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<br />. <br /> <br />. <br /> <br />~ <br />0) <br />~ <br />00 <br /> <br />Given the nonlinear form of the marginal direct damage functions, these <br />salinity differences do significantly affect the estimates of aggregate <br />Lower Basin damages. 8 <br /> <br />Table 111-4 presents Kleinman and Brown's estimates of marginal <br />damages at various salinity levels, including marginal direct agricul- <br />tural losses and marginal regional income losses caused by the input- <br />output linkages of agriculture to other sectors of the regional economy. <br />The only question that one might raise is the value of 5.3 to estimate <br />nonagricultural income losses due to the changes in agricultural produc- <br />tion. Howe and Young's work on regional agricultural income multipliers9 <br />indicates a value of about 2.3. <br /> <br />The figures of Table 111-4 become much more useful for project <br />evaluation if they are expressed in terms of damages per ton of salt <br />added (or withdrawn) from the Colorado River system in the Upper Basin. <br />Averaging over locations and river flow rates, ,10.000 (short) tons of 'I <br />salt added (or withdrawn) in the Upper Basin lea~_to ~-1-mgLl chang=. at <br />Imperial Dam. Thus, in Table 111-5, we translate the U.S. marginal dam- <br />ages into 1976 U.S. dollars per (short) ton of salt added in the Upper <br />Basin and then update the figures to 1980 prices using the U.S. implicit <br />GNP deflator. <br /> <br />Municipal and industrial damages. Industrial water use is tre- <br />mendously varied and the water quality requirements differ among uses. <br />Industry generally has available a much greater range of ways of up- <br />grading water quality than do individual households because of scale <br />economies and the availability of expertise and finance. While many <br />studies have been done of reducing industrial pOllution,lO no published <br />work is available on area-wide industrial damages due to deteriorated <br />water quality. No industrial damages are included in the following fig- <br />ures. <br /> <br />8K1einman and Brown fitted an exponential function to the margin- <br />al direct agricultural damages estimated by the LP model with the follow- <br />ing result: <br />Y = 59.7 exp 0.0052X <br />where X is the salinity reading in mg/l at Imperial Dam. <br /> <br />9 <br />Charles W. Howe and Jeffrey T. Young, Appendix 7, Table 7-34, in <br />Andersen and Kleinman, op, cit. <br /> <br />10 <br />For example, Callaway, et aI" "Industrial Economic Model of Wa- <br />ter Use and Waste Treatment for Ammonia," Water Resources Research, <br />Vol. 10, No.4, August 1974; Russell and Vaughn, "A Linear Programming Mo- <br />del of Residuals Management for Integrated Iron and Steel Production," <br />Journal of Environmental Economics and Management, Vol. 1, No.1, 1974. <br /> <br />111-7 <br />