Technological Analysis

We have been talking about controlling the use of underground water in Bangkok and how to sustain the water level on in problem definition. There are available technologies to measure and monitor the underground water level in Bangkok. The system was created by department of groundwater resources. The system also allows us to check how many well in particular area and where are they. The 3D map and database of underground water usage is available on http://map3d.dgr.go.th/. 

In contrast, there is no water replenishment technology in Thailand. Thailand is still relying on natural replenishment method. This could be the opportunity for entrepreneur to solve this problem. According to the research, there is similar problem on over use of underground water in San Francisco, USA 

Natural Capitalism

              This is the Natural Capital model for our groundwater project. By following this system loop the firm should obtain an imitated ecosystem services  that allows the groundwater to be replenished after its extraction. The reason the firm should follow the model is to increase the sustainability of groundwater usage.

Definition of Natural Capital

          

              "Natural capital refers to the natural resources and ecosystem services that make possible all economic activity, indeed all life. These services are of immense economic value; some are literally priceless, since they have no known substitutes. Yet current business practices typically fail to take into account the value of these assets-which is rising with their scarcity.

The first of natural capitalism's four interlinked principles, therefore, is radically increased resource productivity. Implementing just this first principle can significantly improve a firm's bottom line, and can also help finance the other three. They are: redesigning industry on biological models with closed loops and zero waste; shifting from the sale of goods (for example, light bulbs) to the provision of services (illumination); and reinvesting in the natural capital that is the basis of future prosperity.

Natural Capitalism shows how these four changes will enable businesses to act as if natural capital were being properly valued, without waiting for consensus on what that value should be."

Reference : "A Road Map for Natural Capitalism"

Legal and Environmental Analysis

Legal Analysis


Bangkok government issued an underground water usage act in 1977.  The act was mean to control the activities that relate to underground extracting and releasing.  The government has realized this problem could become more serious and lead to land subsidizes which would result in flooding and infrastructure damages.   One of the most effective ways to control the use of water is by charge the money to user. 

The government has started to install the water meter and collect fee from the use of underground water since 1985-2000

Exhibit 1 Price of underground water per cubic meter

Form the graph, the subsidize rate and price of underground water is divert related.  When the price go up the subsidize rate go down significantly.

Beside from let industry pay for water usage, the government also enforces the law on underground water related businesses.  The person who wants to use underground water will need to get approval from local government and department of ground water resources. 

Key focus on Legal enforcement over underground water usage (www.dgr.go.th)

1.Department of ground water resources would allow to extract water at maximum 1.25 millions cu.m cover 7 provinces; Bangkok, Samutprakarn, Patumthani, Nonthaburi, Samutsakorn, Ayudtaya and Nakornpathom. 

2. In case drilling the ground more than 400 meter, the person must follow Natural Packed Well standard where the pipe must follow ASTM A-120 Standard Pipe or API 5L standard weight line pipe.

3. There will be fine and penalty applied, in case there is an unreported use of ground water. 

The detail of law on make use of underground water can be found in www.drg.go.th   and act of underground water issue 1977.

The policy has proved to be successful.  However in reality the land subsidize rate is still high and would lead Bangkok to stay 1 meter under sea level in 2017.  There is also a doubtful on how strong government enforces the law on underground water usage which also an opportunity for us to do something. 

Environmental analysis

Bangkok was declared as crisis area for overuse of underground water since 1983 where land subsidizes rate is more than 10 cm. /year.  The over use of underground water can create a big impact on agricultural sector and lead to flooding in several areas of Bangkok.  As the ground level become lower than the sea level when rain season come the water would unable to release in time.

According to geography of Bangkok, the city is located nearby the sea therefore the overuse of underground water would lead to sea water intrusion.  The sea water intrusion could create huge lost to entire agricultural area nearby and also eco-system of Bangkok.  The source of water would also be contaminated and unable to use for a long time.

Now there are several parties involved in analyze the use of underground water.  There is underground water mapping which created by Department of groundwater resource, Asia Institution of Technology and Military map department under the supervision of office of National environment board.   

PESTLE Analysis

PESTLE stands for Political, Economic, Social, Technological, Legal and Environment. PESTEL analysis is a tool that can aid organization making STRATEGIES understand the EXTERNAL environment in which they operate now and will operate in the future.

Political
The ministry of natural resources and environment has set the committee to issue the resolved plan of the over-usage of underground water  which is to decrease usage of underground water even stop using it. The Department of Groundwater Resources(DPR) under the ministry of natural resources and environment  have complied with the underground water usage control plan,  in the  short-run by canceling the use of underground water in the area in which can access to the tap water, and also raised the price of underground water . In the long-run, by launching  a campaign  for Thai people to use tap water instead of underground water.

Economic
The more products produced, the more water used. Thailand’s economic grows and expands. This can cause increasing in the usage of underground water. From the DPR’s statistic, the majority of using underground water is industrial sector. The over-usage of underground water can cause land subsidence leading to building and road collapse. This can lead the huge loss for the economy.

Social

Due to increased demand of water and limited water supply through sources like tap, people keep extracting more of underground water.There is a general behavior that water is the necessity of humans and it is for free. As a result, people owning the plots in Bangkok feels its their right to extract water from their premises. So does the industries.As the civilians and industries have high social influence, it is hard for the authorities to restrict them without supportive law.

Technological
We have been talking about controlling the use of underground water in Bangkok and how to sustain the water level on in problem definition. There are available technologies to measure and monitor the underground water level in Bangkok. The system was created by department of groundwater resources. The system also allows us to check how many well in particular area and where are they.

Legal

Bangkok government issued an underground water usage act in 1977.  The act was mean to control the activities that relate to underground extracting and releasing.  The government has realized this problem could become more serious and lead to land subsidizes which would result in flooding and infrastructure damages

Environment
Bangkok was declared as crisis area for overuse of underground water since 1983 where land subsidizes rate is more than 10 cm. /year.  The over use of underground water can create a big impact on agricultural sector and lead to flooding in several areas of Bangkok.  As the ground level become lower than the sea level when rain season come the water would unable to release in time.