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ECONOMICS OF CONTROLLING NATURAL SALT SOURCES IN THE ARKANSAS RIVER BASIN 1
Author(s) -
Olson Kent W.
Publication year - 1980
Publication title -
jawra journal of the american water resources association
Language(s) - English
Resource type - Journals
SCImago Journal Rank - 0.957
H-Index - 105
eISSN - 1752-1688
pISSN - 1093-474X
DOI - 10.1111/j.1752-1688.1980.tb02393.x
Subject(s) - drainage basin , discounting , environmental science , cost estimate , earnings , structural basin , salt lake , hydrology (agriculture) , water resource management , economics , geology , geography , accounting , finance , paleontology , cartography , management , geotechnical engineering
The methodology underlying, and the estimates incorporated in the Corps of Engineers' economic evaluation of the Arkansas River Basin Chloride Control Project are evaluated and judged deficient in several ways. An improperly specified alternative cost analysis probably results in overestimates of the total regional demand for water, the demand for Arkansas River Water, and the cost‐savings realized with the project in place. The quantitative effect of these errors is not determined. However, other adjustments are identified which are evaluated using the Corps' data. These adjustments reduce B/C from 2.64 to 0.57; principally as a result of corrections for over‐estimates of cost‐savings in steam‐electric generation, and for use of improper discounting procedures and gross output‐earnings ratios.