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<br />However one of the fastest growing public demands for water has no market price. The value <br /> <br />that anglers and recreational boaters place on having water instream is not priced in any <br /> <br /> <br />market. Yet the rancorous fights over instream flow standards below hydroelectric facilities <br /> <br />suggests such flows do have a substantial economic value. The demands for water driven by <br /> <br />the Endangered Species Act is a reflection of broad public concern, not just that of <br /> <br />recreationists. To date, the debate has focused on minimum instream flow. The mindset of <br /> <br />arguing over minimum flows is indicative of the resistance to allow water to be allocated to <br /> <br />newly emerging high valued uses. Why not instead ask: what is the minimum electricity that <br /> <br />household needs'? Why don't we all live in the minimum size house and eat the minimum <br /> <br />size diet to sustain life'? This is what we are asking the fish to do. The standard we apply to <br /> <br />ourselves is one of optimum: balancing the benefits and costs of a larger house. Maximum <br /> <br />net benefits are attained by increasing flows until the value of another acre foot equals the <br /> <br />opportunity cost of foregone agriculture or hydropower. Why is the public so unsatisfied with <br /> <br />minimum instream flows'? They want, what makes economic sense:' optimum flows. <br /> <br />~ <br /> <br />HOW CAN THESE PUBUC NON-MARKET DEMANDS BE COMPARED TO COSTS'? <br /> <br />Because the public cannot directly purchase instream flow from dam operators or irrigators, <br /> <br />the economic value the public receives is less visible than the obvious market values of <br /> <br />hydropower or agricultural commodities. But economists have become excellent detectives at <br /> <br />translating the public demands into what the public would pay if they had the opportunity to <br /> <br />purchase instream flow. Knowing what the public would sacrifice in higher water bills, <br /> <br />electricity prices or higher taxes provides a much more useful indicator of public concern <br /> <br />5 <br />