The Economic Value Of Water

Water provides benefits as a commodity for agriculture, industry, and households, and as a public good such as fisheries habitat, water quality and recreational use. To aid in cost-benefit analysis under conditions where market determined price signals are usually unavailable, economists have developed a range of alternative valuation methods for measuring economic benefits. This volume provides the most comprehensive exposition to-date of the application of economic valuation methods to proposed water resources investments and policies. It provides a conceptual framework for valuation of both commodity and public good uses of water, addressing non-market valuation techniques appropriate to measuring public benefits - including water quality improvement, recreation, and fish habitat enhancement. The book describes the various measurement methods, illustrates how they are applied in practice, and discusses their strengths, limitations, and appropriate roles. In this second edition, all chapters have been thoroughly updated, and in particular the coverage of water markets and valuation of ecosystem services from water has been expanded. Robert Young, author of the 2005 edition, has been joined for this new edition by John Loomis, who brings additional expertise on ecosystem services and the environmental economics of water for recreational and other public good uses of water.

Gibbons examines the water supply problem through five case studies. The problems faced by these regions and the methods suggested to overcome them provide excellent models for the entire United States. The case studies---typically, expanding supplies---but economic efficiency principles lead to emphasizing managing the demand. In many cases, this means reducing demand by raising prices.

Gibbons examines the water supply problem through five case studies. The problems faced by these regions and the methods suggested to overcome them provide excellent models for the entire United States. The case studies---typically, expanding supplies---but economic efficiency principles lead to emphasizing managing the demand. In many cases, this means reducing demand by raising prices.

A concise treatment of water-resource economics. Based upon political economy perspectives, it draws upon a range of case-studies - Third- World, developed world, and former communist countries - to cover many issues. There is guidance on

What Water is Worth addresses both conventional and non-conventional values of water, discussing the value of water as it relates to conventional microeconomics, water's true utility and government regulation, and new and current practices in water management.

The authors of this in-depth study describe the theory and techniques that can be applied to the specific case of valuing potable water provided by groundwater supplies. The theory and techniques can be extended to valuing drinking water provided by surface water supplies, and also to valuing alternative levels of water quality. The theory and case studies discussed in the book suggest that important determinants of the economic value of water quality include: the probability of contamination measured objectively and subjectively, information on actual levels of contamination in household water supplies, socioeconomic characteristics of households, and the extent to which the values of water quality people hold include non-use components. The case study results also suggest that empirical valuation results are sensitive to study design effects such as the particular statistical technique used to estimate mean or median values. These results suggest that estimating water quality values using benefits transfer techniques is problematic, but perhaps feasible with improved data and valuation models.Government agencies, private consulting firms and NGOs involved in water quality policy as well as academic researchers, professors and students will find this volume of theory, application and technique an invaluable reference.

Because water in the United State has not been traded in markets, there is no meaningful estimate of what it would cost if it were traded. But failing to establish ground water's value--for in situ uses such as sustaining wetlands as well as for extractive uses such as agriculture--will lead to continued overuse and degradation of the nation's aquifers. In Valuing Ground Water an interdisciplinary committee integrates the latest economic, legal, and physical knowledge about ground water and methods for valuing this resource, making it comprehensible to decisionmakers involved in Superfund cleanup efforts, local wellhead protection programs, water allocation, and other water-related management issues. Using the concept of total economic value, this volume provides a framework for calculating the economic value of ground water and evaluating tradeoffs between competing uses of it. Included are seven case studies where ground-water valuation has been or could be used in decisionmaking. The committee examines trends in ground-water management, factors that contribute to its value, and issues surrounding ground-water allocation and legal rights to its use. The book discusses economic valuation of natural resources and reviews several valuation methods. Presenting conclusions, recommendations, and research priorities, Valuing Ground Water will be of interest to those concerned about ground-water issues: policymakers, regulators, economists, attorneys, researchers, resource managers, and environmental advocates.