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14 <br /> Aa The Economic Importance of Water in Kansas <br /> ESTIMATED RESULTS <br /> Table 2 provides estimates of the statewide economic losses associated with a reduction in the availability <br /> of water in five of the seven areas identified by GMD3. The estimated reduction in water availability in <br /> CY2062 is primarily based on the depletion of groundwater supplies and silting rates of reservoirs. No <br /> assumptions are made about the impact of climatic conditions on water availability (including droughts) <br /> within the analysis. <br /> The estimated metrics (where appropriate) are expressed in 2015 dollars(2015$),and assume both non- <br /> substitutability and non-adaptation. That is, no other sources of water are assumed to be available to <br /> compensate for the loss of water in the Areas 1-5 in CY2062 (the study year); and producers and <br /> consumers are assumed to be unable to adapt to the water shortfall. <br /> The first line of Table 2 estimates the anticipated direct losses for the State of Kansas economy if GMD3's <br /> estimated reduction in total water availability holds true in CY2062.8 These losses are estimated at$12.3 <br /> billion GSP, approximately 158,000 jobs, and $6.3 billion labor income(2015$). <br /> The second line of Table 2 estimates the indirect losses sustained by the State of Kansas economy if <br /> GMD3's estimated reduction in total water availability holds true in CY2062.9 This is estimated at$3 billion <br /> GSP,over 35,000 jobs, and$1.4 billion labor income(2015$). <br /> Table 2: Estimated Economic Losses Associated with the Constrained Water Scenario for the State of <br /> Kansas in CY2062 <br /> GROSS STATE <br /> PRODUCT EMPLOYMENT LABOR INCOME <br /> Job Years Billions 2015$ <br /> Billions 2015$ <br /> Direct Losses 12.3 157,764 6.3 <br /> Indirect Losses 3.0 35,047 1.4 <br /> Induced Losses 3.0 47,897 1.7 <br /> Total Estimated Economic Losses 18.3 240,708 9.4 <br /> Source:Apparet Analytics <br /> S Direct effects refer to any activity directly associated with the availability of water in the seven study areas. They are usually <br /> defined in terms of the maximum level of production or output possible in each sector, and the number of people directly <br /> employed by all firms operating in each sector. <br /> Indirect effects capture the impact on the firms that directly and indirectly engage in production and employment as a result of <br /> the availability of water in the seven study areas; for example, through supplier purchases placed as part of the production <br /> process. <br /> 7 <br /> Apparet Analytics 2015 <br />