Excerpt from The Engineering Economics of Large Scale Desalting

Very little is known of the social and economic effects from adding desalting plants to any country"s stock of capital. There is no historical evidence on these effects because the plants now in operation are too small or too recent to have had measurable results. There has been only limited analytical work which can be used to forecast future effects.

Yet the results could be complex, widespread, and important. New supplies of water in regions without rainfall would change not only the organization of industry and agriculture there, but also bring the cultures of sparsely populated areas closer to those in more populated and advanced countries of the world. The productivity of labor and capital throughout the economy should be increased as a result both of more and higher quality water. The composition of national output would be changed from adding this type of capital, and water as an intermediate product, rather than some other kind of capital such as those resulting in more highway transport and fertilizer as intermediate products. The question is whether general assessments can be made of these effects, so as to establish some priority for general investment in developing and refining this new technology over the next decade.

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