Economic Analysis of Critical Habitat Designation in the Colorado River Basin for the Razorback Sucker, Humpback Chub, Colorado Squawfish, and Bonytail April 1994

• Description: Economic Analysis of Critical Habitat Designation in the Colorado River Basin for the Razorback Sucker, Humpback Chub, Colorado Squawfish, and Bonytail April 1994
• State: CO
• Basin: Colorado Mainstem
• Date: 4/1/1994
• Title: Economic Analysis of Critical Habitat Designation in the Colorado River Basin for the Razorback Sucker, Humpback Chub, Colorado Squafish, and Bonytail April 1994
• Water Supply Pro - Doc Type: Report/Study

National Efficiency Impacts
A general equilibrium analysis, which is capable of capturing the interactions across the
various sectors that make up the economy, is used to evaluate national efficiency impacts.
The CGE model takes explicit account of the exchanges between the region and the
remainder of the country and world and so reports national economic effects.
Table I -E -3 reports the "without fish" results in terms of the levels of activity. Thus, under
Scenario Al, there would be a $7.92 million dollar (1991$) expansion in the national
economy projected on the basis of the 1982 levels of economic activity. Similarly, there
would be an increase in employment of 710 jobs and increases in earnings and government
revenues.
Table I -E -3. Colorado River Basin — National Economic Impacts: Levels and Differences
($1991 in Millions) (Employment in Jobs)
Without Fish vs
Without With Fish
Scenario Al
Variable
Fish Scenario Al
With Fish
Real Gross Regional
593645.38 593653.43
7.92
Product
Employment
15029220.00 1502930.00
710.00
Earnings
354200.23 354206.85
6.62
Gov't Revenue
203822.01 203825.21
3.20
Scenario Al: There exists sufficient underutilized capacity in the construction and capital equipment sectors (within the Basin or elsewhere
in the national economy) that all additions to thermal electric capacity are a net positive addition to the level of national economic
activity. The recreation resources within the Basin are unique and the loss of these recreatibn opportunities cannot be replaced
within the U.S. economy.
If it can be assumed that the adjustments to the national economy represented by the CGE
results are permanent, then the present value and annualized values reporting the national
economic impacts can be estimated for the study period. Table I -E -4 presents these
estimates. For output, the discounted present value (3 percent) is $141.58 million (1991$).
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