Advertisement

Efficient Desalinated Water Pricing in Wetlands

  • Oscar AlfrancaEmail author
Chapter

Abstract

Pricing desalinated water in wetlands can be inefficient whenever positive and negative externalities are not integrated in final prices. Externalities values are usually related to non-market magnitudes, and great difficulties exist for their precise calculation. In order to provide efficient prices, a methodology is proposed in which automatic prices could be directly estimated with the use of the Travel Cost methodology. In this chapter a dynamic model reflecting eventual differences between optimal social prices for environmental uses of desalinated water and private water prices is proposed. This model is based on a short-run dynamic model, in which socially efficient prices are calculated. In order to apply this methodology to real desalinated water problems in wetlands it is suggested that the calculation of the travel cost, along with the value transfer method price for desalinated water should have to be centralized in one office of the park receiving all information from visitors. Direct links of this office with the technical services of the park should have to be established.

Keywords

Travel cost Value transfer method Externality Environmental valuation 

References

  1. Alfranca, O., Garcia, J., & Varela, H. (2011). Economic valuation of a created wetland fed with treated wastewater located in a peri-urban park in Catalonia, Spain. Water Science and Technology, 63(5), 891–898.CrossRefGoogle Scholar
  2. Alora, J., & Nandagari, L. (2015). Evaluation of economic value of Pilikuka Lake using travel cost and contingent valuation methods. Aquatic Procedia, 4, 1315–1321.CrossRefGoogle Scholar
  3. Aparicio, J., Alfranca, O., Jimenez-Martinez, J., Garcia-Arostegui, J.L., Candela, L., & Lopez, J.L. (2015). Groundwater salinity process, mitigation measures and economic assessment: An example from an intensive agricultural area. 42th IAH Congress, 13–18 September 2015, Rome, Italy. Abstract Book, 290.Google Scholar
  4. BenDor, T., Shoeltes, J., & Doyle, M. W. (2009). Landscape characteristics of a stream and wetland mitigation banking program. Ecological Applications, 19(8), 2078–2092.CrossRefGoogle Scholar
  5. Boyd, J., & Banzhaf, S. (2007). What are ecosystem services? The need for standardized environmental accounting units. Ecological Economics, 63(2–3), 616–626.CrossRefGoogle Scholar
  6. Boyer, T., & Polasky, S. (2004). Valuing urban wetlands: A review of non-market valuation studies. Wetlands, 24(4), 744–755.CrossRefGoogle Scholar
  7. Brander, L., Brower, R., & Wagtendonk, A. (2013). Economic valuation of regulating services provided by wetlands in agricultural landscapes: A meta-analysis. Ecological Engineering, 56, 89–96.CrossRefGoogle Scholar
  8. Brander, L. M., Florax, R. J. G. M., & Vermaat, J. E. (2006). The empirics of wetland valuation: A comprehensive summary and a metaanalysis of the literature. Environmental and Resource Economics, 33(2), 223–250.CrossRefGoogle Scholar
  9. Brouwer, R. (2000). Environmental value transfer: State of the art and future prospects. Ecological Economics, 32, 137–152.CrossRefGoogle Scholar
  10. Brouwer, R., Powe, N. A., Turner, R. A., Bateman, I. J., & Langford, I. H. (1999). Public attitudes to contingent valuation and public consultation. Environmental Values, 8(3), 325–347.CrossRefGoogle Scholar
  11. Carson, T., & Haanemann, W. (2005). Contingent valuation. In K.-G. Mäler & J. R. Vincent (Eds.), Handbook of environmental economics (pp. 821–936). London: North Holland.Google Scholar
  12. Chichilnisky, G., & Heal, G. (1998). Economic returns from the biosphere. Science, 391, 629–630.Google Scholar
  13. Cornes, R., & Sandler, T. (1986). The theory of externalities, public goods, and club goods (2nd ed.). Cambridge: Cambridge University Press.Google Scholar
  14. Diamond, P. A., & Hausman, J. A. (1994). Contingent valuation: Is some number better than no number? The Journal of Economic Perspectives, 8(4), 45–64.CrossRefGoogle Scholar
  15. Doss, C. R., & Taff, S. J. (1996). The influence of wetland type and wetland proximity on residential property values. Journal of Agricultural and Resource Economics, 21, 120–129.Google Scholar
  16. Drechsel, P., Qadir, M., & Wichelns, D. (Eds.). (2015). Wastewater. London: Springer.Google Scholar
  17. Freeman, M. (1993). The measurement of environmental and resource values. Washington, DC: Resources for the Future.Google Scholar
  18. Ghermandi, A., van den Bergh, J. C., Brander, L. M., de Groot, H. L. F., & Nunes, P. A. L. D. (2010). The values of natural and human-made wetlands: A meta-analysis. Water Resources Research, 46, 1–12.CrossRefGoogle Scholar
  19. Hornborg, A., McNeill, J., & Martinez-Alier, J. (2007). Rethinking environmental history: World-system history and global environmental change. Lanham, MD: Altamira Press.Google Scholar
  20. Jacobs, M. (1997). Environmental valuation, deliberative democracy and public decision-making. In J. Foster (Ed.), Valuing nature: Economics, ethics and environment (pp. 211–231). London: Routledge.Google Scholar
  21. Johnston, R., & Rosenberger, R. (2010). Methods, trends and controversies in contemporary benefit transfer. Journal of Economic Surveys, 24(3), 479–510.Google Scholar
  22. Loomis, P., & Feldman, M. (2003). Estimating the benefits of maintaining adequate lake levels to homeowners using the hedonic property method. Water Resources Research, 39, 21–26.CrossRefGoogle Scholar
  23. Lupi, F. Jr., Graham-Thomasi, T., & Taff, S. (1991). A hedonic approach to urban wetland valuation. Staff paper 91–98. Department of Agricultural and Applied Economics, University of Minnesota Minneapolis, MN.Google Scholar
  24. Mahan, B. L., Polasky, S., & Adams, R. M. (2000). Valuing urban wetlands: A property price approach. Land Economics, 76, 100–113.CrossRefGoogle Scholar
  25. Millennium Ecosystem Assessment. (2005). Synthesis reports. In Millennium ecosystem assessment. Washington, DC: Island Press.Google Scholar
  26. Navrud, S., & Ready, R. (2007). Environmental value transfer: Issues and methods (p. 290). Dordrecht: Springer.CrossRefGoogle Scholar
  27. Rolfe, J., & Dyack, B. (2011). Valuing recreation in the Coorong, Australia, with travel cost and contingent behaviour models. The Economic Record, 87, 282–293.CrossRefGoogle Scholar
  28. Russi, D., ten Brink, P., Farmer, A., Badura, T., Coates, D., Förster, J., Kumar, R., & Davidson, N. (2013). The economics of ecosystems and biodiversity for water and wetlands. Final consultation draft. London: TEEB.Google Scholar
  29. Seguí, L., Alfranca, O., & García, J. (2009). Techno-economical evaluation of water reuse for wetland restoration: A case study in a natural park in Catalonia, Northeastern Spain. Desalination, 246, 179–189.CrossRefGoogle Scholar
  30. Sharma, B., Rasul, G., & Chetri, N. (2015). The economic value of wetland ecosystem services: Evidence from the Koshi Tappu Wildlife Reserve, Nepal. Ecosystem Services, 2015(12), 84–93.CrossRefGoogle Scholar
  31. Tapsuwan, S., Ingram, G., Burton, M., & Brennan, D. (2009). Capitalized amenity value of urban wetlands: A hedonic property price approach to urban wetlands in Perth, Western Australia. Australian Journal of Agricultural and Resource Economics, 53, 527–545.CrossRefGoogle Scholar
  32. Troy, A., & Wilson, M. A. (2006). Mapping ecosystem services: Practical challenges and opportunities in linking GIS and value transfer. Ecological Economics, 60, 435–449.CrossRefGoogle Scholar
  33. Turner, R., Georgiou, S., & Fisher, B. (2008). Valuing ecosystem services. The case of multi-functional wetlands. London: Earthscan.Google Scholar
  34. Vatn, A., & Bromley, D. (1994). Choices without prices without apologies. Journal of Environmental Economics and Management, 26, 129–148.CrossRefGoogle Scholar
  35. Wendong, T., Bays, J. S., Meyer, D., Smardon, R., & Levy, Z. F. (2014). Constructed wetlands for treatment of combined sewer overflow in the US: A review of design challenges and application status. Water, 2014(6), 3362–3385.Google Scholar
  36. Wilson, A., Hoehn, J. P., & Hoehn, J. P. (2006). Valuing environmental goods and services using benefit transfer: The state-of-the art and science. Ecological Economics, 60, 325–342.CrossRefGoogle Scholar
  37. Wilk, R., & Cliggett, L. (2006). Economies and cultures: Foundations of economic anthropology (2nd ed.). Boulder: Westview Press.Google Scholar
  38. Woodward, R. T., & Wui, Y. S. (2001). The economic value of wetland services: A meta-analysis. Ecological Economics, 37, 257–270.CrossRefGoogle Scholar
  39. Zavestoski, S. (2004). Constructing and maintaining ecological identities: The strategies of deep ecologists. In S. Clayton et al. (Eds.), Identity and the natural environment: The psychological significance of nature (pp. 297–316). Cambridge, MA: The M.I.T. Press.Google Scholar

Copyright information

© Springer Nature Switzerland AG 2019

Authors and Affiliations

  1. 1.Departament d’Enginyeria Agroalimentària I BiotecnologiaCampus del Baix Llobregat Universitat Politècnica de CatalunyaBarcelonaSpain

Personalised recommendations