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Managing Urban Water Supply : Water Science and Technology Library - Donald E. Agthe

Managing Urban Water Supply

Water Science and Technology Library

By: Donald E. Agthe (Editor), R. Bruce Billings (Editor), Nathan Buras (Editor)

Hardcover

Published: 30th November 2003
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We, the editors, have long believed that a strong knowledge of relatively simple economic and engineering concepts is valuable in solving water management problems. The lack of such knowledge has been apparent to us in some of the journal articles, research proposals and books we have reviewed. The articles which have been written concerning specific local water economies and management issues are scattered over a wide variety of journals, making them hard to access. Most of the extensive water resources literature is concerned with large regional water projects or with narrow technical and regional issues. This book was written to make practical economic and engineering concepts readily available to urban water supply managers, thereby filling a gap in the available literature. It is concerned with decisions made daily, monthly, or annually by managers of urban water supply systems. The book includes basic chapters presenting supply and cost concepts, calculation of demand elasticities, use of marketing concepts, public goods analysis, water markets, industrial water demand and the use of price in water conservation. The authors have included multiple examples of how these concepts can aid in managing urban water supply. The water provider is generally a governmental entity or regulated private utility. Most books on public utilities and their management emphasize gas, electricity, or telephone rather than water. Water is different because of m~or variations in quality by source and the necessity for proper disposal of waste water.

Table of Tablesp. xiii
Table of Figuresp. xv
Prefacep. xvii
Contributorsp. xix
Introductionp. 1
Introductionp. 1
Economists and Engineersp. 2
Economic Quantity of Waterp. 3
Demand, Prices, Rate Structuresp. 4
Long Run and Short Run Water Supplyp. 5
New Water Sourcesp. 6
Economic Analysisp. 7
Institutional Forms and Service Areasp. 7
Scientific Choices and Public Choicesp. 8
Referencesp. 9
Hydrology and Water Supplyp. 11
The World Population and Water Resourcesp. 11
Introductionp. 11
The Law of the Minimump. 12
The Dynamics of Water on Planet Earthp. 13
Subsurface Watersp. 14
Mining of Groundwaterp. 15
Storage of Surface Water in Aquifers, Dams and Reservoirsp. 16
Conjunctive Use of Surface and Subsurface Watersp. 18
Water Quality Issuesp. 19
Wastewater Treatment, Reuse and Disposalp. 20
Increasing Costs of New Sources of Municipal Waterp. 21
Referencesp. 22
Price Rationingp. 23
Water, a Scarce Goodp. 23
Demandp. 23
Law of Demandp. 24
Determinants of Demandp. 26
Change in Demand and Change in Quantity Demandedp. 27
Derived Demandp. 29
Supplyp. 29
Determinants of Supplyp. 29
The Supply Curvep. 30
Long Run vs. Short Run Supplyp. 30
Internal and External Costp. 32
Other Cost Conceptsp. 33
Economic Efficiency and Equityp. 33
Water Rates and Inflationp. 34
Conservation Policy--Regulation, Persuasion, Price Rationing or All Three?p. 35
The Need for Meteringp. 36
Rate Structuresp. 37
Increasing Block Ratesp. 38
Decreasing Block Ratesp. 39
Conservation Ratesp. 40
Customized Rates Based on Water Rightsp. 41
Sewerage Usage Feesp. 41
Reclaimed Water Usep. 42
Conclusionp. 42
Referencesp. 43
Suggestions for Additional Readingp. 43
Water Supply Economicsp. 45
Introductionp. 45
Water Supply and Sanitation Systemsp. 46
The "Full Cost" of Waterp. 47
"Full Supply Cost" of Waterp. 48
Full Economic Costp. 48
Full Societal and Environmental Costp. 49
Structure of Water Supply Costsp. 50
Average Expenses per Unit Volumep. 50
Components of Water Supply Costp. 52
Cost of Water Supply Alternativesp. 52
Surface Water Suppliesp. 53
Groundwater Sourcesp. 54
Water Demand Reduction Measuresp. 55
Water Reuse and Dual Distributionp. 58
Desalinationp. 59
Costs in Economic Analysisp. 61
Economic Categories of Costsp. 61
Examples of Average Cost Curvesp. 62
Marginal Capacity Costp. 63
Capacity Expansion Costs in Phoenixp. 64
Summaryp. 69
Referencesp. 70
Elasticity of Demand for Water Resource Managersp. 71
Introductionp. 71
The Concept of Elasticityp. 71
Price Elasticity of Demandp. 72
Derived Demand for Water as a Factor of Productionp. 75
Price Elasticity and Revenuep. 75
Uses of Price Elasticity of Demandp. 76
Cross-Price Elasticity of Demandp. 78
Income Elasticity of Demandp. 79
Economic Modeling to Estimate Elasticityp. 80
Time Series Modelsp. 80
Functional Formsp. 82
Cross Section Modelsp. 83
Use of Sample Survey Datap. 83
Demand Models for Increasing Block Ratesp. 84
Conclusionp. 85
Referencesp. 86
Water Transactions as an Urban Water Supply Strategyp. 87
Water Transactions in the Western U.S.: An Overviewp. 87
Concerns About Urban Water Acquisitionsp. 88
Alternative Ways to Structure Water Acquisitionsp. 90
Voluntary Changes in Usep. 91
Negotiated Purchasesp. 92
Auctionsp. 92
Standing Offersp. 93
Water Banksp. 93
Contingent Transfers for Drought Protectionp. 94
The Role of Litigationp. 95
Policy Changes to Facilitate Water Acquisitionsp. 96
Criteria for Desirable Urban Water Transactionsp. 97
Positive Net Benefitsp. 97
Fair Distribution of Costs Among Partiesp. 98
Paradigm Shiftp. 98
Enhanced Social Capitalp. 99
Summary and Conclusionsp. 99
Referencesp. 100
Market Structure and Price Regulationp. 103
Introductionp. 103
Advertising by Water Providersp. 104
Customer Classes and Rate Designp. 104
Derived Demand: Commercial and Industrial Marketsp. 105
Marketing Channelsp. 107
Cost Structure and Provider Mergersp. 109
Rate and Service Regulationp. 109
Rate Setting: Should Average or Marginal Cost Determine Price?p. 110
Regulatory Agency Conflictsp. 112
Concluding Remarksp. 113
Referencesp. 113
Industrial and Commercial Water Demandsp. 115
Introductionp. 115
Features of Industrial and Commercial Water Usep. 116
Economic Determinants of Industrial and Commercial Water Usep. 117
Modeling Commercial and Industrial Water Demandsp. 117
Empirical Estimatesp. 118
The Value of Commercial and Industrial Water Usep. 120
Case Studiesp. 121
California's Urban Conservation Officep. 122
Ontario's Green Industrial Analysis Projectp. 123
U.K. Environment Agency's "Waterwise" Programp. 123
Conclusionsp. 124
Referencesp. 125
Public Drinking Water in the United Statesp. 127
Regulation of US Public Drinking Waterp. 127
History of Drinking Water Regulationp. 127
Definitions of Public Water Systems in the USp. 129
Current US Drinking Water Standardsp. 130
Profile of US Public Drinking Water Systemsp. 138
Number of Systemsp. 138
System Ownershipp. 139
Operating Characteristicsp. 140
Challenges Facing US Public Drinking Water Systemsp. 141
Infrastructure Needsp. 141
Climate Changep. 141
Microbial Contaminationp. 143
Ground and Surface Water Sourcesp. 143
Urban Development and Land Use Pressuresp. 143
Referencesp. 144
Water System Organization and Financial Decision Makingp. 147
Monopoly Market is Most Likelyp. 147
Private vs. Public Provision of Waterp. 147
Goals of Public and Private Providersp. 147
Funding Differencesp. 149
Recent U.S. and U.K. Experiencep. 149
Taxes, Government Spending and Water Utilitiesp. 150
Influencing Urban Developmentp. 151
Public Health Issuesp. 152
Benefit-Cost and Project Analysisp. 152
Define the Objectives or Goalsp. 153
Use Brainstormingp. 153
Quantify Each Cost and Benefitp. 153
Adjust for Uncertaintyp. 153
Discount Future Valuesp. 154
Compare Discounted Benefits and Costsp. 154
Considerations for Capital Repayment by General Taxationp. 155
Benefit Cost Analysis: an Examplep. 155
Estimating a Demand Function for Urban Waterp. 156
Using the Demand Model to Estimate Benefitsp. 157
Discounted Benefits and Sensitivity Analysisp. 160
Project Costp. 160
Benefit-Cost Analysisp. 163
Referencesp. 165
Drinking Water Disinfection in the United States: Balancing Infectious Disease, Cancer and Costs, Market and Nonmarket Failuresp. 167
Introductionp. 167
Waterborne Infectious Disease in the United Statesp. 168
Microbial Contamination of Drinking Waterp. 168
Estimated Incidence of Waterborne Infectious Diseasep. 168
The Monetized Costs of Waterborne Infectious Diseasep. 171
Disinfection Byproductsp. 172
Toxicology and Epidemiology of DBPsp. 174
Estimated Incidence of Health Effects Associated with Exposure to DBPsp. 174
The Monetized Costs of Exposure to DBPsp. 175
Water Treatment Operations and Constraintsp. 175
EPA's Recent Microbial Contamination Rulep. 177
EPA's Recent Disinfection Byproducts Rulep. 179
Market and Government Failures in Regulating Drinking Waterp. 180
Technological Innovationp. 180
Conclusionsp. 181
Referencesp. 182
Effects of Land Subsidence in the Greater Houston Areap. 187
Introductionp. 187
Land Subsidence Due to Aquitard Drainagep. 188
Minor Reversible Deformation Occurs in all Aquifer Systemsp. 189
Inelastic Compaction Irreversibly Alters the Aquifer Systemp. 189
Regional Settingp. 190
Houston Grows and Subsidesp. 192
Initial Subsidence Due to Oil and Gas Extractionp. 192
Subsidence Reflects Evolving Patterns of Fluid Extractionp. 193
Subsidence Exacerbates Floodingp. 193
Texas and Houston Act to Arrest Subsidencep. 195
Special Districts Chartered to Control Subsidencep. 195
The Ongoing Conversion from Ground Water to Surface Waterp. 196
Wetlands Lost to Subsidencep. 198
Subsidence Activates Faultsp. 199
The Direct and Indirect Costs of Subsidencep. 199
Referencesp. 202
Solving Groundwater Overdraft in Arizona Urban Areasp. 205
Introductionp. 205
The Arizona Groundwater Management Act and the AMAsp. 206
The Safe Yield Concept and Problems of Measurementp. 207
Costs of Overdraftp. 208
Costs of Achieving Safe Yieldp. 208
General Analysis of the AMAsp. 209
Phoenix AMAp. 210
Prescott AMAp. 211
Tucson AMAp. 211
Exempt Wellsp. 212
AMAs Replacement Water Optionsp. 213
Conservation Policyp. 214
Who is Responsible?p. 214
Marketable Private Water Rightsp. 214
Raising Water Prices to Limit Demandp. 215
Increasing Block Rates and Summer Surchargesp. 215
Commodity Taxation to Limit Demandp. 217
Commodity Value of Water in Arizonap. 217
Concluding Remarksp. 218
Referencesp. 218
Urban Water in Israelp. 219
Introductionp. 219
The People and the Economyp. 219
The Water Sectorp. 221
Public Controlp. 223
Allocationp. 224
Hydropoliticsp. 224
Early Urban Supplyp. 226
The Municipal Sectorp. 226
Urban Waterp. 227
Prices and Costp. 230
Municipal Cost and Surplusp. 231
The Restoration Fundp. 232
Quality and Healthp. 232
Sewage Collection and Treatmentp. 234
Incorporationp. 236
Water Policyp. 237
Structural Reformsp. 238
Referencesp. 240
The British Experiencep. 241
The Geography of the United Kingdomp. 241
The History of Water Supply and Sewage Disposal in the U.K.p. 242
Water Supply Modelsp. 244
England and Walesp. 244
Scotlandp. 245
Northern Irelandp. 245
Evaluation of Alternative Modelsp. 246
Regulationp. 247
Office of Water Servicesp. 247
Drinking Water Inspectoratep. 248
Environment Agencyp. 250
United Kingdom Water Companies: Three Examplesp. 251
Anglian Water Groupp. 251
Three Valleys Waterp. 252
Thames Waterp. 253
The Futurep. 253
Referencesp. 255
Concluding Remarksp. 257
Economic and Engineering Challenges in Urban Water Supplyp. 257
Groundwater Overdraftp. 258
Soft Path Water Managementp. 258
Availability of Water Servicep. 261
Security of Supplyp. 262
Creating a Legal Environment for Urban Water Supply Managementp. 263
Wastewater Recyclingp. 266
Markets and Pricesp. 267
Future Management--More Business Like?p. 268
The Role of Political Economy in Urban Water Managementp. 268
Referencesp. 269
Indexp. 271
Table of Contents provided by Rittenhouse. All Rights Reserved.

ISBN: 9781402017209
ISBN-10: 1402017200
Series: Water Science and Technology Library
Audience: Professional
Format: Hardcover
Language: English
Number Of Pages: 277
Published: 30th November 2003
Publisher: Springer-Verlag New York Inc.
Country of Publication: US
Dimensions (cm): 23.5 x 15.5  x 2.54
Weight (kg): 0.63