Press Release
Service Revises Draft Analysis of Economic Costs for New California Red-legged Frog Critical Habitat
The U.S. Fish and Wildlife Service (Service) today revised an economic impact analysis of its 2008 proposal to designate 1.8 million acres of critical habitat for the threatened California red-legged frog (Rana aurora draytonii). Release of the analysis opens a new 30-day comment period on the entire critical habitat proposal and the economic assessment.
The revised economic analysis seeks to quantify the broad range of costs linked to the critical habitat designation. The present value incremental costs directly related to a critical habitat designation could range from $183 million to $566 million over a 20-year period, assuming a 7 percent discount rate, according to the analysis prepared for the Service under contract by Industrial Economics Inc. of Cambridge, MA. The new figure is about 25 percent less than its April estimate of costs up to $767 million in its first draft.
Ninety percent of the cost in the new analysis occurs in new development, according to the revised analysis, although development is projected to occur on just one-half of 1 percent (7,099 acres) of the privately owned 1.3 million acres in the proposed critical habitat. The analysis calculates that the largest impacts will occur in San Luis Obispo, Alameda, San Mateo, Contra Costa and Santa Clara counties.
The revised analysis reflects improved data and revised assumptions. It considers both economic efficiency and distributional effects of designating critical habitat. For example, in April the analysis assumed a significant cost due to compliance costs associated with the state
The revised economic analysis seeks to quantify the broad range of costs linked to the critical habitat designation. The present value incremental costs directly related to a critical habitat designation could range from $183 million to $566 million over a 20-year period, assuming a 7 percent discount rate, according to the analysis prepared for the Service under contract by Industrial Economics Inc. of Cambridge, MA. The new figure is about 25 percent less than its April estimate of costs up to $767 million in its first draft.
Ninety percent of the cost in the new analysis occurs in new development, according to the revised analysis, although development is projected to occur on just one-half of 1 percent (7,099 acres) of the privately owned 1.3 million acres in the proposed critical habitat. The analysis calculates that the largest impacts will occur in San Luis Obispo, Alameda, San Mateo, Contra Costa and Santa Clara counties.
The revised analysis reflects improved data and revised assumptions. It considers both economic efficiency and distributional effects of designating critical habitat. For example, in April the analysis assumed a significant cost due to compliance costs associated with the state
