Water Resources

Ordering Extraction from Multiple Aquifers

November 26, 2013

Optimal groundwater extraction satisfies the condition that the marginal benefits of water consumption equal the full marginal cost of extraction in each period, including the opportunity cost of future benefits foregone. But how should this well-known condition be generalized when there are multiple aquifers available? We provide an extension of the “Pearce equation” to guide […]

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Integrating Demand-Management with Development of Supply-Side Substitutes

Sustaining water availability at current prices in the face of growing demand and declining resources is not possible, and scarcity is further exacerbated by falling recharge levels due to natural hazard resilience, urbanization, and watershed depreciation. We discuss an integrated approach to water-resource development based on principles of sustainability science. In addition to demand management […]

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The Water-Energy-Food Nexus

August 20, 2013

By Christopher Wada The water-energy-food nexus is one of the most important and fundamental global environmental issues facing the world today. The US Geological Survey estimates that the United States used 201 billion gallons per day (bgd) of freshwater for thermoelectric power generation and 128 bgd for irrigation in the year 2005. Combined, energy generation […]

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What is a Watershed and Why Does it Matter?

April 22, 2013

Over the years, the term “watershed” has evolved from signifying the divide separating one drainage basin from another to the drainage basin itself. A drainage basin or catchment area is a section of land drained by a river and all of its tributaries. Watersheds come in all shapes and sizes, and the U.S. Environmental Protection […]

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A dynamic approach to PES pricing and finance of interlinked ecosystem services: Watershed conservation and groundwater management

March 1, 2013

A theory of payment for ecosystem services (PES) pricing consistent with dynamic efficiency and sustainable income requires optimized shadow prices. Since ecosystem services are generally interdependent, this requires joint optimization across multiple resource stocks. We develop such a theory in the context of watershed conservation and groundwater extraction.

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Financing Watershed Conservation without Shrinking the Economy

February 6, 2013

In his recent State-of-the-State address, Governor Abercrombie urged lawmakers to consider either an increase in the conveyance tax on high-priced real estate transactions or a 10-cent fee for single-use plastic checkout bags to finance his watershed protection initiative, “The Rain Follows the Forest,” The proposed taxes, however, have a downside. While they are expected to […]

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Financing Watershed Conservation

August 29, 2012

In November 2011, Governor Abercrombie and State officials launched a watershed protection plan entitled, “The Rain Follows the Forest”. The initiative’s goal is to double the current level of watershed protection – approximately 10% of priority watershed areas throughout Hawai‘i are currently protected – over the next ten years at an estimated cost of $11 million […]

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The Economics of Groundwater

July 8, 2012

We provide synthesis of the economics of groundwater with a focus on optimal management and the Pearce equation for renewable resources. General management principles developed through the solution of a single aquifer optimization problem are extended to the management of multiple resources including additional groundwater aquifers, surface water, recycled wastewater, and upland watersheds. Given an abundant (albeit expensive) substitute, […]

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Economic Analysis of the Proposed Rule to Prevent Arrival of New Genetic Strains of the Rust Fungus Puccinia psidii in Hawai‘i

February 8, 2012

Since its first documented introduction to Hawai‘i in 2005, the rust fungus P. psidii has already severely damaged Syzygium jambos (Indian rose apple) trees and the federallyendangered Eugenia koolauensis (nioi). Fortunately, the particular strain has yet to cause serious damage to ‘ōhi‘a, which comprises roughly 80% of the state’s native forests and covers 400,000 ha. Although the rust has affected less […]

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