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<br />salt discharges for various crops and irrigation techniques would be <br />impractical. Thus the tax approach is shown as a hypothetical alternative to <br /> <br />~ <br />~ <br />t- <br />W <br /> <br />the other strategies. <br />The estimated response to a salt tax is approached indirectly. The salt <br /> <br />constraint in the linear program was reduced parametrically to show changes in <br /> <br />the optimal solution. The shadow price on a ton of salt discharge is <br />equivalent to the effluent tax which would optimize salt discharges at each <br />level of pollution by charging the full value of the right to put salt into the <br />river. These effluent tax change points are shown in-the first column of part <br />B of table 2. A tax as low as 50 cents per ton of salt could discourage over <br />40,000 tons of salt discharge. In the $4.50 to $5.50 range, the use of short <br />sets and gated pipe with manual cutback would allow savings in salt loads of up <br />to 90,000 tons. Additional reductions would be gained with taxes around <br />$7.00, $11.00 and $13.00 per ton. The net social cost for any level of <br />reduction in salt discharges beyond the first increment is much less than for <br /> <br />irrigation system subsidies. However, a marginal tax rate which is less than <br />even our revised estimate of downstream marg ina1 damages avoided drives net <br /> <br />rents into negative territory. <br />. ...-_. ~------- <br /> <br />I. I <br />, l"i3:::';~ <br />I . <br />I <br /> <br />The results in part B of table 2 should be interpreted with caution. More <br />extreme changes in farming practices might occur beyond the levels constrained <br />by the model. As the salt tax increases, strong incentives might be exerted to <br /> <br />replace unprofitable crops (i.e., barley and pasture) with higher valued crops <br />(i.e., corn and pinto beans). Retiring the most marginally productive lands <br /> <br />might also occur. Economic motives would also hasten the adoption of more <br />efficient means of control 1 ing salt discharges. Thus total salt discharges <br /> <br />12 <br />