The Economic Value of Groundwater in Obama

Kimberly Burnett (), Christopher Wada, Aiko Endo () and Makoto Taniguchi ()
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Aiko Endo: Research Department, Research Institute for Humanity and Nature
Makoto Taniguchi: Research Department, Research Institute for Humanity and Nature

No 2016-8, Working Papers from University of Hawaii Economic Research Organization, University of Hawaii at Manoa

Abstract: 1. Study Region Obama City has a population of 33,000 and is located in the central Wakasa district, in southwest Fukui Prefecture, Japan. Obama’s groundwater resources are supported by the Kitagawa (38 km2) and Miniamigawa (17 km2) river basins. Groundwater is used aboveground year round for commercial and domestic purposes and during winter months to melt snow. Submarine groundwater discharge along the coast supports a nearshore fishery in the region. 2. Study Focus Results from a choice-based analysis suggest that residents are willing to pay on average JPY 565 per month to maintain the drinking water function and aquatic resource function of groundwater in the Fukui region. However, the static approach is not appropriate for estimating the net present value of the resource, i.e. the discounted net benefit aggregated over time. We therefore develop and propose a dynamic framework capable of assessing tradeoffs between the various water uses as scarcity increases or decreases in the future. 3. New Hydrological Insights for the Region Marginal willingness to pay for water in Obama is currently low because freshwater is abundant. We expect that future optimal water extraction patterns will depend most on trends in energy costs, climate change and demand growth.

Keywords: groundwater; economic value; optimization framework; Obama City; Japan (search for similar items in EconPapers)
Pages: 13 pages
Date: 2016-05
New Economics Papers: this item is included in nep-env
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