Economics and Water in the Middle Rio Grande
[Pages:64]Economics and Water in the Middle Rio Grande
Janie M. Chermak Associate Professor of Economics
University of New Mexico
Presented in the Rio Grande Seminar University of New Mexico November 28, 2006
Components of Water Resource Management
? Economic Agents; Consumers, Suppliers
Irrigators, urban centers, species, recreational
? Natural Physical Constraints; Climate
Precipitation, river and groundwater systems. vegetation
? Manmade Constraints; Physical, Institutional
Storage, conveyance systems, International, national, state and local institutions: property rights and agreements
Water Management Policy
"The traditional engineering emphasis in water supply has tended to relegate pricing to a minor role in water policy decision making.... the public has had difficulty in recognizing that water service, even though a necessity, does not have sacred qualities that preclude it from being subjected to economic analysis."
Mellendorf (1983)
Where Does Economics Fit In?
River
Diversions
Aquifer
Uses
Pumping
Recharge
In-stream
(Ecosystem Non-Market)
Traditional
Culture
(Market / NonMarket)
Irrigation
(Market/NonMarket)
Urban
(Market)
Water in the West: Potential Areas of Conflict
DOI (2003)
Unmet Rural Needs Conflict Potential - Moderate Conflict Potential - Substantial Conflict Potential ? Highly Likely
Why?
Southwest Characterized by:
Low Precipitation
Snow Water Equivalent (SWE) inch
Southwest Characterized by:
Erratic Precipitation
20
1993 (2.5 Yr Supply)
15
10
5
2000 (3 Month Supply)
0 Oct Nov Dec Jan Feb Mar Apr May Jun Jul Aug Sep Month
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