WSP05845

• File Number: 8507
• Description: Rio Grande Project
• State: CO
• Basin: Rio Grande
• Date: 7/1/1997
• Title: Water Management Study: Upper Rio Grande Basin part 2
• Water Supply Pro - Doc Type: Report/Study

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An Overview of the Basin's Resource-Management Problems

Basin's water and related resources. In reality, there is widespread
disagreement about who is entitled to what and, hence, about the fairness of
the actual distribution of benefits and costs among different parties.

Where these criteria are not met a problem exists with the total amount of
economic benefit derived from the Basin's water and related resources, the
distribution of these benefits, or both. Where the deviation from the criteria
is severe, so is the problem.

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These criteria are useful insofar as they focus directly on the outcomes of the
competition for the resources, have a solid foundation in the concepts of
economics, and, where sufficient information exists, lend themselves to
measurement. They are less than ideal, however, insofar as the conclusions
one draws from applying them to the Basin can vary, depending on one's
perspective. If the beneficiaries of a resource-management practice take a
narrow perspective, they probably will conclude that, for them, it yields the
greatest value, produces the highest standard ofliving, and is fair. Those
who do not share the benefits, but instead incur costs, probably will reach
the opposite conclusion. Those taking a broad, societal perspective, probably
will reach a conclusion that lies somewhere between these two extremes.

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The different perspectives of benefits and costs are inseparably linked to the
political feasibility of resource-management decisions. Someone who will
suffer immediate and direct short-run costs from a decision is likely to
oppose it vociferously, while someone else seeing less tangible benefits
materializing over a longer period is less likely to feel compelled to offer
strong support. In other words, without a conscious corrective effort, there
can be a strong tendency for resource-management decisions to be influenced
most by short-run concerns, with the result that the decisions lead to less
than ideal outcomes.

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Commensurate with our charge from the Commission, we take a broad
perspective and apply the criteria from a federal, or national, perspective.
That is, we evaluate the outcomes from the competition for water and related
resources in the Basin in terms of the value of the goods and services
available to all Americans, the standard of living for all Americans, and the
fairness to all Americans.

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We separate the problems into two sets. We first describe two problems that
represent the most serious, fundamental aspects ofthe past and current
failure to meet the three criteria described above. We call these the

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