John Kandulu

Ecosystem services in urban water investment

Increasingly, water agencies and utilities have an obligation to consider the broad environmental impacts associated with investments. To aid in understanding water cycle interdependencies when making urban water supply investment decisions, an ecosystem services typology was augmented with the concept of integrated water resources management. This framework is applied to stormwater harvesting in a case study catchment in Adelaide, South Australia. Results show that this methodological framework can effectively facilitate systematic consideration and quantitative assessment of broad environmental impacts of water supply investments. Five ecosystem service impacts were quantified including provision of 1) urban recreational amenity, 2) regulation of coastal water quality, 3) salinity, 4) greenhouse gas emissions, and 5) support of estuarine habitats. This study shows that ignoring broad environmental impacts can underestimate ecosystem service benefits of water supply investments by a value of up to A

What Actually Confers Adaptive Capacity? Insights from Agro-Climatic Vulnerability of Australian Wheat

1.36/kL, or three times the cost of operating and maintenance of stormwater harvesting. Rigorous assessment of the public welfare impacts of water infrastructure investments is required to guide long-term optimal water supply investment decisions. Numerous challenges remain in the quantification of broad environmental impacts of a water supply investment including a lack of peer-reviewed studies of environmental impacts, aggregation of incommensurable impacts, potential for double-counting errors, uncertainties in available impact estimates, and how to determine the most suitable quantification technique.

Ecosystem Service Impacts of Urban Water Supply and Demand Management

Vulnerability assessments have often invoked sustainable livelihoods theory to support the quantification of adaptive capacity based on the availability of capital—social, human, physical, natural, and financial. However, the assumption that increased availability of these capitals confers greater adaptive capacity remains largely untested. We quantified the relationship between commonly used capital indicators and an empirical index of adaptive capacity (ACI) in the context of vulnerability of Australian wheat production to climate variability and change. We calculated ACI by comparing actual yields from farm survey data to climate-driven expected yields estimated by a crop model for 12 regions in Australia’s wheat-sheep zone from 1991–2010. We then compiled data for 24 typical indicators used in vulnerability analyses, spanning the five capitals. We analyzed the ACI and used regression techniques to identify related capital indicators. Between regions, mean ACI was not significantly different but variance over time was. ACI was higher in dry years and lower in wet years suggesting that farm adaptive strategies are geared towards mitigating losses rather than capitalizing on opportunity. Only six of the 24 capital indicators were significantly related to adaptive capacity in a way predicted by theory. Another four indicators were significantly related to adaptive capacity but of the opposite sign, countering our theory-driven expectation. We conclude that the deductive, theory-based use of capitals to define adaptive capacity and vulnerability should be more circumspect. Assessments need to be more evidence-based, first testing the relevance and influence of capital metrics on adaptive capacity for the specific system of interest. This will more effectively direct policy and targeting of investment to mitigate agro-climatic vulnerability.

Estimating economic and environmental trade-offs of managing nitrogen in Australian sugarcane systems taking agronomic risk into account

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

Mitigating economic risk from climate variability in rain-fed agriculture through enterprise mix diversification

1.87/kL. Salinity damage costs associated with residential uses are estimated at up to

Designing a Policy Mix and Sequence for Mitigating Agricultural Non-Point Source Pollution in a Water Supply Catchment

1.54/kL. Salinity damage costs of wastewater reuse were estimated at

Adaptive management for mitigating Cryptosporidium risk in source water: a case study in an agricultural catchment in South Australia.

1.16/kL. The largest benefit is coastal amenity services associated with stormwater harvesting and treatment estimated at

Cost-effective alternatives for mitigating Cryptosporidium risk in drinking water and enhancing ecosystem services

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.

Understanding the sources of uncertainty to reduce the risks of undesirable outcomes in large-scale freshwater ecosystem restoration projects: An example from the Murray–Darling Basin, Australia

Use of chemical agricultural inputs such as nitrogen fertilisers (N) in agricultural production can cause diffuse source pollution thereby degrading the health of coastal and marine ecosystems in coastal river catchments. Previous reviewed economic assessments of N management in agricultural production seldom consider broader environmental impacts and uncertain climatic and economic conditions. This paper presents an economic risk framework for assessing economic and environmental trade-offs of N management strategies taking into account variable climatic and economic conditions. The framework is underpinned by a modelling platform that integrates Agricultural Production System sIMulation modelling (APSIM), probability theory, Monte Carlo simulation, and financial risk analysis techniques. We applied the framework to a case study in Tully, a coastal catchment in north-eastern Australia with a well-documented N pollution problem. Our results show that switching from managing N to maximise private net returns to maximising social net returns could reduce expected private net returns by

Irrigation revenue loss in Murray–Darling Basin drought: An econometric assessment

99 ha-1, but yield additional environmental benefits equal to