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CA WATER POLICY.
Term Paper ID:21405
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Essay Subject:
Geographical & climatic conditions, history, water law & rights, pricing, management, agriculture irrigation, shortages, govt. failures, recommendations.... More...
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10 Pages / 2250 Words
8 sources, 15 Citations,
APA Format
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Paper Abstract:
Geographical & climatic conditions, history, water law & rights, pricing, management, agriculture irrigation, shortages, govt. failures, recommendations.
Paper Introduction:
California Water Policy
This paper will examine California water policy and the problems of the present policy. The first part of the paper will provide a background discussing the physical geographic attributes of California which make water a very important resource. The second part of the paper will examine the historical background of water policy in California and the shortcomings of these approaches. The third part of the paper will discuss the attributes of a market-based water policy and how such a policy could improve the allocation of water in California.
California's climate varies greatly, depending upon geographic location and annual weather patterns. The Northern section of the state receives much more precipitation than the Southern section, alt
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Cambridge: Cambridge University Press.Getches, D. Those regions where water is abundant and supply exceeds localdemand, would find it economically efficient to sell water to those regionswhere water is scarce and demand exceeds supply. Governmentalwater policy quickly concentrated on the development of new water sourcesto fulfill rising demand; little or no thought was given to developing andencouraging conservation techniques through market structures (El-Ashry &Gibbons, 1988, pp. A Life of Its Own: The Politics and Power of Water. Policy Impacts of Sporhase v. Riparians are the landowners bordering a waterway; theselandowners are permitted under U.S. The Northern section of the statereceives much more precipitation than the Southern section, although inboth regions annual rainfall totals are rarely consistent from year toyear. San Diego: Harcourt Brace Jovanovich.Hundley, N. Water was not considered a commodity but a natural andnecessary resource. 19-21). The governmentresponses to these shortages have been appeals for voluntary conservation,enforced water rationing, and increasing the available supply. Paul: West Publishing Co.Gottlieb, R. 215-16). Irrigation agriculture also obtained water at subsidized prices.Although some farmers pumped groundwater from their own wells and thusrealized higher energy costs in obtaining more water, most received theirwater from state and federal water projects subsidized by taxpayers. Only those who irrigated with groundwater realized thehigher costs of using more water. Riparian rights need not be exercised to be kept alivesince they are inherent in land ownership. Traditionally, the use of market structures to determine the price ofwater in California has been virtually rejected; water is considered to bea "special" commodity whose value to society cannot properly be establishedby market forces. In conclusion, because of the arid nature of the region, Californiawater policies have traditionally relied on government control overallocation in order to ensure an adequate supply of water for everyone.This sort of policy, however, has actually discouraged water conservationtechniques. 213-31). 3-7). Thiswater must be used on riparian land and all riparians may be forced toreduce usage if there is insufficient water to satisfy the reasonable needsof all riparians. 4-9). The first part of the paper will provide a backgrounddiscussing the physical geographic attributes of California which makewater a very important resource. The most historically prominent agricultural region in the state,the Central Valley, is crossed by two major rivers, the Sacramento River inthe North and the San Joaquin River in the South. (1988). The West in Profile. Water Crisis: Ending the Policy Drought. 5-22; De Young& Jenkins-Smith, 1989, pp. T., & Gibbons, D. St. 211-15). (1989). 5). Under this line of reasoning, water is more than just acommodity; it is a necessary prerequisite for the development andmaintenance of a society's economy and social structure. Water would become acommodity which could be traded for value by private entities. The longterm solution has always been increasing the available supply through theconstruction of massive water projects. In M. In order to implement market policies, many changes would have to bemade to the existing water institutions. Thus, while the average annual precipitation in Los Angeles over theperiod of a century is almost 15 inches, few years come close to thisaverage. Most have felt thatthey have been mandated to meet demand rather than control it. Second,those voters who are informed and politically active on any particularissue tend to be those who will benefit from a particular governmentaction; thus, government actions usually respond to special interests.Third, politicians are most concerned with getting reelected; their focusis therefore on the short-term rather than the long-term. A. Nebraska, 458 U.S. There has never been any real pressure on urban water managementagencies to operate according to market principles. California's climate varies greatly, depending upon geographiclocation and annual weather patterns. While reduced waterapplication by farmers would decrease most crop yields, such reductionswould be economical at higher water prices. It also encouraged the profligate use ofwater in a region where water was relatively scarce. A policy based on marketprinciples, on the other hand, would not mask the true costs of water,forcing users to adjust their behavior or pay tremendously increased waterbills. Although the right ispermanent once put to beneficial use, it may be abandoned by the possessoror transferred to another user, if the parties involved show that theability of others to exercise vested rights will not be impaired.California adopted a hybrid between the two doctrines, since riparianrights were upheld by California courts during the Nineteenth Century.These courts ruled that water rights were usufructuary, giving thepossessor the right to use the water but no actual ownership rights, andlost once the water left the possession of the appropriator (Anderson,1983, pp. A 1 % increase in the price of water would produce between a 3.7%and a 12.63% decrease in water consumption. E. (1988). Notonly was this water inexpensive, but farmers were almost required to use asmuch as possible by the "use-it-or-lose-it" nature of the priorappropriation water law doctrine. 7-17). Their irrigation systems and methods have become moreefficient and economical and their management of water use reflects arecognition of the scarcity of water (El-Ashry & Gibbons, 1988, pp. Ashry & D. Water would go to thoseentities which need it the most and are able to pay for it. ReferencesAnderson, T. Studies have shown that water users are very responsive to waterprices. Consequently, water was seenas not just a market resource but as a social good and vital necessity inarid regions; it was considered too important to be evaluated exclusivelyin terms of economic welfare (Brajer & Martin, 199 , pp. (1984). California Water Policy This paper will examine California water policy and the problems ofthe present policy. As the population grew and more productive agricultural techniqueswere introduced state leaders began focusing on the problem of water. Water Rights Markets: Social and Legal Considerations: Resource's 'Community' Value, Legal Inconsistencies and Vague Definition and Assignment of Rights Color Issues. First, the majority of the voting publictends to be ignorant of the issues and has imperfect information. The basic ideas behind the development of water law in the West alsounderlay the policies established by the governments concerning waterdistribution. Itwas clear that the regions placing the most demands on the water supply,the Central Valley and Southern California, were the regions receiving theleast amounts of rainfall. Privatizing Water Management: The Hollow Promises of Private Markets. Throughout the West, a "postage stamp" pricing system was used.Under this system, a water utility which increased the cost of water (suchas developing new sources, building new facilities, or serving new hookups)would average the new costs with all of the previous costs to determine thenew rate. The problem with this setting, from an agricultural point of view, isthat the annual precipitation varies tremendously. Fossil evidenceindicates that the average figure masks sharp differences from year toyear. 9-13). C. Fewmunicipalities, however, considered implementing such measures on a regularbasis, much less charging customers on the basis of the true value of waterin the arid region (El-Ashry & Gibbons, 1988, pp. Draining the northernsection of the Valley, the Sacramento River flows a larger volume of waterthan the San Joaquin River, although the San Joaquin drains a largerportion of the Valley. This annual precipitation has producedabout 2 million acre-feet of water each year on average. The third part of the paper will discussthe attributes of a market-based water policy and how such a policy couldimprove the allocation of water in California. Since the opportunity costs are not internalized in thepolitical allocation process, there is no direct "reality check" concerningwhether a particular situation can be improved. 941 (1982). American water law in the West took many cuesfrom Spanish water law, which sought to protect the public interest andplace it above the claims of private parties. Gibbons (Eds.), Water and the Arid Lands of the Western United States (pp. Additionally, restrictions were emplacedon the size and timing of return flow water which discouraged farmers frommaking the most use of the water. C. No one would be unaware of how precious water really is in theregion and actual usage would decease dramatically. 941(1982); Chan, 1988; De Young & Jenkins-Smith, 1989, pp. During theTwentieth Century, however, the state's urban population exploded, as thestate also became one of the most important industrial regions on theworld. riparian law to use water in a waywhich is reasonable to all of the other users bordering the waterway. A water policy based on market principles would not only encouragethe conservation of water but also encourage the transfer of water betweenregions. Nebraska, 458 U.S. (1992). There are four basic reasons why governmental action has failed tomeet the criteria of efficiency. Nebraska. A market-based policy would let water allocation be governedby traditional market principles and result in reduced overall usage. Therefore,they would conduct studies to determine future demand then act preemptivelyto develop ways of meeting this demand. This reflected thephilosophy which encouraged new development in the region in the form ofindustry and residential suburbs. Local water agencies would lose theirtraditional role as allocators and assume a new role as brokers of waterrights for constituents and arbiters of disputes between private owners.Trading in water across jurisdictional lines would have to be freed up,although the U.S. With such higher prices, laborand capital would be substituted for water and drip irrigation wouldreadily replace flood irrigation (Anderson, 1983, pp. Instead, rainfall totals swing between extremes of 6 inches andnearly 4 inches. Journal of Economic Issues, 22, 1153-1167.De Young, T., & Jenkins-Smith, H. Albuquerque: University of New Mexico Press.El-Ashry, M. H. Water Law in a Nutshell. None of the cycles are predictable in length and differentsections of the state often experience different conditions, with oneregion suffering from drought at the same time another is literally underwater (Hundley, 1992, pp. T. Estimates concerningagricultural demand similarly show that a 1 % increase in the price ofwater would result in a 6.5% decrease in consumption. Consequently,Western courts early on recognized rights in anyone who put water to useanywhere; priority in right went to those who first put the water inquestion to use. American Journal of Economics and Sociology, 49, 35-44 (199 ).Chan, A. Consequently, they have little incentiveto conserve water. In the East, the doctrine of riparian rights was importedfrom England. Legal rights to water would haveto be clarified and standardized, with all vestiges of the ripariandoctrine completely eliminated in California. The problem with this is thatthese projects have become ever more costly and future funding isincreasingly questionable. In California, the state government prioritized water usersaccording to their importance to the state economy and favored those userswho would benefit the state economy the most. Average yearlyrainfall in the state averages from 5 inches along the North coast, to 1 inches on the Southern coastal plain, to 2 inches or less in the vastinland desert valleys; almost all of this rainfall occurs between Novemberand May, rather than during the summer growing season (Hundley, 1992, pp. (1988). Thelargest users would be either charged the same amount or even a lesser ratethan the smallest users; it was not unusual for some of these flat ratestructures to be implemented without any metering for private dwellings.Water utilities also relied upon the use of property tax revenues, generalfund revenues, and municipal band issues to disguise the true cost ofwater. (1983). It would also make sense to transfer private property rights in waterfrom the government, where they largely reside now, to private individualsand entities. Consequently, politiciansand bureaucrats tend to pursue inefficient policies (Anderson, 1983, pp. The second part of the paper will examinethe historical background of water policy in California and theshortcomings of these approaches. The development of water law in the West did not follow the patternof the East. But the higher costs of groundwater aremuch more a reflection of the higher energy costs in pumping more water.The steep rise in energy costs during the 197 s and 198 s forced thesefarmers to implement conservation techniques and make their water use moreproductive. Their goal was to maximizesupplies for urban growth well into the future. 1-19). Government ownership ofwater would have to be eliminated, with the water allocated to individualrecipients of the project water. 6-7). Moreover, water prices didnot reflect the real value of water in the state; instead the statesubsidized water prices through various taxes. 11; Gottlieb, 1988, 254-56). In metropolitanareas, the rate structure was either a flat or declining block rate. Plant, animal, and human life in theValley were sustained by the runoff from annual rainfall and snowfall inthe bordering mountain ranges. This doctrine, known as prior appropriation, placed anemphasis upon usage rather than land ownership. In the arid regions of theWest, however, much of the land was not riparian, or near a waterway;adoption of the doctrine of riparian rights would have prevented the use ofmuch of the land for agricultural or mining purposes. Cycles of severe drought alternate with those of heavyprecipitation. In times of drought, thepublic was educated and cajoled into cooperating in conservationstrategies, such as restricting specific water uses through alternate-daylawn watering, bans on washing cars, and other measures. Smith (Ed.) , Water and the Future of the Southwest (pp. Such methods were used to finance the expansion of a system neededto accommodate new growth; the purpose was to prevent the "rate shock"which might otherwise occur as a result of drastically increased costs (El-Ashry & Gibbons, 1988, p. As these regions developed further, diversionof water from other regions grew increasingly necessary. Prior to the development of the Central Valley byEuropean settlers, the flood plains of both rivers encompassed virtuallythe entire floor of the Valley. Users who needit but are unable to pay for the amount they need would either have to findmore efficient methods of operation, which use less water, or be forced tocease operation altogether. (199 ). Baltimore: Johns Hopkins Press.Brajer, V., & Martin, W. Government ownership of these property rights is inefficientbecause the politicians and bureaucrats who control the rights do not paythe opportunity costs of expended resources, while private owners would.Instead, the government workers look for the benefit to their ownparticular interest organizations and seek to disperse costs widely amongother bureaucrats. Thus, the users responsible for the need to develop the newsources and incur the new costs did not have to pay the full amount for thenew costs while continuing users were forced to a pay a little bit more,even thought they had not changed their usage. The Great Thirst: Californians and Water, 177 s- 199 s. The present policies have actually caused shortages, since they havekept prices below those which be found in the market. Berkeley: University of California Press.Sporhase v. Fourth, there islittle incentive for politicians to take into account individualpreferences when tailoring policies; policy bundles instead reflect thepreferences of majority coalitions (Anderson, 1983, pp. The traditional policieshave masked the true costs of water in the state and have done little toencourage conservation amongst water users. 13-14). Water law andpolicy in the West quickly became concerned with issues of resource use anddistribution; solutions to these issues were frequently aimed at producingthe socially desirable use. In the past few years, as the reality of scarce water and the shockof repeated droughts in California became more apparent, many have calledfor a water policy based upon market principles. 21-22). Consequently, market policies would discouragethe operation of businesses and industries which demand large supplies ofwater in regions where water is scarce (Anderson, 1983, pp. L. 37-38). 11-12). 41-42; Getches, 1984, pp. As will be discussed below,these policies discouraged water conservation by users and forced thecontinuing development of new sources and methods of transporting water towhere it was needed the most (Gottlieb, 1988, 254-56). Agriculture has always placed the largestdemands on the state's water supplies, especially since California becameone of the most important agricultural regions in the world. As white settlers flowed into California in the Nineteenth Century,the demands for water grew. H. In Z. Unless a price mechanism in implemented withregard to water supply and demand, crisis situations involving water willbecome more frequent in the future (Anderson, 1983, p. Supreme Court has already taken a step in this directionby ruling against discriminatory restrictions imposed by states againstsale of water across state lines (Sporhase v. Its scarcity forced governments to oversee and controlits distribution, with prices established without regard to normal marketforces.
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