Policy uses of SEEAW:
An Overview
Glenn-Marie Lange
Center for Economy, Environment and Society
The Earth Institute at Columbia University
SEEAW Training Course
17 November, 2006
Organization of Presentation
Focus on sections of Chapter 9
A. Motivation for water accounts: linking
economic data with water data for IWRM
This will be addressed by Mr. Lenton
B. Indicators and statistics for water
management
C. Water management and policy analysis
B. Indicators and statistics from
the water accounts
Overall Purpose:
Demonstrate indicators that help understand and
prioritize water-related problems
Indicator groups :
–
Sources of pressure on water resources
–
Opportunities for improving water productivity and
efficiency
–
Water pricing and incentives for water conservation
–
Sustainability: comparing water resources and use
B. Indicators and statistics from
the water accounts
B.1 Source of pressure on water resources:
•
Macro trends in total water use, emissions,
water use by natural source and purpose, etc.
‘Decoupling’ economic growth and water use, pollution
•
Industry-level trends: indicators used for
environmental-economic profiles
•
Technology and driving forces: water
intensity/productivity and total (domestic) water
requirements to meet final demand
•
International transport of water and pollution
National Trends: Decoupling Economic Growth &
Water Use/Pollution
1.3 0
Volum e of w ater
1.2 5
Per capita w ater use
1.2 0
GDP per m 3 w ater
1.15
Botswana: water use and economic
1.10
Growth, 1993-1998
1.0 5
1.0 0
0 .9 5
0 .9 0
19 9 3 / 9 4
19 9 4 / 9 5
19 9 5 / 9 6
19 9 6 / 9 7
19 9 7 / 9 8
19 9 8 / 9 9
120
115
110
nutrients
105
metals
100
wastewater
95
GDP
90
85
80
1996
1997
1998
1999
2000
2001
Netherlands: water pollution
and economic growth, 19992001
Environmental Economic Profiles for 2 highly polluting industries in Sweden, 1995
Pulp, paper and paper products
0
P ro ductio n value
Value added
Ho urs wo rked
Use o f energy
Use o f self-supplied water
Use o f distributed water
Use o f water fo r co o ling
Use o f water in the industrial pro cess
Other uses o f water
Direct discharge o f wastewater
Discharge to M WWTP
EP E internal expenditures
EP E payments to M WWTP
EP I fo r wastewater
20
40
60
80
100
Chem icals and chem ical products
0
20
40
60
80
100
International transport of pollution:
Share of pollution in rivers in the Netherlands
originating abroad
100%
90%
80%
70%
60%
50%
40%
30%
20%
10%
0%
Arsenic
Copper
Zinc
B. Indicators and statistics from
the water accounts
B.2 Potential for increasing effective supply and
improving water productivity
•
•
Reducing system losses
Increasing reuse of water and use of return flows
B.3 Water pricing and incentives for water
conservation
•
•
Does price cover the full costs of production, or are some
sectors subsidized?
Is basic water affordable to all households
B. 4 Sustainability: comparing water resources and
water use
C. Water management and policy
analysis
•
Meeting future water demands
– Projecting demand
– Analyzing scenarios about different ways to meet future
demands (infrastructure development, water conservation,
changing economic structure…)
•
Economic & social benefits from water policy reform
Social & economic benefits, income generated directly and
indirectly, optimization models
Water pricing reform
Costs and benefits from wastewater treatment
•
Other issues such as ‘virtual water’ and the impact
of international trade on water demand
Projecting future water demands
Australia, 2050
How is this done?
Economic models that include water use accounts
• Simplest models are Input-Output models
• More complex models include simulation, programming &
CGE models
Benefits from Water Policy Reform:
Pricing Reform
Murray-Darling River Basin Australia
Based on historical water use & price data, simulated impact
on GDP of doubling water prices and the expected
increases in water use efficiency (WUE) of 1-2%
Irrigated agriculture
Dryland agriculture
Increase in GDP, A$million
1% increase
2% increase
WUE
WUE
-24
78
-51
-112
Food and fibre processing
Other industries
44
262
97
410
Total impact on GDP
253
521