Document Type


Publication Date

January 1981


Using a conceptual model of a multiple-product firm, the necessary conditions for an optimal input and output allocation were determined for a region constrained by resource availabilities and/or policy constraints. A linear programming model was developed to deteremine the optimal allocation of water between agricultural and coal-fired electrical generating entities as well as the trade offs which could occur if electrical generation were increased. Other areas of potential trade offs such as coal source restrictions and air quality regualtions were also examined. Coal mining and transportation costs were included as were SO2, Nox, and particulate emission rates on a coal and plant basis. Few trade offs between electrical power generation and irrigated agriculture were noted. However, substantial changes within the energy sector were discovered as coal capacities and air quality energy sector were discovered as coal capacities and air quality standards were changed. Net revenues declined sharply as air costs after and/or pollution and coal capacity restrictions were imposed and/or increased. It was determined that substantial changes in regional economic activity occurred as a result of these restrictions on development.