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Show Table 10. Future industrial mater increases for Utah. a Table 12. Total revenue [ 1970]. Year Water Requirement Increases ( ac ft/ yr) 1974 7,000 1975 7,000 1976 7,000 1977 14,205 1978 21,205 1979 27,965 1980 100,895 1981 131,625 1982 131,625 1983 131,625 1984 131,625 1985 152,625 1986 152,625 Beyond 1986 289,740 Source: Utah Water Research Laboratory, 1975. Recreational Water User Fees In the case of recreational fees, the circumstances are different since water is necessary but is not sufficient for a successful activity. Fishing requires fish in the water. The fee, therefore, is calculated on the right to take part in an activity. It is clear from the experience related in Chapter III that more revenue could be generated from fishing, hunting, or camping rights. Frequently, however, such rights are considered as public benefits, like education, which ought to be funded from taxes, at least for local residents. Out of state people are generally compelled to pay a higher fee. High fees on recreational activities would be opposed as a way of rationing poor people out of the market and leaving these activities as a privilege only of the rich. Table 17 gives some indication of the additional fees which could be collected if the purpose was to extract the maximum amount of rent from the present licensing privileges to fish and hunt. Sufficient data Present Diversions p = cost = $ 23.80 per q = 168,000 ac- ft acft Elasticity Fee ( Dollar) Total Revenue ( Dollar) 0.2 0.5 0.8 119.00 47.60 29.75 9,996,000 3,998,400 2,499,000 Table IS. Additional revenue for. 1976. New Diversions p = cost = $ 42.00 per Additionalq = 7,000 ac acft ft Elasticity Fee ( DoUar) Additional Revenue ( Dollar) 0.2 0.5 0.8 210.00 84.00 52.50 735,000.00 294,000.00 183,750.00 were not available to make estimates for other types of recreation. COMMENTS The preceding very approximate calculations clearly indicate that all of the revenue potential from our public waters are not being captured. If it is felt that the capital to improve and expand the present water system should come from the users, then our analysis has clearly demonstrated that the potential is there. In Utah over two million dollars could be raised annually from agriculture, over 9 million from recreation, just under 13 million from municipal users, and several million more from industry. Table 11. Water cost per acre foot for Utah in 1970. Hydrologic Study Unit M& I Distribution Cost Maximum Fees Present Diversion ( O& M) New Diversions Present Diversions New Diversions GroundGrounde = 0.2 e = 0., water water $/ a. f. $/ a. f. $ $ 23.80 42.00 119.0 47.6 23.80 42.00 119.0 47.6 29.50 49.00 147.5 59.0 29.50 49.00 147.5 59.0 23.80 42.00 119.0 47.6 23.80 42.00 119.0 47.6 23.80 42.00 119.0 47.6 - 42.00 - . - 42.00 - . 23.80 42.00 119.0 47.6 0.8 e = 0.2 e = 0.5 0.8 1 2 3 4 5 6 7 8 9 10 29.8 29.8 36.9 36.9 29.8 29.8 29.8 29.8 210.0 84.0 210.0 84.0 245.0 98.0 245.0 98.0 210.0 84.0 210.0 84.0 210.0 84.0 210.0 84.0 210.0 84.0 210.0 84.0 52.5 52.5 61.8 61.3 52.5 52.5 52.5 52.5 52.5 52.5 Source: King et al. ( 1972) page 36. 41 |