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Groundwater Economics

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  • In some of these areas decisions by individual ejidatarios determine to a great extent the ways in which ecosystems are used. As an example, some ejidos have started wildlife harvesting and ecotourism programs as alternative economic incomes.
    Based on our ecological surveys, we suggest that the implementation of environmental education programs will reinforce local awareness on the benefits of conserving ecosystem functions.
    Since the economy depends largely on agriculture, the lack of planned strategies of water management results in desertification, soil degradation, salinity, and rural exodus
    Although it is supposed that the government has designed financial programs to support the irrigation infrastructure, there is still much to do to improve the dissemination of technologies to small producers and people living in remote areas.
  • Trois quarts du chiffre d'affaires de la Région est généré par les produits maraîchers et les agrumes

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  • 1. Final Learning Workshop for GEF MENARID Project June 16-18, 2014– Beirut, Lebanon Groundwater economics lbouchaou@gmail.com l.bouchaou@uiz.acma Prof Lhoussaine Bouchaou, University Ibn Zohr of Agadir, Morocco President of Mroccan Chapter of IAH
  • 2. Third Learning Workshop for GEF MENARID Project Managers “Groundwater economics” 10- 12 December 2013 – Agadir, Morocco Main points highlighted and discussed During Mrs Lucilla Minelli, UNESCO-IHP, l.minelli@unesco.org Prof Lhoussaine Bouchaou, University of Agadir, lbouchaou@gmail.com
  • 3. Problematic GW water resources Economics: Scarcity and physical aspects Level Depletion and quality deterioration (overexploitation under global changes and human pressure Renewability for long term sustainability Water resources management Governance and politic aspects (managing people) Lack of leadership for guardian
  • 4. Sectors using gw, type of values and drivers • Irrigated agriculture • Drinking water for livestock • Mining • Manufacturing and other industries • Water Supply • Households • … Sectors of the economy that use groundwater:
  • 5. Discussion The central questions to answer are: • What is the contribution of groundwater to the economy of a country? What is the monetary value that groundwater produces in different sectors? • How can you raise the importance of groundwater by assigning an economic value to the resource? • How much drainable groundwater is available in the aquifers?
  • 6. • How much is the economy depending on groundwater? If there was no more/less groundwater (especially in arid regions) – • what would be the cost of alternative sources of water supply (desalination, waste water treatment and reuse, import of water?) • How the groundwater resources will develop under the pressure of global change? • Which management or economic options can be derived?
  • 7. • How to convince the users? • Shifting to new irrigation techniques (supporting costs…) • Participative approaches (Aquifer contract, cooperative…successful….) • Valuing GW as product for livelihoods, socioeconomic, • What’s strategy at the international, national and local scale?
  • 8. 0 200 400 600 800 1000 1200 1400 1600 1800 2000 1970 1975 1980 1985 1990 1995 2000 2005 2010 2015 2020 Année m3/hab/an PENURIESTRESS M aroc Souss-Massa Water ressources in the world Note: Les ressources renouvelables correspond à la quantité maximale estimée d’eau disponible pour un pays dans une année moyenne (sur une période de référence longue) Source: Nations Unies (Rapport Mondial sur l’Eau, 2006), Aquastat, www.fao.org (Max: >1 Mm³ / yr) Many countries in MENA region are less thanThreshold of water scarcity of 1000 m3 /capita/yr Available renewable water resources(m³/capita/yr) 0 10.000 12.500 15.000 17.500 20.000 22.5002.500 25.000 27.500 30.000 32.5005.000 7.500 Maroc (730) Tunisie Mauritanie (fleuve Sénégal) Turquie (2 967) Algérie Egypte Liban Russie (30 299) Jordanie
  • 9. society economic development environment water scientific and Governmental authorities – biogeography and evolutionary interest - Provide important environment infos Activities that imply the extraction of water: tourism, agriculture, mining…. INTEGRATED MANAGEMENT BY THE DIFFERENT SECTORS Expected achievements:  Agreements on the equitable use of water  Avoid desertification and degradation of soils - Improvements of irrigation systems  Avoid rural exodus – Prevision of new economic alternatives  New technologies for a sustainable use of water
  • 10. Valuing groundwater • Globally, water issues have always been economic issues. • Groundwater Economics explore the application of economic evaluation and cost/benefit analysis for the use, protection, remediation and conservation of groundwater, considering the major economic uses of and demand for groundwater, ecosystem context, groundwater policy and decisions, and groundwater sustainability. • It requires a multi-disciplinary approach that takes into account the many interdependencies between groundwater and food, environment, energy, development,…
  • 11. There are four key drivers of the value of groundwater: •SCARCITY: The price for water generally reflects the physical costs to supply the water (such as piping infrastructure and treatment plants) and not the actual value of the water itself. When water is scarce, people will tend to value it more highly. •COST OF ALTERNATIVE WATER RESOURCES: The value of groundwater will be significantly influenced by the availability of alternative water sources and associated costs. •QUALITY: The value of groundwater will also depend on its quality, especially in terms of salinity levels and pollutant concentration. Different users will place different values on groundwater quality. •RELIABILITY: In comparison to surface water, which is generally dependent on short term rainfall, groundwater is less influenced by short term climatic variability than surface water systems and consequently provides a useful ‘buffer’ in times of reduced surface water allocations. Drivers of value
  • 12. GROUNDWATERGROUNDWATER for life and livelihoodsfor life and livelihoods • enormous social benefits from use in urban and rural water-supply • many countries now have large groundwater-dependent economies
  • 13. GROUNDWATER VITAL FOR FOOD PRODUCTION irrigated agriculture – the major user and consumeragriculture – the major user and consumer • farmer control, drought reliability, sediment freefarmer control, drought reliability, sediment free • critical to improving rural livelihoods atcritical to improving rural livelihoods at subsistence levelsubsistence level • in commercial agriculture its use generatesin commercial agriculture its use generates more crops and jobs per drop than surface watermore crops and jobs per drop than surface water (given market for high-value produce)(given market for high-value produce)
  • 14. AQUIFER DEPLETIONAQUIFER DEPLETION social and environmental costs ofsocial and environmental costs of accelerated and uncontrolled developmentaccelerated and uncontrolled development  phreatophytic vegetation stress  aquifer compaction  transmissivity reduction  pumping lifts/costs increase  borehole yield reduction  springflow/baseflow reduction REVERSIBLE INTERFERENCE  saline water intrusion  ingress of polluted water  land subsidence and related impacts IRREVERSIBLE DETERIORATION
  • 15. GROUNDWATER AND THE ENVIRONMENTGROUNDWATER AND THE ENVIRONMENT a vital role in creating/sustaining ecosystemsa vital role in creating/sustaining ecosystems
  • 16. AQUIFER DEGRADATIONAQUIFER DEGRADATION the root causesthe root causes • resource governance has not kept pace with resource development (government agencies have focused more on development than management ) • low public and political awareness : – many still regard groundwater as an unlimited and uncoupled resource – lack of appreciation of critical linkages with ‘surface environment’ and land-use practices
  • 17. AA PRESSING NEED proactive groundwater management
  • 18. INTEGRATED WATER MANAGEMENT the general wisdom • multi-disciplinary approach (managing people) – socio-economic, legal and institutional – (as well as) technical and environmental • cross-sectorial vision (macro and micro level) – urban infrastructure design and operation – agriculture cropping policy and practice
  • 19. GROUNDWATER RESOURCE GOVERNANCEGROUNDWATER RESOURCE GOVERNANCE & PRACTICAL MANAGEMENT& PRACTICAL MANAGEMENT harmonisingharmonising ‘‘bottom-upbottom-up’’ andand ‘‘top-downtop-down’’ Economic Instruments Strategic Level Local Level Demand/Supply Interventions - enabling legal/institutional framework for local action - complementary national policy for water, food, energy - role of local government - stakeholder participation - groundwater use rights, etc
  • 20. GROUNDWATER MANAGEMENTGROUNDWATER MANAGEMENT INTERVENTIONSINTERVENTIONS supply-side versus demand-side
  • 21. BENEFITS OF IMPROVED IRRIGATION METHODS on real water-saving and energy conservation engineering, agronomic and operational measures
  • 22. GROUNDWATER RESOURCE SAVINGSGROUNDWATER RESOURCE SAVINGS key issues for agricultural sustainability • improving irrigation efficiency alone does not necessarily mean real resource savings (and can result in the reverse) • need to constrain irrigated area and reduce groundwater allocations • crop changes can also be very effective for groundwater savings (and in some cases increasing water productivity)
  • 23. GROUNDWATER MANAGEMENTGROUNDWATER MANAGEMENT some special cases • Non-Renewable Groundwater Resources • Conjunctive Use with Surface Water • Groundwater in the Urban Environment some special cases
  • 24. Renewable / Non-renewable groundwater
  • 25. GROUNDWATER MANAGEMENTGROUNDWATER MANAGEMENT some special cases • Non-Renewable Groundwater Resources • Conjunctive Use with Surface Water • Groundwater in the Urban Environment
  • 26. Understanding groundwater Nnnmmmm mmmnGroundwater and surface water are inextricably related through the hydrologic (or water) cycle. Extracting groundwater can impact surface water resources and vice versa. Historically, groundwater and surface water have been treated as separate entities. However, in times of drought and water scarcity, understanding and managing the interconnection between groundwater and surface water has become more important
  • 27. Conceptual model
  • 28. GROUNDWATER MANAGEMENTGROUNDWATER MANAGEMENT some special cases • Non-Renewable Groundwater Resources • Conjunctive Use with Surface Water • Groundwater in the Urban Environment
  • 29. GROUNDWATER AND THE CITY -an intimate but often unrecognised relationship
  • 30.   GENERIC LESSON 2 ‘top-down’ and ‘bottom-up’ approaches must be reconciled to achieve effective groundwater management unrealistic to provide a ‘simple blueprint’ for groundwater management because of wide hydrogeologic, socioeconomic and institutional diversity   GENERIC LESSON 1
  • 31.   GENERIC LESSON 3 a local government agency having the legal mandate and political backing to act as ‘groundwater guardian’ is critical to successful groundwater management     GENERIC LESSON 4 to mobilise effectively it is essential to have a systematic database of groundwater users, their use patterns and economic characteristics   GENERIC LESSON 5 establishment of groundwater abstraction rights is important for mobilising user participation in resource management and eventually for resource reallocation
  • 32.   GENERIC LESSON 6 abstraction charging is an important demand management tool but a transparent and acceptable basis for determining use is an essential basis for effective implementation ‘demand-side interventions’ will generally make a bigger contribution than ‘supply-side interventions’ to stabilising the groundwater resource balance   GENERIC LESSON 7   GENERIC LESSON 8 in demand management it is essential to focus on ‘real water-resource savings’ and not just on increased water-use efficiency
  • 33. For example: inequity inFor example: inequity in accessing irrigation wateraccessing irrigation water Agricultural water usesAgricultural water uses
  • 34. Management mode Level of training of managers Low level of training of managers: 77% of managers have no technical training. Technical supervision 44% of farms do not benefit from coaching Choice of the crops 17% of farmers opting for a given culture because their expertise Staff responsible for irrigation 80% of irrigation managers and other workers are ignoring the basics of rational irrigation management Irrigation control Low adoption of irrigation management (23%) Controlling irrigation is absent or weakly practiced for the crops using more water (alfalfa and banana) or occupying large areas other than citrus (cereals, maize, potato) DIAGNOSTIC
  • 35. Fist action plan Creation of ABH Current situation Gestion de la demande et maîtrise de la recharge et de la ressource disponible Possible strategiesPossible strategies World Bank, GW-Mate, 2010
  • 36. time Average yearly input average yearly deficit Past Current state future Situation 2035 Objective of the new governance schemes : The necessity to reach a new balance Demand/supply Equilibrium point When ? Controlling demand Mobilizing new resources tendency Scenario tendency
  • 37. time Annual average demand of water By type : Drinking, irrigation, industry By source : GW, SW By region Annual contribution by type : recharge, SW.. Déficit moyen annuel past Current Situation futur Situation 2035 By mean of different solutions… Quand ? Rotation crops Surfaces Irrigation Systems lose other 1 other n… management New dams Recharge Wastewater Desalinization Transferts…
  • 38. Economical Deficit –Low correlations beteween irrigated areas of a crop and TO generated –Vegetables generate 46% of turn over and use only 13% of irrigated area % Area% Area 22 27 19 2 16 3 13 46 10 43 3 17 15 Irrigated areas Turn over Citrus (5 Dh/m3) Cereals (2,5 Dhs/m3) Olives (2 Dhs/m3) Vegetables (20dh/m3) Forages (4 Dh/m3) Bananas (3 Dh/m3) Other 100 % = 5,9 Mds DH133'000 ha Inefficient crops% Production% Production
  • 39. Socio-economic impacts of the overexploitation of groundwater Scénarios Pumping overcost (Mdhs) Abandoned irrigated lands Equivalent employment losses Number Hectares "Business as usual" 340 1590 20790 7 930 Conversion to micro irrigation 273 1340 12520 6 680 Safeguard scenario 114 1050 10230 5 255 Revenues and employment Displacement of agricultural activities •Toward other area within Souss basin •Towards other basins
  • 40. ‫شكرا‬ ‫على‬‫تتبعكم‬‫و‬‫اهتمامكم‬ ‫بالموضوع‬ MERCI Thanks for your Attention
  • 41. Who is the decision maker? What volumes? Who are the users? What use and where? Water Crisis = Gouvernance Crisis How to move from conflict towards partnership status? Groundwater economics and governance