PUB00041

• Year: 1998
• Title: Western Irrigation Economic Benfits Review
• CWCB Section: Finance
• Author: Family Farm Alliance
• Description: White paper on the role of irrigated agriculture in the 21st century.
• Publications - Doc Type: Tech Report

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wetlantls and salmon run imprmcmcnts. This ,,:tlue Ind is many factors ~r{'at('r than :ln~'
measure of use '"altlc.

7.3.

Issues ill Water Trade-Olfs alld Xon-Use. SOllmarkl!1 J 'a/Ull/ion.

The :thoH' n,\'jcw of N'llnomil' ,aloe l'qimatcs for diffcn'nt watef rc:sourn'\i hring..
forward s('H'nll issues surrounding w:'lter OSl' tradl'~uffs. such a.s reallocating water awa~'
from irrigated agriculture to ('"yironmental resources. First, while the value of water for
irrigated agricultun' falls within :.1 rclatinl~' narnm nlllgc. the water \'.dOl'S for
clI\'irollllH.'ntal n'sourccs C:ln b(' cithl'r well hl'low thl' \"alue of irrigation. or they can
:lppcar to he much higlllT. This suggests thai relying 011 prcconccind assumptions ahout
the economic hl'lldits or cmts nf ",Un transfl'rs willlikl'ly lead to poor water reallocation
dccisions. The cconomic hcm'fits and tradl'~urfs must hl' dl':11I w ilh on a projcl't-hy-projcct
or site-spl'dfic has is.

Second, it should hl' nnlnllhat w hill' wain ,"alues for irrigation :Ire "user "alues,"
m:'lny watcr '":litH'S (or much of lhe cconomit' \':llue) for cn,'ironmental resourn's arc
I1fHl~USC nthH:s, In f,ll't, much of thc value attrihntl'd to e",'ironmental resources b a
non-use, nonmarket value that is (IU,mtified through surn'y mcthods into monet:l'1' tl'rms.
For eumph:, survcy respnndcnts an' asked to stMe their "willingness-to-pa~'" for
environmental resources that would he protected or restored to some pnsitin' eonditiono

"ohen \H compare waler ,'alues for irrigation to those for non-use. nonmarket
entities, the economic n,lIun' (or al'tual impact) flf the direct net ,"alucs arc quitc different.
For ex,wIple. the direct net valut' for irrigation consists of material production that
genenHcs direct net cl'onomic acth'it~' aod sl'c:ondary/regional economic activity--both of
which e:1I1 he me:tsun'd in terms of net production value, income. or employment. When
non-use ,"alues arc measured, no actual income is generatcd within the l'C()flOmy. What is
being measured i_Ii an expression of willingness-to-pay. which mayor may not be :w
:tccurate measurement of economic ,'alue (consumer surplus '-alne if a market transaction
could actually he pro\"iucd); and 1ll:IY or may not hl' considered as contributing to mC:lsures

Economics 8enefit Review/Pege-c)