Economic Impact Analysis: 1st Progress Report, January
ECONOMIC COSTS & BENEFITS FROM ENHANCED PROTECTION
This study will culminate in Spring 2001 with a discussion of the economic costs, impacts and benefits from the enhanced protection scenario. Based upon the study contract and subsequent input from local interviews in the study area, the following are the types of issues and considerations that will be examined. Subsequent analysis may determine that some issues are significant, while others can be dismissed.
ECONOMIC COSTS AND IMPACTS
What would be the administrative cost of the enhanced protection scenario to local governments and agencies such as the health district and the water utilities?
How significant would the direct costs of compliance be for local businesses and what types of businesses would be most affected?
How much more would it cost to develop a new home?
How much would taxes or fees have to be increased to pay for enhanced aquifer protection?
Would some local businesses become less competitive or go out of business or would increases be passed to customers?
Would local consumers or other businesses have to pay more for products/services from directly impacted firms?
Would some prospective employers avoid Pocatello and Chubbuck?
TYPES OF BENEFITS FROM ENHANCED PROTECTION
While the costs of enhanced protection measures may be more immediate and easier to estimate, there could be significant economic and non-economic benefits associated with enhanced protection. The following are examples of the types of questions to be considered in the benefits analysis:
If nothing is done, what kinds of economic costs may be faced by water users due to degradation under the baseline scenario?
How expensive might remediation of future water quality problems be if prevention is not implemented?
Could a proactive stance make the area more attractive to some prospective businesses and residents?
Would LPRV residents experience or perceive an improved quality of life in the future?