4.8 Sensitivity to Price Change 32 



4.9 Summary 32 



PART V. RESOURCE ALLOCATION, IMPLIED PRICES, AND COST 



FOR RIVER-CONNECTED ACTIVITIES 33 



5.1 Comparison of Present with Potential Resource 



Allocation 33 



5.2 Discharge of Raw Sewage is Economic Optimal 34 



5.3 Influence of River-Flow Level on Resource Use 34 



5.4 Influence of River-Flow Level on Benefits and Costs 38 



5.5 Value of Low-Flow Augmentation 38 



5.6 Change in Net Marginal Benefits From a Change in Resource 



Resource Use 40 



5.7 Summary 44 



PART VI. INFLUENCE OF OBJECTIVE FUNCTION AND OPTIMIZATION 



ON THE THREE AREAS IN THEASHUELOT RIVER BASIN 42 



6.1 Effect of Goals Optimized in Each Area 42 



6.2 Levels of Activities 43 



6.3 Shadow Price on BOD by Area 43 



6.4 Summary 43 



PART VII. EFFECT OF RAISING RIVER-QUALITY STANDARDS IN 



CENTRAL AND SOUTHERN AREAS TO B-CLASSIFICATION 



LEVEL 49 



7.1 Possibility of Attaining B-Class Status 49 



7.2 Influence of Change in Classification on Cost 50 



7.3 Effect of Change in Classification on Resource Use 



and Imputed Prices 52 



PART VIII. SENSITIVITY ANALYSIS 53 



8.1 Administrative Organization and Coordination 53 



8.2 Price and Resource-Allocation Sensitivity for Lake Resources . . 54 



8.21 ImpUes Prices 54 



8.3 Sensitivity for River-Related Resources and Resource Use .... 



8.3 1 Resource-Use Sensitivity and River-Flow Level . . 54 



8.32 Sensitivity of BOD Shadow Price 55 



8.33 Sensitivity to Price Change 55 



PART IX. COMPARISON WITH COASTAL WATERSHED, THE 



LAMPREY RIVER BASIN 59 



9.1 Description of the Lamprey River Basin 59 



9.2 Resource-Use Pattern and ImpUed Prices 59 



9.3 Shifts in Lake-Resource Use 60 



vu 



