V. Ratna Reddy

Costs of resource depletion externalities: a study of groundwater overexploitation in Andhra Pradesh, India

The main objective of the paper is to estimate the costs of groundwater over exploitation and examine the costs and benefits from groundwater replenishing mechanisms in different ecological contexts. Using the public good and externalities framework, the study shows how groundwater exploitation in Andhra Pradesh, India is resulting in economic losses to individual farmers apart from ecological degradation. It is argued that policies towards strengthening the resource base (replenishment mechanisms) and equitable distribution of the resource (property rights) would be beneficial, economically as well as ecologically.The analysis is in favour of investment in replenishment mechanisms such as irrigation tanks and percolation tanks. The situation of over extraction and the resultant environmental degradation is a consequence of lack of appropriate and adequate policies (policy failure) for managing the subsurface water resources. Hitherto, groundwater policies (subsidized credit, power, etc.) are in the nature of encouraging private initiatives in groundwater development. It is argued that community-based investments in replenishment as well as extraction of groundwater would make better economic as well as ecological sense.

Approaches to Economic and Environmental Valuation of Domestic Wastewater

The main purpose of this chapter is to introduce the conceptual frame and methods of valuing the economic and environmental impacts of wastewater use in peri-urban locations. Urbanisation increases the demand for domestic water and supply of wastewater as 80% of the drinking water supplied would return as wastewater. Despite the volumes, economics of wastewater is less understood, especially with regard to the positive and negative impacts of wastewater use for different purposes. This chapter provides a dis-aggregated picture of wastewater generation, use, impacts and their costs and benefits accruing to communities. For the first time the health impacts for human and livestock populations are assessed in a systematic manner.

Justice and Equity in Watershed Development in Andhra Pradesh

Abstract Water reform is occurring in many countries in a variety of ways. This reform has been underpinned by growing demand for water, growing populations, urbanization, decreasing quality of potential water supplies, and the challenges posed by climate change. Watershed development (WSD) policies have played a central role in its various guises in developing and developed countries. While sustainability of water resources management has been the underlying theme of WSD, this has been expressed in different priorities and goals. These are likely to lead to different social outcomes and different formulations of policies. For example, in Australia water reform began in the 1990s with the primary goal of environmental protection. As it developed environmental protection was seen in the separation of land and water resources, the introduction of concrete water entitlement policies, and the introduction of markets. Social goals have been muted and largely assessed in terms of western social impact methodology, which had the underlying assumption that so long as there were no unacceptable social impacts, WSD (or integrated water management) policies could be adopted. This approach has led to community wide discussion as to the “rights” of irrigators vis-a-vis other interests and the presentation of a variety of equity and ethical arguments in relation to WSD. These arguments have become confused as water allocation issues have moved from local to state arenas. In contrast, there has been a clear enunciation of social goals for Indian WSD and concern for equity issues in terms of the distribution of any benefits from WSD. Issues such as property rights and the role of markets, which have been so important in Australian circumstances, have been less than evident. Different underlying issues associated with karma also exist in India but not in Australia. City versus country issues in relation to water allocation have resulted in the development of informal markets. The social, ethical, and equity issues, as in Australia, have also been shown to change as the scale of WSD policy has been considered. In this chapter the empirical results of the Andhra Pradesh case studies and the findings of a comparative study in South Australia are used to examine how the different social and equity premises of the two countries could lead to different outcomes from WSD. It also examines the issues of whether the move toward property rights and markets evidenced in several developed countries are the inevitable or most successful approach for all countries concerned with improving the public good nature of WSD.

Chapter 13 – Summary and Conclusion

This chapter pulls together and synthesizes the analyses from all the chapters and provides an overview of the impacts of WSD from a hydrogeology and biophysical aspect. The aim is to provide a central theme of argument that is drawn from the analysis in various chapters. Apart from summarizing the main arguments, this chapter also provides policy guidance based on the analysis and the policy environment in general and in India in particular.

Evaluating the determinants of perceived drought resilience: An empirical analysis of farmers' survival capabilities in drought-prone regions of South India

Farmers in the rainfed districts of South India are faced with repeated drought conditions, which adversely affect their livelihoods, placing their survival at stake. In this chapter, we empirically assess the drought survival potential of such households in three drought-prone districts of Andhra Pradesh, and evaluate the roles of human, physical, social, financial, and natural capitals in determining their resilience to repeated droughts. The key findings indicate that within the human capital category, health is not considered relevant for future drought survival, whereas higher skills are considered important by the households. Further, level of education and number of earning members in the household positively influence perceived drought survival. In addition, reliance on government intervention programs such as the Mahatma Gandhi National Rural Employment Guarantee Scheme for drought survival is higher among households with better health; such households also show greater reliance on common property resources for their income, implying that households with better health are able to better access or utilize livelihood opportunities outside of farming. The study also finds that watershed programs may have contributed to increased inequality in these regions; when compared to untreated regions, watershed-treated areas show improved drought resilience in some regions while there is no improvement in others. Results also indicate that the perceived resilience of farmers seems to have improved in terms of financial and health indicators in the watershed-treated regions despite a decline in their net crop incomes.

Assessing Livelihood Impacts of Watersheds at Scale: An Integrated Approach

Abstract This chapter is an attempt to assess the watershed impacts after watershed intervention. Evaluations incorporate at mesoscale (HUN level) the integration of hydrogeological and biophysical attributes of impact assessment. The specific objectives of this chapter include: (1) assessing the impacts at the household level in the context of watershed development using the sustainable livelihoods framework (five capitals); (2) examining the differences in impacts at upstream, midstream, and downstream locations; and (3) identifying the important indicators of different capitals and determinants that influence the impacts. Here the impacts are measured in changes in the five capitals as well as resilience of the households to drought. It is hypothesized that (1) watershed development has the inherent potential to enhance the resilience of the system and (2) resilience in terms of ability to cope with drought is a better indicator of watershed development than general perceptions of change, especially in the absence of baseline data. Related hypotheses include resilience is expected to be (3) directly linked to average rainfall; (4) more in the downstream locations; and (5) greater among economically and socially better off sections of the community. Production functions are also estimated to arrive at water productivities across the streams. This would help in assessing the allocative efficiency of water and the rationale for reallocation between streams.This chapter is an attempt to assess the watershed impacts after watershed intervention. Evaluations incorporate at mesoscale (HUN level) the integration of hydrogeological and biophysical attributes of impact assessment. The specific objectives of this chapter include: (1) assessing the impacts at the household level in the context of watershed development using the sustainable livelihoods framework (five capitals); (2) examining the differences in impacts at upstream, midstream, and downstream locations; and (3) identifying the important indicators of different capitals and determinants that influence the impacts. Here the impacts are measured in changes in the five capitals as well as resilience of the households to drought. It is hypothesized that (1) watershed development has the inherent potential to enhance the resilience of the system and (2) resilience in terms of ability to cope with drought is a better indicator of watershed development than general perceptions of change, especially in the absence of baseline data. Related hypotheses include resilience is expected to be (3) directly linked to average rainfall; (4) more in the downstream locations; and (5) greater among economically and socially better off sections of the community. Production functions are also estimated to arrive at water productivities across the streams. This would help in assessing the allocative efficiency of water and the rationale for reallocation between streams.

Exploring Implications of Climate, Land Use, and Policy Intervention Scenarios on Water Resources, Livelihoods, and Resilience

Abstract Integrated modeling methodologies have a greater potential than purely disciplinary approaches to support comprehensive assessment of social, economic, and biophysical aspects of complex natural resource management such as the Indian governments’ Integrated Watershed Management Program (IWMP). Climate and recharge estimates drive predictions assessment of the availability of surface and groundwater resources as impacted by IWMP, climate, and land use (i.e., water extractions). Water availability, land use mix, and crop productivity influence access to the available water resources, their usage, and, consequently, the decisions and resilience of households. This chapter draws together the science described in earlier chapters to allow scenario analysis of the likely impacts of selected climate, land use, IWMP, and other policy interventions on surface and groundwater resources, agricultural productivity, people’s livelihoods, and resilience. A brief recap of the biophysical and socioeconomic models is also provided, and their linkage within an integrated model is outlined. Examples of biophysical scenarios and social policy scenarios are used to demonstrate the value of the integrated and disciplinary models for assessing IWMP and other impacts on water resources and resilience.

High Stakes—Engagement with a Purpose

Abstract Experience shows that obtaining a policy change or adoption of new policies could be better achieved when the changes are first introduced on a small scale in different local contexts and then extended to policy level. While most projects focus on sharing the research results mainly with the scientific community and to some extent with the policy makers, this project has focused on first influencing the people on the ground and, through their feedback, the next levels. This project has made a serious attempt to move the process of stakeholder engagement from mere information-sharing sessions to outcome-shaping and action-oriented exchanges. Unfortunately, stakeholder engagement is treated as a necessary but not sufficiently important activity by projects in general. Thus, a lot more time and thinking is invested in generating scientifically robust research outputs and not enough time is spent on finding users for it. Similarly, stakeholders also do not consider the time spent on research engagements as value adding. Thus, most interactions between researchers and stakeholders remain as mere formalities rather than becoming potential opportunities for implementing or customizing the research outputs. This project would not have been an exception to this general approach if not for the turning point the team experienced during one of its field visits. Interactions with the local communities enlightened the team to the real purpose of the project and how useful it could be to different stakeholders if it was presented to them in a simplified format. With this realization, the project turned its focus away from developing complex models to a straightforward approach with clear rules of thumb or a package of tools and methods. The positive response from the stakeholders at all levels vindicated this change in focus and effort, and the project received support from the authorities to spread the integrated approach throughout workshops and training to the implementing agencies across different regions.

Analytical Framework, Study Design, and Methodology

Abstract As most of the chapters in this book are based on research that has adopted a clear analytical framework and scientific approach for assessing watershed impacts, it is necessary to discuss the aims of the research and the adopted framework and approach before we go into these chapters. The purpose of the research is to provide design inputs for sustainable watershed interventions that enhance livelihoods outcomes. The multidisciplinary nature and integrated approach adopted in the research has used various methods and tools cutting across hydrological, biophysical, and socioeconomic methodologies. While the specific details of methodologies used are discussed in their respective chapters, this chapter provides the overall framework for hydrogeology modeling, biophysical modeling, and socioeconomic “sustainable livelihoods.” This framework would be based on the review of existing literature and its appropriateness for sample sites. The chapter also provides the framework for the Bayesian network used for integrating the hydrogeological, biophysical, and livelihood aspects. Also, details like the sampling design, profile of sample sites, etc., will be presented in this chapter.

Managing Basic Amenities : A Study of Shortages and Constraints in Residential Water Supplies in Rajasthan

The present paper makes an attempt to estimate the demand for water in the three major sectors at a dis aggregate level. Besides, the extent of shortages in residential water supplies in urban as well as rural areas is analysed in the light of financial and other constraints. It is observed that in most of the districts the present shortages in urban areas are due to the policies pertaining to pricing, supply regulations, etc. rather than due to the supply constraints . Whereas the shortages in rural areas are of quantitative as well as qualitative nature. Very few villages are covered with piped water supplies and the quality of water available is very poor in most of the villages. In number of villages water shortages have led to the development of water markets and villagers pay much higher rate for water when compared with their urban counter parts.