WSP09067 - Laserfiche WebLink

Home Browse Search

OG;)3:;? 35 mlnimize any change in the ecology. Existing new laws relating to the protection of the environment contain all the weapons which the environmentalists need. Indeed, signs of over-kill are evident. " Dr. Steve H. Hanke, Assistant Professor, Departments of Geography & Environmental Engineering, and Political Economy, The Johns Hopkins University "Although there are differences in emphasis between evalu- ation and cost-sharing--evaluation dealing with benefit-cost relationships in production and consumption, and cost-sharing centering on the incidence of benefits and costs--they cannot be separated in proper economic analysis. . . "Cost allocation, reimbursement and cost-sharing proce- dures should be integral parts of the evaluation process. II * }):: )):: * :::.: "If evaluation procedures are to have consistency, the following reimbursement principle should be adopted by the WRC: the beneficiaries of water resource projects should be charged the full cost of the goods and services provided them unles s either the cost of imposing and collecting such a charge is pro- hibitive or an explicit decision to redistribute income is made and it can be demonstrated that the incidence of project benefits is consistent with this decision. II * * * )t:' * "Local beneficiaries favor inflated program objectives if they are not held accountable for the costs that they impose. To eliminate this type of cost-sharing bias, local beneficiaries should be required to share the costs of a project in proportion to their incremental benefits. "Water resource management has historically been based on managing supply--augmenting supply to meet 'requirements.' Demand management through proper cost allocation, cost-sharing, and pricing is at variance with standard practices; price is almost never employed to manage use.