solution of the problem also have basis in river-flow level and river-quality 

 classification. Coordinated effort for waste-water management among sectors and 

 among areas in the basin has strong basis in economies to be gained. Equitable 

 sharing of the incidence of cost could be worked out in a mutually advantageous 

 dialog. 



8.2 Price and Resource-Allocation Sensitivity for Lake Resources 



Precipitation (river-flow level) has little influence on lake resources because 

 lake depth is managed by dams. Constraints on waste-water discharge were such 

 that nutrient pollution of lakes would not result in accelerated algal bloom. ^ 



8.21 Implied Prices 



The implied prices for shoreline, lake-surface, and conservation reserves were 

 applicable over a fairly large variation in these items. Lake surface could be 

 shrunk by half or expanded by one -sixth of 3,020 acres in the basin before the 

 implied price would change. Shoreline and conservation reserve demonstrated 

 even greater stability over the range of resource availability in the basin taken as 

 a whole. In the northern area, vacation cottages and lake surface were sensitive 

 to price changes. A small percentage change in benefits accruing to cottage 

 owners would result in a change in type of cottage owned. The two sensitive 

 areas, cottages and lake surface, were related by boat-use practices of the cottage 

 owners. 



Regarding total number of vacation cottages in an area, sizeable price increases 

 were required for expansion in number and lot size. 



Other lake-use activities, such as day beach use, were not affected by relatively 

 small percentage changes in prices associated with these uses-50 to 100 percent 

 change in prices would be required. The number of participants might change 

 with a change in price and would depend on the supply and demand situation in 

 the area. It would appear that some experimentation with varying prices of day 

 users and campers would be desirable and would lead to increased revenue and, 

 in some cases, to regulated boat usage and beach crowding. 



8.3 Sensitivity for River-Related Resources and Resource Use 



The sensitivity of resource use and imphed prices in the basin was related to 

 variation in river-flow level and quality classification status of the river. 



8.31 Resource-Use Sensitivity and River-Flow Level 



When river flow was low, both number of farms were reduced and farming 

 practices altered to reduce the amount of materials washing from farmland. 

 Forest practices were unaltered by flow level. 



In the rural residential, intensive residential and urban sectors, the most 

 noticeable variation was concerned with waste-water treatment. Treatment pro- 



For an analysis of lake water through a season, see Ching, C. T. K., and Frick, G. E. 

 Economic Effects of Pawtuckaway State Park: Effect of Park Use on Environmental 

 Quality. Durham, New Hampshire: University of New Hampshire, Water Resources Research 

 Center, 1972, Research Report No. 6. 



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