Local food systems are frequently touted as economic development strategies for rural communities. In this study, we estimated the local economic impacts of local compared with conventionally produced and marketed food in two regions of Missouri and one region in Nebraska. We found that local food systems generated substantial increases in value added for their local economies.

Nonindigenous invasive weed species can have substantial negative impacts on the quantity and quality of outdoor recreational activities such as fishing, hunting, hiking, wildlife viewing, and water-based recreation. Despite the significance of impacts on recreation, very little research has been performed to estimate the corresponding economic losses at spatial scales such as regions, states, and watersheds. This is true primarily because in most jurisdictions the data necessary to estimate recreational impacts are scarce and incomplete. Because of the challenges involved in measuring recreational losses precisely, we illustrate a method that can provide indications of the ranges in which the true economic losses likely lie. To reflect underlying uncertainty in parameters such as the number of acres infested in a jurisdiction and the rate at which wildlife-related recreation decreases as a function of increasing weed infestation, we developed a range of estimates using lower, medium, and higher scenario combinations of parameter and variable values. Our case study jurisdiction is a western state (Nevada) in which nonindigenous weed infestations on public lands have expanded rapidly in recent years. Under conservative assumptions, the negative economic impacts stemming from the adverse influence of nonindigenous weeds on wildlife-related recreation in Nevada likely range from $6 million to $12 million per year. Using the most conservative findings for annual recreation losses, the predicted discounted stream of negative economic impacts over a future time horizon of 5 yr ranges from about $30 million to $40 million in Nevada, depending on actual future expansion rates of weeds.

A survey of the Maine landscape and nursery industry was conducted to identify industry views on invasive plant issues, attitudes towards potential regulation, and to estimate the potential economic costs of banning the sale of specific invasive plant species in Maine. Analysis of the 190 surveys returned (19% of 980 mailed) revealed that 76% of industry member respondents were genuinely concerned about invasive plant issues, and the same percentage felt the horticulture industry is responsible for educating customers about invasive plants. Industry members (68%) did not feel compelled to sell invasive plants merely on the basis of customer attraction to the plant, or due to competition with a neighboring business that sells the invasive plant. Self-reporting of sales indicated that Norway maple ($96K), burningbush ($68K), and Japanese barberry ($44K) constituted the largest portion of annual industry revenue (maximum values reported for 2006 to 2008) derived from the sale of seven identified invasive plants. Industry self-regulation was the most favored form of regulation, although the industry likely would not be significantly affected by legislated state-wide bans of at least purple loosestrife and oriental bittersweet. Bans on other popular invasive plants, including burningbush, Japanese barberry, and Norway maple likely would have a relatively small, short-term impact on the horticulture industry until alternative plants with similar properties were identified. The results of this survey demonstrated a need for identifying which plants are truly invasive or potentially invasive in Maine, as well as a need for open discussion of invasive plant issues among all interested parties in Maine.

Perennial pepperweed, found throughout the western United States, reduces biodiversity and causes economic losses in the form of control costs as well as decreased quantity and quality of agricultural yields. The future stream of net benefits of weed management and the future point in time at which they will have accumulated enough to equal total management costs were estimated under different land-use and expansion rate scenarios. Benefits and costs were calculated in present value terms by applying a rate of discount to future values. On land used solely for grazing, the total economic returns from management did not equal total costs until 15 yr after initial treatment. However, on land used for grazing plus hay harvest, cumulative benefits equaled and began to exceed cumulative costs after 4 to 5 yr. The costs and benefits of management efforts were also estimated for a landowner, who controls an adjacent infestation before it spreads. This landowner benefited economically from weed management in as little as 5 to 6 yr, highlighting the importance of cooperative efforts to control nearby weed infestations.

Eurasian watermilfoil, an aquatic invasive weed, has been identified recently at a number of sites in western Nevada and northeastern California, including Lake Tahoe. Because Eurasian watermilfoil is easily spread by fragments, transport on boats and boating equipment plays a key role in contaminating new water bodies. This is an important means of the potential spread of this weed throughout key recreational and agricultural areas surrounding Lake Tahoe. Unless the weed is controlled, significant alterations of aquatic ecosystems, with associated degradation of natural resources and economic damages to human uses of those resources, may occur. This research uses the economic valuation approach known as benefits transfer to estimate the value of a portion of the recreational service flows that society currently enjoys in the Truckee River watershed below Lake Tahoe. The lower-bound estimates of baseline water-based recreation value at a subset of sites in the watershed range from $30 to $45 million/yr. Impacts from the continued spread of Eurasian watermilfoil in the watershed could be significant; for example, even a 1% decrease in recreation values would correspond to roughly $500,000/yr as a lower bound.

This paper presents a case study of the economic damages to homeowners in a northern New Jersey community due to an exotic forest insect—the hemlock woolly adelgid. Hedonic property value methods are used to estimate the effect of hemlock health on property values. A statistically significant relationship between hemlock health and residential property values is established. Moreover, there are some signs of spillover impacts from hemlock decline, as negative effects are realized on the parcels where the declining hemlock stands are located as well as on neighboring properties. These results give some indication of the benefits of potential control programs and strategies and also show support for community- or neighborhood-based programs in residential settings.

Simulation results showed that simultaneous outbreaks of highly pathogenic avian influenza (HPAI) in Asia, the United States, Brazil, and selected European countries will have significant impacts on world poultry trade. Assuming demand for chicken meat is constant, the global export price is simulated to increase by 9.63%. HPAI outbreaks in the United States, Economic Union, and Brazil will have a greater impact on export price than in any other possible three-region case. Outbreaks in the United States and Brazil would still lead to major impacts on world poultry trade, confirming large country effects.

The Southeastern United States depends on coal to supply 60% of its electricity needs. The region leads in CO2 emissions and ranks second in emissions of SO2 and NO2. Compared with coal, biomass feedstocks have lower emission levels of sulfur or sulfur compounds and can potentially reduce nitrogen oxide emissions. This study examines the economic impacts of cofiring biomass feedstocks with coal in coal-fired plants under three emission credit and two cofiring level scenarios. Economic impacts are estimated for producing, collecting, and transporting feedstock; retrofitting coal-fired utilities for burning feedstock; operating cofired utilities; and coal displaced from burning the feedstock.

This paper discusses the current literature on impacts and adaptation costs at the sectoral level. The focus is primarily the US, but includes examples on international applications that highlight key differences or other relevant demonstrations of method and data use. The paper provides an overall framework that addresses the components of economic impacts, including definitions of impacts, adaptation costs, and residual damages. The paper then focuses on understanding the current breadth and depth of the literature that exists to characterize what we know about economic sectors studied in the recent literature (agriculture, coastal resources, water resources, infrastructure, health, crime, energy, labor productivity, and ecosystems), how the methodologies differ, what the gaps and challenges are, and offers a sense of the impacts at the US national level. A new generation of impact studies, including the U.S. EPA’s ongoing Climate Impacts and Risk Analysis (CIRA) project; the new Intergovernmental Panel on Climate Change (IPCC) AR5 Working Group II report; the U.S. National Climate Assessment; and the Risky Business Project led by the Next Generation Foundation, provide the motivation for this review. These efforts, taken together, have advanced the state of US economic impact assessment work along two critical frontiers, both of which support benefit-cost analyses of climate change: assessment of the risk and economic consequences of extreme climatic events; and assessment of ecosystem effects. Yet, the latest work also highlights gaps in the lack of comprehensive sectoral coverage; more complete incorporation of adaptation opportunities in impact assessment; and critical cross- and multi-sectoral effects that remain poorly understood.

Three economic opportunities are presented for rural areas in this invitedpaper session: self-employment, investments in broadband infrastructure, andagritourism. Self-employment has shown growth in rural regions at theexpense of wage and salary employment in the long-term. Productionagriculture interests by themselves are unlikely to provide sufficientfunding to expand infrastructure for broadband in rural areas. Agritourismapproaches appear to be very wide ranging with many educational demandsneeding to be met to maximize its diversification possibilities. Researchand extension faculty should be careful to focus on explaining the tradeoffsof these opportunities so that rural stakeholders do not fall victim to thelatest academic economic development fad.

Even as self-employment continues to increase, policymakers remain largelyunaware of this trend and fail to see it as an opportunity for addressingenduring joblessness. In part, this is explained by limited data on theself-employed and by widespread perceptions that returns to self-employmentare low; that the self-employed are merely patching together piecemeal workopportunities requiring limited skills; and that there are no local economicimpacts or spillover benefits into other sectors. Contrary to theseperceptions, recent studies suggest that self-employment has tangiblepositive economic impacts not only on wage and salary employment but also onper capita income growth and poverty reduction. This article synthesizes thepertinent emerging literature and assesses dynamics of the lags involvedbetween self-employment shocks and subsequent employment growth.

This paper estimates the potential economic effects on the Australian tourism industry from the introduction of an economy wide carbon tax to be introduced in July 2012. The manner in which the tax is expected to work is examined together with a discussion of some concerns that have been raised by the tourism industry regarding its impacts on Australia's destination competitiveness, industry profitability and employment. Dynamic computable general equilibrium (CGE) modelling projects that the tax will lead to changes in key macroeconomic variables, reducing growth in real GDP, real consumption and employment. The simulation results also indicate that while some tourism industries in Australia will gain from the tax, most will experience contractions in output relative to baseline values in line with a general shrinkage of the tourism sector as a whole. In the light of the modelling simulations, the paper concludes with an assessment of the validity of the main stakeholder concerns regarding the implications of the tax for the Australian tourism industry.

The bison industry is relatively new to North Dakota where in 1998 an estimated 23,000 bison were raised in 47 of its 53 counties. The purpose of this study was to estimate the economic contribution of the bison industry to the state's economy in 1998. The bison industry, as defined here, is the production and processing of bison and the related revenues and expenditures generated from those activities that occurred within the state. With the construction and operation of a bison processing plant in North Dakota, this industry has undergone rapid expansion within the past 10 years. A survey of North Dakota bison producers and processors was conducted to provide estimates of direct impacts of the bison industry within the state. Secondary economic impacts were determined using the North Dakota Input-Output Model. The direct impact of production and processing of bison was estimated at $23 million. This generated an additional $47 million in secondary impacts within the state. The North Dakota bison industry supported a total of 757 secondary full-time equivalent (FTE) jobs. Total economic activity generated within the state was estimated at $70 million, including $27 million in personal income and nearly $18 million in retail sales. In addition, the bison industry generated $4 million in tax revenues, including property, personal income, sales and use, and corporate income taxes. The direct impact of bison production in 1998 ranked fourth in North Dakota's livestock industry: below cattle and calves, dairy products, and swine, but above turkeys and sheep. If the bison industry maintains its present growth rate, it will be larger than the North Dakota swine industry within 3 years, and sooner if the swine industry continues to decline as it has since 1995. The average direct impact generated for each bison in the state was $1,000. Total economic activity generated per bison was $3,100 (includes direct and secondary impacts from production and processing). For every 30 bison an additional secondary FTE job was supported.

Extended grazing is a management system in which the usual grazing season is lengthened by utilization of hay fields for pasture. Extended grazing systems are a low-input alternative to conventional systems to the extent that they decrease the reliance on inputs such as machinery and energy to harvest forage. Substituting pasturing for harvested forage can therefore potentially decrease production costs and enhance the profitability of livestock production. However, the farm-level economic impacts of such a substitution are not well known. This analysis quantifies these impacts for beef cow/calf production. Specifying alternative meadow management systems for different grasses and using an economic-engineering approach, we have found that extended grazing can be a more profitable option for cow/calf production. Other findings suggest that, in an extended grazing system, the type of meadow, the hay baling method and the associated hay spoilage level also have important effects on production costs and profitability.