Advertisement

Water Resources Management

, Volume 31, Issue 15, pp 4785–4799 | Cite as

Ecosystem Service Impacts of Urban Water Supply and Demand Management

  • John M. Kandulu
  • Darla Hatton MacDonald
  • Graeme Dandy
  • Angela Marchi
Article

Abstract

Utilities face the challenge of enhancing long-term water security while minimising undesirable economic, social and environmental impacts of supply and demand management options. This paper provides an example of how the ecosystem services concept can be used to enumerate and organise broad impacts of water supply options. A case study of Adelaide, South Australia, is used to examine costs and benefits associated with different sources of water and source-water mix scenarios. Ecosystem service impacts are estimated using estimates from the literature. Seven water supply and demand management options are considered for Adelaide: 1) the River Murray, 2) Mt. Lofty Ranges catchments, 3) wastewater reuse, 4) desalination, 5) stormwater harvesting, 6) groundwater and 7) water conservation. The largest costs are associated with sourcing water from conservation measures such as water restrictions on outdoor watering estimated at $1.87/kL. Salinity damage costs associated with residential uses are estimated at up to $1.54/kL. Salinity damage costs of wastewater reuse were estimated at $1.16/kL. The largest benefit is coastal amenity services associated with stormwater harvesting and treatment estimated at $1.03/kL. Results show that there is a trade-off between financial costs and ecosystem services impacts with source-water mix scenarios with the highest ecosystem services cost having the lowest financial O&M cost and vice versa. This highlights the importance of taking ecosystem services into account when evaluating water supply options.

Keywords

Water security Water supply options Environmental impacts Externalities Demand management 

Notes

Acknowledgements

The authors would like to acknowledge the funding provided by the Goyder Institute, CSIRO and the University of Adelaide. The role of collegial assistance and review provided by Murray Hall, Chloe Devauze, Susan Cuddy and Stuart Whitten is also acknowledged.

References

  1. ACG (2004) Independent review of salinity cost functions for the river Murray. Allen Consulting Group, CanberraGoogle Scholar
  2. ATSE (2012) Sustainable water management – securing Australia’s future in a green economy. Australian Academy of Technological Sciences and Engineering, MelbourneGoogle Scholar
  3. Bateman IJ, Mace GM, Fezzi C, Atkinson G, Turner K (2011) Economic analysis for ecosystem service assessments. Environ Resource Econ 48:177–218CrossRefGoogle Scholar
  4. Bockstael NE, Freeman AM, Kopp RJ, Portney PR, Smith VK (2000) On measuring economic values for nature. Environ Sci Technol 34:1384–1389CrossRefGoogle Scholar
  5. Boyd J, Banzhaf S (2007) What are ecosystem services? The need for standardized environmental accounting units. Ecol Econ 63:616–626CrossRefGoogle Scholar
  6. Brennan D, Tapsuwan S, Ingram G (2007) The welfare costs of urban outdoor water restrictions. Aust J Agric Resour Econ 51:243–261CrossRefGoogle Scholar
  7. CEF (2011) Securing a clean energy future: the Australian Government’s climate change plan. Clean Energy Future, Australian Government http://wwwacciasnau/Files/Government-Carbon-Tax-Plan Accessed 18 June 2015
  8. CER (2015) Carbon pricing mechanism. Clean Energy Regulator, Government of South Australia http://www.cleanenergyregulator.gov.au/Infohub/CPM/About-the-mechanism. Accessed 17 June 2015Google Scholar
  9. Chong J, Herriman EJ, White S, Campbell D (2009) Review of water restrictions, prepared for National Water Commission. Institute for Sustainable Futures, SydneyGoogle Scholar
  10. Costanza R, de Groot R, Sutton P, van der Ploeg S, Anderson SJ, Kubiszewski I, Farber S, Turner RK (2014) Changes in the global value of ecosystem services. Glob Environ Change-Human Policy Dimens 26:152–158CrossRefGoogle Scholar
  11. Daily GC, Polasky S, Goldstein J, Kareiva PM, Mooney HA, Pejchar L, Ricketts TH, Salzman J, Shallenberger R (2009) Ecosystem services in decision making: time to deliver. Front Ecol Environ 7:21–28CrossRefGoogle Scholar
  12. DCCEE (2012) Australian national greenhouse accounts. Department of Climate Change and Energy Efficiency. ACT, CanberraGoogle Scholar
  13. Dillon P, Pavelic P, Page D, Beringen H, Ward J (2009) Managed aquifer recharge: an introduction. Natinal Water Commission, CanberraGoogle Scholar
  14. DWLBC (2005) Water proofing Adelaide. Department of Water, Land and Biodiversity Conservation, AdelaideGoogle Scholar
  15. Garcia X, Barcelo D, Comas J, Corominas L, Hadjimichael A, Page TJ, Acuna V (2016) Placing ecosystem services at the heart of urban water systems management. Sci Total Environ 563:1078–1085CrossRefGoogle Scholar
  16. Grafton RQ, Ward MB (2008) Prices versus rationing: Marshallian surplus and mandatory water restrictions. Econ Rec 84:S57–S65CrossRefGoogle Scholar
  17. Hall MR (2012) The cost of pollution: supporting cost effective options evaluation and pollution reduction. Urban Water Security Research Alliance Technical Report No. 61, BrisbaneGoogle Scholar
  18. Hatton MacDonald D, Morrison M, Rose J, Boyle K (2011) Valuing a multi-State River: the case of the river Murray. Aust J Agric Resour Econ 55:373–391Google Scholar
  19. Holland DS, Sanchirico JN, Johnston RJ, Joglekar D (2010) Economic analysis for ecosystem-based management: application to marine and coastal environments. Resources for the future Press, WashingtonGoogle Scholar
  20. Kandulu J, Connor J, Hatton MacDonald D (2014) Ecosystem services in urban water investment. J Environ Manag 145:43–53CrossRefGoogle Scholar
  21. Kenway, S., Priestley, A., Cook, S., Seo, S., Inman, M., Gregory, A., Hall, M., 2008. Energy use in the provision and consumption of urban water in Australia and New Zealand. CSIRO Water for a Healthy Country National Research FlagshipGoogle Scholar
  22. Kumar P (2010) The economics of ecosystems and biodiversity: ecological and economic foundations. Earthscan, LondonGoogle Scholar
  23. Luisetti T, Turner RK, Bateman IJ, Morse-Jones S, Adams C, Fonseca L (2011) Coastal and marine ecosystem services valuation for policy and management: managed realignment case studies in England. Ocean Coas Manag 54:212–224CrossRefGoogle Scholar
  24. Maheepala S, Dandy G, Marchi A, Mirza F, Wenyan W, Daly R, Hewa G, Neumann L, Maier H, He Y, Thomas S (2014) A decision support framework for identifying optimal water supply portfolios: metropolitan Adelaide case study. Adelaide, South AustraliaGoogle Scholar
  25. Marchi A, Dandy G, Maier HR (2014) Financial costs, energy consumption and greenhouse gas emissions for major supply water sources & demand management options for Adelaide. Goyder Institute for Water Research Technical Report Series No. 14/12, AdelaideGoogle Scholar
  26. McDonald RI, Weber K, Padowski J, Florke M, Schneider C, Green PA, Gleeson T, Eckman S, Lehner B, Balk D, Boucher T, Grill G, Montgomery M (2014) Water on an urban planet: urbanization and the reach of urban water infrastructure. Glob Environ Change-Human Policy Dimens 27:96–105CrossRefGoogle Scholar
  27. MDBA (2011) The proposed ‘environmentally sustainable level of take’ for surface water of the Murray–Darling Basin: methods and outcomes. Murray–Darling Basin Authority, CanberraGoogle Scholar
  28. Mitchell VG, Deletic A, Fletcher TD, Hatt BE, McCarthy DT (2007) Achieving multiple benefits from stormwater harvesting. Water Sci Technol 55:135–144CrossRefGoogle Scholar
  29. Page D, Gonzales D, Dillon P, Vanderzalm J, Barry K, Peche A (2013) Managed aquifer recharge Stormwater use options (MARSUO): public health risk assessment. Goyder Institute for Water Research Technical Report Series No. 13/17, AdelaideGoogle Scholar
  30. Pollino C, Lester R, Podger G, Black D, Overton I (2011) Analysis of South Australia’s environmental water and water quality requirements and their delivery under the guide to the proposed basin plan. Goyder Institute for Water Research Technical Report Series No. 11/2, AdelaideGoogle Scholar
  31. Qureshi ME, Ranjan R, Qureshi SE (2010) An empirical assessment of the value of irrigation water: the case study of Murrumbidgee catchment. Aust J Agric Resour Econ 54:99–118CrossRefGoogle Scholar
  32. RBA (2016) Reserve Bank of Australia: Inflation Calculator http://www.rba.gov.au/calculator/annualDecimal.html. Accessed November, 2016
  33. Rooney RC, Foote L, Krogman N, Pattison JK, Wilson MJ, Bayley SE (2015) Replacing natural wetlands with stormwater management facilities: biophysical and perceived social values. Water Res 73:17–28CrossRefGoogle Scholar
  34. Russell BD, Thompson JAI, Falkenberg LJ, Connell SD (2009) Synergistic effects of climate change and local stressors: CO2 and nutrient-driven change in subtidal rocky habitats. Glob Chang Biol 15:2153–2162CrossRefGoogle Scholar
  35. SAEPA (2011) Adelaide coastal water quality improvement plan. Environment Protection Authority, Adelaide, South AustraliaGoogle Scholar
  36. SAWater (2012) South Australian Water Corporation Annual ReportGoogle Scholar
  37. SF (2008) Report on sustainable water options for Adelaide. Sustainable Focus and Richard Clarke & AssociatesGoogle Scholar

Copyright information

© Springer Science+Business Media B.V. 2017

Authors and Affiliations

  • John M. Kandulu
    • 1
  • Darla Hatton MacDonald
    • 2
  • Graeme Dandy
    • 3
  • Angela Marchi
    • 3
  1. 1.UrrbraeAustralia
  2. 2.Tasmanian School of Business and EconomicsUniversity of TasmaniaHobartAustralia
  3. 3.School of Civil, Environmental and Mining EngineeringUniversity of AdelaideAdelaideAustralia

Personalised recommendations