WSP00913

• File Number: 8272.600.60
• Description: Colorado River Basin Salinity Control Program - Basin Member State Info - Utah
• Basin: Colorado Mainstem
• Water Division: 5
• Date: 3/7/1975
• Title: Colorado Regional Assessment Study - Phase One Report for the National Commission on Water Quality - Part 2 of 2 -- Chapter VI - end
• Water Supply Pro - Doc Type: Report/Study

.r.::.
o
0)
00

regulation depend, as stated previously, on the elasticity of de.mand

for water and the output as a given activity. If the elasticity of de-

mand or the input is low, either because water use has a low cost rel-

ative to total production costs or because few substitutes exist, activity

reduction as a result of pollution control may be minimal (until a point

at which the input cost becomes a substantial portion of total cost or

p;roduction results in losses.). If that elasticity is relatively high,

either because water is a substantial portion of input costfil or substi-

tutes for water are readily available, activity and, water use may change

dramatically with the application of small increments of regulation or

economic disincentives.

If the elasticity of demand for the product is low, then more of

the additional costs will be passed on to consumers (that is TWP curve

will not exhibit sharply diminishing slope). Producers would be ex-

pected to ~educe output only slightly. If that elasticity is high, then

much of the additional cost will be borne by the producer andproduc-

tion will be reduced substantially.

]'>ublic Investment in Treatment Facilities

In areas in which public investment in either treatment facilities

or in other pollution removal technology is undertaken, user activity

changes will depend on how the investment and operation costs are

distributed. If the investment and operation cost is financed from user

fees related directly to water use, reduction in activity may be expected,

30

.

.

.

.

.

.

.

.

.

.

.