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Khadija Khan Mehak Rafique Lahore School of Economics Tuesday, 18th June 2013.
Table of Content
Introduction .................................................................................................................................................. 2 Water scarcity and the Industries ................................................................................................................. 3 Government Policies and Institutions........................................................................................................... 6 Cost-Benefit Analysis .................................................................................................................................... 8 Climatic Effects............................................................................................................................................ 10 What we get out of it .................................................................................................................................. 12 How can it be linked to Pakistan ................................................................................................................. 14 Way Forward............................................................................................................................................... 16 References .................................................................................................................................................. 18
Introduction Water is an essential element to life.the water resources are drying up. the increased standard of livings is causing a higher water per capita requirements. and 1% of that is used by human beings. industrial and urban development. N. The amount of fresh water present on earth accounts for 3% only. dams etc). This much success has been only possible after paying a cost for it. the demand for water infrastructure development to meet the demand for water and energy needs (hydropower. agricultural and industrial). Bender. the climatic changes(variability the precipitation rates. and many other reasons make up the water scarcity issue. Water is considered to be a unique resource unlike the finite resources such as coal or oil. the world’s water resources will need to be enhanced and manipulated by 22 percent to meet the needs of the society (Thomas. The United Nations expects that by the year 2025. and the reasons for the scarcity are many: the increasing population and its need for food and water is further tightening the situation. The future of the water resources is alarming. 3 billion people in 52 countries will be affected by water scarcity and they will not have enough water to drink. and floods). 2004. and the use has increased over the course of years. Water is used for numerous purposes. the rising economic growth in the developed countries need water for development (domestic. hydropower. infrastructure projects and so forth. the Impact of Water Scarcity and Pollution on the Textile Industry: A Case Study from Turkey). for sanitation or for household use. 2|Page . Hence we begin by address the problem of water scarcity and how should it be managed over the years. the human dignity and most importantly the ecosystems. dams. snowfalls. such as irrigational purpose. and it is also projected that in 2025.
to alleviate water shortages. There stands a challenge in the way of these business/industries to deal with the situation of exposure to water related risks. the agro-based businesses. However everything comes with a price. Industries under the pressure of using less water have come up with useful strategies to use less water and store it for their use. In the US. financial and insurance industries and retail and distribution departments. The industries. some try to store water. They have started taking steps to store water. chemical industries. S.Water scarcity and the Industries Day by day the pressure is building up on the industries as to how to use and manage the world’s most precious resource-water. However recent studies in California where.000m3 shows that recycling and reuse may be a more sustainable option (Milmo. there are plans to build around 20 desalination plants. agricultural. and so does this technique. Desalination is of the techniques-creating water instead of depending on the existing supply. Water scarcity and managing the resource is a big hurdle for water and energy-related industries. where industrial usage of water accounts for 22% for the world. and some try to recycle water and some re-use it. where it is costly to install this and is very energy-consuming. Water usage is divided between many sectors. Some companies try to reduce water consumption. The question is that what sort of technologies and ideas the companies need to invest in for the maintenance and increased water supply. specially the chemical industries and pharmaceuticals are trying their best to use less of water as required and pollute less in return as lack of clean water is a rising problem. product manufacturing departments. However to judge the success criteria it must be so 3|Page . 2008. the biggest of which would have a daily capacity of 400. waterharvesting methods where the excess of monsoon water is stored up and used in dry seasons. some of the chemical factories have reduced the hazardous emissions of chemicals into water which are dangerous for the aquatic life as well as the environment. sterilization to maintain water quality. Thirsty Work). such as installing water cooling kits to avoid evaporation of water. Hence the industries now have started using less water and by the years 2005-06 the chemical industries in many states had reduced the water usage up to 8%. industrial and domestic. These steps have started showing their impacts over the years.
The case study done by Nathan Bender in his paper mentions that Turkey imports machines which help them use less water and chemical in order to produce their fabric. N. On the other hand water that’s available to these industries is highly polluted and thus needs to be treated. Sperretto Rimar washing system is another way of re-using water in the textile industries. They have tried to cope up with the shortage of water by building up their own waste water treatment plants and made sure that no polluted water is being discharged out of their factories. The reduced consumption of water by the industries should in return decrease the energy consumption and lower the costs. researchers are allowing the fast impulses of the ultrasonic waves to do the work (Bender.that the impact on water and energy is efficient. and this is not only turkey’s problem. in fact this is a global concern. 2004. An example is Ultrasonic where Ultrasonic waves are being researched in order to replace processes that require water or to decrease the amount of reagents in the effluent. It also talks about the Neuenkirchen clarification system is a way of recycling the water that contains chemical waste products as an end product. Chemical formulas that are used to make dyes are also being altered with the help of enzymes that make them less dangerous. N. The Impact of Water Scarcity and Pollution on the Textile Industry: A Case Study from Turkey). Hence the textile industries have switched on to less harmful chemical based dyes and technologies. 2004. Turkey is facing the consequences of water scarcity and pollution as far as their textile industries are concerned. 4|Page . The ultrasonic waves can produce effects on textiles that are similar to current physical and chemical techniques with the advantage of not using water. Turkish industries are importing such techniques that facilitate them in producing their goods where no water is used at all (Bender. Instead of chemicals or machinery that requires water during processing. Textile industries in countries like turkey have also hit the water scarcity stage and our taking steps to deal with it. Leading water-using industries also include the textile industries which use water on a large basis. they need fresh and clean water for the purpose of dying the fabric and to produce the fabric. As far as the textile industries are concerned. These textile industries at first tried to move out to locations where they could store their water requirements. The Impact of Water Scarcity and Pollution on the Textile Industry: A Case Study from Turkey). Another type of water conservation strategy is the “foam application” where this application replaces water with air to apply the dye on the fabric.
desalinization. Not all manufacturing and other industries carry out the water treatments.Industries on the whole play a large role in polluting the water streams and create the problem of water shortage in those areas. the reason being that water purification and recycling and its re-use may not only include higher costs of installation or adopting these techniques. A number of organizations have been established to cater to these problems where the industries dump tons of heavy metallic wastes. expertise skills. and education. 5|Page . but also require training. These organizations take up the responsibilities that the industries do not pollute the water and also focus on dams. and water allocation. toxic chemicals and sludge. sewer systems.
To begin with the reasons. ground water and private irrigation. without taking in to account the waste of water or the cost that actually is to supply the water discourages the conservation of the water and further failure to provide water for irrigation in present and future. every solution in supply side is with a pitfall. Price setting. factories). they pay more attention towards the supply side and overlook the issues that this might lead to. Public irrigation system has been an intense issue around the globe for ones facing water scarcity and there has also been not a clear understanding of how to control it. Despite this governmental solution. Government or bureaucratic decisions favor the building of more dams which in turn cause environmental problems such as flooding the lands by the reservoirs of dams and also increase the charges on water use. Government is foremost in increasing the water scarcity through public irrigation system.Government Policies and Institutions Government policies and the institutions that are handling the supply side of water are one of the issues that most of the countries are facing related the water scarcity. prefer seniority. The major pitfalls that most of the developing countries are dealing with. It is evident that irrigation infrastructure is foremost to make irrigated area effective. In conjunction with the public irrigation. Bureaucratic structure of responsibility plays a crucial role in public irrigation but so far they are the cause in the failure of this system. These problems are compounded by the negative externalities imposed by upland deforestation (Alan Richards. defy to encourage the conservation of water resource that is not taking into account the future generation that they would be worse off than the present generation. and centralized decision making. decisions of allocation are segmented. and lastly urban water systems. Governments of most developing countries has subsidized the power and promoted machinery use to get ground water by lowering the tariffs and abolished the bans on imported machinery. is whether used or wasted. to begin with that the increasing technology has raised the cost of new machinery and system along with the debts that one country has taken fail to raise the funds to proceed with the process to control the water scarcity in present and future as well. The other main issue related to government is subsidizing the water use. 6|Page . facing water scarcity. the private irrigation has also been the other issue in water scarcity encouraged by the government. Issue that deals with public irrigation is that the remaining water. households. enabling the users to use as much as water they want to whether in agriculture purpose or so how. after given to water users (farmers. 2002).
Supply of water to massive population needs proper sanitation services.Encouraging the irrigation by tube well has serious consequences. 7|Page . one has to face in the future. Population has increased in cities and the issue related to urban water system is water supply and sanitation service to such a huge population. for this purpose cities have to get the water from underground or more distant sources which increases the cost of supplying it along with the cost of lower quality water treatment. is increased cost of capital and power and most importantly the reduction in availability of water tables.
the demand for water has increased and the cost has also increased for the provision of clean water. Discounting has been an intensive issue and a reason of scarce resource which in this particular case is water. indirect. The core issue is the inability to understand the cost and benefit analysis of such problems to reach to a sustainable or acceptable policy that benefit the current and future generation as well with the reduced cost of executing it. Monetary attribute tells that the price of water paid by the farmers could remain same or increase by some percentage depending on the m3 of water extraction. deriving indirect and non-use values. The other issue regarding the dirty water is adverse effect on aquifer due to fertilizers and pesticides and by unnecessary pumping. given different attributes. leading to scarcity of water. Diminution of aquifer jeopardizes the ecological system.Cost-Benefit Analysis The value of environmental goods or services can be determined by its direct. 2009). non-use. deriving option and use value. As with the growing economy. taking in to account the economic value that benefiters have accrued through that experiment. Ekin barol and its co authors has highlighted the cost benefit analysis framework by explaining it through the experiments that were conducted in 2008. In particular article. One has to take in to account the economic value of use and non-use benefits that will be generated by this plan and weighing these benefits against the costs of implementing this plan. The first experiment related to farmers has attributes of quality and quantity of water and it is specified in the experiment that highly treated waste water is the only mean to maintain the current quality of water otherwise the water quality will be poorer than before. if the plan to replenish the aquifer with treated waste water not taken seriously and the low quality water will destroy the crops leading to decline in the employed farmers by large proportion. Discounting is a reason of deviation from sustainable development by compromising future generation. other public close the Limassol city. The proposed idea to control the scarcity and poor quality of water is to fill the aquifer with the treated waste water in Limassol and close by places. The benefiters are farmers. The other attributes are employment and monetary. The 8|Page . deteriorating the crops. Second Experiment is related to residents given almost the same attributes. Employment level will effected. two experiments were carried out. option and existence values along with the understanding of the cost and benefits of conservation. Industries have polluted the nearby water by its waste which has further raised the cost of their treatment. using different discount rates (Ekin Birol.
kountouris. economic and ecological factors. The article in the end discusses about the cost benefit analysis that is mostly analyzed by the net present value but it does not take in to account the future generation which is quite problematic as future is difficult to predict so it considered uncertain. The whole scenario highlights one important point that farmers and residents utmost need is the better water quality and quantity and there is also large economic benefit from it. The water attribute is to capture the impacts of economics factors on residents as to know the diversification of local crops. The second foremost step in cost benefit analysis is to know the fixed and variable cost to incur in aquifer replenishing plan. Koundouri. 9|Page . This cost benefit analysis is helpful in a sense as it takes in to account the cost and benefits that one group has to accrue in conjunction with sustainability. Whereas in the case of prices favoring those plans with lower prices of water apparent from the negative coefficient. quantity and employment. Survey conducted by sampling the farmers and residents.employment attribute is the same as in the farmer experiment except the fact it takes in to account the economic benefit public gets from social. The ecological attribute is the one which has not been mentioned in farmer choice experiment but has been mentioned in resident experiment to know the effect of scarce water on the region. The results are in the favor of alternatives to maintain the current condition evident from positive coefficients on quality. The result of the CLM reveals that all attributes included in the definition of the aquifer management plan are highly significant determinants of aquifer management plan choice (Birol. Condition logit model was followed to get the results. The last step that should be followed in this analysis is to analyze that whether the plan implementation will be Pareto improvement as this is related to cost-benefit improvement. 2009). Willingness to pay and compensating surplus are the two keys to ensure the replenishment of aquifer maintains the water quality and quantity at the current level. asked for their view on implementation of their plan to refill the aquifer by treated waste water firstly by reminding them of the whole situation of the existing aquifers and damages that has been occurred due to dirty.
where larger parts of the world where water shortage is a problem. Nigel W. 1999. In the regions like tropical.. 1999. snow cover by the end of winter has been considerably reduced by the 2050s and this has implications for the timing of stream flow through the year as indicated in the next section. the increased vapor pressure. Across large parts of North America. The general trend is such that the water resources are affected by the climatic changes. The indicator used to formulate the water necessary to survive is the water resources per capita by watershed. (Arnel. the overall increase in temperature means that there will be less amount of precipitation in the form of snowfall. droughts and other hydrological calamities. utilization and specially water management.Climatic Effects We know that changes in the water quality and quantity because of the changes in climate in return can cause problem of food availability. they are facing an increase in the temperature. The regions which are facing the problem of water scarcity are facing adverse climatic changes. they face an overall reduction in the level of runoff and annual precipitation. and higher wind speeds. On the long run however. In northern Asia. 10 | P a g e . it can be judged from the severity and intensity of the floods. but also the increase in the evaporation rate. northern China and Eastern Europe. and equatorial. however. we can think of the water resources to vary because of the patterns of monsoon cycles. and the evaporation rate has also gone up gradually over the years and it is projected that it will increase up to 17-18% in the year 2025. high latitude. Hence the water resources in these snowcapped regions are in the form of snow fall. In northern snowcapped areas. Nigel W. In a short period. climate change and global water resources). Changes in the climate can cause a number of difficulties when it comes to manage the water resources for the purpose of infrastructure and management practices.. It can be said after reviewing the climatic situations in various regions that the increase in the evaporation is because of many reasons like increase in the temperature. These changes not only reflect the variations in the levels of precipitations. climate change and global water resources). extra winter precipitation leads to an increase in March snow cover (Arnel.
Schaake. the climatic change and water supply. J. 11 | P a g e .According to the paper presented by Schaake and Kaczmarek (1979). They discussed the issue of the water scarcity which might or might not had been the result because of the changes in the climate. Nemec. whereas they also assessed the possible changes that climate brings to the water resources (J. they conducted a study on the climate. sensitivity of water resource to climatic variations). 1982.
What we get out of it Most of the developing countries are facing the problem of water scarcity and has not taken proper measures to control the scarcity. As in public irrigation the price that has been set for farmers ignore the cost of the water they wasted and in private irrigation reduce tariffs and reducing bans on imported machinery to get water from ground water. Cost benefit framework has been the important tool in analyzing the cost and benefit accrued to the different groups. Turkey and many others have already taken steps to deal with water scarcity since a long time ago. which is not efficient and efficiency cannot be achieved in real world. The article that has been reviewed for the issue also made it very easy to understand by dividing the water supply division in to three sections. A perfect econometric model should be used to get a better result without errors in it. If cost to implement the plan is greater than the benefit it is giving. The step that one has to follow of calculating NPV is problematic in sense that it does not predict the future. then should not be opted. these sections highlight only one major issue that government only motivates consumer to use as much water as they want and no strict measures are taken to control. But this perception of the government and related institutions is strongly needed to be changed as the increasing the supply and subsidy on water has only encourages the users to consume water more and more. Increasing discount rates will make the future generation worse off so keeping lower discount rate is better strategy to not increase the cost for future generation. have tried to stabilize conditions for the production and manufacturing 12 | P a g e . It is evident that the developed countries like the US. China. that is public. Discounting leads to Pareto improvement that one has to be compensated to benefit the other person. Cost benefit analysis helps to evaluate that which policy is appropriate. The industries in the developed nations. Eliminating bans on imports and encouraging the use of hydro power is only increasing the consumption of water and energy. private irrigation system and urban water system. Government role in exacerbating this issue is that they perceive that building of dams can increase the provision of the water to their citizens and demands can be fulfilled to some extent with it. Canada. A proper survey should be done to know the Willingness to pay so that to be able to analyze the cost benefit. With growing population the cost of supplying the water has increased which made the sanitation services poor.
The temperature has started to increase in a number of regions mainly because of global warming and hence this causes flooding and in some areas higher evaporation leading to droughts or lower precipitation rates. more of evaporation.departments with the help of technology and their knowledge. 13 | P a g e . or even a decrease in the snowfall in the northern areas. A higher cost of conserving water is one of the major drawbacks for the developing nations and the third world countires for not taking any steps to conserve water. and increased melt down of the glaciers and snowcaps. Moreover Climatic changes as a result of deteriorating environment have played its role in further alleviating the problem of water shortage. The main problems lies in the fact that temperature of the world is increasing overall and the consequences have to be faced-less precipitation. They are not provided with enough incentives to carry to take any steps to save water.
Pakistan is an agricultural country and it is considered as the backbone of our country. while the opportunities for further development of water resources are diminishing (Ayaz Ahmed. Industries that are polluting the water heavily by toxicants are sugarcane. No precautionary measure has been taken seriously so far as it is obvious from the fact that Pakistan has only three waste water treatment plants. The other issue regarding the polluted water is linked to industries. In Pakistan industries are located at distant places from the very edge of the developed cities but near to rural areas. Sewage and dirty drinking water problem is highly evident in Karachi as no construction or maintenance has been done on broken water pipes and the underground dirt has polluted the water in the pipes. dumping the waste directly or indirectly in to lakes thus polluting it with toxic chemicals. precisely. rain. Balochistan and KPK are the provinces which are highly affected by the salinic. The consumption of water is highly needed in agriculture sector for cultivation and other purposes beside this our industries work by hydropower and for this purpose dams are built.“Managing the Indus river 14 | P a g e . cement and fertilizers. The demand for water is increasing rapidly. Expansion in irrigation has led to other serious problem that is salinic. As been said that Pakistan has various water resources such as rivers. Cultivation of land has to be increased so as to produce more food with the increasing demand of the increasing population. Government perceives that large quantity of dams will overcome the problem in supply side which in turn has adversely effected the nearby environment. tanner. surface water and ground water. Salt water intrusion has increased the proportion of dirty water. The storage loss due to dams has increased through the years. which has polluted majority of the water tables and poor sanitation services with the rising sewage overflowing towards the rural community. lakes. soak up all the mineral salts from the earth. Water is the essential need for the living and survival of an economy.How can it be linked to Pakistan Pakistan has been blessed with water resources through Himalayan and Karakoram. glaciers. The increasing demand of water is mainly due to increasing population growth which has made it more difficult for the government to fulfill the need of every citizen. Historical background of Pakistan related to water resource has not been good as after the independence had only two three dams which has increased in number till now but are not as efficient as they should be. Pakistan is quite behind the other developing counties in the race of development and overcoming the issues regarding the water scarcity. 2008).
Politics always had a negative impact. Balochistan. It has been predicted by the economists that Pakistan will face the water scarcity issue in the near future as the population is increasing and the availability of water resource is diminishing. Pakistan has been unable to form a better strategic plan to overcome these issues or problems related to water. and sea level rise has taken place. 2004). river or canal. to exposing the country to socioeconomic losses. Balochistan and KPK. where the sources of water has depleted. as in instead of solving the situation. as compared to Punjab. Sindh. ice extent. 15 | P a g e . Every year the situation worsens more than before and government is highly ignorant to even strategize to control these issues. Due to increase in temperature the climatic changes in the form of rain fall. quite apparent from the level of scarcity in KPK. Climate change will add to the susceptibility of the agricultural zones to natural catastrophes such as storms.basin the light of climate changes”. worsen the situation more than before. In Punjab rural areas the water supply is through the piped water or hand pump and large percentage of people in Sindh. Stream flow reduced and drying up of wells especially in Quetta. depends on dug well. floods and droughts in addition. Global warming is also one of the reasons in water scarcity. which has been evident from the disputes between Sindh and Punjab. water supply is falling behind agricultural and urban demand particularly in Karachi where population growth exceeds the physical institutional capacity of the public water system (Omar. Corruption has constantly been the major factor in worsening the situation of allocation of water resource or any other resource between different cities along with rural and urban. The climatic changes have also adverse effects on the water availability as the green house gases which trap the solar radiations and increase the temperature of the earth.
greater efficiencies. However this is an uncertain method to induce rainfall and there aren’t many evidences to support.Way Forward Water scarcity is increasing at an alarming rate and we need to conserve this precious liquid. camelthorn. which is becoming a great concern for many engineers. or salt cedar America (Colorado River basin Water Management: Evaluating and Adjusting to Hydroclimatic variability. 1995. There are many solutions provided by many environmentalists to deal with the shortage. Desalination has in fact resulted in cost reductions. These species are able to survive in any sort of habitat and are imposing danger to water parks and many other resources. There are many ways that the water can be conserved to meet future needs. and nearly half of the world’s water is desalinated by the Middle East countries and 15% by North America (Colorado River basin Water Management: Evaluating and Adjusting to Hydroclimatic variability. Agricultural water conservation can bring about remarkable results such as employing different cropping patterns. and most importantly to preserve the environment. 16 | P a g e . Nevertheless it is relatively inexpensive (Frederick K. Vol. This method converts the sea water to fresh water for the commonly known uses of water. This type of a technique works against the harsh climatic conditions that deprive the lands with water resources. America’s water supply: status and prospects for the future. 2007) Another interesting way to conserve water is to remove the water-consuming invasive plant species namely. Ravenna grass. and different salinity control programs and so forth. and tamarisk. However less attention is paid to the desalinization of water in the subterranean and surface brackish water. Russian olive. cheat grass. to save money. This technique stimulates ice crystals to form precipitation-an attempt to induce rainfall.1) Another method is Desalination. 2007). Cloud Seeding is one of the most recent scientific inventions. and governments.D.
These programs include water conserving technologies (e. market incentives. By far Recycling is one of the latest methods that the people can implement to conserve water. and public education announcements encouraging urban water conservation (Colorado River basin Water Management: Evaluating and Adjusting to Hydroclimatic variability. lower-flow plumbing fixtures and more efficient irrigation systems). new landscaping techniques and the use of drought-tolerant (xerophytes) plants.Urban Water conservation is also under attention. regulatory policies.g. 17 | P a g e .. 2007). and it is not only efficient but also conserves the ecology.
D.The Pakistan Development Review.. (2002). climate change and global water resources Birol. 2007. Thirsty Work. America’s water supply: status and prospects for the future. N. 2004. No. Assessing the economic viability of alternative water resources in water scarce region: the roles of economic valuation. Vol. N. Vol. S. Milmo. ( 2007).1. Iftikhar.. 46. Sensitivity of water resource systems to climatic variations. G.retrieved from http://www. (2009). C. Water Resources and conservation Strategy of Pakistan. Llyods. The National Academies Press Frederick K. Coping with water scarcity: the governance challenge Tisdell. Yiannis. Chemistry World. Alan. Phoebe. Global Water Scarcity. Ekin.Bender.Nemec. 1999. Ecology and the Environment. 1995. Economics. Chaudhary. Schaake. 18 | P a g e .M.gcrio. 1982. Colorado River basin Water Management: Evaluating and Adjusting to Hydroclimatic variability. Economic change and environmental issues: Policy reforms and Concerns in Australian Agriculture. Hydrological sciences-Journal L .org J.References Ahmed. Kountouris. J.. September 2008. Ayaz.. 2007. Arnell. costbenefit analysis and discounting. Henna. The impact of water scarcity and pollution on the textile industry: A case study from Turkey. 4. koundouri.W. Risks and challenges for Business. p66-68 Richards.
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