A COST‐BENEFIT ANALYSIS OF WATER QUALITY PROTECTION IN THE CATAWBA BASIN1

ABSTRACT: The primary objective of this study was to perform a cost‐benefit analysis of maintaining the current level of water quality in the Catawba River basin. Economic benefits were estimated using a stated preference survey method designed to value respondents' willingness to pay for a management plan to protect water quality in the Catawba basin over time. From the surveys conducted with 1,085 area residents, we calculated an annual mean willingness to pay of $139 for the management plan, or more than $75.4 million for all taxpayers in the area. Over the five‐year time horizon in which respondents were asked to pay for the management plan, this resulted in a total economic benefit of $340.1 million. The Watershed Analysis Risk Management Framework model was used to estimate the amount of management activities needed to protect the current level of water quality in the basin over time. Based on the model results, the total cost of the management plan was calculated to be $244.8 million over a ten‐year period. The resulting cost‐benefit analysis indicated that the potential benefits of this management plan would outweigh the costs by more than $95 million.     

THE POTENTIAL IMPACT OF WATER REALLOCATIONS ON AGRICULTURE IN IDAHO1

ABSTRACT: Economics is concerned with the allocation of resources between alternative uses. Traditionally, in the western United States, water resources have been committed to agriculture and irrigation. Other competitive uses such as power, industry, and recreation are challenging this allocation. What are the impacts of shifting water out of agriculture into other uses, is a question that needs to be given consideration. Ilia paper attempts to evaluate the tradeoff between using farm land for either irrigated or dryland production and the resulting impacts on gross farm income and the average price of land. Baaed on historical data, reducing irrigated acreage and increasing dryland acreage could greatly reduce both farm income and the equity in farming. The model presented in this paper should be useful for evaluating the tradeoffs between dryland and irrigated land use, especially when there are gat differences in productivity such as those that exist in the inter-mountain region of the Western United States.