Monday 27 June 2022

Ecological Cost of Water


Source: https://www.newyorker.com/tech/annals-of-technology/where-the-water-goes

Water is the primary resource that supports a country's socioeconomic development. The exploitation and utilization of water resources have promoted national economic development but have seriously endangered the sustainability of water resources. Some of the major water-related issues are as follows:

  • Water overuse

  • Water pollution

  • Water stress due to urbanization

  • Unsustainable practices

  • Lack of efficient management

  • Climate change

Causes of Overexploitation of water



  • Failure to implement water resource policies

  • Lack of awareness among customers

  • Incentives favor economic growth over environmental conservation (GDP)

  • Lack of social responsibility among companies

What are Ecological Costs?

Eco-costs are a measure to express the amount of environmental burden of a product on the basis of prevention of that burden. The costs which should be made to reduce the environmental pollution and materials depletion to a level that is in line with the carrying capacity of our earth.

What is Environmental Accounting?

Environmental Accounting is the process of recording, analyzing, and reporting financial and ecological effects on corporate organizations to address environmental issues. Using accounting information systems, recognized as management control systems, could integrate accounting, statistics, environment, and economic development to maximize water resource utilization. A financial information system built on social responsibility accounting could strengthen enterprises’ social responsibilities for environmental protection.

Direct ecological costs

  1. Assessment costs for baseline studies, environmental impact analysis and the preparation of Environmental Impact Assessment (EIA) studies.

  2. Prevention costs incurred in operations that prevent environmental impacts.

  3. Mitigation costs for both new and existing facilities or activities, like control of emissions, effluents and discharges.

  4. Reclamation costs for returning the site of activity and surrounding affected areas to a state “agreed on”.

  5. Compensation costs to affected parties for irrecoverable damage to the environment.

Indirect ecological costs

Indirect costs include the depletion of natural resources, environmental components on water, soil, and habitat; and conservation and efficiency of resource utilization. External environmental costs are those that cannot be accurately measured in monetary terms and assumed by enterprises.

What is the ROI?


  • An effective environmental cost accounting of water resources could solve the problems of water quality deterioration and water environment destruction.

  • Enabled companies and their partners in the supply chain to gain significant cost savings from environmental considerations.

  • Reduce their operating costs, better price the products as well as save natural resources.

  • Implementing eco-efficiency indicators has assisted them to use more efficient energy and resources in developing their products.

  • EMA is associated with innovation and cleaner production. Thus, it leads to increased shareholder value and improved firm reputation.


EMA Tools

Some available techniques of EMA can be employed to meet the specific need of entities,

namely costing analysis, investment appraisal and performance management.


The EMA tools include: 

  • Life Cycle Assessment  (LCA), 

  • Activity-Based Costing (ABC), and

  • Material Flow Accounting,  

  • Total Cost Assessment  (TCA), and

  • Environmental  Balance Scorecard (EBS) or 

  • Sustainability Balance Scorecard (SBSC).


In terms of Water

In terms of water, direct costs include the price of water, operational costs and investments in water infrastructureThe second is indirect costs like environmental fines, insurance premiums, and legal and corporate social responsibility costs

Finally, there are costs related to risks, which could include the financial consequences of water shortages, flooding, financial such as credit ratings and regulatory risks, and even reputational risks.


Defects in the Water Supply Infrastructure

The direct costs of water depend on the networked water supply infrastructure including factors like the source of water, transport distance to the treatment plant, treatment process, transportation to the city and distribution channels. These also include operation, maintenance costs, and sinking funds. Indirect costs would also include water lost due to leakages in pipes or tankers.

Issues with respect to water management in cities:

  • Monopoly of the water sector, rural areas tend to receive less water

  • Poor communication among the different departments within water supply organizations like BWSSB

  • Water is expensive and inaccessible to the poor

  • Lack of regulators and monitoring of tariffs



In peri-urban areas of Bangalore, farmers are aware that their lands would be taken over by municipal corporations. They grow cash crops and sell wood, used for scaffolding in houses. Borewells on these lands extract water and supply it to the city via tankers. Hence, depleting the ecological value of the land completely. 


Again, there is no sense of responsibility regarding water management and the importance is given to the economic value of the land.


Rainbow Drive Layout


The Rainbow Drive layout is a private gated residential 34-acre-layout. On all the built-up plots, a total of 258 households are residing and around 90 households are tenants. The layout did not have any formal water supply from the Bengaluru’s water utility, the BWSSB and completely depended on its borewells as a water source.


The Plot Owners’ Association took various measures to tackle water problems:

  • Ban of digging private borewells and residents depend on community borewells alone 

  • The POA invested in community recharge wells, integrated with storm water drains. (3 feet in diameter and 20 feet in depth)

  • Efforts were made to undertake an outreach and engagement program to the wider resident community of Rainbow Drive about the benefits of rainwater harvesting.

  • The residents were given the option to have household recharge wells or sponsor a recharge well in the community. They provided a discount of Rs 100 to the people who have done household RWH system.

  • To reduce water wastage, consumption meters for each household and a tariff of Rs 6/ KL were introduced in 2006. Later, it was found that the water tariff only accounted for the electricity used to pump borewell water. It did not account for the maintenance costs of bore wells, or the costs of cleaning the water tanks, waterproofing leaks, or fixes to faulty piping. Most importantly, it was found that the cost of treating sewage was not accounted for in the household water bill at all. The true production cost of water was determined to be Rs. 25 per kilolitre.

  • In 2015, they employed NEERI’s Phytorid Technology to treat wastewater. The technique uses anaerobic digestion, followed by a root zone treatment.

    Source: http://bengaluru.urbanwaters.in/wp-content/uploads/sites/3/2018/10/Biome-GSI-Paper-Citizens-demonstrate-water-management-solutions-for-the-city-2.pdf


Benefits achieved :
  • The groundwater table has risen to 250 ft and recharge wells have been able to reduce flooding during monsoons. 

  • The freshwater demand per house has reduced significantly. From 280 to 150 LPCD

  • Using the Phytorid technology has reduced the energy cost of treating water. It has achieved a savings of Rs 80,000/- per month on operations costs. 

  • The total estimated recharge of the layout now exceeds the groundwater withdrawn from its borewell. Two borewells provide 1.3 lakh liters of water every day. 80 KL of water is treated at the STP and reused within the community.


Solutions for the City Level


  • A decentralized strategy

  • Citizens should demand management through education and appropriate tariffs on water, rainwater harvesting and groundwater recharge for flood control and groundwater sustainability, and, wastewater treatment and reuse to reduce freshwater demand and ensure responsible discharge of wastewater.

  • Retail meters in every legal connection to monitor water consumption and collect tariffs accurately. So, if consumes more water he should pay through and increase the block tariff.

  • The cost of treating wastewater should also be taken into the account according to the polluter pays principle.

  • A constant flow of information and a dialogue with the politicians and citizens of the city would help everybody understand what the future holds for them in a water-constrained city.


Wastewater- Lakes in the Kolar district

Treated water from Bangalore flowing into a lake in Kolar
More than 300 million liters per day of a targeted 440 MLD is being transferred from Bengaluru to the adjoining, parched district of Kolar and parts of Chikkaballapur through the Koramangala-Challaghatta Valley project. This water is then pushed into 126 lakes scattered around Kolar, many of them left dry by successive droughts. The purpose of the project is to rejuvenate the depleted groundwater in the drought-hit Kolar region.


Investments/ Costs

  • De-silting of the lake and feeder channels

  • Maintenance of wells and bunds, sluice gates, etc

  • Tree planting in the catchment area

  • Impact of the Quarry in the catchment


Benefits 

  • An increase in the water levels in the wells

  • Amount of crops grown

  • Cash crops

  • Fishing


By Sneham Pandey and Prajwal Chendkapure


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