{"title":"Designing Watersheds for Integrated Development (DWID): Combining hydrological and economic modeling for optimizing land use change to meet water quality regulations","authors":"Ranjit Bawa , Puneet Dwivedi , Nahal Hoghooghi , Latif Kalin , Yu-Kai Huang","doi":"10.1016/j.wre.2022.100209","DOIUrl":"https://doi.org/10.1016/j.wre.2022.100209","url":null,"abstract":"<div><p>By combining information on nutrient output from the Soil & Water Assessment Tool (SWAT) and secondary data on local profits from different crop types, we devise a profit maximization problem subject to dynamic water quality constraints, which become gradually more restrictive over time. The solution aims to detect the optimal allocation of land parcels by crop type that maximizes the total net present value of landowner profits throughout the watershed. Over a nine-year time span, our model construct is applied to the Little River Experimental Watershed (LREW) in South Georgia. Water quality constraints involve the landowner adhering to specific permittable limits on numeric nutrient criteria recorded at the watershed outlet under various scenarios, including i) NO<sub>3</sub>–N constraints, ii) total phosphorus (P) constraints, and iii) concurrent NO<sub>3</sub>–N and P constraints. In the most extreme case, a reduction in aggregate profits of $24.1 million and $8.1 million was observed for combined NO<sub>3</sub>– N and P constraints relative to commensurate solo constraints on NO<sub>3</sub>–N and P, respectively. The Designing Watersheds for Integrated Development (DWID) model could support policymaking for ascertaining trade-offs between economics and water quality channelized through direct and indirect land use change considering environmental regulations in Georgia and beyond.</p></div>","PeriodicalId":48644,"journal":{"name":"Water Resources and Economics","volume":"41 ","pages":"Article 100209"},"PeriodicalIF":2.2,"publicationDate":"2023-01-01","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"49765947","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":"Investigating the impacts of drinking water quality on house prices: A household production function approach","authors":"Amarpreet Kaur, John Janmaat","doi":"10.1016/j.wre.2022.100213","DOIUrl":"10.1016/j.wre.2022.100213","url":null,"abstract":"<div><p>Water provides many important, and some essential, services. The quality of the piped water entering a household impacts the value generated by these services. Household response options include treating the piped water, using water from an alternative source, and selecting a community with different piped water quality. This intersection between location choice and community piped water quality may manifest as a house price effect. We adapt a residential sorting model to identify variables that characterize the relationship between piped water quality and house price. Many studies explore the impact of locational and structural attributes on house prices but very few include piped water quality. In our model, households in a given community produce water services using piped water, materials and capital or purchase water from an alternate source. A housing rental price equilibrium emerges after households sort themselves among communities varying in piped water quality and alternate source water cost. The presence, direction and size of the relationship between house price and community piped water quality depends on that piped water quality, the cost of treating it, and the quality and cost of substitutes. Absent accounting for these community level characteristics, both measuring and interpreting a relationship between property prices and piped water quality will be questionable. Our model results also suggest that if households know their piped water quality and can afford to invest in treatment or purchase of the substitute, they may adequately avert the impacts of poor quality piped water.</p></div>","PeriodicalId":48644,"journal":{"name":"Water Resources and Economics","volume":"41 ","pages":"Article 100213"},"PeriodicalIF":2.2,"publicationDate":"2023-01-01","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"41357062","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":"Optimizing agricultural cropping patterns under irrigation water use restrictions due to environmental flow requirements and climate change","authors":"Mahdi Sedighkia , Bithin Datta , Saman Razavi","doi":"10.1016/j.wre.2023.100216","DOIUrl":"10.1016/j.wre.2023.100216","url":null,"abstract":"<div><p>This study proposes a reservoir operation optimization framework to maximize the regional agricultural profit under the constraints of downstream environmental flow requirements and climate change. Three climate change models—CanESM2, MIROC5, and NorESM1-M—and the soil and water assessment tool (SWAT) were used to simulate the reservoir inflow in future periods under uncertainty. Minimum and ideal environmental flow regimes were embedded in the structure of the reservoir operation model to optimize the environmental flow needs and water supply and assess their tradeoffs. Cropping pattern optimization was used to maximize farmer profit. Particle swarm optimization was applied in the optimization processes. The method was applied to a case study in the Tajan River basin, Iran, with the results showing the environmental flow regime considerably reduces irrigation supply and has significant impacts on farmer profits. The results showed that cropping pattern optimization was not an effective strategy to mitigate the economic impacts of climate change under environmental flow constraints, but this assessment may not be generalized to other areas. Uncertainties related to the climate change models are a notable weakness of the approach and should be considered in future studies.</p></div>","PeriodicalId":48644,"journal":{"name":"Water Resources and Economics","volume":"41 ","pages":"Article 100216"},"PeriodicalIF":2.2,"publicationDate":"2023-01-01","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"49646804","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}
Salvador Lurbé , Jesse Burkhardt , Chris Goemans , Dale Manning , Liesel Hans
{"title":"Further evidence on social comparison and residential water use","authors":"Salvador Lurbé , Jesse Burkhardt , Chris Goemans , Dale Manning , Liesel Hans","doi":"10.1016/j.wre.2022.100214","DOIUrl":"10.1016/j.wre.2022.100214","url":null,"abstract":"<div><p>In this paper, we evaluate a randomized controlled trial in which households were given Home Water Reports (HWRs) that provided recent consumption information aside a social comparison. We estimate an average treatment effect of −2.4%, consistent with previous literature. The effects are significantly larger during months that require irrigation but are still statistically significant during non-irrigation months. We then investigate if the treatment effect depends on the specific message a household receives. Using a regression discontinuity design, we find no evidence that the type of message received (e.g., “good” or “take action”) has an impact on the average response size of 2.4% in our particular setting. We use these findings to motivate a discussion regarding study design in the context of RCTs being used to identify heterogeneous impacts when they are not specifically designed to identify such effects. Specific to our study, we use ex post power tests to demonstrate that our findings related to message type are likely due to sample size.</p></div>","PeriodicalId":48644,"journal":{"name":"Water Resources and Economics","volume":"41 ","pages":"Article 100214"},"PeriodicalIF":2.2,"publicationDate":"2023-01-01","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"47700715","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}
Tuija Lankia , Jussi Lintunen , Marjo Neuvonen , Eija Pouta , Ron Store
{"title":"Piloting accounts for recreational ecosystem services: Quality, use, and monetary value of freshwaters in Finland","authors":"Tuija Lankia , Jussi Lintunen , Marjo Neuvonen , Eija Pouta , Ron Store","doi":"10.1016/j.wre.2022.100215","DOIUrl":"10.1016/j.wre.2022.100215","url":null,"abstract":"<div><p>Ecosystem accounting produces data on ecosystems, their condition, and the services they provide in a consistent and comparable form with the System of National Accounts (SNA). This study focused on accounting of recreational ecosystem services in the context of freshwaters in Finland. We used georeferenced data to measure the extent and condition of ecosystems available for recreation, and representative population data to measure the actual use of the services. In the monetary valuation of the recreational service, we applied the simulated exchange value method, which has been developed for the monetary valuation of non-market ecosystem services in accordance with the SNA. We extend the simulated exchange value method to incorporate the effect of water quality on the number and monetary value of recreational visits.</p></div>","PeriodicalId":48644,"journal":{"name":"Water Resources and Economics","volume":"41 ","pages":"Article 100215"},"PeriodicalIF":2.2,"publicationDate":"2023-01-01","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"49165545","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}
Sara Suárez-Fernández , María A. García-Valiñas , Roberto Martínez-Espiñeira
{"title":"Exploring behavioral responses to a residential water tariff reform","authors":"Sara Suárez-Fernández , María A. García-Valiñas , Roberto Martínez-Espiñeira","doi":"10.1016/j.wre.2022.100211","DOIUrl":"https://doi.org/10.1016/j.wre.2022.100211","url":null,"abstract":"<div><p><span>Water demand is often found to be relatively price-inelastic, with substantial percentages of water consumption irresponsive to price changes. This does not mean that households are insensitive to price changes or unresponsive to tariff reforms. In order to explore the latter, and using Latent Class Models<span>, we classified households into a series of distinct types according to how they switch between consumption tiers in response to changes in their water tariff. We then identified key drivers of this switching behavior, proposing that not only tariff-related variables but also sociodemographic, attitudinal, and information conditions define switching profiles. Our empirical exercise exploits information on water consumption and tariffs from 878 households in Granada (Spain) for the years 2010 and 2011 (when a new </span></span>tariff structure was implemented), as well as a survey that collected additional information about household characteristics.</p></div>","PeriodicalId":48644,"journal":{"name":"Water Resources and Economics","volume":"40 ","pages":"Article 100211"},"PeriodicalIF":2.2,"publicationDate":"2022-10-01","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"91748363","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 F. Mooney, Dana L.K. Hoag, Zarif I. Rasul, Siwei Gao
{"title":"More risk, more money: When are payments for water savings from limited irrigation profitable for farmers?","authors":"Daniel F. Mooney, Dana L.K. Hoag, Zarif I. Rasul, Siwei Gao","doi":"10.1016/j.wre.2022.100212","DOIUrl":"10.1016/j.wre.2022.100212","url":null,"abstract":"<div><p>As farmers in semiarid climates seek new ways of adding value to their operations, those with irrigation water rights are increasingly receptive to payments, or credits, for water sharing. Yet, past research on the economic feasibility of limited irrigation strategies for consumptive use (CU) savings seldom considers production risk. Using stochastic dominance, we compare the effect of three limited irrigation practices—deficit irrigation, root zone drying, and early crop maturity—on the returns to corn production for sprinkler and subsurface technology. Field-level simulations show that the practices reduce returns and increase risk, but credits for CU savings could make them economically viable for farmers. Larger credits (more money) incentivize limited irrigation at greater levels (less yield and more risk), but fully compensating farmers for risk-bearing will be costly. With sprinkler technology, root zone drying becomes risk-efficient at lower credit values than deficit irrigation. Deficit irrigation along with root zone drying become risk-efficient at the lowest credit values for subsurface technology. Thus, risk aversion could explain why some farmers choose not to share water even when credits are large enough, on average, to compensate for differences in expected returns. Improved knowledge about the profitability and risk of limited irrigation practices can increase the joint sustainability of irrigated agriculture and other societal water uses.</p></div>","PeriodicalId":48644,"journal":{"name":"Water Resources and Economics","volume":"40 ","pages":"Article 100212"},"PeriodicalIF":2.2,"publicationDate":"2022-10-01","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"https://www.sciencedirect.com/science/article/pii/S2212428422000196/pdfft?md5=92714af7c6d18767e576325347ac6603&pid=1-s2.0-S2212428422000196-main.pdf","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"43737912","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":"Spatial inequality of domestic water consumption in Mexico city","authors":"Carolina Massiel Medina-Rivas , Lilia Rodríguez-Tapia , Jorge Armando Morales-Novelo , Daniel Alfredo Revollo-Fernández","doi":"10.1016/j.wre.2022.100210","DOIUrl":"10.1016/j.wre.2022.100210","url":null,"abstract":"<div><p>Achieving equal access to drinkable water whilst guaranteeing no discrimination constitutes a priority goal and an acquired compromise for the international agenda. However, achieving this goal has become challenging, especially in megacities. Mexico City registers 94% coverage of water supply, according to the 2020 Population and Housing Census. In 2019, per capita water consumption was 123 l/day, a supply reasonable as it is above the 100 l/day recommended by the World Health Organization to guarantee optimal access to water. However, water consumption among households is characterized by a heterogeneous spatial distribution that denotes a great inequity. The objective of this research is to evaluate the configuration of the spatial patterns that define the differences in water consumption in Mexico City's households, as well as their association with possible causal factors. This task was carried out through the spatial analysis and the use of geographic information systems. The water consumption records correspond to the year 2019 and were provided by the city's operating utility. Results confirmed the existence of two clusters of households whose location highlight areas where inequality in water consumption is present. The clusters are explained by the interaction of four factors, in order of importance: discontinuous water supply; dependence on external water sources; altitude; and the socioeconomic status of the neighborhoods. The results provide a fundamental basis for the development of water policies to mitigate inequality. Also, a methodological approach is provided to investigate water problems in large cities in developing countries, where the available literature is scarce.</p></div>","PeriodicalId":48644,"journal":{"name":"Water Resources and Economics","volume":"40 ","pages":"Article 100210"},"PeriodicalIF":2.2,"publicationDate":"2022-10-01","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"https://www.sciencedirect.com/science/article/pii/S2212428422000172/pdfft?md5=691d5438399a08a844491f6b08daec5f&pid=1-s2.0-S2212428422000172-main.pdf","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"45501300","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":"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}