Ecological Economics of Water Water Systems Water Footprints

Ecological Economics of Water: Water Systems, Water Footprints, and the Real Price of Water CANUSSEE, Vancouver, October 3, 2015 Teaching Ecological Economics II Anne-Marie Codur Global Development and Environment Institute, Tufts University

The composition of the planet’s water

Global Freshwater Availability

Water Availability per region (2012) Region Middle East and North Africa Average water availability (cubic meters/person) 500 Sub-Saharan Africa 1, 000 Caribbean 2, 466 Asia/Pacific 2, 970 Europe 4, 741 Latin America 7, 200 North America (including Mexico) 13, 401

Water scarcity and conflicts

The uses of water, global average 19% Agricultural 11% Municipal 70% Industrial

Calculating water footprint: Step 1: decomposing water in 3 types

Calculating water footprint: Step 2: adding all the water (green, blue, grey) necessary throughout the process of production of each good = virtual water Product 1 sheet of paper (80 g/m 2) 1 tomato (70 g) 1 slice of bread (30 g) 1 orange (100 g) 1 apple (100 g) 1 glass of beer (250 ml) 1 glass of wine (125 ml) 1 egg (40 g) 1 glass of orange juice (200 ml) 1 bag of potato crisps (200 g) 1 glass of milk (200 ml) 1 hamburger (150 g) 1 cotton T-shirt 1 pair of shoes (bovine leather) Virtual-water content (liters) 10 13 40 50 70 75 120 135 170 185 200 2, 400 2, 700 8, 000

Virtual water used in six types of fuels, for a round trip New York City- Washington D. C. Type of fuel Amount of water needed in the extraction/production of 2 Million BTUs of energy Natural Gas (conventional) 5 gallons Unconventional natural gas (shale) 33 gallons Oil (conventional) 32 gallons Oil tar sands (mining) 616 gallons Biofuel type 1 (irrigated corn) 35, 616 gallons Biofuel type 2 (irrigated soy) 100, 591 gallons

Calculate your own water footprint: direct water use + virtual water of all goods and services http: //www. gracelinks. org/1408/water-footprint-calculator The average person living in the US consumes about 2220 gallons of water a day - That’s 8, 500 liters or 25 bathtubs each day Diet makes a huge difference: Meat eater = 30 bathtubs Vegetarian = 15 bathtubs Vegan = 12 bathtubs

National Water Footprint for selected countries, in cubic meters person per year 3000 2500 2000 1500 Agricultural goods Industrial goods 1000 Domestic water consumption 500 C hi na In di Ja a Pa pan k In ista do n ne si a Br az M il ex i R co us Th sia ai la nd Ita ly U SA 0

Transfers of virtual water through trade Virtual-water balance per country (billion cubic meters)

Trade of virtual water : cotton

Addressing water shortages Increasing water supply? Not the Solution! • Dams (dramatic ecological and social consequences); • Pumping aquifers (20% aquifers are already being mined beyond their rate of recharge); • Desalination: energy-intensive and costly. In California: $1800 -$2800 per AF Groundwater: $375 -$1100 per AF Surface water: $400 -$800 per AF • WATER CONSERVATION Micro-irrigation – reuse and recycle wastewater Cost of conservation (San Diego’s county): $150 -$1000 per AF How to promote water efficiency?

Governmental regulation “Today we are standing on dry grass where there should be five feet of snow. This historic drought demands unprecedented action. ” - California Governor, Jerry Brown, April 1, 2015

Regulation by the market: internalizing negative externalities Subsidies to irrigation lead to a consumption of Quantity Qs of water Qe would be the market equilibrium without subsidies Q* would be the ecologically optimal quantity withdrawn

Price per Unit Pricing Structures Uniform Rate Structure Price per Unit Quantity of Water Used Increasing Block Rate Structure Quantity of Water Used Price per Unit Decreasing Block Rate Structure Quantity of Water Used

A few American Cities applying the increasing bloc rate structure Cities with the greatest differences in water rates Santa Fe, N. M. Austin, Tex. City Charlotte, N. C. 50 gallons person per day San Diego San Francisco Atlanta $0 $50 $100 $150 Average monthly water bill $200 $250 100 150

Markets of water-rights for big users (irrigators, industries, cities): “cap-and-trade” systems for water conservation? • Water markets are in place in several countries, including Australia, Chile, South Africa, the United Kingdom, and the United States. • In the US, Municipalities were the most common purchaser of water (mostly from irrigators), but transfers between irrigators were also common. About 17 percent of the water purchased was for environmental purposes, including purchases by municipalities and environmental organizations. Some analysts see great potential for water markets to improve the environment

Water Management and Governance: what institutional frameworks for Water conservation? • State control? Public services in developing countries have often proven inefficient and corrupt • Privatization? Promoted by World Bank and IMF – but without appropriate regulation, water companies can charge excessive rates and fail to address the needs of the poorest The “Water War” in Cochabamba, Bolivia, 2000

Re-creating collective systems of management of the commons? The acequias of New Mexico are communal irrigation canals, a way to share water for agriculture in a dry land. “Communities have relied on institutions resembling neither the state nor the market to govern some resource systems with reasonable degrees of success over long periods of time ” - Elinor Ostrom, in “Governing the Commons” (1990)

Movement for the re-municipalization of water • 2002: Felton water system was sold to California American Water Co. (Cal-Am), a subsidiary of RWE Aktiengesellschaft - the third largest water company in the world. RWE filed for a 74% rate increase. Cal-Am has a monopoly on the water delivery system and the Public Utility Commission guarantees Cal-Am an 11% profit • In 2003, residents form a coalition to buy back their water resources to Cal-Am – at ballot, 75% voters voted YES – A six-year legal battle ensued • In 2008 Felton citizens won back their water • Inspired dozens of other towns to do the same

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