Cost–benefit and water resources policy: a survey

Abstract

This paper reviews recent developments in cost-benefit analysis for water policy researchers who wish to understand the applications of economic principles to inform emerging water policy debates. The cost-benefit framework can provide a comparison of total economic gains and losses resulting from a proposed water policy. Cost-benefit analysis can provide decision-makers with a comparison of the impacts of two or more water policy options using methods that are grounded in time-tested economic principles. Economic efficiency, measured as the difference between added benefits and added costs, can inform water managers and the public of the economic impacts of water programs to address peace, development, health, the environment, climate and poverty. Faced by limited resources, cost-benefit analysis can inform policy choices by summarizing trade-offs involved in designing, applying, or reviewing a wide range of water programs. The data required to conduct a cost-benefit analysis are often poor but the steps needed to carry out that analysis require posing the right questions.

Toward a formal definition of water scarcity in natural‐human systems

“…A variety of integrated modeling approaches have shown promise for estimating water scarcity by attempting to capture the complex interactions between water and the economy, drawing on multiple disciplines and applying the tools of benefit-cost analysis [Draper et al, 2003;Brouwer and Hokfes, 2008;PulidoVelazquez et al, 2008;Ward, 2012]. Efforts of this kind have contributed to our understanding of water scarcity in settings ranging from agriculture [Cai et al, 2003a[Cai et al, , 2003b, to the protection of habitat for endangered species [McCarl et al, 1999], to the effects of biofuel production [de Moraes et al, 2012], to optimal management of groundwater pollution [Pena-Haro et al, 2011], to tradeoff between irrigation and endangered species protection under drought [Ward et al, 2006a[Ward et al, , 2006b], and to potential impacts of climate change and water management [Hurd and Coonrod, 2012;Varela-Ortega et al, 2012].…”

Cost-Benefit Analysis of the Managed Aquifer Recharge System for Irrigation under Climate Change Conditions in Southern Spain

“…The cost-benefit analysis (CBA) is a decision-making tool for obtaining the economic and/or social profitability of a public investment, policy or initiative by means of a comparison among costs and benefits resulting from proposed measures [32][33][34]. In addition to considering the net private cash flows (revenues minus expenses), the CBA takes into account the social costs and benefits.…”

“…Even though CBA originated in economic feasibility studies of public water projects such as irrigation, water supply and flood control, the scope of its applications has grown [33]. In the field of water resources, Bouwer [38] gives an overview of CBA throughout Europe and North America.…”

Contributions of Enim Watershed in Production of Irrigation Rice Using Benefit and Cost Analysis

“…The results of cost-benefit analysis can provide information for decision makers in determining how water policy based on economic principles which have been tested. [9]. This paper aims to calculate the value of the contribution of Enim watershed economically for irrigation of rice fields.…”