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SOCIAL OVERHEAD CAPITAL COSTS OF IRRIGATION DEVELOPMENT IN WASHINGTON STATE1
Authors:Norman K Whittlesey  Kenneth C Gibbs  Walter R Butcher
Abstract:ABSTRACT: Increased irrigation as a means of achieving economic development can impose significant social costs on the state or region of growth. The growth in population induced by additional irrigation will require new roads, water and sewage facilities, schools, fire and police protection, etc. Also the increased energy demands due to irrigation and growth in economic activity must be met. Capital investments required to service these needs of new development can become very large. This study attempts to measure such social overhead costs or irrigation development for some specific irrigation project areas of Eastern Washington. It is shown that investment costs in overhead items can reach $2,000 per acre irrigated or $70,000 per job created. Alternatively, the annual costs can equal $180 per acre or $6,700 per worker. These costs must be paid locally through increased taxes, utility rates, or costs for services.
Keywords:irrigation development  energy  social overhead costs
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