OPTIMALLY MANAGING WILD RIVERS FOR INSTREAM BENEFITS

This paper reports on study which employed the travel cost method of estimating economic values from low streamflow augmentation for whitewater angling and boating. In addition, we constructed a dynamic programming (DP) model which allows a water management agency to optimally time instream flow augmentations of a seasonally fixed water supply in the face of uncertain future natural streamflows. The model was applied to a case study of the wild river stretch of New Mexico's Rio Chama. Results indicate that properly timed streamflow augmentation can yield benefits of up to $1100 per consumptive acre foot, as compared to agricultural values of $50 per acre foot. Hence, results strongly suggest the economic feasibility of public acquisition of water rights for instream flow augmentation