A Survery of Western United States Instream Flow Programs and The Policies that Protect a River's Ecosystem

The Western United States can best be described as a vast, varying land, with the high plains to the east and the jagged horizons of Rockies to the west. However there is one common trait shared by these states: the lack of water resources. With the continued development of this land, the fact that water is scarce is becoming more real. This issue became more difficult to handle as the public became more aware that many competing uses existed for the finite resource, and those different uses were degrading the natural environments of the surface waters. With this realization instream flow policies provides a comprehensive account of the policy framework a selected number of western states have established in order to protect instream flows and the overall health of a river's ecosystem. Also included is the identification of key policies that should be promoted or removed from a state's instream flow program. Ultimately, this thesis continues to add the the ever-evolving process of modernizing water law frameworks.

Tiered Pricing and Cost Functions: Are Equity, Cost Recovery and Economic Efficiency Compatible Goals?

Suppliers of water and energy are frequently natural monopolies, with their pricing regulated by governmental agencies. Pricing schemes are evaluated by the efficiency of the resource allocation they lead to, the capacity of the utilities to capture their costs and the distributional effects of the policies, in particular, impacts on the poor. One pricing approach has been average cost pricing, which guarantees cost recovery and allows utilities to provide their product at relatively low prices. However, average cost pricing leads to economically inefficient consumption levels, when sources of water and energy are limited and increasing the supply is costly. An alternative approach is increasing block rates (hereafter, IBR or tiered pricing), where individuals pay a low rate for an initial consumption block and a higher rate as they increase use beyond that block. An example of IBR is shown in Figure 1 (on next page), which shows a rate structure for residential water use. With the rates in Figure 1, a household would be charged $0.46 and $0.71 per hundred gallons for consumption below and above 21,000 gallons per month, respectively.