The economic value of the south saskatchewan river to the city of saskatoon: (iii) value of alternative minimum river water flow

Abstract

This is the last of a three part report on economic valuation of the South Saskatchewan River for the city of Saskatoon. This paper examines the value of the river in terms of its marginal water flow. River flow has an economic value particularly if changes in the flow result in changes in economic benefits (or costs). Several benefit components, such as instream recreation, power generation, waste transport, aesthetics, water supply, and the aquatic ecosystems are associated with instream flow. These benefits were examined in this study for the South Saskatchewan River from a city of Saskatoon accounting perspectives. Three levels of minimum flows were examined: present flow (42.5 rrr/S), reduced flows (25 m3/S) and increased flow (100 m3/S). Three conclusions are warranted on the basis of this study: One, that benefits from increased flow are very small, less than one percent of the annual value of the river to the city. Two, benefits from increasing vs. decreasing the river flow are not symmetrical. In fact, those associated with increased flow were even lower than those associated with decreased flow. Three, value of river flow should be examined in a integrated manner, such as both benefits of using the water within the city boundaries are considered together with those elsewhere. These two values suggest a situation of trade-off exists. Thus, explicit recognition to these values should be made by policy makers. © 1994 Taylor & Francis Group, LLC.