per ton. There are asymmetric impacts of household perception bias. For one thing, only the underestimation bias significantly impacts on the adoption of both technical and behavioral water-saving measures. For another, it hinders the adoption of technical measures among high water consumption households, while it impedes the adoption of behavioral measures among low water consumption households. Among a total of seven machine learning classification algorithms, the Random Forest binary classifier, based on ten easily-answered feature questions, demonstrates the best performance in identifying households with underestimation bias. It constitutes a promising policy tool to implement information treatment on households with underestimation bias. It can facilitate water conservation resulting from downward perception bias, particularly by tapping into the greater water-saving potential of technical water-saving measures and high water consumption households.</div></div>","PeriodicalId":48644,"journal":{"name":"Water Resources and Economics","volume":"51 ","pages":"Article 100262"},"PeriodicalIF":2.3,"publicationDate":"2025-07-01","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"144711449","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":3,"RegionCategory":"经济学","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
Zhuanlin Wang , Hongbo Deng , Jinxia Wang , Alec Zuo , Baozhu Guan , Jiajia Wang
{"title":"Sustainable seasonal land fallowing policy to combat groundwater overdraft in China: Insights from a choice experiment","authors":"Zhuanlin Wang , Hongbo Deng , Jinxia Wang , Alec Zuo , Baozhu Guan , Jiajia Wang","doi":"10.1016/j.wre.2025.100261","DOIUrl":"10.1016/j.wre.2025.100261","url":null,"abstract":"<div><div>The Seasonal Land Fallowing Policy (SLFP) is conducted in the North China Plain to address severe groundwater overdrafts. Optimal compensation standards, fallow duration, and reallocating the saved labor to other employment may enhance SLFP's economic sustainability, while planting green manure crops on fallow land promotes its ecological sustainability. However, unclear farmers' preferences for these policy attributes and supporting measures hinder policymakers from implementing more sustainable SLFP schemes. Based on a choice experiment survey with 716 farmers in Hebei province, our estimation indicates that farmers prefer an SLFP scheme with higher compensation, longer fallow durations, and employment support, but are reluctant to plant green manure crops. Based on the results, the compensation level can be reduced from 500 yuan/mu/year to 460 yuan/mu/year if the current SLFP scheme continues to be implemented. More economically and ecologically sustainable SLFP schemes can be achieved with longer fallow durations and the provision of employment support. Additionally, this study explicitly explores the heterogeneity of preferences for the SLFP scheme between small-scale and large-scale farmers in China and proposes differentiated SLFP schemes for each group.</div></div>","PeriodicalId":48644,"journal":{"name":"Water Resources and Economics","volume":"51 ","pages":"Article 100261"},"PeriodicalIF":2.3,"publicationDate":"2025-06-12","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"144364467","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":3,"RegionCategory":"经济学","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
Esther Díaz-Cano , Julio Berbel , Nazaret M. Montilla-López , Alfonso Expósito
{"title":"Enhancing water efficiency: Distribution efficiency and consumption synergies","authors":"Esther Díaz-Cano , Julio Berbel , Nazaret M. Montilla-López , Alfonso Expósito","doi":"10.1016/j.wre.2025.100260","DOIUrl":"10.1016/j.wre.2025.100260","url":null,"abstract":"<div><div>The Recast Drinking Water Directive (Dir. (EU) 2020/2184) aims to set a 15 % target limit for urban network losses. Research in this field is crucial for the advancement of EU policy directives aimed towards augmenting water efficiency and conservation in a context of increasing water scarcity. This paper examines the synergies between leakage reduction and water demand policies (water pricing vs. social awareness). In order to estimate the impact of such policies on the achieved water savings, a simple model is presented and applied to the case study of the city of Seville in southern Spain. This case represents an interesting example of continuous efforts towards reducing urban water abstraction in the last three decades. The results offer useful insights into the effectiveness of various policy strategies on the overall water-saving achievements in a context of increasing water scarcity and cyclical drought episodes.</div></div>","PeriodicalId":48644,"journal":{"name":"Water Resources and Economics","volume":"50 ","pages":"Article 100260"},"PeriodicalIF":2.3,"publicationDate":"2025-04-01","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"143792519","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":3,"RegionCategory":"经济学","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
{"title":"Water valuation in incentivized bargaining games","authors":"Margarita Gáfaro , César Mantilla","doi":"10.1016/j.wre.2025.100259","DOIUrl":"10.1016/j.wre.2025.100259","url":null,"abstract":"<div><div>The design of mechanisms for sustainable irrigation water management requires a deep understanding of the water value for local communities. We present results from a lab-in-the-field incentivized game that sheds light on valuation patterns of irrigation water, relative to its value in the game, among small farmers in Colombia. In this game, two players divide a jointly endowed agricultural land plot, with some pieces having direct access to irrigation water. Although the induced cost of irrigation water in our game was one token, farmers paid between 2.1 and 3.5 times this amount. We characterize a general bargaining game that can be used to identify valuation discrepancies in settings with relevant use conflicts.</div></div>","PeriodicalId":48644,"journal":{"name":"Water Resources and Economics","volume":"50 ","pages":"Article 100259"},"PeriodicalIF":2.3,"publicationDate":"2025-02-28","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"143528909","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":3,"RegionCategory":"经济学","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
{"title":"Water resource tax policy and micro environmental performance improvement in China's water-intensive industries","authors":"Qiao Wang (王乔) , Koji Shimada , Jiahui Yuan (袁嘉慧)","doi":"10.1016/j.wre.2025.100258","DOIUrl":"10.1016/j.wre.2025.100258","url":null,"abstract":"<div><div>The rapid industrialization of developing countries has led to irrational water usage and over-exploitation, exacerbating global water scarcity. While resource tax represents a well-established policy instrument, its micro-level effectiveness in water resource management remains empirically understudied. This paper employs differences-in-differences method to comprehensively evaluate the impacts of China's water resource tax on environmental performance improvements of micro-enterprises. With a panel data from 456 listed firms in water-intensive industries in China from 2012 to 2022, this paper finds that water resource tax significantly enhances environmental performance, with green innovation serving as a crucial mediating mechanism. By uniquely controlling for concurrent water pollution charging systems, our analysis reveals the comparative advantage of tax-based approaches. The results demonstrate pronounced heterogeneous effects: the policy's impact is most significant in the mining sector, followed by manufacturing, while showing negligible effects in power and electricity sectors. Additionally, non-state-owned enterprises and small-scale firms exhibit stronger environmental improvements. This study contributes existing literature by providing robust micro-level evidence of water resource tax effectiveness, employing current official classifications of water-intensive industries to avoid policy impact underestimation, and establishing robust causal relationships through rigorous econometric testing. These nuanced findings provide insights for policymakers in developing nations facing water resource challenges, offering an evidence-based blueprint for implementing targeted regulatory approaches and calibrating sector-specific environmental policies.</div></div>","PeriodicalId":48644,"journal":{"name":"Water Resources and Economics","volume":"49 ","pages":"Article 100258"},"PeriodicalIF":2.3,"publicationDate":"2025-01-01","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"143420509","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":3,"RegionCategory":"经济学","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}