Lecture 7

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Lecture 7
2010-03-31 06:45:56
Lecture 7 Economics of Water

Lecture 7, Economics of Water, 3 stages of using/developing a water supply, private/public ownership, Affordability, Future Options, Terminology, Australia article
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  1. The three stages of using and developing a water supply.
    • 1) Early cultural development phase
    • 2) Water projects are constructed
    • 3) Population and the need for water grow
  2. - generally enough water to go around (name stage)
    Stage 1) early cultural development phase
  3. - can meet basic needs such as drinking, sanitation, irrigation, etc. (Name stage)
    • Stage 1) Early cultural development phase
    • or
    • Stage 2) Water projects
  4. Conflicts over water are minimal and water is affordable (even free). (Name stage)
    Stage 1) Early cultural development phase
  5. - water is diverted from lakes/rivers for cities, irrigation, hydropower, etc. (Name stage)
    Stage 2) Water projects
  6. - may be implemented to ensure the marketability of developed water supplies. (Name stage)
    Stage 2) Water projects
  7. - economic viability of a region becomes dependent upon safe, available water (Name stage)
    Stage 3) Popluation and the need for water grow
  8. - the distribution of water becomes expensive (Name stage)
    Stage 3) Population and the need for water grow.
  9. What is the water-diamond paradox?
    • Water is essential for life but not very expensive, and diamonds are not necessary for life, but are very expensive.
    • The paradox is resolved when the ratio of water to diamonds is examined.
  10. In Mexico, farmers pay __ % of costs for irrigation water.
  11. In Indonesia, farmers pay __ % of costs for irrigation water.
  12. In Egypt, farmers pay __ % of costs for irrigation water.
  13. When the control and management of water resources, services and utilities are owned by a privately-owned company.
    ex) Hamilton, ON
    Private ownership
  14. Universal access and protection of public health.
    Public ownership.
  15. Pros of privatization
    • - full-cost pricing
    • - economic equity (paying for what you use, rather than what you can afford)
  16. Pros of public ownership
    • - subsidized pricing
    • - social equity (if you cannot afford it, you will get it one way or another)
  17. Cons of privatization
    • - job cuts
    • - aim is to maximize profits (arguably negative)
    • - cutting corners
  18. Cons of public ownership
    • - low efficiency
    • - poor cost recovery
    • - lack money/expertise
  19. Organizations for privatization
    World Bank, UN agencies
  20. Organizations against privatization
    CUPE - have a vested interest in saving jobs
  21. Why are municipal water and wastewater systems failing Canadians?
    • - they have few incentives to conserve
    • - utilities have insufficient funds to improve their infrastructure
  22. ________ people do not have access to safe drinking water.
    1.1 billion people
  23. UN wants to reduce the number of people that do not have safe drinking water to _______ by 2015.
    550 million
  24. In-house use of water is mostly through _______.
    - the toilet, the bath/shower, the washing machine.
  25. Germany river that used pollution fees/credits.
    Ruhr River - cost of pollution was high enough to develop a pollution abatement measure.
  26. Water suitable for human consumption.
    Potable water.
  27. Treatment of wastewater to make it more usable for one or more applications.
    Water reclamation.
  28. Water soiled by use in washing machines, tubs, showers and bathroom sinks.
    Grey water.
  29. Reclamation of water from wastewater and returning it to the natural water cycle well upstream of the drinking water treatment plant.
    Planned indirect potable reuse.
  30. Wastewater entering the natural water system which is eventually extracted for drinking water (there is generally no awareness that the natural system contains treated wastewater).
    Unplanned indirect potable reuse.
  31. The effluent of a wastewater treatment plant is routed directly to the intake of a drinking water treatment plant.
    Direct potable reuse.
  32. El Nino - Australia
    • - wind blows off of Australia (instead of onto)
    • - continuous dry winds, not crossing any water at all, leading to extreme drought conditions.
  33. Annual water use in Australia.
    1.3 millon L/person (3rd highest)