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Economic Value of Water

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Economic Value of Water
Economic value of water A Multi-Criteria Analysis approach
Introduction

Water is an essential resource that has a multiplicity of use in domestic, Industrial, agricultural, hydropower generation, mining, environmental etc activities but the present unsustainable use and mismanagement in the Kafue Basin of Zambia has put pressure on the resource and conflicts among stakeholders have emerged due to the diminishing quality and quantity of the water from the main source- the Kafue River.

The current trends in the appropriation of water resources of the Kafue flats for human use, and particularly for irrigated agriculture are not sustainable. The water uses have risen due to low taxes and heavy subsidies on water by the Government of the republic of Zambia. Compounded to this problem, are the issues of water scarcity, pollution, conflicts and overdrawn aquifers. The knowledge available on the water demands clearly indicates the necessity for the establishment and implementation of effective legislation, which devises optimal water distribution and utilization in order to achieve socioeconomic development in a harmonious way.

Therefore, conceptually correct and empirically accurate estimates of the economic value of water are central to rational allocation of scarce water across locations, uses, users, and time periods. This kind of information would enable the institutions responsible for the management of the water resources to effectively plan for a coordinated and sustainable water management in conformity with the national development plans.

Study Area

The Kafue basin has a total catchment of 154000 km2 which is nearly one fifth of the total area of the Country. The Kafue River extends for 1,577 kilometers, rising from the northwestern and Copperbelt provinces of Zambia near the border with Zaire to the Zambezi River. On its way southward the river passes through the Lukanga Swamps and then curves eastward at Itezhi-tezhi to enter the Kafue



References: consulted Agudelo J.I (2001) the Economic Valuation of Water. Principles and Methods –IHE Delft. Chipongo.A. (2005). Economic Value of Water in Agricultural Production. A Case Study of the Kafue Flats of Zambia. Unpublished Master thesis – University of Gent. Belgium Central Statistics Office -CSO (2003) Summary Report 2000 Census. Zambia 2000 census of population and housing, Central Statistics Office, Lusaka Zambia. Gatzweiler F. (2003). The Changing Nature of Economic Valuation – Indigenous Forest Garden Values in Kalimanatan, Indonesia. Institutional Change in Agriculture and Natural Resources Volume 16. Duetsch Bibliothek José A. Gómez-Limón Laura Riesgo Manuel Arriaza (2003) Multi-Criteria Analysis of Factors Use Level: The Case of Water for Irrigation Mutale, M. and Mondoka M (1996). Water Resources Availability, Allocation and Management and Future Plans for the Kafue River Basin. Lusaka, Zambia: Department of Water Affairs, Ministry of Energy and Water Development. Turner K, Stavros G, Clark R, Brouwer R and Burke J (2004). Economic Valuation of Water Resources in Agriculture. From Sectoral to a functional perspective of natural resources in: FAO (2004) Water Reports Series Williams, G.J., 1977. The Kafue Hydro-Electric Scheme and its Environmental Setting, In Development and Ecology in the Lower Kafue Basin in the Nineteen Seventies, eds. G.J.Williams and G. W. Howard, 13-27. Lusaka: Zambia: University of Zambia.

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