Cost of charging for water use in the Brazilian Cerrado hydrographic basin

Kalesson Martins Alencar,Michel Castro Moreira,Demetrius David Da Silva

doi:10.4136/ambi-agua.2238

Kalesson Martins Alencar, Michel Castro Moreira + Show 1 more

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https://doi.org/10.4136/ambi-agua.2238

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Abstract

This study analyzed the relative cost of charging for water use with respect to water users' production costs in the Grande River Basin, located in the Brazilian Cerrado, considering the principal charging methods existing in Brazil. The study was developed based on: the rights of use grant data surveys pertaining to water resources and the classification of bodies of water into usage classes; a simulation of charging for water use through various methods; and an analysis of the relative cost of charges on the production cost of the water users. The charging methods used by the following were studied: the Committee of the Basin of River Paraíba do Sul (CEIVAP), the Committee of Basins of Piracicaba, Capivari and Jundiaí Rivers (PCJ), the São Francisco River Basin Committee (CBHSF) and the Doce River Basin Committee (CBH-DOCE). The study verified that irrigated agriculture is the sector that uses the most water, representing 46.4% of the outflow granted in the basin. Considering the different charging methods, the collection in the basin of the Grande River potentially allows for investments of US$ 1.2 million (PCJ), US$ 920,000 (CEIVAP), US$ 426,000 (CBH-DOCE), or US$ 297,000 (CBHSF) in this region, leading to average relative costs of 0.68% (irrigation), 0.28% (human) and 0.08% (industry). For this reason, there is the possibility of implanting charges for water use in the Grande River Basin, with either the CEIVAP's or PCJ's method appearing to be the most suitable, given that the parameters of these mechanisms are in line with existing activities in the basin.

Highlights

Demands from different users have been causing conflicts over water use worldwide (Garcia-Valiñas et al, 2013; Nazer et al, 2010)
Among the management instruments provided for in the National Water Resources Policy (NWRP), established by Law No.9.433/1997 in Brazil, charging for using water resources seeks to: “recognize water as an economic property and make users aware of its real value; to stimulate the rationalization of water use; and to get financial resources for subsidizing the programs and interventions covered in the plans for water resources” (Brazil, 1997)
Given the importance of the Grande River Basin, most notably through conservation needs for the Cerrado Biome, its intensely irrigated agriculture and the hydroelectric potential of the region, this study sought to analyze the relative cost of charging for water use with respect to water users' production costs in the Grande River Basin, taking the main charging methods existing in Brazil into account, aiming to provide a basis for the implementation of this management tool in order to contribute to the multiple and rational use of water

Summary

Introduction

Demands from different users have been causing conflicts over water use worldwide (Garcia-Valiñas et al, 2013; Nazer et al, 2010). Among the management instruments provided for in the National Water Resources Policy (NWRP), established by Law No.9.433/1997 in Brazil, charging for using water resources seeks to: “recognize water as an economic property and make users aware of its real value; to stimulate the rationalization of water use; and to get financial resources for subsidizing the programs and interventions covered in the plans for water resources” (Brazil, 1997). Charging is already enforced in various river basins across Brazil, such as the Paraíba do Sul River; Piracicaba, Capivari and Jundiaí Rivers; São Francisco and Doce Rivers, which use the main existing charging methods in Brazil They were established, respectively, by the Committee for the Integration of the Hydrographic Basin of River Paraíba do Sul (CEIVAP), Committee of Hydrographic Basins of Piracicaba, Capivari and Jundiaí Rivers (PCJ), São Francisco River Hydrographic Basin Committee (CBHSF) and Doce River Hydrographic Basin Committee (CBH-DOCE)

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