Business & Society

Study Links Changes in Economic Growth to Public Land Ownership/Management

A newly released economic study shows that Utah would face a major economic shift if it gained jurisdiction over 31.2 million acres of land managed by the federal government.

The new study includes an innovative model developed by Utah State University and Weber State University economists linking changes in economic growth to public land ownership and management.

Utah began a legal battle to acquire federal lands when Gov. Herbert signed HR 148, the “Transfer of Public Lands Act and Related Study” in March 2012. Utah’s Public Lands Coordinating Office called for the economic study to help guide the state’s decision making surrounding the pursuit. The study was a joint effort by economists at University of Utah, USU and WSU.

“This economic model is the first of its kind to include all possible combinations of public land ownership and management, and it represents a complete accounting for how public lands influence economic growth,” said Paul Jakus of USU’s Department of Applied Economics and co-creator of the model.

With at least eight states questioning federal jurisdiction over lands within their borders, this study could provide the basis for future comprehensive analyses of other proposed land transfers elsewhere. The model is based on economic growth in 276 counties in eight mountain states.

The findings of the model include:

  • Modest amounts of federal land managed for multiple uses accelerates income growth and migration within a county, but once this land reaches 40-45 percent of the county, growth begins to slow.
  • Small amounts of state land managed for multiple uses do not aid economic growth, but once a critical mass of approximately 15 percent is reached, economic growth begins to accelerate.
  • Counties with strong mining sectors have faster income growth.
  • Counties with strong recreation sectors have faster migration, employment and income growth. Another portion of the study showed that outdoor recreation on public land provides a net economic benefit of $7 billion over and above the nearly $10 billion spent directly on recreation trips.

Writer: Amanda DeRitoUSU Public Relations & Marketing, Phone: 435-797-2759, Email: Amanda.DeRito@usu.edu


Contact: Prof. Paul Jakus, USU Dept. of Applied Economics, Phone: 435-797-2309, Email: Paul.Jakus@usu.edu

Photo Credit: Public Utah Public Lands Policy Coordinating Office

Photo Credit: Public Utah Public Lands Policy Coordinating Office


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