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Last modified
7/14/2009 5:02:35 PM
Creation date
5/17/2009 11:15:01 PM
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UCREFRP
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
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<br />l <br /> <br />The method of analyzing the economic impacts of designating critical habitat and the exclusion <br />process is more than of academic interest. To date, the only USFWS sponsored studies we are <br />aware of which analyze critical habitat impacts in a general equilibrium framework are those <br />presented in this paper. This type of analysis is essential for the exclusion process. A critical <br />habitat exclusion process requires that the analysts promulgate some criteria deciding whether or <br />not to make an exclusion. For both studies, the recommended threshold for exclusion was one <br />percent deviation from the baseline projection of aggregate economic activity (Department of the <br />Interior 1994; Brookshire, McKee, and Schmidt 1995). The geographic scope of the study and <br />the breadth of the economic impacts required that the criterion be based on aggregate economic <br />activity. In the spotted owl study, the threshold was defined in terms of change in employment <br />in the logging industry at the county level. <br /> <br />The consequences of adopting a narrow region for analysis and an essentially partial equilibrium <br />framework are most apparent in the case of the critical habitat assessment for the northern <br />spotted owl. In that case, the exclusion process resulted in approximately 40 percent of the <br />critical habitat initially proposed being excluded. It is by no means certain that the outcome <br />would have been different had the northern spotted owl study utilized an applied general <br />equilibrium model. Perhaps, however, less habitat would have been lost as a result of the <br />exclusion process. <br /> <br />39 <br />
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