Water Resources and Economics最新文献

In the 2016–2018 drought, Cape Town almost ran out of municipal water. Tariff increases, restrictions and campaigns brought big reductions in water use during the dry spring and summer months: 14.3% in September 2017, when non-compliant households were threatened with a water usage restriction meter; 17.2% in October, when a disaster plan threatened residents with collecting water daily at 200 points across the City; and 20.1–24.3%, when “Day Zero” appeared unavoidable, water pressure was reduced, usage was restricted to 50 L per person per day and exponential tariff hikes were introduced. Transparent information about the severity of the crisis and shifting the responsibility for crisis avoidance to residents amplified water savings at the height of the drought.

Health outcomes can be remarkably dependent on the quality of drinking water. This study employs primary survey data collected in May 10 – July 27, 2016 to investigate the effects of water quality, measured by the presence of the Escherichia Coli (E. Coli) bacteria, on the health outcomes of households in Nepal. The health outcomes are based on the self-reported health status as well as the actual health condition of the members of the household. The novel contribution of this paper is that we investigate the health impacts of water quality by considering water quality itself as an intermediary process that could be affected by factors like household's cleanliness behaviors and hygienic infrastructures. Using a control function approach to account for potential endogeneity issues, the results indicate a significant effect of E. coli on the health status of individuals. Findings indicate the difference in expected diarrheal incidence to be about 0.913 units higher when E. coli is present in households' drinking water. The impact of E. coli is evident in both the self-reported health status and the actual health outcome, and the results hold across various empirical models and specifications. From a policy perspective, our results indicate the pressing need for policymakers to implement water quality tracking programs, and also to raise awareness among households regarding adequate cleanliness practices and hygiene infrastructures.

Rain gardens are an established element of water sensitive urban infrastructure. However, information on people's preferences for such systems is lacking. To understand whether people express willingness to pay for such systems and whether estimates are transferable between locations, we conducted choice experiments in Sydney and Melbourne. We found that people are willing to pay for rain gardens. The marginal willingness to pay for different features is similar in both locations, but the transfer of compensating surplus values between locations still generates transfer errors. The implications of transfer errors are investigated using a benefit-cost analysis of a rain garden installation.

Small-scale agriculture is one of the fundamental economic sectors in Chile. An increased frequency and intensity of extreme weather events due to climate change suggest a higher weather risk for the future, with potential consequences for crop choices. These effects are expected to be greater in dryland areas, where producers are more vulnerable to shocks and, therefore, less able to protect themselves against these risks. Using data from the 7th Chilean National Agriculture and Forestry Census, we explore small-scale farmers' cropland decisions as an adaptation strategy to cope with droughts. We use remote sensing data to identify drought events and model the impact of droughts on farmers’ decisions using a multivariate fractional model. This model assumes that farmers allocate shares of land over a crop portfolio. Our findings show that farmers in dryland areas reduce high-risk cropping activities after recent drought shocks, choosing crops with shorter growing periods and lower capital and technological costs, such as cereals. However, we found a different cropland pattern in areas with a higher frequency of droughts. In these locations, farmers prefer legumes and tubers, vineyards, fruits and vegetables. Finally, maize and vineyards are more likely to be grown in places with higher temperatures. Results suggest potential crop adaptation strategies in the face of more arid environments in the future.

Like many islands worldwide, Santa Cruz, the most populated of Ecuador's Galápagos Islands, has limited resources to provide safe drinking water to an increasing number of inhabitants and tourists. Currently, households receive brackish water at their tap, which is rationed to a few hours per day. Insufficient recovery of water supply costs is an impediment to improving water services. Against this backdrop, we implemented a contingent valuation survey to investigate whether households are willing to pay for improved water services. Using split-sample scenarios that allow for scope and part-whole tests, we elicited household preferences for three improvements: 1) uninterrupted water supply, 2) drinkable tap water, and 3) combining both. Our estimation results indicate that households are willing to pay for safe drinking water. Conversely, our willingness-to-pay estimates suggest that households are indifferent about improvements of service reliability unless water quality is improved as well. The median willingness to pay for concurrent improvements of system reliability and water quality is estimated at approximately $36/month, about 2.1% of average monthly household income. This study has policy implications as it demonstrates that households deem system reliability and water quality as complementary improvements.

In this study, we investigated whether irrigated agriculture results in improved child nutrition outcomes among farm households in southern Ghana. Using panel data collected between 2014 and 2015, this study seeks to add to the growing body of literature on the determinants of irrigated agriculture adoption, its effects on child nutrition, and the potential pathways through which irrigation can affect child nutrition outcomes. The results from the inverse probability weighted regression adjustment (IPWRA) estimator suggest that children living in irrigating households have, on average, 0.23 standard deviations of weight-for-age and 0.27 standard deviations of weight-for-height higher than their counterparts; with males and under-five children gaining substantial improvements. Disaggregating irrigation by types, the results indicate that households planting on riverbeds or riverbanks had improved child nutrition. In contrast, children living with households lifting water from water sources had higher height-for-age and weight-for-age. Further analysis of the underlying pathways suggests that an increase in health care financing and improvement in environmental quality rather than decreases in illness incidence may be the crucial channels. Altogether, the findings show the importance of investments in agricultural development, particularly in small-scale irrigated agriculture technologies, to reduce childhood undernutrition.

We study groundwater management under a regime shock affecting water availability, using a dynamic common-property resource game. The different players correspond to different groundwater uses (irrigation or urban water supply), enabling us to consider competition between economic sectors for the stock with limited availability. The players have different water demand functions and, under certain circumstances depending on the shock, different discount rates. The effects of asymmetries in both demand and discount rates are analyzed, comparing cooperative and non-cooperative solutions. A numerical analysis for the particular case of the Western La Mancha aquifer in Spain is conducted to analyze the degree of inefficiency of non-cooperative solutions with respect to cooperative solutions in terms of welfare. We show that a higher asymmetry in discount rates reduces the inefficiency of non-cooperative solutions. The opposite result is obtained when considering the asymmetry in demand.

Reforms in irrigation management can make important contributions to reducing irrigation water scarcity. This paper attempts to examine the role of participatory irrigation management (PIM) in farmers’ mulched drip irrigation technology adoption decisions. It is based on a comparative analysis between government-promoted mulched drip irrigation technology (GMDIT) and localized self-governed mulched drip irrigation technology (LMDIT) in rural Xinjiang, China. Data from a survey conducted in 2017 across 739 households covering 1763 plots in Awati County in Xinjiang were used to estimate a nested logit model. The results indicate that PIM induces farmers to switch from traditional flood irrigation technology to GMDIT but does not promote the adoption of LMDIT. We conclude that promoting PIM can make an important contribution to more sustainable water use in this drought-prone area but that the self-governance of localized irrigation systems requires more attention by local governments.

We exploit sudden changes in the marginal tariff scheme to estimate the price elasticity of water demand using households' and firms' data in Tangerang Regency, a part of the Jakarta Greater Metropolitan Area, where water demand management is imperative due to the city's growing population and industrial activities. A monthly water consumption dataset at the consumer level is used in our study. Using the regression discontinuity in time (RDiT) approach, we find the price elasticity of water demand is −0.32 for household consumers and inelastic to changes in price. In contrast, elasticity for industrial and commercial consumers is −1.16, implying a more elastic response. The results raise concerns that firms substitute for a cheaper water source, endangering the water resources sustainability in the area.

The paper examines the response of twelve U.S. agricultural stock returns to El Niño-Southern Oscillation (ENSO) shocks using a recursive VAR model. Baseline results indicate that for seven of the stock returns, an ENSO shock has positive and significant effects. The effects, however, are shortlived, generally becoming statistically indistinguishable from zero three to six months after the shock. Variance decomposition analyses show that ENSO shocks have little explanatory power for fluctuations in U.S. agricultural stock returns. We also provide evidence that historically, movements in the stock returns of U.S. food and agricultural companies have been driven by other shocks, rather than ENSO shocks.