| Abstract: | ABSTRACT: Society has many objectives, many of which are not commensurable. This incommensurability problem is generally referred to as the multiple objective problem and leads to the notion of tradeoffs. Various approaches to calculating tradeoffs in water resource development have been advocated by several authors. Many have made errors in the context of the conceptural model presented in this paper. It is argued the correct framework for tradeoff analysis is the neoclassical economic model. The relevant tradeoffs, then, are really price ratios. These, in turn, must be calculated in such a manner as to allow comparison of product mixes where the expenditure on resources is the same. This is where several authors have erred. An empirical example which illustrates the correct application of the model is presented. |
