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Show Table 5. Elasticity of demand for irrigation water in Utah by region. Q * A ^ a P Q Actual Price Quantity Estimate 77QP* ^ P* Quantity Read ^ a Region Used from MVP on Regression Elasticity Elasticity Regression 1,000 Schedule atP* at Q, P* at Qa, P* R2 ac ft atQ $/ ac ft 1,000 ac ft 1 Great Salt Lake Desert 59 $ 8.80 67.9 - 1.49 - 1.71 0.88 2 Bear River 354 8.90 394.5 - 0.95 - 1.05 0.97 3 Weber River 236 14.40 168.0 - 2.86 - 2.04 0.97 4 Jordan River 310 9.30 367.8 - 1.33 - 1.57 0.97 5 Sevier River 436 7.30 609.8 - 3.07 - 4.29 0.92 6 Cedar- Beaver 137 9.20 155.2 - 1.43 - 1.62 0.89 7 Uinta Basin 293 5.20 369.7 - 1.73 - 2.19 0.95 8 West Colorado 114 8.70 99.0 - 2.46 - 2.13 0.98 9 South & East Colorado 30 2.80 65.9 - 2.19 - 4.80 0.93 10 Lower Colorado 34 9.40 51.2 - 2.68 - 4.03 0.90 Total or average 2,003 8.64 2,349.0b - 2.00c - 2.38d Source: M. H. Anderson et al., 1973. aio bio „ c10 d10 2 Qa = 2,003 2 Qj = 2,349 2 QiT? QP* j 2 Qa- 7? QP * i i= l "* i= l i= l 10 ~ i= l 10 2 Qj i= l 2 Qi i= l Industrial User Fees Industrial water- user fee revenues are estimated herein as the sum of those estimated from the present level of industrial use and those from the future increased industrial use. " Present diversions" refer to the summation of water consumption by nine heavy use industries in Utah for 1970. This particular year was selected because of the availability of data. Increased water use after 1970, along with projected future increased demands, are termed " new diversions." Present level of industrial use To estimate present industrial water use in Utah, data were drawn from 1968- 69 U. S. Bureau of Census records on average national water use for the nine heavy use industrial categories shown in Table 8. From these data, it was possible to derive a coefficient for water use per employee in each of these industries. This coefficient was then applied to the number of employees involved in the same respective industries for the year 1970 in Utah, with a resulting consumptive use figure determined for each industry as presented in Table 9. A summation of these figures yielded a total annual industrial water use of slightly less than 55 billion gallons ( 168,000 acre feet) and is assumed to be the present level of industrial use for 1970. This quantity of intake, categorized as " present divsrsion," is presumed to be supplied through existing systems in which the only costs are for system operation and maintenance. Future increased industrial mater use requirements The projections presented here are not intended to include all future increased industrial requirements for Utah's water. They are based on future diversion requirements of proposed energy development projects ( and operational projects completed since 1970) within the state ( Table 10). In the case of the Huntington Canyon project, for example, which accounts for the 7,000 ac ft increase in 1974, the system is already operational. Since these requirements are supplemental to the present diversion quantities shown for 1970, they are considered as " new diversions." The data compiled in Table 10 are taken from the Colorado River Regional Assessment Study prepared by the Utah Water Research Laboratory at Utah State University in June 1975 for the National Commission on Water Quality. The water requirement column in Table 10 represents a cumulative total of increased yearly intake as proposed new energy development projects are completed and commence operation. Increases are shown annually through 1986 and summarized beyond that point. These figures are used as the basis for computing the user fee potential of future increased industrial water consumption. Industrial toater- user fee potential By reason of the indispensable nature of industrial water use and the relatively small portion of total production costs accounted for by water quantity demanded is not likely to change appreciably with 37 |