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w o tv 0> IY/'/Wlll eno' CHAPTER Ill. ECONOMIC AND OTHER ANALYTIC STUDIES Special studies, in....estigations. and analyses ha....e been conducted and aft' continuing relative 10 the quality Improvement program. These include economiC studies of damages. benefiu, and COstS, project evaluation methodology; cost sharing; and COSI allocation, with paqicl.Jlar regard to equity considerations. Investigations art' being conducted by u5mg 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 surface and ground waler. Institutional aspects are being examined, including internationofl treaties, interstate compacts, court dt>cisions, State water law, and water and power contracts. ECO'O\IIC :-'TLlHE:-' 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 Ruin, the economic effects are primarily limited to agricultural, municipal, and industrial uses and include decreased crop yields, increased leaching water requirements and management costs. increased municipal and industrial water treatment cOSlS. accelerated pipe corrOSion and appliance wear, and decreased palatability of drinking water. Large expenditures of funds would be necessary to control the salinity level of the streamflows. Costs and benefits must be ascertamed to determine the economic feasibility of ~Iinity controls including individual salinity control prOlects. The benefits calculated rei ale to the economic Impact of doing nothing. Whereas the EPA studies related benefits to reduction m salt loading at Hoover Dam, the studle5 described here relate benefits to reductions in salt loading at Impeflal Dam. CONTRACTED ECONOMIC STUDY Investigators at Colorado State University performed contractual research in the econornll;s of salinity relative to irrigated agriculture. The report. authored by Or5. R. A. Young, W. T. Franklin, and K. C. NoDe, is titled "Assessing Economic EffeClS of Salinity on Irrigated Agriculture in the Colorado River Basin Agronomic and Economic Considerations." {1973l 'The overall objective 01 the research was to denve the most appropriate procedure for evaluating the economic effects on irngated agriculture of salinity in the flows of the Colorado River. The study included a review of literature and existing data to ascertain Ihe le..el of accomplishment in measuring ad..erse effects of salinity, The investigations re..ealed that Ihe most comprehensive study of salinity damage estimation for the Colorado River Basin has !.oeen Ihal of the Environmental Protection Agenc\' (EPAI. The major conclusion drawn was that Ihe 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 st"..eral cooperating universities. The :otudies involve concepts and methodology related to external project effects, evaluation. cost sharmg, cost allocation with particular regard to equity, and more accurale accounting for salinity effects. Only tentallve and preliminary findings on these subjects ha..e been made so far. Various concepts and evaluation techniques are being tested and sharpened. Perhaps the mo:ot difficult aspect of the studies Involves equity considerations to determine the entities that should provide and pay for controls and to what degree. TraditIOnal 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, anlicipated new water uses. and Ihe potential energy de..elopmenlS in the area. Also, II is apparent that Ihere must be a much closer accord than in the past among entities and activities imposing salinity costs on the system, the distnootlOn of bl:nefits and beneficiaries of control o..er time and place, and the assignment 01 payment responsibility. ESTIMATES OF ECONOMIC DAMAGES AND BENEFITS Damages from salimty increases in the Colorado Ri..er Basin involve primarily agricultural, municipal, and 29