Input-Output as a Method of Evaluahon of the Economic Impact of Water Resources Development
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In this report the results of a study of the use of input-output analysis to evaluate the economic impact of water resources development are presented. Blackburn Crossing reservoir on the Upper Neches river was the subject development) and the Leontief system of input-output accounts is the basic tool of the analysis. In previous research, unrelated to water resources development, Carter and Martin developed the idea of using a matrix of primary resource coefficients to determine resource requirements necessary to sustain a given level of final demand and with it, total economic output.. By specifying the relationship between resource requirements and output, total resource requirements can be computed given either final demand or total output. In this study the possibility of inverting the process and determining final demand or total output, given the level of primary resources, was investigated. Data for the period 1952 were assembled to build the basic inputoutput model of the economic activity, of the watershed. The functional relationship of water as a resource and total output was then determined and the model was employed to forecast the impact on the watershed of an increase in the supply of water. A check on the forecast was provided by data assembled for the 1958 period which were descriptive of total output following an enlargement of Blackburn Crossing reservoir which yielded increased water supplies. The results of the forecasting activity were sufficient to conclude that the analytical tool employed along with the water use-output relationship is useful in estimating impact of water developments. Problems encountered can be resolved so that the accuracy of the technique is acceptable.
Canion, R. L.; Trock, W. L. (1968). Input-Output as a Method of Evaluahon of the Economic Impact of Water Resources Development. Texas Water Resources Institute. Available electronically from