9391

• UCREFRP Catalog Number: 9391
• Author: Watts, G., W. R. Noonan, H. R. Maddux and D. S. Brookshire.
• Title: The Endangered Species Act and Critical Habitat Designation
• USFW Year: 1997.
• USFW - Doc Type: An Integrated Biological and Economic Approach.
• Copyright Material: NO

Most of the Colorado River basin's states would suffer declining output (relative to baseline)
with respect to electric power production and the recreation and tourism sectors of their
economies. These results stem from reoperating federal reservoirs in the basin to provide flows
for endangered fish at the expense of recreation and hydropower production. Colorado, however,
is expected to see increased construction and manufacturing activity relative to baseline because
it is the likely site for adding thermal power production capacity to replace lost hydropower
generation.

TABLE 4-B
Colorado Study Direct Economic Impacts
Critical Habitat Designation For the Lower Basin (1991 $ Millions)
Year
Sector 1995 2000 2005 2010 2015 2020
Arizona
Recreation 0.000 -0.028 -0.065 -0.098 -0.130 -0.163
Electric Power -0.235 -0.253 -0.152 -0.195 -0.403 -0.326
Total Direct Impacts -0.235 -0.281 -0.217 -0.293 -0.533 -0.489
California
Other Crops 0.525 1.908 4.374 5.817 8.387 10.935
Livestock Feed 0.100 0.362 0.827 1.100 1.586 2.054
Total Direct Impacts 0.625 2.270 5.201 6.917 9.973 12.989
Nevada
Recreation 0.000 -0.028 -0.065 -0.098 -0.130 -0.162
Electric Power -0.114 -0.114 -0.114 -0.114 -0.114 -0.114
Local Amusements 1.863 1.863 1.863 1.863 1.863 1.863
Total Direct Impacts 1.749 1.721 1.684 1.651 1.619 1.587

Table 4-C shows that the direct economic impacts of critical habitat designation roughly offset
each other in magnitude for all seven states combined. There are significant distributional

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