IDEAS home Printed from https://ideas.repec.org/p/ags/aare15/202984.html
   My bibliography  Save this paper

Is dilution the solution for water pollution? An economic analysis

Author

Listed:
  • Paragahawewa, Upananda H.
  • Doole, Graeme J.
  • Bower, Bob

Abstract

High nitrate concentrations have been reported within Canterbury aquifers due to agricultural intensification. Reducing nutrient loadings to groundwater by a reasonable degree is difficult for industry because of the anticipated cost of effective mitigation technologies. A novel alternative is to decrease nitrate concentration through increasing the amount of water present in the aquifer through the use of Managed Aquifer Recharge (MAR) in combination with some minor farm-level mitigation practices. However, this poses a difficult economic problem that involves balancing the benefit of lowering nitrate concentrations in groundwater, improving reliability of groundwater availability for future irrigation, the capital cost of MAR infrastructure, and the cost of source surface water to use in the dilution. This study presents a dynamic economic analysis that weights these alternative sources of value. Overall, it is shown that a MAR scheme is of positive value to both the environment and economy, with an average benefit: cost ratio of four, and around $76m of income and 170FTE of employment gain per annum at regional level.

Suggested Citation

  • Paragahawewa, Upananda H. & Doole, Graeme J. & Bower, Bob, 2015. "Is dilution the solution for water pollution? An economic analysis," 2015 Conference (59th), February 10-13, 2015, Rotorua, New Zealand 202984, Australian Agricultural and Resource Economics Society.
    • Handle: RePEc:ags:aare15:202984
    DOI: 10.22004/ag.econ.202984
    as

    Download full text from publisher

    File URL: https://ageconsearch.umn.edu/record/202984/files/AARESParagahadooleBower.pdf
    Download Restriction: no
    File URL: https://libkey.io/10.22004/ag.econ.202984?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    References listed on IDEAS

    as
    1. Sarker, Ashutosh & Ross, Helen & Shrestha, Krishna K., 2008. "A common-pool resource approach for water quality management: An Australian case study," Ecological Economics, Elsevier, vol. 68(1-2), pages 461-471, December.
    2. ,, 2000. "Problems And Solutions," Econometric Theory, Cambridge University Press, vol. 16(2), pages 287-299, April.
    3. Woodward, Richard T., 2000. "Market-Based Solutions To Environmental Problems: Discussion," Journal of Agricultural and Applied Economics, Southern Agricultural Economics Association, vol. 32(2), pages 1-8, August.
    4. Doole, Graeme J., 2012. "Cost-effective policies for improving water quality by reducing nitrate emissions from diverse dairy farms: An abatement–cost perspective," Agricultural Water Management, Elsevier, vol. 104(C), pages 10-20.
    Full references (including those not matched with items on IDEAS)

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Stevanovic Dalibor, 2016. "Common time variation of parameters in reduced-form macroeconomic models," Studies in Nonlinear Dynamics & Econometrics, De Gruyter, vol. 20(2), pages 159-183, April.
    2. Wenqing Chen & Melvyn Sim & Jie Sun & Chung-Piaw Teo, 2010. "From CVaR to Uncertainty Set: Implications in Joint Chance-Constrained Optimization," Operations Research, INFORMS, vol. 58(2), pages 470-485, April.
    3. A. Fadlelmawla & M. Al-Otaibi, 2005. "Analysis of the Water Resources Status in Kuwait," Water Resources Management: An International Journal, Published for the European Water Resources Association (EWRA), Springer;European Water Resources Association (EWRA), vol. 19(5), pages 555-570, October.
    4. Stefan Mišković, 2017. "A VNS-LP algorithm for the robust dynamic maximal covering location problem," OR Spectrum: Quantitative Approaches in Management, Springer;Gesellschaft für Operations Research e.V., vol. 39(4), pages 1011-1033, October.
    5. Duan, Jinyun & Li, Chenwei & Xu, Yue & Wu, Chia-Huei, 2017. "Transformational leadership and employee voice behavior: a Pygmalion mechanism," LSE Research Online Documents on Economics 68035, London School of Economics and Political Science, LSE Library.
    6. Hota, Monali & Bartsch, Fabian, 2019. "Consumer socialization in childhood and adolescence: Impact of psychological development and family structure," Journal of Business Research, Elsevier, vol. 105(C), pages 11-20.
    7. Abernethy, Margaret A. & Vagnoni, Emidia, 2004. "Power, organization design and managerial behaviour," Accounting, Organizations and Society, Elsevier, vol. 29(3-4), pages 207-225.
    8. Minjiao Zhang & Simge Küçükyavuz & Saumya Goel, 2014. "A Branch-and-Cut Method for Dynamic Decision Making Under Joint Chance Constraints," Management Science, INFORMS, vol. 60(5), pages 1317-1333, May.
    9. Peter Burnell, 2008. "From Evaluating Democracy Assistance to Appraising Democracy Promotion," Political Studies, Political Studies Association, vol. 56(2), pages 414-434, June.
    10. M. J. Naderi & M. S. Pishvaee, 2017. "Robust bi-objective macroscopic municipal water supply network redesign and rehabilitation," Water Resources Management: An International Journal, Published for the European Water Resources Association (EWRA), Springer;European Water Resources Association (EWRA), vol. 31(9), pages 2689-2711, July.
    11. Mammassis, Constantinos S. & Kostopoulos, Konstantinos C., 2019. "CEO goal orientations, environmental dynamism and organizational ambidexterity: An investigation in SMEs," European Management Journal, Elsevier, vol. 37(5), pages 577-588.
    12. Minghe Sun, 2005. "Warm-Start Routines for Solving Augmented Weighted Tchebycheff Network Programs in Multiple-Objective Network Programming," INFORMS Journal on Computing, INFORMS, vol. 17(4), pages 422-437, November.
    13. Viren Swami & Phik-Wern Loo & Adrian Furnham, 2010. "Public Knowledge and Beliefs About Depression Among Urban and Rural Malays in Malaysia," International Journal of Social Psychiatry, , vol. 56(5), pages 480-496, September.
    14. Doole, Graeme J. & Romera, Alvaro J., 2014. "Implications of a nitrogen leaching efficiency metric for pasture-based dairy farms," Agricultural Water Management, Elsevier, vol. 142(C), pages 10-18.
    15. Jugend, Daniel & da Silva, Sérgio Luis & Salgado, Manoel Henrique & Miguel, Paulo Augusto Cauchick, 2016. "Product portfolio management and performance: Evidence from a survey of innovative Brazilian companies," Journal of Business Research, Elsevier, vol. 69(11), pages 5095-5100.
    16. Ruiwei Jiang & Siqian Shen & Yiling Zhang, 2017. "Integer Programming Approaches for Appointment Scheduling with Random No-Shows and Service Durations," Operations Research, INFORMS, vol. 65(6), pages 1638-1656, December.
    17. Mínguez, R. & García-Bertrand, R., 2016. "Robust transmission network expansion planning in energy systems: Improving computational performance," European Journal of Operational Research, Elsevier, vol. 248(1), pages 21-32.
    18. Jenny Carolina Saldana Cortés, 2011. "Programación semidefinida aplicada a problemas de cantidad económica de pedido," Documentos CEDE 8735, Universidad de los Andes, Facultad de Economía, CEDE.
    19. Ian Maitland & Mitsuhiro Umezu, 2006. "An Evaluation of Japan's Stakeholder Capitalism," Journal of Private Enterprise, The Association of Private Enterprise Education, vol. 22(Spring 20), pages 131-164.
    20. Mikhail A. Sokolovskiy & Xavier J. Carton & Boris N. Filyushkin, 2020. "Mathematical Modeling of Vortex Interaction Using a Three-Layer Quasigeostrophic Model. Part 1: Point-Vortex Approach," Mathematics, MDPI, vol. 8(8), pages 1-13, July.

    More about this item

    Keywords

    Farm Management; Land Economics/Use; Resource /Energy Economics and Policy;
    All these keywords.

    NEP fields

    This paper has been announced in the following NEP Reports:

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:ags:aare15:202984. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: AgEcon Search (email available below). General contact details of provider: https://edirc.repec.org/data/aaresea.html .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.