News

…The worst fire in Colorado history is only halfway contained, and in the suburbs of Colorado Springs, residents and former residents are discovering what happens when a forest fire comes to town. Some cars are nothing but charred metal and some homes are burned to the ground, while, in the same neighborhood, other houses have not been touched. Fires are also raging in Utah, Montana, Wyoming, Idaho and South Dakota. Climate change is drying out the forests, creating fuel for fires expected to increase individual property loss, human misery and federal taxes. Studies show that local government agencies allow development near dense forests, knowing that the cost of fire-fighting will be covered by Washington. We update the current outbreaks and ask, is it politics that’s preventing prudent planning?

Guests: Jeremy Meyer: Denver Post, Ray Rasker: Headwaters Economics, Harris : US Department of Agriculture, Kevin Jeffries: California State Assembly, Michael Kodas: author and journalist.… (more…)

…Chris Mehl of Headwaters Economics in Bozeman, Mont., said productivity gains in modern mills have reduced industry jobs. Headwaters’ analysis suggests far less would be generated, especially with the current depressed timber markets.

“Even if the bill worked, the scale of created jobs will be small,” Mehl said. “The jobs will pay well because workers will have to be able to operate a variety of highly complicated equipment, but will be few in number compared to 30 years ago.”

He and environmentalists support more logging but seek more balanced development and federal land policy that also promotes fish and wildlife habitat restoration. Labrador’s bill promotes industrial forestry like states do on their land, Mehl said.

“What would be gained, or lost, in favoring the one industry over others and the repeal of the environmental safeguard laws?” Mehl asked.

—Idaho Statesman

…The report report showed that in Colorado mining, which includes oil and gas, represented 1% of overall employment in 2010. Conversely, Green Jobs represented 2.2% of all employment. That is a good news, bad news story which does not translate into greater economic impact….

According to the authors of the report, “the purpose of this report is to educate decision makers and the public about the current health of Colorado’s oil and gas industry, what factors are affecting the energy sector, and how the state can better benefit from its fossil fuel industry.”… (more…)

…As commissioners, all three counties that we represent, Beaverhead, Madison, and Jefferson, had differing opinions about the line. One thing we had in common though was the desire for information gathered on our terms by an independent, trusted source.

That’s why we sought outside assistance to help us better understand these issues, conduct research based on our own questions and priorities, and ideally weigh in on the MSTI siting process in an informed manner.

The MSTI Review Project, a collaboration between Madison, Jefferson and Beaverhead counties, along with five non-governmental organizations: Western Environmental Law Center, Craighead Institute, Future West, Headwaters Economics, and the Sonoran Institute, was launched in an effort to provide an independent, transparent analysis that would help counties better understand a number of the impacts of the line.… (more…)

By Ray Rasker, Ph.D., Headwaters Economics — Economists believe protected federal lands are an important driver of economic growth. Across Montana and the West, protected federal lands such as national parks, national monuments and wilderness areas are associated with higher rates of job growth.

Headwaters Economics pproduced economic profiles of every non-metropolitan county in the West from 1970 to 2010, looking at how each of them created jobs during that time frame. We found that non-metropolitan western counties with more than 30 percent of their land base in federally protected status increased jobs by 345 percent during this time frame. By contrast, non-metro counties with no protected federal lands increased employment by 83 percent during the same period.

These results reinforce the idea that natural amenities are an important ingredient in helping communities and states attract businesses, workers and investment. While public lands are associated with travel and tourism activities—which are important in their own right—research increasingly shows that these activities are only one part of a larger amenity economy that is an important driver of economic growth in Montana and across the West.… (more…)

The economy took a serious hit with the last recession. And while it will take time to recover, New Mexico is faring much better than the rest of the United States. That’s according to a recent Headwaters Economics report. The independent research group says New Mexico is creating jobs faster and has higher per capita income than the U.S as a whole.  

Headwaters Policy Director Chris Mehl says public lands have been a significant factor in New Mexico’s economic recovery. He says it’s not just the tourism industry.… (more…)

…Compared to some of its neighboring states, North Dakota has provided less funding for local communities to cope with the challenges associated with the oil boom, according to a report done by Montana-based Headwaters Economics.

In 2011, the report found, local governments received 8 percent of total state oil and gas revenue directly. That share is expected to reach 11.2 percent in the next fiscal year due to a new distribution formula. Still, this figure is low compared to what is set aside for affected communities in states such as Colorado, Montana and Wyoming. However, in the coming fiscal year, North Dakota will make a one-time infrastructure assistance payment of $885 million to impacted local communities.

Researchers at Headwaters also note that state planning now can help prevent a downturn after the oil boom ends. They suggest that states establish “legacy funds” to provide long-term benefits once resources are depleted. North Dakota established such a fund in 2011, and the state’s first deposit gave the fund a beginning balance of $67 million.… (more…)

A new report shows that protected public lands are a competitive economic advantage in southern New Mexico and Doña Ana County. The analysis confirms that protecting the world-class public lands surrounding Las Cruces will aid the region’s economic development strategy.

“Permanently protecting the iconic Organ Mountains and the surrounding natural treasures will boost our economy and benefit Doña Ana County. This Headwaters report explains how stimulating tourism, attracting new residents, and creating jobs goes hand in hand with permanently protecting public lands”, said Richard Majestic from the High Tech Consortium of Southern New Mexico.…

“Southern New Mexico’s competitive strengths and mix of economic activities have evolved in recent years,” noted report author Ben Alexander. “People are moving to the region because of its high quality of life. Services industries that employ a wide range of people–from doctors and engineers to teachers and accountants–are driving economic growth and make up the large majority of jobs today. These industries are raising wages and, along with rapid increases in non-labor income from investment and retirement sources, are helping to elevate per capita income.”… (more…)

…In November, more than 100 eminent economists sent a letter to President Obama asking that he protect more lands, not less. The letter states: “Today, one of the competitive strengths of the West is the unique combination of wide-open spaces, scenic vistas and recreational opportunities alongside vibrant, growing communities that are connected to larger markets via the Internet, highways and commercial air service.” This is further supported by an independent analysis conducted last year by Headwaters Economics regarding the economies of communities in 11 Western states adjacent to recently established national monuments. Of the 17 national monuments they studied, the local economies in every single case grew following the creation of the monument. All of these communities either saw a continued or improved growth in employment, real personal income and per capita income. Even during the economic downturn, our protected lands have continued to provide consistent tourism revenue for local communities.…

(more…)

…Has the timber industry’s time come and gone on the North Olympic Peninsula?

A set-aside plan to take 21 percent of Olympic National Forest out of potential timber production and designate it as wilderness would simply feed into a trend away from logging and into a growing service economy that focuses more on recreation and tourism, according to a study by Headwaters Economics Associate Director Ben Alexander.…

About 1,500 acres of Olympic National Forest are commercial-thinned annually, the report said. “It is unlikely the draft wilderness proposal would affect the current timber volume coming off the forest,” it said. For its economic study, Headwaters developed an economic profile system in conjunction with the U.S. Forest Service and U.S. Bureau of Land Management.… (more…)

…Protected public lands are a competitive economic advantage in southern New Mexico and Doña Ana County. These lands safeguard important natural assets and cultural landmarks, stimulate tourism and recreation jobs, and attract new people and businesses…

A large and growing body of literature demonstrates that protected public lands assist western communities working to promote a more robust economic future.

• Outdoor recreation is important to western economies. In New Mexico, for example, the Outdoor Industry Foundation reports that active outdoor recreation contributes $3.8 billion annually to the state’s economy, supporting 43,000 jobs.
• Services jobs such as engineers and architects are increasingly mobile, and many entrepreneurs locate their businesses in areas with a high quality of life. Conserving lands, while also creating a new visibility for them through protective designations, helps safeguard and highlight the amenities that attract people and businesses.
• For many seniors and soon-to-be retirees, protected public lands and recreation provide important aspects of a high quality of life. Non-labor sources of income already represent more than a third of all personal income in the West–and will grow as the Baby Boomer generation retires.⁴
• The counties in the West with protected public lands, like national monuments, have been more successful at attracting fast-growing economic sectors and as a result grow more quickly, on average, than counties without protected public lands.
• Protected natural amenities–such as pristine scenery and wildlife–help sustain property values and attract new investment.…

(more…)

…In 2012, Headwaters Economics released a report analyzing the major economic role that public lands near Grand County, Utah. The study (scroll down for a full-length PDF download) examined a wide range of public lands uses, including mining and agriculture, but focused on recreation because this type of use represents the largest, most complex, and least well understood activity on public lands in the county.

The study found that that tourism and recreation businesses account for 44 percent of private employment in the county; and that more than one-third of local families have a member that works in a tourism and recreation business related to public lands.… (more…)

…Challenging the notion that protecting public land locks it up, more than 100 economists, including three Nobel laureates, are calling on the president and Congress to create more parks and other protected preserves in the West as a way to bolster state economies.

The economists also urge the creation of something similar to the Depression-era Civilian Conservation Corps, which built trails and maintained infrastructure in national parks.

“We urge you to create jobs and support business by investing in our public lands infrastructure and establishing new protected areas such as parks, wilderness and monuments,” they wrote in a letter. Such areas “attract innovative companies and workers, and are an essential component of the region’s competitive advantage,” they added.

The drafting of the letter was organized by Headwaters Economics, a nonprofit organization that studies the economics of natural resources, with a tilt toward preservation. Ray Rasker, an economist with Headwaters, cited a study by his organization that found that Grand County, Utah, home to the tourist mecca of Moab, has been doing quite well: jobs there grew at a 7 percent annual rate in the 1990s and have been growing 2 percent annually during the current recession.

“In the last 40 years, the fastest growth in the West has been in communities adjacent to protected public lands,” Dr. Rasker said. “This is what’s creating jobs currently at a time of high unemployment — we need policy that creates jobs.”… (more…)

…Salmon, McCall, Stanley and Riggins have benefited from the tens of thousands of whitewater rafters, hikers, hunters, anglers and horse packers attracted to the Frank. But without commercial air service, broadband Internet connections and other convenient links to the outside world, higher-income development hasn’t followed.

“It’s not a case of ‘protect natural areas and the income will come,’” said Ray Rasker of Headwaters Economics in Bozeman, Mont., who signed the letter. “It’s more nuanced.”

The places that have benefited more are Boise, Ketchum-Sun Valley and Idaho Falls, Rasker said. These are the places with the airports, education systems and other amenities that allow footloose, high-income workers — engineers and architects — to do business while having access to Idaho’s wild places.… (more…)

Public lands such as wilderness and national parks fuel the economy and are a job creator in the West, luring the best companies and most talented employees to enjoy the country’s playgrounds.

That assertion is the impetus behind a letter sent Wednesday to President Barack Obama and signed by more than 100 economists and academics in related fields, asking him to protect existing public lands.

The letter also urges him to create new protected areas, although in a subsequent teleconference hosted by some of the signatories they said that option would be more viable down the road…

Of more critical concern is the declining health of existing national parks and monuments that are suffering from neglected infrastructure that threatens the visitor experience, said Ray Rasker, the letter’s organizer and executive director of Headwaters Economics.

“Much of the infrastructure is crumbling,” Rasker said. “It really requires an investment and is something we need to protect.”… (more…)

By Dan Happel and Leonard Wortman, Madison and Jefferson County Commissioners — Most everyone agrees that our wide open spaces, working farms and ranches, small towns, and abundant fish and wildlife all contribute immeasurably to a quality of life that is the envy of the nation.

It’s not surprising then, that when a development project is proposed that could affect all of these important assets, citizens are deeply concerned. The Mountain States Transmission Intertie, or “MSTI” transmission line, is a high profile case in point… The desire to base decisions on objective, independent information, collected and analyzed in a transparent way, was the reason that the MSTI Review Project was created… (more…)

…An analysis of the potential impacts, on the southern New Mexican economy, of naming Otero Mesa National Monument was done recently by Headwaters Economics, an independent, non-profit research group.

“The short answer is that repeated academic studies have shown that investments in public lands conservation and restoration provide an immediate return through new employment and revenue,” says author Ben Alexander. The study cites the Economic Research Service of the U.S. Department of Agriculture, which recently found that “recreation and tourism development contributes to rural well-being, increasing local employment, wage levels, and income, reducing poverty, and improving education and health.”

Unlike the small-scale, short-term benefits of resource extraction that would be expected for Otero Mesa residents, protected public lands also help to promote long-term economic growth, says the Headwaters study, “because of their ability to attract and retain people, entrepreneurs, and the growing number of retirees who locate for quality of life reasons.” Published research also shows that natural amenities help sustain property values and attract new investment.

While a national monument designation “would not harm agricultural uses or military employment” in the area, says the study, passing up an opportunity to diversify the economy of southern New Mexico and to boost its long-term resiliency by protecting its unique desert grasslands could be a bad move. “Looking at mineral wealth, the [BLM’s] analysis showed little reason to believe that the local economy would benefit from projected fossil fuel extraction on Otero Mesa–and that the limited revenue from mineral extraction might not even cover the share of infrastructure and service costs,” says Alexander.… (more…)

…Of five Rocky Mountain energy-producing states, Wyoming sees the highest percentage of monetary benefit because of the level of production and state severance taxes. Report author Julia Haggerty with Headwaters Economics says she also discovered that jobs are more closely connected to market prices, than state policies such as severance taxes.

“It’s price, not so much policy decisions, that determine the number of people that are employed and the size of the paychecks that they bring home.”

Haggerty shares another insight to demonstrate how important it is for the state to diversify its economy. Wyoming saw the largest percentage decline in personal income during the recession among the five states studied.

“The more dependent you are on industries that track so closely with volatile commodities like oil and gas, the more you will be exposed to trends in those industries.”

The “cost” to the environment and quality of life are additional economic factors that Haggerty says need more consideration…

“The cumulative impacts that are surfacing in these areas with regards to air quality, for example, as well as long-term impacts to residents who are dealing with the daily industrialization of their landscape.”… (more…)

Redrock cliffs, sandstone arches, desert vistas and ancient archaeological remains are more permanent than the fossil fuels under them. They will exist for ages, unless humans are allowed to destroy them. That’s the kind of permanent resource to put your money on, as the folks in Grand County have discovered.

A recent study by Headwaters Economics, a nonprofit group, shows that outdoor recreation on the county’s spectacular public lands has become the area’s economic engine, producing jobs and replacing the county’s disappearing mines and ranches. And the jobs, like the scenery, aren’t subject to the booms and busts that afflict extractive industries… (more…)

…Headwaters Economics: Economic Impact of National Parks is an interactive page that shows how protected public lands, such as national parks, can play an important economic role for local communities.  The web-based tool lists visits, non-local spending and the number of jobs created in gateway communities for each National Park Service unit.  Visitation, tourism and jobs related to nearby public lands annually contribute billions of dollars to regional economies while creating hundreds of thousands of private sector jobs… (more…)