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<br />o <br />CJI <br />l'V <br />en <br /> <br />CD <br /> <br />generated by household spending) changes are summed to <br /> <br />dl"'(~'"{ ~I'\( ..:~o.:.. ('.}.,4"11'~.e- <br />this multiplier and the Ll....~.b... il. ~.:......, .t~"''''''~is <br /> <br />form the numera tor of <br /> <br />the denominator. As <br /> <br />comprehensive as the type II multiplier is, still broader definitions of the <br /> <br />economic interactions of the region would result in a higher income multiplier <br /> <br />for all the sectors. <br /> <br />THE INCOME MULTIPLIER OF WATER IN VARIOUS USES <br /> <br />The results from the UCRB Optimization Model lend themselves to the <br /> <br />calculation of the Basin "income multiplier of water" (IMW) in various uses. <br /> <br />IMW m.easures, within a stati~ context, the amount of direct, indirect, and <br /> <br />induced income generated per unit of water input in any given sector. <br /> <br />This <br /> <br />concept should not be confused with more conventiona1 economic concepts such <br /> <br />as the marginal product of water or other economic efficiency or multiplier <br /> <br />measures. As such, the IMW does not provide a measure which may be used as a <br /> <br />direct decision guide to individuals or firms who use water in their <br /> <br />production process. <br /> <br />IMW is useful, however, to the regional policy maker in the sense that, <br /> <br />for each sector, it measures the change in Basin income generated by <br /> <br />increasing the consumable supply of water to the sector to support sector <br /> <br />growth. This is clearly valuable information if Basin income is an important <br /> <br />policy objective, <br /> <br />water is a scarce resource, <br /> <br />and pub li c policy is <br /> <br />instrumental in determining water allocation. <br /> <br />In this report, IMW is calculated for the agriculture and energy sectors <br /> <br />under a range of assumptions. <br /> <br />These sectors are currently the largest <br /> <br />consumers of water in the UCRB and therefore the focus of the public policy <br /> <br />debate regarding water use. <br /> <br />The range of assumptions employed in the <br /> <br />calculation of IMW reflects t.he imprecision associat.ed ....it.h t.he dat.a needed <br /> <br />for the calculation. <br />