Study to identify economic impacts of ESA in Alaska

On behalf of communities and businesses in Alaska and the nation in general, the State of Alaska is engaged in a long-term, multi-disciplinary program to review and determine scientific, economic, and legal problems stemming from the implementation of the federal Endangered Species Act (ESA).

The Department of Commerce, Community, & Economic Development is tasked with determining the economic effects of the ESA, particularly as it relates to critical habitat designation (CHD). CHD denotes an area of land or water determined as essential habitat for the recovery of an endangered species. Human activity in a CHD may be severely constrained by an ESA listing. When making an ESA listing, the federal government is required to consider where the benefits of excluding certain areas from CHD would outweigh the benefits of including those areas in CHD.

The economic impact analysis is being conducted by the McDowell Group in association with Evergreen Economics and Dr. Andrew Plantinga. The study will be completed in early 2013, according to the McDowell Group’s Jim Calvin, who spoke at the RDC conference last month. The study focuses on all costs associated with CHD, in Alaska and elsewhere in the U.S. The study is examining the full range of CHD-related costs, including those associated with additional mitigation measures, project modifications, project delays, additional consultations and studies, and the overall effect on investment.

At this point, the team is conducting executive interviews with ESA impacted businesses and would welcome additional opportunities to interview more businesses. Please contact the McDowell Group (info@mcdowellgroup.net) if your business would like to share observations and experiences related to the ESA and CHD.

Return to newsletter headlines