• Recent Trend for the Application of Total Economic Value (TEV) Estimation to Groundwater Resources
  • Song, Sung-Ho;White, Paul;Zemansky, Gil;
  • Rural Research Institute, Korea Rural Community Corporation;Institute of Geological and Nuclear Sciences, New Zealand;Institute of Geological and Nuclear Sciences, New Zealand;
  • 지하수자원의 경제적 가치 평가 적용과 관련한 최근동향
  • 송성호;;;
  • 한국농어촌공사 농어촌연구원;뉴질랜드 GNS 연구소;뉴질랜드 GNS 연구소;
Abstract
Total Economic Value (TEV) provides a framework to estimate the economic value of water resources including groundwater with multiple applications to natural resource economics and environmental economics. Crucial to the application of economic analysis to natural resources are techniques to value the resources as an economic value that is expressed in monetary terms. On the other hand, the aim of TEV estimation is to determine the economic value of water resources including 'use' with production and recreation and 'non-use' such as existence values. TEV is used to assess the economic value of water resources for the multiple goods, and environmental 'services' that are provided by a water resource and also used to assess options for water use, for example balancing production values provided by water resource use against the cost of resource degradation by that use. The value of TEV can be assessed over time where pollution or unsustainable use may reduce the economic value of an environmental asset. Therefore, values are used to assess options of resource use, sometimes leading to policies on resource conservation or allocation. In conclusion, the application of TEV would be well adjusted over Jeju Island where groundwater resources account for more than 98% water resources and the budget of water demand/supply shows disparity over the Island.

Keywords: Total Economic Value (TEV);groundwater;natural resource economics;environmental economics;policy;

References
  • 1. Bergkamp, G. and Sadoff, C.W., 2008, Water in a Sustainable Economy. In L. Starke(Ed.), State of the World 2008: Innovations for a Sustainable Economy (25th Anniversary ed.)., p. 107-122. New York, NY, United States: W.W. Norton & Company.
  •  
  • 2. Brouwer, R., Barton, D., Bateman, I., Brander, L., Georgiou, S., Martin-Ortega, J., Navrud, S., Pulido-Velazquez, M., Schaafsma, M., and Wagtendonk, A., 2009, Economic Valuation of Environmental and Resource Costs and Benefits in the Water Framework Directive: Technical Guidelines for Practitioners. VU University, Amsterdam. p. 240.
  •  
  • 3. Crutchfield, S.R., Cooper, J.C., and Hellerstein, D., 1997, Benefits of Safer Drinking Water: The Value of Nitrate Reduction. U.S. Department of Agriculture, Economic Research Service. Food and Consumer Economics Division. Agricultural Economic Report No. 752. Washington D.C.
  •  
  • 4. Field, B.C., 2001, Natural Resources Economics: An Introduction. McGraw-Hill. p. 463.
  •  
  • 5. Field, B.C. and Field, M.K., 2002, Environmental Economics: An Introduction. 3rd ed. McGraw-Hill. p. 506.
  •  
  • 6. Fornes, J.M., de la Hera, A., and Llamas, M.R., 2005, The silent revolution in groundwater intensive use and its influence in Spain. Water Policy, 7, 253-268.
  •  
  • 7. Gilpin, A., 2000, Environmental Economics: A Critical Overview. Wiley. p. 334.
  •  
  • 8. Green, C., 2003, Handbook of Water Economics: Principles and Practice. John Wiley & Son. p. 443.
  •  
  • 9. Haab, T.C. and McConnell, K.E., 2002, Valuing Environmental and Natural Resources - The Economics of Non-market Valuation. Edward Elgar. p. 326.
  •  
  • 10. Job, C.A., 2010, Groundwater economics. Cambridge University Press. p. 661.
  •  
  • 11. Marcouiller, D. and Coggins, S., 1999, The Economic Value of Water: An Introduction. University of Wisconsin-Extension publication G-3698-1. p. 6.
  •  
  • 12. National Research Council, 1997, Valuing Ground Water: Economic Concepts and Approaches. United States National Academy Press.
  •  
  • 13. NGWA, 2010, Groundwater Use for America. National Ground Water Association Factsheet 09/2010.
  •  
  • 14. OECD, 2000, Valuing Rural Amenities. OECD Proceedings. p. 180.
  •  
  • 15. Reserve Bank of New Zealand, 2011, www.rbnz.govt.nz/statistics/.
  •  
  • 16. Turner, K., Georgiou, S., Clark, R., Brouwer, R., and Burke, J., 2004, Economic Valuation of Water Resources in Agriculture. From the Sectoral to a Functional Perspective of Natural Resource Management. FAO Water Reports 27. p. 204.
  •  
  • 17. White, P.A., 2011, Economic drivers of land use and groundwater use by irrigator, Waimea Plains Nelson, New Zealand, New Zealand Journal of Marine and Freshwater Research, 45, 513-524.
  •  
  • 18. White, P.A., Hong, Y-S., and Reeves, R.R., 2003, Long-term sustainability of groundwater resources: an approach using integrated hydrogeological and economic models. Episodes, Journal of International Geological Association, June, 119-123.
  •  
  • 19. White, P.A., Sharp, B.M.H., and Kerr, G.N., 2001, Economic valuation of the Waimea Plains groundwater system. J Hydrol(NZ)., 40, 59-76.
  •  
  • 20. White, P.A. and Sharp, B.M.H., 2002, Economic Value of Water in the Manawatu-Wanganui Region. GNS Client report 2002/82. p. 112.
  •  
  • 21. Young, R.A., 2005, Determining the Economic Value of Water. Concepts and Methods. Washington. RFF Press. p. 359.
  •  

This Article