PROTECTING BEIJLNG'S MUNICIPAL WATER SUPPLY THROUGH WATERSHED MANAGEMEN AN ECONOMIC ASSESSMENT¹

Abstract

Watersheds above the Miyun reservoir, a principal source of surface water for Beijing, are designated to be managed for water production, but under the principle of multiple use. Because of the scarcity of arable land, these watersheds cannot be managed only for drinking water. Efforts are under way to reduce sediment delivery, improve the quality of water entering Miyun reservoir, and improve the welfare of watershed inhabitants. An economic appraisal of a watershed management project for the 3,298‐ha Shixia watershed above the Miyun reservoir, indicates a 24 percent economic rate of return on the investment made in the project. The net present value (NPV) of the project, calculated at a discount rate of 10 percent, is approximately US$3.49 million. Sensitivity analyses indicate that a doubling of labor costs lowers the NPV to US$2.07 million and a 10 percent decrease in benefits lowered the NPV to US$2.87. It is concluded that the implementation of conservation practices on the Shixia Demonstration Watershed represent an economically efficient use of resources.

The Public Water Supply Protection Value of Forests: A Watershed-Scale Ecosystem Services Analysis Based upon Total Organic Carbon

“…In was used in an economic analysis of watershed management to protect Beijing's water supply. Valuation was conducted on parameters with an existing market, such as agricultural production, with the acknowledgement that improved water quality is an additional benefit not requiring explicit valuation [13]. The benefits of increased agricultural production, reduced flooding and soil loss, and water yield alteration supported watershed management making economic evaluation of water quality benefits unnecessary.…”

Distributional consequences of upstream tree plantations on downstream water users in a Public–Private Benefit Framework

“…In Fiji, planting of pines in the catchment for a new hydropower reservoir was observed to reduce water levels, resulting in chronic shortfalls in power generation for the capital city (Drysdale, 1982). Shuhuai et al (2001) report protection of Beijing's municipal water supply by cancellation of a proposed plan for pine plantations in its catchment.…”