WSP06831

• File Number: 8220.106
• Description: Animas-La Plata
• State: CO
• Basin: San Juan/Dolores
• Water Division: 7
• Date: 7/3/1975
• Author: Anderson - Lynch
• Title: Economic Benefits Study - Animas-La Plata Project - January 1978
• Water Supply Pro - Doc Type: Report/Study

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estimates of the negative fish and wildlife benefits and should be

subtracted from the positive benefits.

However, since the land belongs to the state of Colorado, the

project must purchase it from the state, thus providing the funds
that it can use to purchase other game and fish hebitats. Consi-

dering the quality of the land for these hunting purposes which

will be inundated, it could be argued that the sportsman very

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possibly would come out ehead by the project purchasing the land.

Better quality big and small game habitats land is available in the

area.

Thus, the recreation and fishing benefits would appear to
amount to at least $2,790,000 combined. What about the multiplier
impact of these values on the local economy? The Water Resources

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Council recognizes this impact. The Council advises the inclusion

of the benefits of external economies. These include income

increases accruing to merchants of sporting goods stores and other

recreation equipment suppliers as well as the greater output capa-
bilities accruing to suppliers due to greater efficiencies.22

Obviously, the benefits must be net increases, that is, not Simply

transfers from the consumption of one type of spending to another.

However, the Animas-La Plata Project will be built in an area with

high unemployment rates and thus it seems only logical that the

consumption of recreation and fish and wildlife benefits will add

value to our nation's output.

If the multiplier of 1.31 (previously established as being

representative of the San Juan subbasin) is used to estimate the

total benefits then the recreation and fishing benefits would be

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