Economic Analysis

Resource Dimensions has broad experience in assessing the economic consequences of various resource-based projects and policy implications, as well as those related to major infrastructure investments. Our economic analyses have been instrumental in guiding the appropriate implementation of a variety of land-use and resource management policies, programs and projects.

Our explanatory analyses are aimed at helping clients plan for the future by estimating the effects of proposed projects or policy impacts to enable informed decision-making, and mitigate potential future problems. We are leaders in the use and expansion of new methodologies, as ecosystem service valuation, contingent and discrete choice models, and integrated methodologies.

Resource Dimensions’ team is similarly adept in the use and refinement of more traditional tools as cost-benefit, fiscal impact, input-output, multivariate, and econometric models to assess the full compliment of local and regional impacts of diverse projects. We have also modified these techniques to evaluate other public investments and policies, including environmental, smart growth and sustainable development policies, and other infrastructure projects.

Each member of our core team of economists has over 20 years experience at developing and refining economic analysis strategies that support market-based incentives, voluntary programs, and public-private partnerships.

A few of our recent projects…

Highland Community Resources Planning Tool-kit Project
Public Preferences for Public Sector Services and Service Provision Values.

Selected from an international pool of consultants, Resource Dimensions developed the study methodology and conducted all phases of the project. This study, believed to be a first in the field of valuation of public preferences for publicly provided services integrated the use of qualitative and quantitative methods. Discrete choice experiments were used to derive distinct value sets, for particular user groups, relative to the provision of public services in Scotland’s Highland region and determine willingness-to-pay attributes for incremental changes in levels of service provision.

Qualitative methods used include focus groups, working groups, and stakeholder and expert interviews. Content and Ethnographic analysis were employed to identify priorities across segments of society and to remove bias in the analysis of text-based qualitative data from focus groups sessions. Data from qualitative analysis was used to aid in developing choice experiment surveys. This project was funded by the Highland Council and the Wellbeing Alliance through the Scottish Executive Office.

Economic Impact Analysis of Trails and Protected Lands in Washington’s Methow Valley.
For the Methow Valley Sport Trails Association and the Methow Conservancy, Resource Dimensions conducted a multi-tiered economic impact analysis methodology to determine the breadth and extent of economic contributions relative to the 200 km MVSTA trail system in Washington’s Methow Valley and area protected lands. The project included the use of fiscal and real estate sales data from five area communities and Okanogan County, in addition to interviews and surveys of MVSTA trail users, valley residents, and local businesses. Respondents were queried with regard to trail attributes, local land conservation strategies, trip duration and expenditures, types of trail uses engaged in or desired expectations, direct and indirect impacts and a variety of quality of life issues. The economic impact analysis employed used a series of methods including Hedonic and I/O models, contingent valuation, benefits transfer, ecosystem service valuation for select services, fiscal impact assessment and economic forecasting analysis. (2004-2005)

Extended Water Rights Valuation Model
For the Washington Water Trust Resource Dimensions assessed diverse economic and socio-ecological values of water rights and developed an extended valuation model for basin-wide water rights valuation in the Walla Walla basin. General characteristics associated with water and economic approaches applied to related natural resource issues were examined. Parties include Umatilla and Yakima Tribes, U.S. Army Corps of Engineers, agricultural, water conservation districts, county, utilities, and community interest groups.

Washington State Grazing Program Audit and Cost-Benefit Analysis
For the Washington State Joint Legislative Review and Audit Committee (JLARC), Resource Dimensions evaluated the state Department of Natural Resources grazing lands program relative to net proceeds distributed to trust beneficiaries. Budgets were developed for grazing operations in the primary DNR grazing regions to estimate economic impacts to ranching operations and likely impacts on funds generated. In addition an I/O analysis was conducted to estimate likely regional and statewide economic impacts of the status quo against three potential alternative scenarios. Finally, a cost-benefit analysis of potential policy alternatives possible for implementation was conducted and an interactive CBA model was developed to aid in estimating future program alternatives. In addition, Resource Dimensions preliminarily examined potential ecosystem service impacts caused by grazing operations and a range of other economic impacts that may effect beneficiary distributions. (2004-05)

Columbia River Initiative Economic Analysis
For the Center for Environmental Law and Policy, Resource Dimensions provided economic review and counsel regarding economic impacts of in-stream vs. out-of-stream water uses (e.g. agriculture, industry, recreation, tourism, etc.) on the Columbia River in the context of Governor Locke’s Columbia River Initiative (CRI). The CRI has been proposed as a way to address the economic, legal, scientific, and political issues related to basin-wide water use.

Economic Impacts Analysis—SR 28 Wenatchee Eastside Corridor Project
For the Federal Highway Administration (FHWA) and Washington State DOT, Resource Dimensions prepared detailed impacted parcel analysis, revised estimated project budget for 10-year cycle and developed the economic impact I-O model to evaluate the local and regional economic impacts of the proposed $150-million dollar road improvement project in East Wenatchee, WA. Developed methodology, conducted data collection, prepared regional economic profile, conducted analyses and prepared technical reports for DEIS and FEIS and other supporting documentation relative to local and regional direct, indirect and cumulative economic effects and economic stimulation. (In cooperation with David Evans & Associates)

Energy “Foot-Printing” – Examining the Impacts of Renewable Energy Investments. Resource Dimensions’ Dr. Bergmann recently completed a countrywide study in the UK to estimate the energy footprint and value of environmental and employment impacts from proposed expansion of renewable energy projects. This portion of a larger four-year project is funded by the Scottish Economic Policy Network and the Scottish Executive Office The primary ‘energy footprint’ issues examined included air quality, pollution reduction and mitigation strategies, landscape, wildlife, long term local employment, and willingness-to-pay for improved air/environmental quality through different types of energy and renewable energy projects. Focus groups, surveys and choice experiments were used to assess current social behavior/attitudes and evaluate program and policy measures most likely to succeed. Econometric and cost-benefit policy impact analysis was conducted on choice sets of public preferences, and policy recommendations were presented for further development and implementation.

Policy Analysis & Guidance on Probable Benefits & Costs and Least Burdensome Analysis - Chapter 173-565 WAC Rule-Making
Resource Dimensions has provided a range of analyses and evaluations relative to the development of net maximum benefit rule-making and cost-benefit analysis process to be applied in relation to future water rights allocations from the main-stem of the Columbia River. Various analyses centered on evaluation of classic positions on this issue: the Pareto criterion (a/k/a Pareto-optimality) and the Kaldor-criterion. The Pareto criterion restricts or excludes income redistribution programs, and the criterion cannot decide between situations which are "suboptimal" (situations in which costs must be borne by individuals and the only question is which individuals it will be). Thus, policy development centered on use of the Kaldor criterion position for defining net benefit. A primary concern throughout the rule-making process was that the benefit-cost measure is an indicator of the economic efficiency of a project or program, and includes those beneficial and adverse effects of a project or program which can be expressed via a dollar metric. However, benefit-cost analysis reflects a broadly defined set of multiple objectives of the state, many of which are more difficult to quantify in dollar terms.

Review and Analysis of OHCD Year 28 Consolidated Plan and Budget
For the Committee on City Policy, Philadelphia, Pennsylvania, Resource Dimensions staff conducted a fiscal/budget analysis and reviewed recommendations on the FY 2003 Year 28 Consolidated Plan. Project analyses focused on meeting requirements provided in CFR regulations; evaluating OHCD’s policy making, planning and consultation with other public and private agencies in accordance with 24 CFR Section 91.100, and a three-year comprehensive analysis of the budget proposed to support the Action Plan, administrative cost calculations and other fiscal and budgetary data. (2002-03).

The Costs and Benefits of Managing Wild Geese in Scotland
Analysis of Policy Options for Managing Wild Geese
This project, conducted for the Scottish Executive Agriculture and Biological Research Group, sought to provide comprehensive qualitative and quantitative information about the economic costs and benefits of managing four wild geese populations that over-winter in Scotland. Two case study areas where management conflicts have arisen between geese and agriculture: Islay and Loch of Strathbeg in northeast Scotland are used to examine issues in context.

Analysis centered on socioeconomic and cost-benefit study relative to government payment policies for crop damages caused by four species of geese. Dr. Gustanski was a member of the international team of resource and agricultural economists contracted by the Scottish Government to value in monetary terms the non-market benefits of wild goose conservation to the general public, local residents and visitors and estimate the costs of goose damage to agriculture. Traditional cost-benefit analyses, together with a multi-method approach including use of preference surveys, focus groups and choice experiments were used to ensure that findings were accurate in all regards and to remove particular methodological bias. Dr. Gustanski assisted in designing the methodology, facilitating a series of eight focus groups and qualitative and quantitative data analysis in coordination with researchers from the University’s of Aberdeen, Edinburgh, Glasgow and Stirling to determine the economic costs and benefits of locally endangered wild geese species that over-winter in Scotland.

Economic Evaluation of Alternative Renewable Energy Developments
Resource Dimensions’ Ariel Bergmann evaluated seven scenarios of onshore/offshore wind, hydroelectric and wave/tidal technologies to understand the potential financial value of such projects in terms of community net benefits and sustainability.

Socially-Optimal Investments in Energy Projects: Alternative energy technology cost-benefit analysis, policy development and strategic social marketing.
Increasing the proportion of power derived from renewable energy sources is becoming a key component in many nations’ strategic plans in an effort to achieve reductions in greenhouse gas emissions and improve air quality standards. These investments have external costs and benefits, which must be taken into account if socially-optimal investments are to be made. This EU funded project sought to estimate the external benefits and costs related to alternative energy technologies. Welfare implications of various investment strategies for employment and electricity prices were assessed, and then weighted against costs of health care and environmental reparation expenditures resulting from long-term effects of air pollution related to various energy technologies. Renewable technologies considered include hydro, on-shore and off-shore wind power and biomass. Changes in social welfare for different combinations of impacts associated with investment strategies were evaluated. Differences in preferences towards these impacts were tested across socioeconomic and demographic profiles to ensure that the spectrum of views and values were included in developing sound program policies, and the strategic public outreach plan.

Economic Impact of State, County, and Municipal Land Use Regulations
For Bucks County, Pennsylvania, Dr. Gustanski conducted an in-depth review and analysis of land use policies and zoning regulations to estimate the range of fiscal, budgetary, and socioeconomic impacts across 70+ county townships. Presented testimony to state legislators, county commissioners and government agency officials. Organized and facilitated series of public meetings, developed long-term strategic plan for farmland protection program and conducted landowner interviews, surveys, miscellaneous program negotiations. Revised program state/county guidelines and developed an integrated land conservation valuation model and coordinating map that won support of the State Agricultural Preservation Board, Harrisburg, PA.