Recreation visitors — including off-roaders like this Jeep Safari participant climbing Potato Salad Hill last April — provide 44 percent of Grand County’s private-sector jobs, according to a report by Headwaters Economics.
An economic study of Grand County finds that the parks, vistas, rivers and trails of southeastern Utah’s public lands account for 44 percent of private employment there… (more…)
…Got a nice compliment from Headwaters Economics about last week’s posting that profiled wilderness areas that Republican lawmakers have proposed for permanent protection.
Headwaters sent me a link to a research brief from Utah State University professors arguing that wilderness designations are a net economic loser for nearby counties, resulting in reduced per capita income, payrolls, and tax receipts. Headwaters came right back at ’em with a critique of the brief, pointing out analytical flaws and the countervailing, peer-reviewed evidence documenting the economic benefits of wilderness for nearby communities.… (more…)
…Headwaters Economics in Montana has analyzed a House Resources Committee proposal to increase logging on national forests by easing environmental protections. It concluded that at current log prices, historically low because of the housing crash, the U.S. Forest Service would have to increase timber production more than 200 percent above the average for the past 30 years.
At current administrative costs, the Forest Service would have to spend $2.2 billion a year planning timber sales to generate the $378 million per year that has been going to counties.
"It’s hard to imagine even under the most favorable market conditions, let alone the current market conditions," said Headwaters economist Chris Mehl.…
By Mark Haggerty, Headwaters Economics— Two years into a slow economic recovery, many Montana rural communities are still struggling to create jobs. The unemployment rate in rural counties is just under 8 percent compared to 6 percent for Montana’s metropolitan counties.
In hard economic times, Montana has relied on its forests for jobs and income. Today, logging cannot lift the state alone, but logging combined with forest and watershed restoration work can be the basis for job growth in Montana’s rural counties.… (more…)
…Communities surrounding national monuments in the West have experienced continued economic growth since the lands were designated by the president or Congress, according to a report by a Bozeman, Mont.-based research firm.
The findings by Headwaters Economics show consistent increases in population, employment and personal and per-capita income in communities surrounding some of the largest national monuments in nine Western states.… (more…)
Are Wyoming’s industry and political leaders talking about the facts when they say that Obama and Washington bureaucrats are hurting domestic energy development? You have to wonder after today’s release of Headwaters Economics’ statistical analysis, “Drilling Rig Activity Nears All-Time High”
The refrain is repeatedly made from the oil and gas and coal industries, as well as national and Wyoming politicians (mostly Republicans, to be sure), that onerous regulations are blocking us from achieving greater energy independence. But what emerges from the new analysis tells a different and evolving story.
In fact, oil and natural gas drilling in the United States has returned to pre-recession levels.… (more…)
A new study by Headwaters Economics compares how Colorado, Montana, New Mexico, Utah, and Wyoming–five states with vast traditional and clean energy resources–are taking advantage of clean energy opportunities to create green jobs. The report concludes with five keys to success for the states to further benefit from the emerging green economy while measuring the likelihood that each state’s policies will promote future growth and investment.
“The green economy already contributes positively to the region, and it has been growing rapidly in terms of job creation, investment, and production,” said Julia Haggerty Ph.D., the report’s author. “But the opportunities are going to the states that show the most leadership.”…
“All of the states have opportunities to benefit from the green economy, but it does not happen by accident,” said Haggerty. “States performing the best–such as Colorado and New Mexico–have made a strong, deliberate, and lasting commitment to growing their green economy.”… (more…)
An extensive report by Headwaters Economics, an independent regional research organization, recommends that Wyoming follow Alaska’s example to revamp its severance tax formula and direct additional tax revenue to the counties and communities where most mineral extraction takes place…
In the 62-page report, Impacts of Energy Development in Wyoming, with a Case Study of Sweetwater County, authors Julia Haggerty and Mark Haggerty argue Wyoming’s current formula distributes only a small percentage of the severance tax it receives to the local governments where the energy impact is greatest.
“Wyoming has the least favorable tax structure on oil and natural gas of anyone in the inter-mountain west,” Mark Haggerty said in an interview with WyoFile, “and yet, it’s the center of drilling activity.”
The report disputes the widespread notion that Wyoming’s counties and municipalities receive big bucks from energy development in their backyards.
“Despite the high production value of extraction in Sweetwater County,” the authors conclude, “return to the county through state severance taxes is a small part of total county revenue.” Following Sublette and Campbell County, Sweetwater is Wyoming’s third-highest producer of mineral revenue.
Yet, according to the report, Sweetwater isn’t getting much back:
“In 2007, state severance tax distributions (to Sweetwater County) of $444,866 made up seven percent of intergovernmental revenue, or ten percent of total revenue. Across Wyoming, the state returns only a small portion of total revenue to local governments (seven percent to counties and one percent to cities and towns in 2008 or $196 million and $25 million respectively).”… (more…)
By Mark Haggerty and Julia Haggerty, Ph.D., Headwaters Exonomics— The Obama administration has proposed eliminating several federal tax breaks for the oil and natural gas industry. This raises an important question: Do tax incentives influence oil production? At a time of both record budget deficits and energy industry profits, both Montana and the federal government should look to the experience of other states for answers.
Many states are especially reliant on revenue from oil and natural gas. According the U.S. Census of Governments, severance taxes accounted for 74 percent of all state tax revenue in Alaska, 34 percent in Wyoming, and 9 percent in Louisiana in 2010. This reliance encourages close attention by states to the assessment of the impacts of rates and incentives.… (more…)
This week Wyoming’s congressional delegation cheered the demise of a bill that would have cut some tax breaks to the top five oil companies, a measure estimated to bring in $21 billion in revenue over the next 10 years..…
A 2008 analysis by Headwaters Economics — a Montana-based non-profit whose supporters include the U.S. Bureau of Land Management and the Montana Legislature — found that states with lower tax rates didn’t necessarily attract more rigs or produce more gas. Instead, drilling and production was based more on commodity prices and where quality resources are located.… (more…)
“Fossil Fuel Extraction and Western Economies” compares the importance of the fossil fuel economy in the five Rocky Mountain energy-producing states–Colorado, Montana, New Mexico, Utah and Wyoming–and analyzes the relative success that states and communities have had in maximizing benefits and minimizing the costs of energy development.
Written by Julia Haggerty, it makes three key findings at the state level:
…Anytime coal’s cost to America is discussed, the coal industry reflexively talks about what an economic lifeline it is for the states in which it operates. Headwaters Economics, a Bozeman-based think tank focusing on natural resource issues, has a solid new study that’s getting national attention for undercutting those claims. For instance, the Headwaters study finds that “fossil fuel production has not insulated energy-producing states from fiscal crisis,” that “fossil fuel extraction has a limited influence at the state level on economic indicators such as GDP by state, personal income, and employment,” and that “the volatility of fossil fuel markets poses obstacles to the stability and long-term security of economic growth in energy-producing regions.”…
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…So how have Western states handled the latest 2003-2008 boom and bust? Have we gotten smarter about handling booms, or did we do what we did the last time?
The answer, according to a new study by Headwaters Economics, is it depends on the state, the counties, the fuel and the presence, or absence, of political and industrial leadership at the right time and place.
The core finding was that tax revenues have greater impact and sustainability than highly volatile energy jobs, which can vanish as fast as they appear.
“Fossil Fuel Extraction and Western Economies” compares the importance of the fossil fuel economy in the five Rocky Mountain energy-producing states–Colorado, Montana, New Mexico, Utah and Wyoming–and analyzes the relative success that states and communities have had in maximizing benefits and minimizing the costs of energy development.
Written by Julia Haggerty, the report makes three key findings at the state level:
A report released Tuesday by a Montana-based research group said the economic impact of the fossil fuels industry comes from tax revenues, not energy-related jobs for workers who can be transient, and it recommended maximizing those revenues by raising rates.
The Headwaters Economics report recommended setting aside money to deal with environmental impacts and reforming distribution of energy revenue so that money goes not only to communities affected by mining or drilling but also to those flooded with industry workers.… (more…)
…A report Tuesday by a Montana-based research group said the economic impact of the fossil fuels industry comes from tax revenues, not energy-related jobs for workers who can be transient, and recommended maximizing those revenues by raising rates.
The report by Headwaters Economics said government data show energy-related jobs including coal mining jobs made up less than 3 percent of the total employment in Colorado, Montana, New Mexico and Utah and about 8.5 percent in Wyoming in 2008…
…Proper tax and other policies can help both states and local governments maximize the benefits of fossil-fuel development while minimizing the challenges posed by its volatility, a new report concludes.
The report, released by the Montana-based Headwaters Economics nonprofit research group, points to both Colorado policies, and more specifically those in Garfield and Mesa counties, to make its point.…
…Economic Profile System (EPS)-A web and Excel-based tool to produce detailed socioeconomic profiles. Access demographic, government, labor, and land use data across a wide spectrum of geographies. EPS was created by Headwaters Economics, in partnership with the BLM and U.S. Forest Service.…
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…The inability of land managers to allow wildfires to burn out naturally in Colorado is not surprising. Amongst the states in the Rocky Mountain West, Colorado has the largest portion of developed forested private land bordering public wildlands — 21 percent — according to independent nonprofit research group Headwaters Economics. New Mexico ranks second to Colorado in terms of wildland-urban interface development, with 17 percent of its interface area occupied by housing. Nine percent of Montana’s wildland-urban interface is developed, while Wyoming is least developed at just four percent…
In a detailed analysis of daily fire suppression costs for 18 large fires in Montana during 2006 and 2007, Rasker found that when it was 1 degree warmer on average during summer the cost of protecting homes from fire doubled…
In a 2009 report, Rasker identifies 10 possible solutions to curb the federal costs of fighting fires on the wildland-urban interface in the West. These include limiting development with local zoning ordinances and cutting federal firefighting budgets in order to shift more of the cost of wildland firefighting to local governments.
“We’re not telling people that they shouldn’t live where they want,” said Rasker. “What we’re saying is that the cost accountability simply isn’t there right now.”… (more…)
…A new study released this month by Headwaters Economics, of Bozeman, Mont., shows how much communities around national parks like Teton County benefit. The local areas around Yellowstone have 5,155 jobs tied to the national park with visitors spending $302 million in 2009, the Headwaters report by economist Ray Rasker shows.…
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By Julia Haggerty, Ph.D., Headwaters Ecoinomics— The Obama administration’s decision to take a “fresh look” at oil shale policy and regulations is sound public policy that will benefit the future viability of commercial development in the long-term.
Today, the commercial feasibility of proposed oil shale development remains tenuous due to a number of technical, environmental, regulatory and economic challenges.
A formal, nonbiased review is needed for a number of reasons.… (more…)
