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The third stage of the analysis involved developing a computable general equilibrium <br />model (CGE) of the basin-wide economy. The CGE approach provides a more <br />comprehensive assessment of economic effects than an input-output model. The model <br />captures the economic interactions of consumers, the production sectors, and government <br />sectors. The CGE model allows for analysis of resource reallocation proposals (e.g., <br />changes in river flows as represented by increased or decreased hydroelectric generation) in a <br />manner such that the net national efficiency effects are estimated. <br />All model stages of the economic impact analysis employ the same set of scenario <br />projections. The without fish economic scenario consists of a projection of the levels of <br />economic activity that would occur in the region if no listing and/or critical habitat actions <br />were undertaken. This projection covers the period through the year 2020. The biological <br />opinions concerning the endangered fishes indicated that recovery may take years. The with <br />fish scenario economic projection incorporates potential action that may be taken on behalf of <br />the endangered fishes. These scenarios allow a comparison of the without and with fish <br />scenarios to obtain the net economic impacts associated with species listing and proposed <br />critical habitat. <br />B. Plan of the Volume <br />Chapter II-2 discusses the geography of the Colorado River region and provides an overview <br />of the current economic structure and the development of the economy of this region since <br />1950. Chapters II-3 and II-4 discuss the individual State economies. This information forms <br />the foundation from which the economic impacts were calculated for the State input-output <br />models. Chapter II-5 presents information regarding the listing history and location of the <br />proposed critical habitat areas for the four endangered fishes. Chapter II-6 describes the <br />methodology utilized to assess changes in the hydrology of the river system. <br />Chapter 11-7 presents the conceptual framework of the input-output models and the <br />computable general equilibrium model. Chapter II-8 discusses the input data used for <br />evaluating the economic impacts, the methods used for aggregating the economic sectors, and <br />II-1-4