9.0 Recommendations
The estimation of water economic value depends on allocation data, use information and estimates of the unit economic value of water. Allocation is relatively well understood but use and unit economic values are poorly understood. Better estimates of use and economic value will allow consideration of regional differences in value and may allow comparison of the values associated with different uses. Better estimates will also give more confident identification of New Zealand's nationally important water bodies. The following recommendations are offered to improve our estimates of the economic value of water and reduce the errors associated with calculations of water values in surface catchments and groundwater aquifers:
- regional council allocation information use standardised codes so that the purpose of allocation is consistently described across regions
- undertake studies of water use by municipalities and industrial users. Select users so that a reasonable geographic and sectoral spread will allow better estimates of water use as a proportion of allocation
- improve estimates of the unit economic value of water by completing surveys of users to assess economic value and water use
We also recommend that the catchment map used in this study be completed to cover the few missing catchments and that all catchments be named.
The lack of quantitative estimates of the value of water is a significant information gap. The absence of these data is also a serious shortcoming in rational decision-making on water resources in this country. A number of econometric techniques are available to undertake this analysis and it is recommended that they be used in targeted studies to establish values using the total economic value framework. This report can assist with the selection of study areas for further data acquisition.
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