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Watershed Conservation in the Long Run

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Abstract

We studied unanticipated long-run outcomes of conservation activities that occurred in forested watersheds on O`ahu, Hawaii, in the early twentieth century. The initial general impetus for the conservation activities was to improve irrigation surface water flow for the sugar industry. Industry concentration facilitated conservation of entire ecosystems. We investigate the benefits that accrued through dynamic linkages of the hydrological cycle and groundwater aquifer system. This provides a clear example of the need to consider integrated watershed effects, industrial structure, and linkages in determining conservation policy. We incorporated remote-sensing data, expert opinion on current watershed quality, and a spatial economic and hydrological model of O`ahu’s freshwater use with reports of conservation activities from 1910–1960 to assess these benefits. We find a 2.3% annual increase in groundwater recharge levels from these activities, with a lower bound benefit–cost ratio of 7.1–18.2. This lower-bound excludes returns from such high value, yet controversial to measure, amenities as species preservation.

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Notes

  1. Forest conservation efforts did include fire control, particularly on the Big Island and on leeward sides of all islands, but the main forest study area on O`ahu is extremely wet and requires little fire suppression or management.

  2. As the conservation activities analyzed were actually undertaken, the counterfactual is a more damaged system than currently exists.

  3. For a simple, informative, illustrated guide to Hawaiian Island hydrology, see http://www.hbws.org/watercycle/index.html.

  4. The gifts of cattle, deer, and goats from Westerners beginning at the end of the eighteenth century were generally protected under tabus in order to hasten the increase of these valuable new species. The externalities they imposed on the watershed were at the time unknown. The rapidity of the damage could not have been anticipated with the ecological knowledge of the day.

  5. Constitutional reforms begun in the 1840s were designed as a division of lands between the monarch/government (1/3), the chiefs (1/3), and free-hold land for others (1/3). Enactment of the reforms led to a smaller portion in the hands of commoners and some other fluidity in settling the final rights, with consolidation of agricultural and other valuable lands mainly in foreigners’ hands. These and the chiefs’ lands evolved primarily into the large cattle ranches and sugar plantations on the islands, providing the economic backbone of the kingdom, which reinforced their political influence. See LaCroix and Roumasset (1990) for additional discussion.

  6. In 1891, 22 wells were drilled to begin their operations (Campbell 1994)

  7. Formed in 1897, first production in 1899, using groundwater, and responsible for construction of the Waiahole Ditch (1911–1916, shown in Figure 2) transferring surface water from the windward side of the island to the plantation (Salto 1984)

  8. est. 1897, first production 1899 (Dorrance and Morgan 2000), again with groundwater pumping

  9. A basal lens aquifer is a fresh water aquifer that rests atop a salt water base, since fresh water weighs less than salt. Extraction of fresh water reduces the pressure of the lens and losses to the aquifer include not only the fresh water extracted but also an increase in salinity in the buffer between the fresh and salt water.

  10. While sugar companies were large and exercised considerable political and economic power within Hawaii, significant competition in sugar protection means they were not oligopolists at the US or global market level.

  11. Logging did not play an important part in the degradation of the Ko`olaus, beyond fuelwood supplying Honolulu. The impacts of firewood collection may have been significant; however, as it was used during the nineteenth century for rendering whale blubber (Kuykendall 1938).

  12. Prior to Polynesian arrivals in the first millennium AD, the only land mammal to arrive in Hawaii was the Hawaiian Hoary Bat (Lasiurus cinereus semotus).

  13. Sandalwood extraction can be particularly devastating as it is possible to burn down the forest to ease the job of locating the wood without decreasing the value of the sandalwood, which burns differently than other forest materials (St. John 1947; Merlin and Van Ravenswaay 1990)

  14. Rendering of whale blubber into oil in Honolulu faded in importance by the mid-1870s, with the change of relative importance of baleen (whalebone) over sperm whale oil following the rapid expansion of the new petroleum industry (which provided a substitute for sperm and whale oil but not for whalebone) and the resulting shift in whaling operations to San Francisco (Bockstoce and Burns 1993) that also took advantage of increasing rail transport options (Webb 1988)

  15. Benefits accruing to third parties not directly involved in the productive or consumptive economic activity.

  16. To avoid confusion, note that the discount factor β represents society’s willingness to trade off value between time periods while the depreciation rate δ represents the rate at which the conservation investments’ impacts deteriorate over time.

  17. The death of 15,000 of the 51,400 trees in the following year due to drought establishes this range.

  18. Direct forest replantation efforts by sugar industrialists were taking place on other islands at this time (Cox 1992)

  19. This value is undiscounted; see Wilcox (1996: 98-113), and the current (2002) dollar value is approximately $77-94 million. For state level figures see Wilcox (1996) and Freeman (1929).

  20. Aquifer head level is the measure of the pressure of the aquifer and hence translatable to the volume for coastal aquifers like Hawaii with the Ghyben-Herzberg equation; see Mink (1980) and Nichols and others (1996) for details of O`ahu’s aquifers.

  21. Figure 3 delineates the 6 main aquifers and their subsystems along with their sustainable yields in million gallons per day (mgd). The Pearl Harbor and Honolulu aquifers are by far the most valuable, with the Pearl Harbor system supplying most of the sugar industry’s demand and the Honolulu system supplying most of Waikiki’s demand, with both supplying Honolulu proper. We focus here on the Pearl Harbor system because its hydrogeology is better studied, it is a much larger aquifer, and because of its historical connections to the vital sugar industry. We save the Honolulu case for future work, though anticipate that the story will be similar.

  22. Data obtained from M. Constantinides, DOFAW, DLNR HI. Data were collected following procedures in DOFAW and DLNR HI (2001) for plantations recorded from 1910-1960 in state forest inventory.

  23. Though specific fencing records are elusive, maintenance of evergreen forest is virtually only successful when fenced. (pers. communication, M. Constantinides, HI Division of Forestry and Wildlife (DOFAW), HI DLNR 2008). Thus anywhere that has current healthy evergreen forest is assumed fenced at the base elevation to generate a minimum estimate of this important conservation tool. The length is calculated in GIS using Land Use Land Cover layer from DBEDT (hawaii.gov/dbedt/gis/downlad.htm).

  24. This is very much in line with a reconstructed measure of the cost of barbed wire using data from the beginning of the 19th Century. Hornbeck (2010) reports per-rod costs of barbed wire of $0.30 in 1885 (and falling, but we assume materials costs in Hawaii to lag the mainland). Labor was estimated to take 0.06 days per rod in 1900. From Lebergott (1960) we estimate a daily farm wage rate of $0.48 in 1899. 230 km of fencing is 45.760 rods. Thus in 2002 constant dollars the cost of fencing ranges from $282,000 and up as high as almost $8 million depending on indexing used for inflating figures to constant dollars (measuringworth.com). We inflate the materials costs with the real value commodities index and the labor costs with the labor value index for an estimate of $0.9m.

  25. This is because evapotranspiration is costly to measure in detail as it varies considerably with the type of vegetative cover, and studies doing so have very limited scope. We do know, for example, that pineapple cultivation suppresses evapotranspiration, so we include pineapple growing in determining the hydrological composition of a location (Nichols and others 1996).

  26. This assumes that the surface water capacity constraint is met.

  27. There remains considerable debate about the hydrogeology of some of O`ahu’s aquifers. The estimate for PHA presented here is about 100 mgd lower, and the Wahiawa (Central) about 100 mgd higher, than some other estimates because of a controversy regarding the underground flow of water between the central aquifer and PHA. The HNL estimate is close to other estimates (for example, 64.7 mgd, Liu 2007). One larger estimate is Shade and Nichols (1996), which calculates island-wide recharge at 791 mgd without irrigation and 879 mgd with irrigation (Moving water from steep windward slopes to the plains has increased overall recharge, much of which would have been lost to productive human use as surface water.) Our estimate is spatially explicit, based on measured infiltration rates (and can be used in GIS), and includes irrigation

  28. A small part of Southwestern O`ahu is missing from this analysis due to data limitations (O`ahu is 1507 km2, and data for 1430 km2 is presented here). The missing region is dry and un-irrigated and does not affect the main aquifers.

  29. The costs involved in providing surface water are the fixed costs of building the irrigation systems.

  30. The total cost of adding capacity is assumed greater than the total cost of groundwater extraction because of the physical damages that would be required (for example, stream channelization, tunnel blasting).

  31. Note that this provides a minimum estimate of other considerable benefits to the reforestation, in particular esthetic appeal and species habitat.

  32. Mink (1980) provides the primary quantity estimates. These are confirmed and supplemented with other sources. Griffith (1903) provides a point estimate of 314 mgd of water pumped on O`ahu by sugar plantations alone. Giffard (1913) presents estimates for earlier years for both extraction and well head levels. USGS historical well data provide more recent data and support for Mink (1980) values. The resulting figures are shown in Figure 4.

  33. Honolulu growth has not slowed as much as PHA, but the 1990s were not a growth period for the islands.

  34. For contextualization, a typical estimate of the elasticity of demand for salt is -0.1. (Mankiw 2011)

  35. Desalination has been estimated to cost $7/1,000 gallons (Pitafi and Roumasset 2009) using data from a trial desalination plant on O’ahu. This is considerably lower than our backstop price based on the unavailability of desalinization technology earlier in the century, but within our sensitivity analysis results presented in Table 8. It does not include the significant costs of developing the technology so we do not use it as a lower bound estimate.

  36. Our sensitivity analysis (Table 8) expands this range at the lower end.

  37. For additional perspective, consider that O`ahu consists of a single county (Honolulu county) and is only 1500 sq. km. in size.

  38. Prices from USDA NASS data, deflated using BLS Producer Price Index for Commodities.

  39. Population from Sanborn Insurance Map, 1929. University of Hawaii (Haines 2006).

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  1. Department of Environmental and Business Economics, University of Southern Denmark, Niels Bohrs Vej 9-10, 6700, Esbjerg, Denmark

    Brooks A. Kaiser

  2. University of Hawaii Economic Research Organization (UHERO), Honolulu, Hawaii, USA

    Brooks A. Kaiser

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Kaiser, B.A. Watershed Conservation in the Long Run. Ecosystems 17, 698–719 (2014). https://doi.org/10.1007/s10021-014-9754-8

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