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<br />I' <br /> <br />I.", <br /> <br />. <br /> <br />. <br /> <br />19 <br /> <br />C. Secondary Benefits and Costs. <br />'!be position taken by rrost econanists is that secondary benefits are <br />primarily transfers of activity to the project area. Also, if one is to count <br />secondary benefits, one should also count secondary =sts. Since it is very <br />difficult to quantify either, it is usually recannended that both be left out of <br />the econcmi.c analysis. '!be Bureau of Reclamation gives the reader a choice by <br />offering B/C ratios with and without secondary benefits. <br />~t is usually rreant by "seoondary benefits"? It is usually taken to be <br />the additiooal value-adied in those sectors directly linked with the project, <br />e.g. the fann input sector(s) and the fann output processing sector (s). 'l11at <br />part of the ne.r value added created by a real increase in the productivity of <br />the factors used in those sectors is a true national econanic benefit and should <br />be =unted in the national eccncmic B/C ratio. <br />'l11at part of the additional value added that represents incanes transferred <br />fran other locations is clearly not a national benefit. Howeyer, the entire set <br />of ne.r values adied in seoondary activities are benefits to the region in which <br />the project is to be coostructed. 'lbese procedures are generally followed in <br />current U.S. practice. <br /> <br />D. Extema1ities. <br /> <br />Externalities ~ the value of effects that a project physically <br /> <br />inp:)ses on parties outside the project boundary. The primary examples in A-LP <br /> <br />are dcMnstream reductions in conswptive water use and increases in the =ncen- <br /> <br />tratioo of total dissolved solids (salts) in the river below the project. <br /> <br />'lbe waters of the Colorado River and its tributaries are fully =nsurred before <br /> <br /> <br />reaching the Pacific Ocean. When an ower Basin project like A-LP diverts <br />