1. Purpose
The task of the Waitaki Water Allocation Board is to prepare a water allocation plan for the whole Waitaki Catchment. The SKM report on a National Cost Benefit Analysis of Proposals to Take Water from the Waitaki River identified a lack of information on option and existence values. Having identified that the option and existence values are unknown, the issue that now arises is how significant is this omission - in other words, what is the likely magnitude of these existence (and option) values, and how do they relate to other values established for the river? In addition, how will such values change with variations in flow regimes?
The measurement of existence and option values requires careful attention to economic theory, thorough research planning and execution, and, above all, sufficient resources. This report does not attempt to measure existence and option values. It should be viewed more as a think piece aimed at providing the following:
- a brief overview of option and existence values as they relate to the Waitaki River
- a synthesis of any relevant information or studies that might indicate the significance of such option and existence values for the Waitaki River
- to the extent possible, a prediction of the size of option and existence values relative to other values established for the river
- a discussion of how such values could be altered by allocation decisions on the river (includes allocation to in-stream uses as well as to activities).
