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National Efficiency Impacts <br />A general equilibrium analysis, which is capable of capturing the interactions across the <br />various sectors that make up the economy, is used to evaluate national efficiency impacts. <br />The CGE model takes explicit account of the exchanges between the region and the <br />remainder of the country and world and so reports national economic effects. <br />To capture national efficiency impacts it is necessary to correct for those regional impacts that <br />are actually transfers from the rest of the economy. Four scenarios (Table I-E-3) provide <br />bounds on the national economic effects associated with the proposed critical habitat <br />designation by imposing conjectures on the extent to which capacity expansion expenditures <br />are net additions versus the extent to which they are pure transfers at the national level and <br />whether regional recreation impacts are offset by expenditures elsewhere in the country. <br />Table I-E-3 reports the without fish results in terms of the levels of activity. Thus, under <br />Scenario A1, there would be a $4.40 million dollar expansion in the national economy <br />projected on the basis of the 1982 levels of economic activity. Similarly, there would be an <br />increase in employment of 230 jobs and increases in earnings and government revenues. <br />Under Scenario B1, there would be a contraction in the national economy of $3.30 million. <br />There would be a corresponding reduction in employment of 150 jobs. <br />Two .additional scenarios address the extent of excess capacity in the recreational services <br />sector. Scenario A2 retains the assumptions of Al and adds the conjecture that there is <br />sufficient excess capacity in the national recreation sector that the negative regional impacts <br />are fully offset. Scenario B2 follows from B 1 and adds the conjecture that there is no excess <br />capacity in the national level recreation sector. Thus, the negative regional impacts are also <br />felt by the national economy. <br />ix <br />