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The Economics of Bulk Water Transport in Southern California

Author

Listed:
  • Andrew Hodges

    (Department of Agricultural and Applied Economics, University of Wyoming, Laramie, WY 82071, USA)

  • Kristiana Hansen

    (Department of Agricultural and Applied Economics, University of Wyoming, Laramie, WY 82071, USA
    These authors contributed equally to this work.)

  • Donald McLeod

    (Department of Agricultural and Applied Economics, University of Wyoming, Laramie, WY 82071, USA
    These authors contributed equally to this work.)

Abstract

Municipalities often face increasing demand for limited water supplies with few available alternative sources. Under some circumstances, bulk water transport may offer a viable alternative. This case study documents a hypothetical transfer between a water utility district in northern California and urban communities located on the coast of central and southern California. We compare bulk water transport costs to those of constructing a new desalination facility, which is the current plan of many communities for increasing supplies. We find that using water bags to transport fresh water between northern and southern California is in some instances a low-cost alternative to desalination. The choice is constrained, however, by concerns about reliability and, thus, risk. Case-study results demonstrate the challenges of water supply augmentation in water-constrained regions.

Suggested Citation

  • Andrew Hodges & Kristiana Hansen & Donald McLeod, 2014. "The Economics of Bulk Water Transport in Southern California," Resources, MDPI, vol. 3(4), pages 1-18, December.
    • Handle: RePEc:gam:jresou:v:3:y:2014:i:4:p:703-720:d:43070
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    References listed on IDEAS

    as
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    2. Frank Ward & Manuel Pulido-Velazquez, 2012. "Economic Costs of Sustaining Water Supplies: Findings from the Rio Grande," Water Resources Management: An International Journal, Published for the European Water Resources Association (EWRA), Springer;European Water Resources Association (EWRA), vol. 26(10), pages 2883-2909, August.
    3. Mark A. Shannon & Paul W. Bohn & Menachem Elimelech & John G. Georgiadis & Benito J. Mariñas & Anne M. Mayes, 2008. "Science and technology for water purification in the coming decades," Nature, Nature, vol. 452(7185), pages 301-310, March.
    4. Ellen Hanak, 2005. "Stopping the Drain: Third‐party Responses to California's Water Market," Contemporary Economic Policy, Western Economic Association International, vol. 23(1), pages 59-77, January.
    5. Booker J. F. & Young R. A., 1994. "Modeling Intrastate and Interstate Markets for Colorado River Water Resources," Journal of Environmental Economics and Management, Elsevier, vol. 26(1), pages 66-87, January.
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    Cited by:

    1. David D. J. Antia, 2016. "ZVI (Fe 0 ) Desalination: Stability of Product Water," Resources, MDPI, vol. 5(1), pages 1-47, March.

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