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<br />instances, mult:.tobjective planning pro-
<br />vides informatlon which should factli:"
<br />tate planning decisions aild reduce con-
<br />flict over such decisions.
<br />1. Relationship oj beneficial and ad-
<br />verse effects to objectives. Since bene-
<br />t1:claJ and adverse effects have meaning
<br />only when identified with an objective.
<br />there are beneficial and adverse effects
<br />for national economic development, en-
<br />vironmental quallty, and regional devel-
<br />opment. Effects of B.ltemative plans on
<br />oocia! factors wiil also be displayed. Also,
<br />since beneficial and adverse effects may
<br />be of a.monetary or nonmonetary nature.
<br />they may be measured in dollars or in
<br />physical, biological, or other quantitative
<br />uni~ or qualitative tenns approprJate to
<br />the objective. .
<br />The objectives are not mutually exclu-
<br />sive with' respect to beneficial and ad-
<br />verse effects. Comparisons and evaJua-
<br />tions of plans require measurement or
<br />quantification of similar effects in terms
<br />of common standards. The selected
<br />standards may be in terms of dollars.
<br />acres of land, acre-feet or cubtc.feet-per-
<br />second of water, m1les of trails or
<br />streams, number of people, and so on.
<br />The nonmonetary measures must Include
<br />a.ppropriate qualitative dimensions.
<br />2. Incidence of beneficial and adverse
<br />eDects. The distribution in place and
<br />time of beneficial and adverse e:fIects to
<br />the multiobjectives is an important con-
<br />sideration in the evaluation of plans.
<br />Those who are benefited or adversely
<br />affected by a plan may be located within
<br />the plannlng area or region, or they may.
<br />be in an area or region immediately
<br />adjacent. 'or they may be In distant
<br />regions which are noncontiguous with.
<br />the planning area. The benenclal and
<br />adverse effects may also occur immedi-
<br />a.tely or in the future in any of the aTeaB
<br />or regions.
<br />3. With and without analysis. In plan-
<br />ntng water and land resources, beneficial
<br />and adverse effects of a proposed plan
<br />should' be measured by comparing the
<br />estimated conditions with the plan with
<br />tJ'le conditions expected v-1.thout the plan.
<br />Thus, in addition to projecting the bene-
<br />:O.c1al and adverse effects expected with
<br />the plan In operation, it is necessary to
<br />project the conditions llkeIy to occur in
<br />the absence of a plan. Economic, social.
<br />and environmental conditions are not
<br />static, and changes WUl occur even with-
<br />out a plan. Only the new or additional
<br />chBIlges that can be anticipated as a
<br />result of a proposed plan should be at-
<br />tri'buted as beneficial and adverse effects
<br />of the plan.
<br />4. Monetary beneficial effects. For
<br />many goods and services the conven-
<br />tional market mechan1sm or slmulation
<br />thereof 'provides a valid measure of ex-
<br />change values, expressed in monetary
<br />terms. The values determined. by the
<br />market may need adjustment to account
<br />for imperfect market conditions. Con-
<br />tributions to national economic develop-
<br />. ment and the income component of re-
<br />gional development are of the monetary
<br />type of beneficial effects. In addttlon, cer-
<br />tain components of the environmental
<br />objective can be analyzed 1n terms of
<br />
<br />NOTICES
<br />
<br />24153
<br />
<br />monetary values as ca.n effects on social 1. General measurement concepts.
<br />factors. There are two baste sources of increased
<br />5. Moneta1"1l ~dverse eUects. Adverse output of goods and services that con-
<br />.effects toward the mulUobjective result, tribute toward enhancing nationaJ. eco-
<br />just as beneficial effects do, from the nomic development. First, additional re-
<br />implementation of a particular plan. sources may be employed using normal
<br />VaJUE"S for some adverse effects can be production techniques, as, for example,
<br />based on or derived from actual In the application of irrigation water and
<br />or simulated market prices. For ex- other associated resources to land for the
<br />ample. the costs of goods and services production of agricultural. commodities
<br />used in constructing and operating a or in the uSe of electric power and other
<br />project or payment for damages even associated resources for the production
<br />though no goods or services are being ac- of aluminum. Second, resource produc-
<br />qulred can be derived from actual market tiv1ty .changes may be Induced by the
<br />prices. The prices determined by the mar- plan, resulting in more e.flicient produc-
<br />ket may need adjustment to account for tion techniques to be used to achieve a
<br />imperfect market conditions. Some ad- higher level of output from the same
<br />verse effects are not represented by resources or the same level of a speciflc
<br />actual cash expenditures; tiut market output with fewer resources than would
<br />prices can be used to esthnate or derive - be achieved without the plan. In the
<br />the appropriate monetary values by use latter case, the release of prOductive re.
<br />of a simulated market price or by observ- sources which can be employed elsewhere
<br />ing market prices for similar goods and in the economy for the prOduction of
<br />services. other goods. and services ultimatelY re-
<br />6. Nonmonetary beneficial effects. sults In an increase in national output as
<br />There are many effects which cannot or a consequence of a plan. ,These two
<br />should not be expressed in monetary sources of Increased output may. apply
<br />values. 'I11is is true of many contribu- to situations in which the plan results
<br />ttons to the environmental quality obJec- in the production of final consumer goods
<br />Uve and to several of the components of or intermediate producer goOds utilJzed
<br />the regional development objective as by direct us~rs; and they may also apply
<br />well as effects on social factors. In situations in which firms are indirectly
<br />When effects cannot or should not be airected through economic interdepend-
<br />expressed in monetary terms, they will be ence with firms which utlltze the inter-
<br />set forth. insofaJ;' as is reasonably pos- mediate producer goods f.rom the plan.
<br />sible, in appropriate quantitative and For eonven1ence of measurement and
<br />Qualitative physical, biological,. or other a.naJysis, beneficial. effects of national
<br />measures reftectlng the enhancement or economic development are c1a.ssified as
<br />improvement of the characteristics follows:
<br />relevant to the components of the objec- a. The value to users of Increased out-
<br />the under consIderation. PU'Ls of goods and serv:1ces from a plan;
<br />When specified minimwn technical or and
<br />1n~titutlonal standards related to en- b. The value of output resulting from
<br />vlronmental quaHty and regtonal devel- external economies caused by a plan.
<br />opment objectives will be met or other- In each case, with and'witlhout analysis
<br />wise exceeded, they will be explicItly must be applied to a.scerta.Jn tha.t with a
<br />identified. plan. there is a net incroo.se In the pro-
<br />II particular nonmonetary beneficial duot.1on of g'(X)ds and. services, regardless
<br />effects or services are not amenable to of source, over th06e that would be 00-
<br />quantitative measurement, they should talned in the .absence of the plan.
<br />be described as fully as possible tn ap- The genera.i measurement standard.
<br />pro~r18te qualitative terms. for increases in the national output of-
<br />7. NonmonetaTll adverse effects. There goods and services will be the tot.:al value
<br />are adverse effects that cannot be valued of the increase, where total value is de-
<br />by market prices and direct compensa- fined as the wtllingness of users to pay
<br />tiOD for these adverse effects may not be for eaoh Increment of output trom a
<br />possible. Nevertheless. they should be BC- plan. Such a vaJue would be obtained If
<br />eounted for by use of appropriate non- the "seUer" at the output was able to
<br />monetary values or described as carefully apply a flexible Wlit Price end charge
<br />as possible. The nonmonetary values may each WIer (consumer) an individual price
<br />be expressed In terms of a physical, .bio- to capture the full value of the output to
<br />logical, or other quantitative units or the user. This ooncept 15 ilJustrated in
<br />qualitative terms. figure 1.
<br />The adverse effects of a nonmonetary
<br />nature will generally be related to the
<br />envtronmentaJ. quality objectIve and to
<br />several of the components of the regional.
<br />deVelopment objective. Adverse effects on
<br />social factors may also be expressed in
<br />nonmonetary terms.
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<br />B. BENEFICIA~ EFFEC7S 01' NA7IONAL
<br />ECONOMIC DEVI!:LOP!tfENT
<br />Beneficial effects of national economic
<br />development are the :Increases of the
<br />value of the output of goods and services
<br />and lmprovements in national economic
<br />e:fllciency.
<br />
<br />F:IOURE 1....:..TotaJ. V8J.ue Ol' wllUngness to pay
<br />for 1.ncreaBed output.
<br />
<br />Asswnlng the normal demand-output
<br />relationship, additional. plan output will
<br />be taken by users as the' unit price of
<br />output faUs. If, as a result of the plan,
<br />output is increased. by a.n amount Q.-Q00
<br />the total value of this additional output
<br />
<br />FEDERAL REGISTER, VOL. 36, NO. 245-TUESDAY, DECEMBER 21, 1971
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