The Income Distributional Impacts of Potential Policy Alternatives to Control Irrigation Return Flows

The projected income distributional impacts and the amounts of irrigation return flows of potential water quality regulations for the Western San Joaquin Valley was examined in this study. Two policies that may be implemented under the Federal Water Pollution Control Amendments of 1972 (PL 92-500) are: (1) to improve the irrigation water use by the imposition of more efficient water application and delivery systems; (2) to increase the price of surface water supplies to approximate the marginal value product of water. The imposition of more efficient water use resulted in a slight decrease in average income and the Gini coefficient and about an 80 percent decrease in the salt load and the salt concentration of the irrigation return flows. However, the higher surface water costs decreased average income by 34 percent and increased the Gini coefficient by .06. Total irrigation return flows and the salt load were decreased by about 35 percent. However, the salt concentration of the irrigation return flows from higher surface water costs was only slightly decreased.