Ronald C. Griffin
Water Resource Economics The Analysis of Scarcity, Policies, and Projects
Water Resource Economics
Water Resource Economics The Analysis of Scarcity, Policies, and Projects
Ronald C. Gri‰n
The MIT Press Cambridge, Massachusetts London, England
6 2006 Massachusetts Institute of Technology All rights reserved. No part of this book may be reproduced in any form by any electronic or mechanical means (including photocopying, recording, or information storage and retrieval) without permission in writing from the publisher. MIT Press books may be purchased at special quantity discounts for business or sales promotional use. For information, please e-mail
[email protected] or write to Special Sales Department, The MIT Press, 55 Hayward Street, Cambridge, MA 02142. This book was set in Times New Roman on 3B2 by Asco Typesetters, Hong Kong. Printed and bound in the United States of America. Library of Congress Cataloging-in-Publication Data Gri‰n, Ronald C. Water resource economics : the analysis of scarcity, policies, and projects / Ronald C. Gri‰n. p. cm. Includes bibliographical references and index. ISBN 0-262-07267-X (hc : alk. paper) 1. Water resources development—Economic aspects. 2. Water resources development—Government policy. 3. Water-supply—Economic aspects. 4. Water-supply—Government policy. I. Title. 2005051097 HD1691.G745 2006 333.91 0 15—dc22 10 9 8 7
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Dedicated to wondrous Trish
Contents
Preface xiii Acknowledgments xvii Water Unit Conversions 1
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xix
Introduction 1 1.1 An Array of Decision Types 1 1.2 Amid the Noise 2 1.3 Supply Enhancement and Demand Management 1.4 Future Forces 5 1.5 Economics, Environment, and Equity 7 1.6 Organization and Conventions 8 1.7 Exercises 9
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Optimal Allocation and Development 11 2.1 Establishing Goals 11 Part I: The Fundamental Economic Theory 13 2.2 The Costs of Water Supply 13 2.3 E‰ciency