Evaluating impacts for competing land use alternatives

Abstract

Public sector decisions concerning land use can benefit from a consistent accounting of economic values represented in alternative uses. While conventional economic valuation may not represent all interests bearing on optimal land use, ignorance or misuse of economic principles in the decision process may lead to socially undesirable outcomes. We make use of an impact assessment technique based on the U.S. Forest Service Micro IMPLAN model to compile and measure the economic consequences of alternative agricultural land use. This approach provides consistent measurement of economic impacts based on quantified linkages among the different sectors represented in Hood River County, Oregon. An orchard and a golf course are compared in terms of the magnitude and distribution of direct, indirect, and induced economic impacts arising from alternative uses of a designated land parcel. While the results are not generalizable to specific applications, the approach highlights the key economic variables that generate economic benefits in alternative uses.