Water for people.pdf - WHO Thailand Digital Repository

R E C O G N I Z I N G A N D V A L U I N G T H E M A N Y F A C E S O F W A T E R / 3 2 9Conceptual premises and theoretical foundationsWater is needed in all aspects of life. For sustainabledevelopment, it is necessary to take into account water’ssocial, environmental and economic dimensions and allof its varied uses. Water management therefore requiresan integrated approach (Ministerial Declaration, 2001).A keynote paper on water valuation prepared by Peter Rogers(1997) was used as a framework for the Harare Meeting. Thisapproach is shown in figure 13.1.■ Value to users of water: This value is calculated based on themarginal value of product, which is an estimate of the per unitoutput of industrial good or agricultural product for a unit ofwater use. These values are discussed in greater length inchapter 8 on food security and chapter 9 on industry.■ Net benefits from return flows: This is the value derived from thereturn flows, such as the value derived from aquifer rechargeduring irrigation, or downstream benefits of water diversionduring hydropower generation. These values can be explainedFigure 13.1: Value of waterIntrinsic valueAdjustment forsocietal objectivesNet benefits fromindirect usesNet benefits fromreturn flowsValue to usersof waterECONOMICVALUEFULLVALUEThis figure shows the framework used by the Expert Group Meeting held in Hararein 1998, to provide conceptual clarity to valuing water.through the discussion of the hydrological cycle andconsideration of evapotranspiration and sink losses. Chapter 4,on the natural cycle of water, makes an attempt to discuss suchbenefits.■ Net benefit from indirect uses: Indirect benefits are derived whenthe water diverted for one purpose is used for another purpose.For example, in Bhutan, wastewater from small gravity watersupply systems is also used for irrigating domestic gardens.Irrigation canals in India are also used for drinking water or otherhousehold chores. Consideration of such values is essential whencalculating water value.■ Adjustment for societal objectives: Water supplied for irrigationand domestic use often also contributes to fulfilling societalobjectives such as poverty alleviation, gender empowerment andfood security. Adjustments that take into consideration suchsocietal benefits are essential when valuing water, although theyrequire a very careful method of estimation.■ Intrinsic value: In order to compute the full value of water, it isessential to take into consideration the bequest values andstewardship. It is widely recognized that the basic value derivedfrom water often does not reflect environmental, social, culturaland other benefits gained from it. If this were the case, marketeconomy instruments would suffice to analyse the value ofwater, and there would be no need to pay special attention tothe issue. Environmental suitability, social and culturalworthiness and acceptance of resources managementintervention are required. Such values are intrinsic to water andcan be based on ‘it is there’ or ‘it is not there’ analyses.In recent years, efforts have been made to estimate the intrinsicvalue of water using a national accounting system approach. Thisapproach argues that the prices assigned are often notional, andthe idea is to use them, rather than market prices, whenelaborating public policies. However, the UNCSD 6 declaration calledupon the member states,when using economic instruments for guiding theallocation of water, to take into particular account theneeds of vulnerable groups, children, local communitiesand people living in poverty, as well as environmentalrequirements, efficiency, transparency, equity and, in thelight of the specific conditions of each country, at thenational and local levels, the polluter pays principle(UNDESA, 1998).Source: Rogers, 1997.