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Bulk water extraction charge calculator: a tool for sustainable water management in Ontario
Canadian Water Resources Journal ( IF 1.7 ) Pub Date : 2019-11-12 , DOI: 10.1080/07011784.2019.1685909
Guneet Sandhu 1 , Michael O. Wood 1 , Horatiu A. Rus 2 , Olaf Weber 1
Affiliation  

Given growing anthropogenic pressures on water resources and uncertain climatic conditions, sustainable water management using effective demand management strategies will be crucial to tread the path towards sustainable development. This paper makes a contribution to the interdisciplinary realm of water management by designing a flexible tool that overcomes the weaknesses of current extraction charges and reliance on general taxes to finance water management initiatives. These dynamic water extraction charges are envisioned to be important policy instruments to increase water security in Ontario. To ensure sustainable use of provincial water resources, the province of Ontario not only extended the moratorium imposed in 2016 on new groundwater extraction permits for water bottling until 1 January 2020, but is also reviewing its water taking policies. While the moratorium and the extraction charge hike of $500/Million liters is focused on water bottlers, the need for more long-term comprehensive policy approaches to sustainable management is apparent. Economic theory suggests that pricing a resource by reflecting its economic value and scarcity can incentivize optimal consumption. While economic instruments like extraction charges exist in Ontario, a methodological calculation linking the level of these charges to the actual costs and hydrological water risks is largely lacking. Addressing this gap, this paper designs a calculator that operationalizes the conceptual pricing framework for Ontario to transparently arrive at water extraction charges. The public cost data for water resource management initiatives are considered along with extreme water contamination events as contingency environmental costs. Using data from Statistics Canada for annual volume of water withdrawn, the base provincial water extraction charge for all permit liable sectors is calculated to be $23.08/Million liters. Moreover, price multipliers reflecting the sub-watershed scale water quantity risks (identified in sub-watershed source protection assessment reports) along with sector and source specific risks were embedded in the calculator.



中文翻译:

批量取水费计算器:安大略省可持续水管理的工具

鉴于人为因素对水资源的压力不断增加以及不确定的气候条件,采用有效的需求管理策略进行可持续水管理对于踏上可持续发展道路至关重要。本文通过设计一种灵活的工具,为水管理的跨学科领域做出了贡献,该工具克服了目前的开采费用的弱点,并依靠一般税收来资助水管理计划。这些动态取水费用被认为是提高安大略省水安全的重要政策工具。为了确保省级水资源的可持续利用,安大略省不仅将2016年对瓶装水的新地下水开采许可证的禁令延长至2020年1月1日,但也正在审查其用水政策。虽然暂停和提高每百万升$ 500的提取费用的重点是瓶装水,但显然需要采取更长期的综合政策方法来实现可持续管理。经济学理论认为,通过反映资源的经济价值和稀缺性来定价资源可以激励最优消费。尽管安大略省存在诸如开采费之类的经济手段,但仍缺乏将这些费率与实际成本和水文水风险联系起来的方法学计算方法。为解决这一差距,本文设计了一种计算器,该计算器可操作安大略省的概念性定价框架,以透明方式得出取水费。水资源管理计划的公共成本数据与极端水污染事件一起被视为应急环境成本。使用加拿大统计局的年度取水量数据,所有许可许可部门的省用水基准收取量计算为$ 23.08 /百万升。此外,计算器还嵌入了反映子流域规模水量风险(在子流域水源保护评估报告中确定)的价格乘数,以及部门和水源特定风险。

更新日期:2020-04-14
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