ABSTRACT
This chapter considers a subsidiary theme—the adequacy of water supplies to accommodate energy development in the semi-arid western US. The mix and quantity of factor inputs to production depend on the relative cost or availability of inputs. In most regions, water is inexpensive or even free. The budget for water use in the energy sector, compared for example to irrigated agriculture, is but a small fraction of total production costs. Capital and fuel costs dwarf water-use costs. There are four basic uses of water at energy conversion facilities: waste heat rejection or cooling, process use (as a boiler feed and a source of hydrogen for synthetic fuels), flue gas desulfurization, and solid waste disposal (in a slurry). Aside from the cost and availability of water, other factors influence water demand for these uses. For purposes, “institutions” refer to the entirety of laws, rules, administrative procedures, organizations, customs, habits, and other social forms that evolved to govern water allocation.
