Impact on the Economy of Michigan of Proposed Additional Diversion of Lake Michigan Water at Chicago: An Exploratory Study

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Issue Date
2011-04-01T17:35:51Z , January 1963
Gadzikowski, Gilbert R.
The W.E. Upjohn Institute for Employment Research
Commerce ; Water Diversion ; Lake Michigan ; Michigan ; Chicago ; Illinois ; Shipping ; Conservation ; Beach ; Wetland ; Marina
Chicago, Illinois, currently diverts some 3,000 c.f.s. (cubic feet per second) of Lake Michigan water over the divide into the Mississippi River Valley. The State of Illinois on behalf of the Elmhurst - Villa Park - Lombard Water Commission is asking the United States Supreme Court for permission to divert additional amounts of Lake Michigan Water into the Mississippi River Valley. Other similarly situated communities in Illinois are awaiting the outcome of this litigation. The other Great Lakes States (excepting Indiana) are presenting testimony to support their complaint that the water presently diverted as domestic pumpage by the City of Chicago should be returned to Lake Michigan after purification by sewage treatment works; or, in the alternative, that steps be taken to reduce the present diversion now amounting to 3,300 c.f.s.1. That the Great Lakes are a communal body of water is obvious. But how one statenulls use of the water affects the use that another state can make of it is not so obvious. To be sure, if one state removes water from the basin, the other states have that much less water for their use, but at what damage to them? The effects of such diversion by one community upon the other communities need to be explored. In this exploratory study, we limit our interest to economic effects. The economic effects occur because diversion action by Chicago affects the capacity of other states of the community to produce or to consume. What are the effects?
Tables include: 1 Before-Diversion Economic Positions 2 After-Diversion Economic Positions (No Quantity Change) 3 After-Diversion Economic Positions (Equal Quantity Change) 4 The Income-Multiplier Process 5 Estimates of Nonlocally Oriented Employment in Michigan: 1956 6 Effect on Annual Michigan Income (No Quantity Change) 7 Effect on Annual Michigan Income (Equal Quantity Change) 8 Summary of Loss of Annual Michigan Income 9 Capitalized Values of Loss in Annual Michigan Income 10 Loss of Michigan Wetland Capacity Caused by Drop in Lake Levels 11 Distribution of Motorboats Registered in Counties Riparian to the Great Lakes Affected by Diversion 12 State Parks on Eastern Shoreline with Beaches 13 Estimated Miles of Municipal Public Beach Affected by Additional Diversion 14 Average Prices of Michigan Riparian Land, 1959-1960 15 Cost of Purchase to Restore Michigan Wetland Capacity 16 Recent Public Marina Construction Costs per Boat in Michigan Facilities 17 Summary of Recreation and Conservation Asset Loss in Michigan