A Framework for Estimating Economic Impacts of Ecological Restoration

Abstract

Ecological restoration projects are designed to improve natural and cultural resources. Spending on restoration also stimulates economic impacts to the restoration economy through the creation or support of jobs and business activity. This paper presents accessible methods for quantifying the economic impacts supported by restoration spending and is written to be a guide and toolbox for an interdisciplinary audience of restoration practitioners and economists. Measuring the economic impacts of restoration can be challenging due to lacking or limited data. The complex, collaborative, and heterogeneous nature of restoration projects can make it difficult to clearly track costs, contributing to limited availability and inconsistency in restoration cost data. And business classification systems, such as the North American Industrial Classification System (NAICS), do not include restoration-sectors that consistently describe the patterns of restoration spending. The aims of this paper are to (1) provide restoration practitioners and program managers with a clear understanding of the application of economic impact analyses to restoration, (2) provide a framework for collecting project cost data for economic impact analyses, and (3) provide modeling best practices and an example application of the framework.