Markets for Federal Water: Subsidies, Property Rights, and the Bureau of Reclamation

By Richard W. Wahl | Go to book overview
Save to active project

2
Irrigation Subsidies in the Reclamation Program

Bureau of Reclamation publications frequently claim that the costs of the reimbursable functions of reclamation projects will be repaid to the United States:

It has long been the philosophy of the Nation that all reclamation project costs for the purpose of irrigation, power, and municipal and industrial water supply should be repaid in full. ( U.S. Department of the Interior, Bureau of Reclamation, 1972, p. ix)

In reality, the situation is far different. As discussed in this chapter, subsidies for water supply have been part of the reclamation program since its inception, and the extent of subsidy has generally increased over time.

Irrigation subsidies in Reclamation law take two forms: interest- free repayment and the basing of irrigators' repayment on the bureau's estimate of their "ability to pay." Revenues from federal hydropower are used to "repay" costs beyond the irrigators' "ability to pay." However, repayment by hydropower embodies a substantial subsidy as well, both because it is interest-free and because it occurs after forty or fifty years of irrigation repayment. If federal borrowing costs 4 percent annually, then repayment forty years later interest- free returns to the United States only 20.8 percent of the true cost of the loan. At a borrowing cost of 7 percent, only 6.7 percent is returned (also see Eckstein, 1961, pp. 228-234).

For municipal and industrial water supply, even though interest is charged, the Bureau of Reclamation routinely applies the project interest rate dating from the initial phase of project construction.

-27-

Notes for this page

Add a new note
If you are trying to select text to create highlights or citations, remember that you must now click or tap on the first word, and then click or tap on the last word.
One moment ...
Project items

Items saved from this book

This book has been saved
Highlights (0)
Some of your highlights are legacy items.

Highlights saved before July 30, 2012 will not be displayed on their respective source pages.

You can easily re-create the highlights by opening the book page or article, selecting the text, and clicking “Highlight.”

Citations (0)
Some of your citations are legacy items.

Any citation created before July 30, 2012 will labeled as a “Cited page.” New citations will be saved as cited passages, pages or articles.

We also added the ability to view new citations from your projects or the book or article where you created them.

Notes (0)
Bookmarks (0)

You have no saved items from this book

Project items include:
  • Saved book/article
  • Highlights
  • Quotes/citations
  • Notes
  • Bookmarks
Notes
Cite this page

Cited page

Style
Citations are available only to our active members.
Sign up now to cite pages or passages in MLA, APA and Chicago citation styles.

(Einhorn, 1992, p. 25)

(Einhorn 25)

1

1. Lois J. Einhorn, Abraham Lincoln, the Orator: Penetrating the Lincoln Legend (Westport, CT: Greenwood Press, 1992), 25, http://www.questia.com/read/27419298.

Cited page

Bookmark this page
Markets for Federal Water: Subsidies, Property Rights, and the Bureau of Reclamation
Table of contents
Settings

Settings

Typeface
Text size Smaller Larger
Search within

Search within this book

Look up

Look up a word

  • Dictionary
  • Thesaurus
Please submit a word or phrase above.
Print this page

Print this page

Why can't I print more than one page at a time?

While we understand printed pages are helpful to our users, this limitation is necessary to help protect our publishers' copyrighted material and prevent its unlawful distribution. We are sorry for any inconvenience.
Full screen
/ 312

matching results for page

Cited passage

Style
Citations are available only to our active members.
Sign up now to cite pages or passages in MLA, APA and Chicago citation styles.

"Portraying himself as an honest, ordinary person helped Lincoln identify with his audiences." (Einhorn, 1992, p. 25).

"Portraying himself as an honest, ordinary person helped Lincoln identify with his audiences." (Einhorn 25)

"Portraying himself as an honest, ordinary person helped Lincoln identify with his audiences."1

1. Lois J. Einhorn, Abraham Lincoln, the Orator: Penetrating the Lincoln Legend (Westport, CT: Greenwood Press, 1992), 25, http://www.questia.com/read/27419298.

Cited passage

Welcome to the new Questia Reader

The Questia Reader has been updated to provide you with an even better online reading experience.  It is now 100% Responsive, which means you can read our books and articles on any sized device you wish.  All of your favorite tools like notes, highlights, and citations are still here, but the way you select text has been updated to be easier to use, especially on touchscreen devices.  Here's how:

1. Click or tap the first word you want to select.
2. Click or tap the last word you want to select.

OK, got it!

Thanks for trying Questia!

Please continue trying out our research tools, but please note, full functionality is available only to our active members.

Your work will be lost once you leave this Web page.

For full access in an ad-free environment, sign up now for a FREE, 1-day trial.

Already a member? Log in now.