Narrow Results

This study was carried out to design an incentive payment for an ecosystem services (IPES) scheme in the Baitadi Town Water Supply and Sanitation Project of Nepal. The main intention behind the designing of the scheme was to develop strategy for equitable use of water resources and involve communities, watershed and water user, in the sustainable management of water resources. We administered household survey in both the watershed community and water users to elicit their preferences regarding water source management and drinking water supply. A discrete choice experiment was employed in the case of water users which showed that, for them, water quality and quantity are the most important attributes. The estimated annual willingness-to-pay of water users for doubling water availability is NPR 482,076 (USD 4,505) and for doubling the water quantity and the supply of clean water that can be drunk directly from the tap is NPR 1.18 million (USD 10,988). The results of consultations with stakeholders indicate that the construction of public toilets, the regularization of grazing, off-season vegetable farming and drinking water distribution in the upstream area may contribute to maintaining the quality of water while keeping the watershed community satisfied with regard to water-sharing. These activities require NPR 1.17 million (USD 10,987) in the first year and NPR 425,640 (USD 3,978) annually from the second year on. The estimated willingness-to-pay and cost of the watershed activities indicate that implementing IPES in the Baitadi Town Water Supply Project is financially feasible and socially acceptable. Our study recommends the integration of the IPES design into the project design phase in future drinking water scheme, the best option being its integration into the initial environmental examination at the time of project design.

The Kura–Araks Basin is facing problems with insufficient water availability for all needs and poor water quality, which results in high rates of waterborne diseases. The riparians of the basin struggle with management of water resources within their national borders, as well as internationally, across the basin. With international rivers, interdependency among countries is created, where the upstream country can impact the quantity and quality of water downstream. This study focuses on the upstream–downstream relationship with the Kura River between Azerbaijan and Georgia. The analysis uses a game theoretical framework, which incorporates several issues in the negotiation space. Specifically, water quantity and water quality are analyzed separately and combined into an aggregated isolated game. The analysis compares the aggregated isolated game, where the outcome of each game is negotiated separately, with an interconnected game, where the two games are jointly negotiated. Using realistic parameters, results show that due to the repeated nature of some of the payoffs, cooperation is unlikely to be achievable in each game independently, since at least one country has an incentive to deviate. In contrast, the interconnected game can achieve full cooperation and increase the welfare of both countries.

For community water providers, safeguarding source waters from contamination offers an additional barrier of protection and a potential means of avoiding in-plant treatment costs. Whether source water protection efforts are cost-effective relative to in-plant treatment requires hydrologic, geologic, and climatologic knowledge of source watersheds, as well as an understanding of how changes in source water quality affect treatment costs. Quantitative evidence on the latter relationship is limited. This study estimates separate hedonic cost functions for water systems that primarily use surface water sources and those that primarily use groundwater sources using a database of United States (US) Community Water Systems. Cost functions relate annual variable treatment cost to production, factor input prices, capital stock, and source water quality, as proxied by land use within various ex-ante defined contributing areas (i.e., surrounding land areas affecting source water quality). For surface water systems, a 1% increase in urban land relative to forestland is correlated with a 0.13% increase in annual variable treatment costs. In this analysis, the relationship between costs and agricultural land is not statistically significant. Conversely, for groundwater systems, a 1% increase in agricultural land relative to forestland is correlated with a 0.24% increase in costs, whereas in this analysis the relationship between costs and urban land is not statistically significant. The cost-effectiveness of forestland preservation, based on sample means, varies considerably with the size of the contributing area, with no clear indication as to whether preservation is more likely to be cost-effective for surface water or groundwater systems.

Hedonic price models are commonly used to estimate implicit prices for lake water quality across small geographic regions that might be assumed to be a part of a common real estate market. Yet recent studies expand the geographic scale of the hedonic model potentially obscuring important differences in implicit prices across markets. We estimate implicit prices for lake water quality across multiple states in the northeast and upper Midwest in the United States of America at three different geographic scales: substate, state, and multistate. We find implicit price estimates are heterogeneous at both the substate and state-levels, which is not accounted for in state-level or multistate hedonic models. Our results show that estimates across a broad geographic scale can be driven by a single subregion within the defined area. Overall, the study demonstrates that using a single hedonic model over a large geographic area may obscure important heterogeneity in implicit prices used to estimate potential benefits for water-quality improvements.

A conceptual model to assess the literacy level of water consumers is presented. On the one hand, a literature search was performed using the ScienceDirect and B-On platforms, conjoining the terms literacy, awareness, water, water for human consumption, drinking water, environmental, disease prevention and public health, resulting in seven papers with the mingle of literacy and water and five on literacy and the environment being uncovered. On the other hand, the lack of papers and information on the subject caused us to consider developing a conceptual model to transform the processes of planning and operationalization of the studies of literacy of water consumers. The model can support the development and validation of measurement tools capable of apprehending different dimensions in the context of water literacy. A questionnaire was conceived and applied to a cohort of 147 respondents in order to assess water literacy. In addition, the articulation of the proposed model and Deming’s PDCA model was demonstrated in order to achieve excellence through the evaluation of the current reality to promote improvement solutions.

Environmental economists have long been interested in the relationship between policy enforcement, technological progress, and economic growth. A multidirectional process exists where factors such as the economy, policy, technology, and environment interactively work. Based on the balanced panel data of 261 prefecture-level cities in China from 2000 to 2020, this study innovatively examines the diversified channels in the policy–technology system within the structural equation modeling framework. Conclusions can be drawn as follows. First, the policy uncertainties curb the technological improvement in the water sector, particularly in southern Chinese cities. Second, the incubation and adoption of water technology are closely intertwined, significantly affecting water quality. By clarifying the interaction of the factors in water technology diffusion, this study provides a comprehensive framework to investigate China’s water economics and policy uncertainties.

In this study, we measure the effect of restoration actions on the economic value of coastal communities. We use a residential sorting model to simulate residential moves between communities and then estimate the value of restoring shoreline uses in coastal communities. Our application measures the effect of cleaning up Great Lakes Areas of Concern (AOC) — which are heavily polluted coastal locations prioritized for restoration in the United States and Canada — on the willingness to pay (WTP) of residents in the U.S. state of Michigan. While prior research documents the effect of individual AOCs on residents, particularly in local housing markets, little research has examined systematically where restoration is occurring and whether it affects mobility at a regional level. The results in this paper suggest that restoration actions can affect mobility, with point estimates indicating households are willing to pay $54/year for the uses restored between 2005 and 2015 in Michigan’s AOCs.

Water scarcity impedes economic development and can be expensive or infeasible to resolve in many developing countries with recurring water service outages. In such circumstances, water supply organizations may be able to improve ancillary water service attributes to alleviate the burden of service interruptions. We use a discrete choice experiment to estimate households’ willingness to pay (WTP) for improved water quality, coordinated scheduling of planned service interruptions, water use restrictions, and improved dissemination of information about upcoming service interruptions in Puerto Rico. The results indicate that households’ WTP varies considerably across attributes and is greatest ($ 28/month per household) for ensuring adequate water quality. Preferences for water service improvements vary across geographic locations and latent user groups.