{"title":"Nash bargaining in a general equilibrium framework: The case of a shared surface water supply","authors":"Arpita Nehra, Arthur J. Caplan","doi":"10.1016/j.wre.2022.100206","DOIUrl":"10.1016/j.wre.2022.100206","url":null,"abstract":"<div><p>We extend the axiomatic Nash bargaining approach to the context of interregional water sharing in order to assess the approach’s normative implications in a general equilibrium (GE) framework. The GE model is applied to a water development project proposed for the Wasatch Front and Cache Valley regions of Utah — the Bear River Development Project (BRDP). We demonstrate conceptually how an allocation rule and attendant net regional welfare measures are endogenously determined as equilibrium solutions to the bargaining problem. Numerical analysis, based upon a simulation model calibrated to current data, reveals that Nash bargaining is generally infeasible as a solution mechanism for sharing surplus water supplies generated through the implementation of the BRDP, with or without potential ex post side-payments made between Cache Valley and the Wasatch Front. Only in the special case of (1) larger future regional population sizes, (2) a hypothetical, joint per-capita cost-share arrangement where total project (i.e. fixed) costs are shared equally across the two regions, (3) hypothetically larger water augmentation rates, and (4) the ignoring of potential environmental costs, is the Nash bargaining solution viable. Otherwise, for all other scenarios where the analysis is based upon current or future population sizes, joint- or region-specific cost-share arrangements, lower or higher water augmentation rates, and internalized or externalized environmental costs, the Nash bargaining solution is found to be unattainable as a potential mechanism to share surplus water supplies produced by the BRDP.</p></div>","PeriodicalId":48644,"journal":{"name":"Water Resources and Economics","volume":"39 ","pages":"Article 100206"},"PeriodicalIF":2.2,"publicationDate":"2022-07-01","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"47938125","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":"Valuing urban drinking water supply attributes: A case study from Chile","authors":"Cristian González-Santander , Mauricio Sarrias , Ricardo A. Daziano , Lisandro Roco","doi":"10.1016/j.wre.2022.100204","DOIUrl":"10.1016/j.wre.2022.100204","url":null,"abstract":"<div><p><span>This article uses a discrete choice experiment carried out in the city of Antofagasta, Chile, to understand consumer's preferences for urban drinking water. To disentangle the perceptions and valuation of drinking water attributes, we propose a willingness-to-pay (WTP)-space model where the WTPs for water attributes are distributed as a mixture-of-normal distribution. This approach combines discrete and continuous heterogeneity representations of tastes providing a richer interpretation of preference heterogeneity for drinking-water characteristics such as price, the organoleptic characteristics, information about the chemical composition, origin, and the taste of water by distinguishing between tap or bottled water. This mixture-based formulation is also flexible enough to identify clusters of individuals with differing WTP for these attributes. The elicited perceptions and inferred preferences derived from our results are important to understand why consumers still distrust </span>tap water for drinking, though tap water meets Chilean regulations in terms of safety and is distributed within a stable network.</p></div>","PeriodicalId":48644,"journal":{"name":"Water Resources and Economics","volume":"39 ","pages":"Article 100204"},"PeriodicalIF":2.2,"publicationDate":"2022-07-01","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"41538155","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 Environmental Kuznets Curve at the thermoelectricity-water nexus: Empirical evidence from Spain","authors":"Diego Sesma-Martín , Miguel Puente-Ajovín","doi":"10.1016/j.wre.2022.100202","DOIUrl":"10.1016/j.wre.2022.100202","url":null,"abstract":"<div><p>Energy and water are essential resources for ensuring economic growth. Both sectors are closely interrelated. Electricity generation is one of the most water-intensive activities worldwide and the cooling of thermoelectric power stations represents one of the largest uses of water within the energy sector. This study provides evidence on the existence of an Environmental Kuznets Curve (EKC) for water withdrawal at the thermoelectricity sector in Spain, one of the most arid countries in Europe, for the period 1970–2019, using the ARDL model. Our results show a direct relationship between per capita income and water withdrawal until an estimated turning point is reached. In the Spanish case, further development has led to a reduction in water needs for the following reasons: 1) the use of less water-intensive cooling systems, 2) changes in generation technology.</p></div>","PeriodicalId":48644,"journal":{"name":"Water Resources and Economics","volume":"39 ","pages":"Article 100202"},"PeriodicalIF":2.2,"publicationDate":"2022-07-01","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"https://www.sciencedirect.com/science/article/pii/S221242842200010X/pdfft?md5=12d4743b48c10583da48118036709a60&pid=1-s2.0-S221242842200010X-main.pdf","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"44865468","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":3,"RegionCategory":"经济学","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"OA","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
{"title":"Market response to the hierarchical water environment regulations on heavily polluting firm: Evidence from China","authors":"Liming Yao , Ying Luo , Yile Wang , Haiyue Liu","doi":"10.1016/j.wre.2022.100201","DOIUrl":"10.1016/j.wre.2022.100201","url":null,"abstract":"<div><p>Using event study methodology, this paper examined the effects of water environment regulations on the stock prices of polluting Chinese firms over the past decade. It was found that there were relatively weak market responses to regulations passed by the National People's Congress, China's top legislative body, and more significant market responses to regulations implemented by less powerful administrations. In particular, the market reaction in various industries to the State Council's Water Ten Plan was instant and strong. While most water environment regulations had negative effects on heavy polluters, some recent regulations had positive wealth effects. Because water environment regulations have different effects on shareholder values in different industries, these results could assist in guiding hierarchical water environment regulation policies and portfolio diversification.</p></div>","PeriodicalId":48644,"journal":{"name":"Water Resources and Economics","volume":"39 ","pages":"Article 100201"},"PeriodicalIF":2.2,"publicationDate":"2022-07-01","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"48773514","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":"Dynamic change of inter-regional virtual water transfers in China: Driving factors and economic benefits","authors":"Zhangqi Zhong , Zhuli Chen , Xiaojun Deng","doi":"10.1016/j.wre.2022.100203","DOIUrl":"10.1016/j.wre.2022.100203","url":null,"abstract":"<div><p>Whether rapid urbanization promote inter-regional virtual water transfers, and whether economic benefits produced by virtual water trade differ across regions, which have become the two significant issues concerned by relevant stakeholders. To this end, on the basis of investigating dynamic change of inter-regional virtual water transfers in Chinese 30 provinces from 2002 to 2015, this paper constructed the Logarithmic Mean Divisia Index models to analyze the factors driving such change, particularly the impacts from the urbanization, and evaluated quantitatively regional economic benefits resulted from virtual water transfers, so as to develop relevant policies that potentially facilitate optimal allocation of water resources. Results indicated that compared to that from 2002 to 2007, the total volume of inter-regional virtual water transfers in China were smaller during 2010 and 2015. The rapid development of urbanization within China continued to improve the increase in the trend of virtual water flowing out of water-scarce regions. Moreover, regarding provincial economic benefits resulted from inter-regional virtual water trade, the ratio of income to loss for most provinces in the eastern region was greater than one, while the ratio was less than one for the rest of China. Furthermore, this paper articulated more targeted water resources management measures from the perspective of the economically benefited regions and the economically damaged regions.</p></div>","PeriodicalId":48644,"journal":{"name":"Water Resources and Economics","volume":"39 ","pages":"Article 100203"},"PeriodicalIF":2.2,"publicationDate":"2022-07-01","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"46191113","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":"What is the least cost policy mix for nitrogen and phosphorous abatement in a rapidly urbanizing catchment?","authors":"Maksym Polyakov , Benedict White","doi":"10.1016/j.wre.2022.100208","DOIUrl":"10.1016/j.wre.2022.100208","url":null,"abstract":"<div><p><span>Nitrogen and phosphorus emissions from urban sources degrade aquatic ecosystems. Reducing these emissions cost-effectively in an </span>urban environment<span><span> is challenging because they are non-point source pollutants and abatement strategies range from behaviour change for garden fertilizer use to large scale infrastructure investments. This paper analyses policy options for the Canning catchment in Western Australia with a dynamic and spatial hydro-economic model. Currently responsibility for N and P abatement is fragmented across government agencies. A coordinated cost-effective policy to meet N and P abatement targets in the case study catchment would cost A$0.5 billion over the next fifty years. The minimum cost is approximately doubled if the policy set excludes septic tank infill and </span>constructed wetlands<span>. Costs are significantly reduced if there is a city-wide policy to mandate the use of slow-release nitrogen fertilizer on public open space. We conclude that there is a significant benefit to society from adopting a coordinated approach to nitrogen and phosphorous abatement. Further, in this case study, a non-point source pollution problem can be addressed by abatement measures, such as infrastructure investment, that are directly observable.</span></span></p></div>","PeriodicalId":48644,"journal":{"name":"Water Resources and Economics","volume":"39 ","pages":"Article 100208"},"PeriodicalIF":2.2,"publicationDate":"2022-07-01","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"42316382","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}
Chiradip Chatterjee , Russell Triplett , Chung-Ping A. Loh , Christopher K. Johnson
{"title":"Consumer perception and information in a model of household water usage: The case of jacksonville, FL","authors":"Chiradip Chatterjee , Russell Triplett , Chung-Ping A. Loh , Christopher K. Johnson","doi":"10.1016/j.wre.2022.100207","DOIUrl":"10.1016/j.wre.2022.100207","url":null,"abstract":"<div><p><span>Consumption of bottled water in the U.S. continues to grow despite the higher user price and greater environmental cost relative to municipal </span>tap water<span><span><span>. Convenience is surely one reason for this trend, but it is less relevant for in-home consumption of bottled water. The existing literature highlights perceptions of quality, access to information and personal experience as important factors influencing water usage in the home. In this paper we report the results of a 2018 survey of water customers of Jacksonville Electric Authority (JEA), the primary municipal water utility in Northeast Florida. The survey includes detailed questions regarding self-reported household water usage, information availability, information processing, trust in institutions and demographic characteristics. In addition, in cooperation with JEA, we matched the survey results with administrative data on geographic location within the system. Using a bivariate probit regression method, we estimate the determinants of water usage in the home. The results show that concern for </span>drinking water safety is the principal contributor of bottled water consumption. Moreover, the evidence illustrates how information from water quality reports and objective measures of </span>water hardness translate into the drinking water choice. We also show that greater transaction costs of bottled water due to low access to retail suppliers is associated with a substitution of water filtration for bottled water.</span></p></div>","PeriodicalId":48644,"journal":{"name":"Water Resources and Economics","volume":"39 ","pages":"Article 100207"},"PeriodicalIF":2.2,"publicationDate":"2022-07-01","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"48148444","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 tariff setting and its welfare implications: Evidence from Chinese cities","authors":"Yi Jiang , Renz Adrian T. Calub , Xiaoting Zheng","doi":"10.1016/j.wre.2022.100199","DOIUrl":"10.1016/j.wre.2022.100199","url":null,"abstract":"<div><p><span>We study urban water tariff setting and its welfare implications with a unique panel of Chinese cities in the 2000s. First, we find that peer cities' water tariff levels have a significant influence on a city's choice of tariffs. Using the peer cities' average tariffs as instrumental variables<span> in estimating water demand functions, we obtain price elasticities around −0.41 for both residential and industrial sectors. Our estimation of cost functions reveals the supply of urban water services to be characterized by strong economies of scale and economies of scope. More than half of the sample have residential water tariffs higher than the corresponding marginal costs while the share increases to 71% for industrial sector. The </span></span>deadweight loss calculated under first-best pricing suggests moderate welfare loss due to prices deviating from marginal costs.</p></div>","PeriodicalId":48644,"journal":{"name":"Water Resources and Economics","volume":"38 ","pages":"Article 100199"},"PeriodicalIF":2.2,"publicationDate":"2022-04-01","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"42558548","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":"How stable is the stabilization value of groundwater? Examining the behavioral and physical determinants","authors":"Siwa Msangi , Mohamad Hejazi","doi":"10.1016/j.wre.2022.100195","DOIUrl":"10.1016/j.wre.2022.100195","url":null,"abstract":"<div><p>In this paper we explore the economic value of groundwater in irrigation – both in terms of the way in which it stabilizes water supply for those facing uncertain surface water flows – as well as in the way it augments water supply to farming enterprises beyond what would be available from precipitation or surface water flows alone. These respective components of groundwater's economic value – its ‘stabilization’ and ‘augmentation’ value – have been discussed in the literature before, but we point out some important ways in which they could be diminished if sub-optimal groundwater abstraction is allowed to persist. Groundwater ‘mining’ tends to diminish the augmentation value of groundwater, while leaving the stabilization value unaffected – as long as the resource extraction only manifests itself in terms of increased pumping costs. We illustrate, however, a situation in which even the stabilization value can be attenuated – which arises when constraints to the user's ability to abstract groundwater become binding and prevent her from realizing the stabilizing value that is embodied in the immediate exploitation of the resource. We demonstrate these losses in groundwater's economic value in irrigation through simulating increasingly sub-optimal, non-cooperative and strategic groundwater pumping behavior in a way that has not been done explicitly in the literature, and use a well-studied example from California to give an empirical illustration of our points.</p></div>","PeriodicalId":48644,"journal":{"name":"Water Resources and Economics","volume":"38 ","pages":"Article 100195"},"PeriodicalIF":2.2,"publicationDate":"2022-04-01","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"https://www.sciencedirect.com/science/article/pii/S2212428422000032/pdfft?md5=d722638d1f705106cf7453faff54194e&pid=1-s2.0-S2212428422000032-main.pdf","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"47233783","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":3,"RegionCategory":"经济学","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"OA","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
Tereza Pilarova, Alexander Kandakov, Miroslava Bavorova
{"title":"Adaptation of smallholder farmers to climate risks: Remittances and irrigation investment in the Republic of Moldova","authors":"Tereza Pilarova, Alexander Kandakov, Miroslava Bavorova","doi":"10.1016/j.wre.2022.100200","DOIUrl":"https://doi.org/10.1016/j.wre.2022.100200","url":null,"abstract":"<div><p><span><span><span>Drought is one of the main limiting factors affecting crop production in many areas in the world. Pressurized irrigation systems<span> enable more efficient use of water compared to surface irrigation systems but are rarely used by small farmers due to higher initial investment and energy costs. The main question investigated in the study is if </span></span>remittances<span><span> affect investment in pressurized irrigation (drip or sprinkler irrigation systems). A quantitative questionnaire survey was conducted among 234 small-scale farmers in the Republic of Moldova in 2016. The main result of the binary probit regression model revealed that remittances increased the likelihood of utilization of pressurized irrigation facilities in the study region. This study further contributes to a better understanding of factors that affect farmers’ adoption of pressurized irrigation systems. This knowledge helps policy makers and development organizations shape proper measures to increase the diffusion of this </span>technology and thus the adaptation of </span></span>smallholder farmers to </span>climate risks.</p></div>","PeriodicalId":48644,"journal":{"name":"Water Resources and Economics","volume":"38 ","pages":"Article 100200"},"PeriodicalIF":2.2,"publicationDate":"2022-04-01","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"136711018","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}