ARCA 2015 Annual Meeting Exhibits

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14 Aa The Economic Importance of Water in Kansas EXECUTIVE SUMMARY • This study examines the economic importance of water availability in the State of Kansas in the future. • A modified IMPLAN input-output model is used to estimate the potential economic losses associated with constrained water availability in calendar year (CY) CY2062 in seven areas of the State defined by the Southwest Kansas Groundwater Management District No. 3 (GMD3), compared to a baseline of unconstrained water availability. • The economic impacts are estimated based on three assumptions: • Reduced water availability in Areas 1-5 in CY2062 due to groundwater depletion and silting rates of reservoirs; • The non-substitutability of water to compensate for the loss;and • The non-adaptation of producers and consumers to compensate for the water loss. • Three measures of economic impact are assessed for each area of study and the State of Kansas as a whole. These are: Gross State Product (GSP),1 employment,2 and labor income.' • Water availability estimates for CY2062 are supplied by GMD3. • The following Table compares the availability of water in each of the seven study areas in CY2012 with the GMD3 estimates for CY2062. Total Water Availability by Area (Actual and Estimated) GEOGRAPHY CY2012 Base Data(AF) CY2062 Estimated Availability(AF) Area 1 663,793 376,119 Area 2 1,229,397 1,027,642 Area 3 2,188,548 903,726 Area 4 189,624 170,491 Area 5 714,540 645,985 Area 6 1,276,563 1,276,563 Area 7 75,553 75,553 All 7 Areas 5,674,225 4,099,960 Source: GMD3 (2015) 1 GSP represents the dollar value of all goods and services produced for final demand in a state. It is often used as a key measure of the health of a specific state's economy. 2 Employment is a count of full-and part-time jobs for one full year. 3 Labor income includes employee compensation(wages and benefits)and proprietor income. ii Apparet Analytics LLC 2015