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<br />. <br /> <br />. <br /> <br />w::.. <br />o. <br />CJ)' <br />co <br /> <br />. <br /> <br />. <br /> <br />. <br /> <br />. <br /> <br />. <br /> <br />. <br /> <br />. <br /> <br />. <br /> <br />. <br /> <br />again depending on the elasticity of demand. On the other hand, if <br /> <br />fees <l're related to a general tax so that water use changes have no ef- <br /> <br />fect on u.ser cost, little change would be expected in activities. In fact, <br /> <br />facility expansion at no cost to users may have the effect of increasing <br /> <br />user activity. For example, if campgrounds are required to develop <br /> <br />waste treatment facilities and those facilities are financed by user fees <br /> <br />per day, a reduction in use might be expected. If, on the other hand, <br /> <br />responsible agencies use general appropriations to construct the facil- <br /> <br />ities, no change in use rates would be expected unless treatment facil- <br /> <br />ities impact negatively on the <l'ctivity itself, such as esthetic benefit <br /> <br />reduction. The question of equity and subsidization is imperative in <br /> <br />gener<l'l fund financing, but is not the issue which is addressed. <br /> <br />Region Wide Solutions <br /> <br />The problem of regional and basin-wide impacts of controls has <br /> <br />not been directly considered in the foregoing discussion, but it should <br /> <br />be real30nably clear that if individual activities in a given region or <br /> <br />subbasin are adversely affected by pollution controls, of either type, <br /> <br />then the regional economy will suffer, ceterus paribus. The degree of <br /> <br />regional dislocation will depend on the amount of activity reduction and <br /> <br />the importance of those activities in the regional economic structure. <br /> <br />If severe dislocationl3 are expected, public or political pressure for <br /> <br />reduction of controls or compensation for loss may be expected. If in <br /> <br />fact the public welfare il3 the goal of pollution controls, it seems critical <br /> <br />31 <br /> <br />1 <br />