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

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the river system will be managed without regard to the needs of the endangered fishes. This economic scenario consists of a set of projections of the current and future economic activities, without regards to the needs of the endangered fishes. The "with fish" scenario is constructed on the basis that the river is to be managed to foster recovery of the endangered fishes through species listing and designation of critical habitat. The economic activities that might be altered to enhance the recovery of the endangered fishes must be identified. Thus, the "with fish" scenario consists of a set of economic projections that reflect the activity changes that may be required to recover these fishes. The economic projection of the "without fish" scenario takes into account the levels of economic activity that would occur in the region if no listing and /or critical habitat actions were undertaken. This projection covers the period 1995 through the year 2020 and forms the benchmark for comparing the net economic impacts associated with the species listing and designation of critical habitat. This period was chosen because the biological projections concerning the endangered fishes indicated that recovery may take years. D. Economic Setting 1. Economic Output Economic output measures the values of all goods and services produced and /or consumed in a regional economy. The region consisting of seven States, generates approximately $1.3 trillion in economic output annually. This output is dominated by the combined manufacturing sector and the finance, insurance, and real estate sector, which produce 18.4 percent and 14.9 percent of total output, respectively. The petroleum and gas production sector generates 2.4 percent of the total output, while the recreation services sector produces 7.7 percent of the total output. The electric power production sector comprises about 1.5 percent of the total output. The combined agricultural sectors are responsible for 3.0 percent of the total output, of which the livestock feed sector produces 0.33 percent of total regional output and the other crops sector produces 0.95 percent of the output. I -14