WSP04002

• File Number: 8270.100
• Description: Colorado River Basin Water Quality/Salinity -- Misc Water Quality
• Basin: Colorado Mainstem
• Water Division: 5
• Date: 1/1/1974
• Author: USDOI
• Title: Colorado River Water Quality Improvement Program - Status Report
• Water Supply Pro - Doc Type: Report/Study

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by Drs. R. A. Young, W. T. Franklin, and K. C, Nobe,
is titled "Assessing Economic Effects of Salinity on
Irrigated Agriculture in the Colorado River Basin:
Agronomic and Economic Considerations," (1973)

CHAPTER III. ECONOMIC AND OTHER ANALYTIC STUDIES

INTRODUCTION

Special studies, investigations, and analyses have been
conducted and are continuing relative to the quality
improvement program. These include economic studies
of damages, benefits, and costs; project evaluation
methodology; cost sharing; and cost allocation, with
particular regard to equity considerations.

Investigations are being conducted by using
mathematical models to simulate salt loadings at
various points in the surface water system and to
simulate both water quantity and quality and the
interaction of sur1ace and ground water.

Institutional aspects are being examined, including
international treaties, interstate compacts, court
decisions, State water law, and water and power
contracts.

ECONOMIC STUDIES

Increases in salinity levels produce adverse physical
effects on some water users. These effects result in
direct economic impacts on water users and indirect
economic impacts on the regional economy. Salinity is
thus an economic problem. In the Colorado River
Basin, the economic effects are primarily limited to
agricultural, municipal, and industrial uses and include
decreased crop yields, increased leaching water
re qui rements and management costs, increased
municipal and industrial water treatment costs,
accelerated pipe corrosion and appliance wear, and
decreased palatability of drinking water.

Large expenditures of funds would be necessary to
control the salinity ievel of the streamflows. Costs and
benefits must be ascertained to determine the
economic feasibility of salinity controls including
individual salinity control projects.

The benefits calculated relate to the economic impact
of doing nothing. Whereas the EPA studies related
benefits to reduction in salt loading at Hoover Dam,
the studies described here relate benefits to reductions
in salt loading at Imperial Dam.

CONTRACTED ECONOMIC STUDY

I nvestigators at Colorado State University performed
contractual research in the economics of salinity
relative to irrigated agriculture. The report, authored_

'The overall objective of the research was to derive the
most appropriate procedure for evaluating the
economic effects on irrigated agriculture of salinity in
the flows of the Colorado River. The study included a
review of literature and existing data to ascertain the
level of accomplishment in measuring adverse effects of
salinity.

The investigations revealed that the most
comprehensive study of salinity damage estimation for
the Colorado River Basin has been that of the
Environmental Protection Agency (EPA), The major
conclusion drawn was that the EPA estimates
significantly understate the damage of salinity
increases. Further work is underway on this subject.

PROGRAM STAFF STUDIES

Significant economic studies are being conducted by
the program staff and several cooperating universities.
The studies involve concepts and methodology related
to external project effects, evaluation, cost sharing,
cost allocation with particular regard to equity, and
more accurate accounting for salinity effects.

Only tentative and preliminary findings on these
subjects have been made so far. Various concepts and
evaluation techniques are being tested and sharpened.
Perhaps the most difficult aspect of the studies involves
equity considerations to determine the entities that
should provide and pay for controls and to what
degree. rraditional cost-sharing policy does not appear
adequate for the situation. It is necessary to consider
the changing economic conditions of the 1970's, the
implications of recent Federal water resource statutes
and programs, anticipated new water uses, and the
potential energy developments in the area. Also, it is
apparent that there must be a much closer accord than
in the past among entities and activities imposing
salinity costs on the system, the distribution of
benefits and beneficiaries of control over time and
place, and the assignment of payment responsibility.

ESTIMATES OF ECONOMIC DAMAGES
AND BENEFITS

Damages from salinity increases in the Colorado River
Basin involve primarily agricultural, municipal, and

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