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<br />impacts in the agricultural sector were overstated and because of neec: to <br />o <br />o d1scount for the multi-year lag between upstream sal1nfty reduC'tion and <br />~ <br />Ct-) downstream water quality 1mprovefT.ent. the rea 11zed benef1ts per un 1t of salt <br /> <br />removed are probably less than half that claimed in t~e government's analysis.2 <br /> <br />Applying this result to so-called "structural" (pub11c investment) solut1cns to <br /> <br />mostly natural salinity sources. only five of t...enty proposed projects Iret <br /> <br />economic feasib1l1ty standards. <br /> <br />This art1cle extends our ear' fer analysis to non-structural <br /> <br />(institutional) control approaches. and 15 an example of "analytical <br /> <br />1nst1tutional econom1cs" (Schmid). Rather than assuming ex1stfng 1nstitutloral <br /> <br />arrangements as given. the effects of changing the rules of the game are <br /> <br />ex am f ned. <br /> <br />(See also Randall>' <br /> <br />Pol icy fmpacts are assessed in terms of <br /> <br />allocat1ve efffc1ency and 1'10.. the benef1ts and burdens of alternat1ve control <br /> <br />progn.ms are d fstr1buted. <br /> <br />Allocative efficiency 15 measured accord1ng to <br /> <br />conventional welfare economfc criteria; that 15 whether and to what degree <br /> <br />benef1cfar1es' .1111ngness to pay for favorable 1mpacts of a. strategy exceed <br /> <br />the w1l1ingness of part1es aaversely affected to pay to a....o1d its <br /> <br />1mplementat1on (M1shan). <br /> <br />Alternative entitlement situat10ns are ident1f1ed. <br /> <br />together w1th the fmplfed l1abl1fty or respons1bl1ities for bear1ng the costs <br /> <br />of sa 1 1n 1ty damages andlor abatement expenses. The d 1str1but1ve impacts are <br /> <br />captured by estimating the tangible economfc effects on Upper Basin 1rrigators. <br /> <br />down-r1....er water users. and the federal taxpayers. <br /> <br />The general approach 15 to first estimate the relat1ve costs of <br /> <br />alternat1ve cn-farm irrigation practices for reducing salt 10ac1ng. <br /> <br />Then. <br /> <br />several control strategies are 1dentif1ec and e....aluated for cost- <br /> <br />effectiveness. Next. the net d1rect ga1ns (lcsses) to the 5asin econcmy are <br /> <br />4 <br />