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<br />. <br /> <br />. <br /> <br />. <br /> <br />. <br /> <br />. <br /> <br />. <br /> <br />. <br /> <br />. <br /> <br />. <br /> <br />. <br /> <br />. <br /> <br />~ <br />o <br />o <br />w <br /> <br />under another of our policy alternatives. <br /> <br />In sum, the institutional impediments to a solution of the salinity <br /> <br />problem via altering allocations and concomitant action by the states <br /> <br />in restricting water use are very formidable indeed. It is improbable <br /> <br />that such cha~ge can be made without some unexp.ected and radical <br /> <br />developments, <br /> <br />Public Investment in Water Quality Ixnprovement. Public investment <br /> <br />in water quality improvement results from a collective decision by some <br /> <br />unit of government. Private investment results from the decision of <br /> <br />some private entrepreneur to improve his profit or utility position. It <br /> <br />is important that they be differentiated for the following two reasons: <br /> <br />(1) Perhaps more than half of the salinity concentration in the river <br /> <br />originates from natural causes (precipitation runoff, contributions from <br /> <br />natural saline springs, phreatophyte evapo-transpiration, etc.) quite <br /> <br />independent from man-made effects. Since these are "natural" phenomena, <br /> <br />they do not result from explicit decisions of men upstream to use the <br /> <br />water profitably, and thus they are beyond the control of purely private <br /> <br />decisions. (2) Improved quality downstream is a "public good'! for the <br /> <br />following reasons: Ixnproved water quality cannot be I!packaged" and <br /> <br />sold through the private market. The result of the "public good" nature <br /> <br />of some resource improvements is the so-called "free-rider" problem. <br /> <br />No beneficiary will pay for the quality improvement since he knows he <br /> <br />cannot be excluded from the benefits even if he does not pay. No private <br /> <br />ii <br />