A Study of the Economic Impact of Water Impoundment Through the Development of a Comparative-Projection Model
Using two established reservoir projects, an economic simulation model for reservoir development was constructed. The two comparative areas used for the model development are both reservoirs in central Texas and were constructed during approximately the same time period. The simulation model divides reservoir development into three stages--Construction, Fill-Up and Post Fill-Up. For each of the stages economic variables were chosen which reflected economic activity attributable to the reservoir. Inputs of construction money, operations and maintenance, recreation and investments were related to each respective stage and then used to determine the economic impact of the reservoir on the local area economy. A synthetic index based on economic inputs other than those used for the model was developed utilizing a control area. The index served as guideline to the mathematical development of the model and as a measure of the predictive accuracy of the model. A recreational survey was conducted at average recreational expenditures and develop the Post Fill-Up Stage of the model. Overall recreational attendance was projected, and to this figure experience ratios of the survey were applied. After the simulation model was developed and applied to two established reservoir projects, it was utilized to generate prediction data for the primary study area. Checks were made on reliability of the data since the primary area is only in the second stage of development. The project data, the results, and recommendations of the study are published as Technical Report No. 8 of the Water Resources Institute, Texas A&M University. Copies of the report have been sent to all persons cooperating and furnishing data for the study.
Pearson, J.E. (1967). A Study of the Economic Impact of Water Impoundment Through the Development of a Comparative-Projection Model. Texas Water Resources Institute. Available electronically from