Valuing Ground Water Economic Concepts and Approaches (1997) / Chapter Skim
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1: Introduction and Background
1: Introduction and Background
Pages 13-30
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From page 13... ...
or by its less obvious ecological functions, such as wetlands maintenance and its contribution to stream flow; or the prevention of land subsidence. The longer we ignore or distort ground water's value, the more overused, degraded, and misallocated the resource becomes.
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From page 14... ...
An example of such similarity and overlap is the problem of assigning values to surface water. Of course, surface water and its management provide some unique services (e.g., navigation, power, and flood control)
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From page 15... ...
Ground or Surface U.S. Total408,000 100.0 Ground water, total80,620 19.8100.0 Public supply15,100 3.718.7 Domestic3,260 0.84.0 Commercial908 0.21.1 Irrigation51,000 12.563.3 Livestock2,690 0.73.3 Industrial3,960 1.04.9 Mining3,230 0.84.0 Thermoelectric525 0.10.7 Surface water, total327,000 80.1100.0 Public supply23,500 5.87.2 Domestic132 0.00.0 Commercial1,480 0.40.5 Irrigation85,500 21.026.1 Livestock1,800 0.40.6 Industrial18,600 4.65.7 Mining1,718 0.40.5 Thermoelectric194,500 47.759.5 SOURCE: Compiled from Solley et al., 1993.
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From page 17... ...
Also in the early 1980s, the inception of the Superfund program brought attention to the need to clean up contaminated soil and ground water and led to major remediation programs by EPA and the Departments of Defense and Energy. In 1984 EPA adopted a ground water protection strategy that focused on land use planning, engineering control measures, and management practices that could be used to prevent ground water contamination and thus protect ground water quality.
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From page 18... ...
18 al In A an o .~ ~ ~ o ~ .
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From page 20... ...
Sea water intrusion can affect both the use values of ground water, by increasing the cost of drinking water supplies, and the nonuse values, through contamination of the aquifer even if it was never to be used as source of water for human consumption. Unless care is taken in definition and use, both sets of terminology may mask or confuse the important distinction between values which are associated with a flow or stream of goods and services and values which are associated with stocks or assets which create those streams.
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From page 21... ...
The environmental values associated with ground water are also becoming more widely recognized. Just as the ecosystem concept is gaining more recognition in habitat management to protect animal species, the role of ground water in the support of surface water supplies, wetlands, and riparian habitat is more clearly understood.
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From page 22... ...
22 VALUING GROUND WATER TABLE 1.4 Potential Service Flows and Effects of Those Services for Ground Water Stored in an Aquifer Service Provided Effect on Value Potable water for residential use Landscape and turf irrigation Agricultural crop irrigation Livestock watering Food product processing Other manufacturing processes Heated water for geothermal power plants Cooling water for other power plants Prevention of land subsidence Erosion and flood control through absorption of surface water runoff Medium for wastes and other by-products of human ecomic activity Improved water quality through support of living organisms Nonuse services (e.g., existence or bequest motivations) Change in Availability of Potable Water Change in Human Health or Health Risks Change in Cost of Maintaining Public or Private Property Change in Value of Crops or Production Costs Change in Human Health or Health Risks Change in Value of Livestock Products or Production Costs Change in Human Health or Health Risks Change in Value of Food Products or Production Costs Change in Human Health or Health Risks Change in Value of Manufactured Goods or Production Costs Change in Cost of Electricity Generation Change in Cost of Electricity Generation Change in Cost of Maintaining Public or Private Property Change in Cost of Maintaining Public or Private Property Change in Human Health or Health Risks Attributable to Change in Ground Water Quality Change in Animal Health or Health Risks Attributable to Change in Ground Water Quality Change in Economic Output Attributable to Use of Ground Water Resources as "Sink" for Wastes Change in Human Health or Health Risks Attributable to Change in Ground Water Quality Change in Animal Health or Health Risks Attributable to Change in Ground Water Quality Change in Economic Output or Production Costs Attributable to Use of Ground Water Resources as "Sink" for Wastes Change in Personal Utility SOURCE: Modified from Boyle and Bergstrom, 1994.
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From page 23... ...
. crop 1rrlgahon Surface water supplies for watering livestock Surface water supplies of food product processing Surface water supplies for manufacturing processes Surface water supplies for power plants Erosion flood and storm protection Transport and treatment of wastes and other by-products of human economic activity through surface water supplies Recreational swimming, boating, fishing, hunting, trapping, and plant gathering Commercial fishing, hunting, trapping, and plant gathering supported by ground water discharges On-site observation or study of fish, wildlife, and plants purposes supported by ground water discharges for leisure, educational, or scientific purposes Change in Availability of Potable Water Change in Human Health or Health Risks Change in Cost of Maintaining Public or Private Property Change in Value of Crops or Production Costs Change in Human Health or Health Risks Change in Value of Livestock Products or Production Costs Change in Human Health or Health Risks Change in Value of Food Products or Production Costs Change in Human Health or Health Risks Change in Value of Manufactured Goods or Production Costs Change in Cost of Electricity Generation Change in Cost of Maintaining Public or Private Property Changes in Human Health or Health Risks through Personal Injury Protection Change in Human Health or Health Risks Attributable to Change in Surface Water Quality Change in Animal Health or Health Risks Attributable to Change in Surface Water Quality Change in Economic Output or Production Costs Attributable to Use of Surface Water Resources for Disposing of Wastes Change in Quality or Quantity of Recreational Activities Change in Human Health or Health Risks Change in Value of Commercial Harvest or Costs Change in Human Health or Health Risks Change in Quantity or Quality of On-Site Observation or Study Activities (continued)
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From page 24... ...
Improved water quality resulting from living organisms related to ground water discharges Regulation of climate through support of plants Provision of nonuse services (e.g., existence services) associated with surface water bodies or wetlands environments or ecosystems supported by ground water discharges Change in Quality or Quantity of Indirect Off-Site Activities Change in Human Health or Health Risks Attributable to Change in Air Quality Change in Animal Health or Health Risks Attributable to Change in Air Quality Change in Value of Economic Output or Production Costs Attributable to Change in Air Quality Change in Human Health or Health Risks Attributable to Change in Climate Change in Animal Health or Health Risks Attributable to Change in Climate Change in Value of Economic Output or Production Costs Attributable to Change in Climate Change in Personal Utility or Satisfaction SOURCE: Modified from Boyle and Bergstrom, 1994.
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From page 25... ...
Existence value 6. Bequest value Cost of illness Averting behavior Contingent valuation Contingent ranking/behavior Averting behavior Contingent valuation Contingent ranking/behavior Derived demand/production cost Derived demand/production cost Production cost techniques Contingent valuation Contingent ranking/behavior Dynamic optimization Contingent valuation Contingent ranking/behavior Production cost Hedonic pricing model Contingent valuation Contingent ranking/behavior Travel cost method Contingent valuation Contingent ranking/behavior Contingent valuation Contingent ranking/behavior Contingent valuation Contingent ranking/behavior SOURCE: Adapted from Freeman, 1993.
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From page 26... ...
Management Issues Water managers make decisions within a particular sociopolitical and technical context. They are constrained by technical considerations such as capacity of various conveyance facilities, recharge capability of an aquifer, physical availability of surface water supplies, and environmental or resource impacts of supply development.
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From page 27... ...
Two techniques were developed specifically for the estimation of nonmarketed outputs: the travel cost method (TCM) and the contingent valuation method (CVM)
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From page 28... ...
Although nonmarket valuation techniques have been helpful in valuing individual environmental commodities, policy and regulatory attention has increasingly focused on the management of ecosystems. The need to value complex hydrologic or ecological functions and the associated range of service flows raises a number of issues in nonmarket valuation.
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From page 29... ...
Advantages and limitations of such methods are described along with their application in delineating use and nonuse values for ground water resources. The available evidence from existing ground water valuation studies is compared with the possible range of extractive and in situ values identified in earlier chapters.
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From page 30... ...
1994. Alternatives for Ground Water Cleanup.
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