Managing urban water supply / edited by Donald E. Agthe, R. Bruce Billings, and Nathan Buras.

Format:

Book

Contributor:

Agthe, Donald E.

Billings, R. Bruce.

Buras, Nathan.

Series:

Water science and technology library ; v. 46.

Water science and technology library ; v. 46

Language:

English

Subjects (All):

Municipal water supply--Economic aspects.

Municipal water supply.

Municipal water supply--Management.

Physical Description:

xxv, 274 pages : illustrations, maps ; 25 cm.

Place of Publication:

Dordrecht ; Boston : Kluwer Academic Publishers, [2003]

Contents:

Chapter 1 Introduction / Donald E. Agthe, R. Bruce Billings, Nathan Buras 1

1.2 Economists and Engineers 2

1.3 Economic Quantity of Water 3

1.4 Demand, Prices, Rate Structures 4

1.5 Long Run and Short Run Water Supply 5

1.6 New Water Sources 6

1.7 Economic Analysis 7

1.8 Institutional Forms and Service Areas 7

1.9 Scientific Choices and Public Choices 8

Chapter 2 Hydrology and Water Supply / Nathan Buras 11

2.1 The World Population and Water Resources 11

2.1.2 The Law of the Minimum 12

2.1.3 The Dynamics of Water on Planet Earth 13

2.2 Subsurface Waters 14

2.3 Mining of Groundwater 15

2.4 Storage of Surface Water in Aquifers, Dams and Reservoirs 16

2.5 Conjunctive Use of Surface and Subsurface Waters 18

2.6 Water Quality Issues 19

2.7 Wastewater Treatment, Reuse and Disposal 20

2.8 Increasing Costs of New Sources of Municipal Water 21

Chapter 3 Price Rationing / Donald E. Agthe, R. Bruce Billings 23

3.1 Water, a Scarce Good 23

3.2 Demand 23

3.2.1 Law of Demand 24

3.2.2 Determinants of Demand 26

3.2.3 Change in Demand and Change in Quantity Demanded 27

3.2.4 Derived Demand 29

3.3 Supply 29

3.3.1 Determinants of Supply 29

3.3.2 The Supply Curve 30

3.3.3 Long Run vs. Short Run Supply 30

3.4 Internal and External Cost 32

3.5 Other Cost Concepts 33

3.6 Economic Efficiency and Equity 33

3.7 Water Rates and Inflation 34

3.8 Conservation Policy

Regulation, Persuasion, Price Rationing or All Three? 35

3.9 The Need for Metering 36

3.10 Rate Structures 37

3.10.1 Increasing Block Rates 38

3.10.2 Decreasing Block Rates 39

3.10.3 Conservation Rates 40

3.10.4 Customized Rates Based on Water Rights 41

3.10.5 Sewerage Usage Fees 41

3.11 Reclaimed Water Use 42

Chapter 4 Water Supply Economics / Benedykt Dziegielewski 45

4.2 Water Supply and Sanitation Systems 46

4.3 The "Full Cost" of Water 47

4.3.1 "Full Supply Cost" of Water 48

4.3.2 Full Economic Cost 48

4.3.3 Full Societal and Environmental Cost 49

4.4 Structure of Water Supply Costs 50

4.4.1 Average Expenses per Unit Volume 50

4.4.2 Components of Water Supply Cost 52

4.5 Cost of Water Supply Alternatives 52

4.5.1 Surface Water Supplies 53

4.5.2 Groundwater Sources 54

4.5.3 Water Demand Reduction Measures 55

4.5.4 Water Reuse and Dual Distribution 58

4.5.5 Desalination 59

4.6 Costs in Economic Analysis 61

4.6.1 Economic Categories of Costs 61

4.6.2 Examples of Average Cost Curves 62

4.6.3 Marginal Capacity Cost 63

4.7 Capacity Expansion Costs in Phoenix 64

Chapter 5 Elasticity of Demand for Water Resource Managers / Donald E. Agthe, R. Bruce Billings 71

5.2 The Concept of Elasticity 71

5.3 Price Elasticity of Demand 72

5.4 Derived Demand for Water as a Factor of Production 75

5.5 Price Elasticity and Revenue 75

5.6 Uses of Price Elasticity of Demand 76

5.7 Cross-Price Elasticity of Demand 78

5.8 Income Elasticity of Demand 79

5.9 Economic Modeling to Estimate Elasticity 80

5.9.1 Time Series Models 80

5.9.2 Functional Forms 82

5.9.3 Cross Section Models 83

5.9.4 Use of Sample Survey Data 83

5.9.5 Demand Models for Increasing Block Rates 84

Chapter 6 Water Transactions as an Urban Water Supply Strategy / Bonnie G. Colby 87

6.1 Water Transactions in the Western U.S.: An Overview 87

6.2 Concerns About Urban Water Acquisitions 88

6.3 Alternative Ways to Structure Water Acquisitions 90

6.3.1 Voluntary Changes in Use 91

6.3.2 Negotiated Purchases 92

6.3.3 Auctions 92

6.3.4 Standing Offers 93

6.3.5 Water Banks 93

6.3.6 Contingent Transfers for Drought Protection 94

6.4 The Role of Litigation 95

6.5 Policy Changes to Facilitate Water Acquisitions 96

6.6 Criteria for Desirable Urban Water Transactions 97

6.6.1 Positive Net Benefits 97

6.6.2 Fair Distribution of Costs Among Parties 98

6.6.3 Paradigm Shift 98

6.6.4 Enhanced Social Capital 99

Chapter 7 Market Structure and Price Regulation / Donald E. Agthe 103

7.2 Advertising by Water Providers 104

7.3 Customer Classes and Rate Design 104

7.4 Derived Demand: Commercial and Industrial Markets 105

7.5 Marketing Channels 107

7.6 Cost Structure and Provider Mergers 109

7.7 Rate and Service Regulation 109

7.8 Rate Setting: Should Average or Marginal Cost Determine Price? 110

7.9 Regulatory Agency Conflicts 112

Chapter 8 Industrial and Commercial Water Demands / Steven Renzetti 115

8.2 Features of Industrial and Commercial Water Use 116

8.3 Economic Determinants of Industrial and Commercial Water Use 117

8.3.1 Modeling Commercial and Industrial Water Demands 117

8.3.2 Empirical Estimates 118

8.3.3 The Value of Commercial and Industrial Water Use 120

8.4.1 California's Urban Conservation Office 122

8.4.2 Ontario's Green Industrial Analysis Project 123

8.4.3 U.K. Environment Agency's "Waterwise" Program 123

Chapter 9 Public Drinking Water in the United States / Ronnie Levin 127

9.1 Regulation of US Public Drinking Water 127

9.1.1 History of Drinking Water Regulation 127

9.1.2 Definitions of Public Water Systems in the US 129

9.1.3 Current US Drinking Water Standards 130

9.2 Profile of US Public Drinking Water Systems 138

9.2.1 Number of Systems 138

9.2.2 System Ownership 139

9.2.3 Operating Characteristics 140

9.3 Challenges Facing US Public Drinking Water Systems 141

9.3.1 Infrastructure Needs 141

9.3.2 Climate Change 141

9.3.3 Microbial Contamination 143

9.3.4 Ground and Surface Water Sources 143

9.3.5 Urban Development and Land Use Pressures 143

Chapter 10 Water System Organization and Financial Decision Making / R. Bruce Billings 147

10.1 Monopoly Market is Most Likely 147

10.2 Private vs. Public Provision of Water 147

10.2.1 Goals of Public and Private Providers 147

10.2.2 Funding Differences 149

10.2.3 Recent U.S. and U.K. Experience 149

10.3 Taxes, Government Spending and Water Utilities 150

10.4 Influencing Urban Development 151

10.5 Public Health Issues 152

10.6 Benefit-Cost and Project Analysis 152

10.6.1 Define the Objectives or Goals 153

10.6.2 Use Brainstorming 153

10.6.3 Quantify Each Cost and Benefit 153

10.6.4 Adjust for Uncertainty 153

10.6.5 Discount Future Values 154

10.6.6 Compare Discounted Benefits and Costs 154

10.7 Considerations for Capital Repayment by General Taxation 155

10.8 Benefit Cost Analysis: an Example 155

10.8.1 Estimating a Demand Function for Urban Water 156

10.8.2 Using the Demand Model to Estimate Benefits 157

10.8.3 Discounted Benefits and Sensitivity Analysis 160

10.8.4 Project Cost 160

10.8.5 Benefit-Cost Analysis 163

Chapter 11 Drinking Water Disinfection in the United States: Balancing Infectious Disease, Cancer and Costs, Market and Nonmarket Failures / Ronnie Levin, Mark A.R. Kleiman 167

11.2 Waterborne Infectious Disease in the United States 168

11.2.1 Microbial Contamination of Drinking Water 168

11.2.2 Estimated Incidence of Waterborne Infectious Disease 168

11.2.3 The Monetized Costs of Waterborne Infectious Disease 171

11.3 Disinfection Byproducts 172

11.3.1 Toxicology and Epidemiology of DBPs 174

11.3.2 Estimated Incidence of Health Effects Associated with Exposure to DBPs 174

11.3.3 The Monetized Costs of Exposure to DBPs 175

11.4 Water Treatment Operations and Constraints 175

11.5 EPA's Recent Microbial Contamination Rule 177

11.6 EPA's Recent Disinfection Byproducts Rule 179

11.7 Market and Government Failures in Regulating Drinking Water 180

11.8 Technological Innovation 180

Chapter 12 Effects of Land Subsidence in the Greater Houston Area / Devin L.

Galloway, Laura Coplin, Steve Ingebritsen 187

12.2 Land Subsidence Due to Aquitard Drainage 188

12.2.1 Minor Reversible Deformation Occurs in all Aquifer Systems 189

12.2.2 Inelastic Compaction Irreversibly Alters the Aquifer System 189

12.3 Regional Setting 190

12.4 Houston Grows and Subsides 192

12.4.1 Initial Subsidence Due to Oil and Gas Extraction 192

12.4.2 Subsidence Reflects Evolving Patterns of Fluid Extraction 193

12.5 Subsidence Exacerbates Flooding 193

12.6 Texas and Houston Act to Arrest Subsidence 195

12.6.1 Special Districts Chartered to Control Subsidence 195

12.6.2 The Ongoing Conversion from Ground Water to Surface Water 196

12.7 Wetlands Lost to Subsidence 198

12.8 Subsidence Activates Faults 199

12.9 The Direct and Indirect Costs of Subsidence 199

Chapter 13 Solving Groundwater Overdraft in Arizona Urban Areas / Donald E. Agthe, R. Bruce Billings 205

13.2 The Arizona Groundwater Management Act and the AMAs 206

13.3 The Safe Yield Concept and Problems of Measurement 207

13.4 Costs of Overdraft 208

13.5 Costs of Achieving Safe Yield 208

13.6 General Analysis of the AMAs 209

13.6.1 Phoenix AMA 210

13.6.2 Prescott AMA 211

13.6.3 Tucson AMA 211

13.7 Exempt Wells 212

13.8 AMAs Replacement Water Options 213

13.9 Conservation Policy 214

13.9.1 Who is Responsible? 214

13.9.2 Marketable Private Water Rights 214

13.9.3 Raising Water Prices to Limit Demand 215

13.9.4 Increasing Block Rates and Summer Surcharges 215

13.9.5 Commodity Taxation to Limit Demand 217

13.10 Commodity Value of Water in Arizona 217

Chapter 14 Urban Water in Israel / Yoav Kislev 219

14.2 The People and the Economy 219

14.3 The Water Sector 221

14.3.1 Public Control 223

14.3.2 Allocation 224

14.3.3 Hydropolitics 224

14.4 Early Urban Supply 226

14.5 The Municipal Sector 226

14.6 Urban Water 227

14.7 Prices and Cost 230

14.8 Municipal Cost and Surplus 231

14.9 The Restoration Fund 232

14.10 Quality and Health 232

14.11 Sewage Collection and Treatment 234

14.12 Incorporation 236

14.13 Water Policy 237

14.14 Structural Reforms 238

Chapter 15 The British Experience / Kenneth F. Clarke 241

15.1 The Geography of the United Kingdom 241

15.2 The History of Water Supply and Sewage Disposal in the U.K. 242

15.3 Water Supply Models 244

15.3.1 England and Wales 244

15.3.2 Scotland 245

15.3.3 Northern Ireland 245

15.3.4 Evaluation of Alternative Models 246

15.4 Regulation 247

15.4.1 Office of Water Services 247

15.4.2 Drinking Water Inspectorate 248

15.4.3 Environment Agency 250

15.5 United Kingdom Water Companies: Three Examples 251

15.5.1 Anglian Water Group 251

15.5.2 Three Valleys Water 252

15.5.3 Thames Water 253

15.6 The Future 253

16.1 Economic and Engineering Challenges in Urban Water Supply 257

16.2 Groundwater Overdraft 258

16.3 Soft Path Water Management 258

16.4 Availability of Water Service 261

16.5 Security of Supply 262

16.6 Creating a Legal Environment for Urban Water Supply Management 263

16.7 Wastewater Recycling 266

16.8 Markets and Prices 267

16.9 Future Management

More Business Like? 268

16.10 The Role of Political Economy in Urban Water Management 268.

Notes:

Includes bibliographical references and index.

ISBN:

1402017200

OCLC:

53231254