REPLENISHABLE BUT

DEPLETABLE RESOURCES :
WATER
OLEH : SEPTI HERMIALINGGA (20012621923002)
DOSEN PENGAMPU : IR. M.YAZID, M.SC., PH.D
INTRODUCTION :
WATER
Over 2/3 Of The Earth's
Surface Is Covered With
Water, 97.2% Of Which
Is Contained In The Five
Oceans. The Antarctic
Ice Sheet, Containing
90% Of All Fresh Water
On The Planet, Is Visible
At The Bottom.
Atmospheric Water
Vapour Can Be Seen As
Clouds.
THE POTENTIAL FOR WATER SCARCITY
The Hydrologic Cycle

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 Surface Water
Scarce Water Effecient
• Many uses / users – for efficient
Allocations : allocation:
Surface & Groundwater (1) Strike balance among a host of
competing users (2) find an
acceptable means of variable
S1 S0 supply of surface water each year
Per unit
A
• Supply not constant – changes in a
year & year to year ∴ allocated in
the fashion when MNB is equal for
all users
MNB1 B • If MNB s are not equalised - transfer
water from low MNB to high MNB
Aggregate Groundwater
MNB0
MNB • Depletable
• Withdrawals > recharge:
resource will be mined until –
0 Q0 Q 1 QA0 QT0 Supply gets exhausted or MC of
B A
=QT2
Quantity of water pumping additional water gets
prohibitive
A & B: individual net benefit curves – Supply: So water • Substitute to groundwater –
proximity to surface water
4
available OQTo
THE CURRENT
ALLOCATION SYSTEM
RIPARIAN AND PRIOR APPROPRIATION
DOCTRINES
• In US & also in India the means of allocating
water differ from one geographic area to
the other
• Property rights - ‘Riparian rights’: right to
use water to one staying adjacent to water
• Gold mining - demand for change in
property rights structure - need for
transferability
• Evolution in mining camps became the
forerunner of ‘prior appropriate doctrine’.

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SOURCES OF INEFFICIENCY

1. RESTRICTIONS ON TRANSFERS

Allocation inefficient -
1. The Principle of transfers from agriculture
“benefical use” was to municipality are
typically applied to common as it raises the
offstream consumptive marginal benefit
uses.
2. FEDERAL RECLAMATION
2. Known as “preferential PROJECTS AND AGRICULTURAL
use” attemps to establish WATER PRICING

bureau-cratically a value
hierarchy of uses.
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SOURCES OF INEFFICIENCY

3. MUNICIPAL AND INDUSTRIAL

WATER PRICING

• Low pricing & ignoring

marginal scarcity rent
will promote excessive
demand for water
• Requires the use of
marginal, not average,
cost

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PRICING METHODS AND THEIR PROPERTIES

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 POTENTIAL REMEDIES

• Reforms to
promote efficiency
of water use, while
keeping in mind
interests of future
generations
• Reduce number of
restrictions on
water transfers -
“use it or loose it” –
extravagant use of 9
Conclusion
• Water scarcity is already a serious problem
• Current use of water exceeds replenishable supplies,
implying that aquifers are being irreversibly drained.
• Replenishable water should be allocated to equalise the
MNB
• Ground water requires that the user cost of be considered

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THANK YOU
SHERMIALINGGA@GMAIL.COM