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 economic efficiency effects refer to the overall net effects on the national economy
after the effects of interregional transfers have been accounted for. The goal of a national
efficiency analysis is to determine whether a proposed action would have an overall positive
or negative impact on the national economy. National economic efficiency impacts were
analyzed in this study using a computable general equilibrium (CGE) model. The model
captures the economic interactions of consumers, the production sectors, and the government
sectors.
B. The Modeling Approach
A set of input- output (I -O) models was developed as part of a staged investigation, where
each was stage developed to address a particular issue. During the initial stage, a separate
I -O model was developed for each of the States in the affected region: Arizona, California,
Colorado, Nevada, New Mexico, Utah, and Wyoming. These models focused on the
impacts that are generated by species listing and critical habitat designation within each
individual State.
In most cases, impacts in a given State generated impacts in neighboring States. Thus, it
was necessary to investigate potential offsetting impacts. As a result, a second model was
constructed which investigated the impacts of the entire region (all seven States included).
The first two model stages provide estimates of the State and regional -level economic
impacts.
The third stage involved the development of a CGE model for the economies of the
seven -State area and the rest of the U.S. This model provides a comprehensive aggregate
assessment of the national economic efficiency impacts.
C. Without Fish and With Fish Scenarios
1. Without Fish Scenario
The "without fish" economic scenario analyzed in this study consists of projections, over the
study period, of the level of economic activities that would be observed if no action were
I -17