Contents

Economics Clearinghouse
Purpose of Resource Book
Intrinsic Values
Resource Book Format
How to Use the Resource Book
Assistance from Local Economists
Acknowledgements

Rivers, trails, and greenway corridors (linear open spaces connecting recreational, cultural and natural areas) are traditionally recognized for their environmental protection, recreation values, and aesthetic appearance. These corridors also have the potential to create jobs, enhance property values, expand local businesses, attract new or relocating businesses, increase local tax revenues, decrease local government expenditures, and promote a local community. An example which illustrates the range of possible economic benefits is the Delaware and Raritan Multi-Use Trail, built along an abandoned railroad and canal in Central New Jersey.

"Property values adjacent to the park and trail have increased, according to James Amon, Executive Director of the D&R Canal Commission. Private businesses have been created in response to user demand. It is now common to see concessionaires and rental establishments catering to the many users of the trail and canal. An historic train station in Lambertville was recently restored into a restaurant and a hotel was built nearby which profits greatly from its trail neighbor. New proposals for trail-oriented development are currently in the works, including a combination canoe and bicycle rental outfitter" (Railroads Recycled, Rails to Trails Conservancy, Washington, D.C., 1990).

The Rivers, Trails and Conservation Assistance (RTCA) program of the National Park Service has produced this Resource Book to help local-level planners, park and recreation administrators, citizen activists, and non-profit groups understand and communicate the potential economic impacts of their proposed or existing corridor project.

 

Economics Clearinghouse

An Economics Clearinghouse has also been initiated by RTCA to encourage the exchange of up-to-date information on the economic impacts of rivers, trails and greenways. This Clearinghouse will be a listing of case studies, economic impact analyses, and other reference material. Most of these references, as of 1990, are cited at the end of each section of this Resource Book. For further information regarding the Clearinghouse, contact the Rivers, Trails and Conservation Assistance Program at the address listed at the end of this section.

Purpose of this Resource Book

The aims of this Resource Book are specific and are as follows:

o Encourage local professionals and citizens to use economic concepts as part of their effort to protect and promote greenways

o Provide examples of how greenways and parks have benefited local and regional economies

o Demonstrate how to determine the potential economic impacts of of river, trail, and greenway projects

o Suggest other sources of information

Economic Impacts of Protecting Rivers, Trails and Greenway Corridors is intended to be a compilation of the most recent information on this subject area. Many of the examples, and case studies, and information available focus on more traditional parks, rather than linear parks, trails, and river corridors. However, greenways and traditional parks often provide many of the same amenities. The growing interest in applying economic rationales to support greenway protection efforts will likely result in more economic analyses and studies.

Intrinsic Values

This Resource Book is not intended to diminish the importance of the intrinsic environmental and recreational benefits of rivers, trails, and greenway corridors. The non-monetary value of open space should continue to be the primary emphasis in conservation efforts. In some cases, it may be more appropriate to stress intrinsic environmental benefits rather than spend considerable time and effort conducting economic analyses. In other cases, especially in developing areas, clear communication of intrinsic values and potential economic impacts will help decision makers recognize rivers, trails, and greenway corridors as vital to the well-being of a community.

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Resource Book Format

We endeavored to make this Resource Book "user friendly". It is not intended to be a definitive textbook on economics. Rather, it is intended to be used as a framework for understanding potential economic impacts of greenways.

The Resource Book contains eight sections, each focusing on a different set of economic rationales, and appendices. The sections included in the Resource Book are:

Real Property Values
Expenditures by Residents
Commercial Uses
Tourism
Estimating the Effects of Spending
Agency Expenditures
Corporate Relocation and Retention
Public Cost Reduction
Benefit Estimation

Table 1
Summary of resource Book Sections

 

Section	Descriptions
Real Property Values	Presents evidence that greenways and trails may increase nearby property values. Demonstrates how an increase in property values can increase local tax revenues and help offset greenway acquisition costs.
Expenditures by Residents	Explains how spending by local residents on greenway-related activities can help support recreation-oriented businesses and employment, as well as other businesses which are patronized by greenway, river and trail users.
Commercial Uses	Describes the potential for concessions and special events within the greenway, which can boost local business as well as raise funds for the greenway itself.
Tourism	Describes how greenways, rivers and trails which attract visitors to a community support local businesses such as lodging, food establishments, and recreation-oriented services. Greenways may also help improve the overall appeal of a community to visitors and increase tourism.
Estimating the Effects	Explains direct and indirect effects of greenway-related expenditures and how to estimate of Spending economic impacts of your project.
Agency Expenditures	Explains how the agency responsible for managing a river, trail or greenway can support local businesses by purchasing supplies and services. Jobs created by the managing agency may also help increase local employment opportunities and benefit the local economy.
Corporate Relocation and Retention	Presents evidence that the quality of life of a community is an increasingly important factor for retaining and attracting corporations and businesses, and that greenways, rivers and trails can be important contributors to the quality of life. Corporations bring jobs to a community and help support businesses which provide services and products to corporations and their employees.
Public Cost Reduction	Explains how conservation of rivers, trails and greenways may help local governments and other public agencies to reduce long term costs for services such as roads and sewers; reduce costs resulting from injury to persons and property from hazards such as flooding; and avoid potential costly damages to natural resources such as water and fisheries.
Benefit Estimation	Describes how the recreational benefits of rivers, trails and greenways can be estimated in monetary values. Users can be surveyed to estimate the value of a visit to a greenway.

 

How to Use the Resource Book

A good initial step is to skim the entire resource book to understand the range and scope of the economic concepts and strategies included. Before working through a specific section, you should prepare a detailed description of your greenway project, as well as the geographic area within which economic impacts will be determined. Both the project and geographic area should be mapped and described in a narrative. This will ensure you are working from a consistent information base.

It is also important to address the proposed scale and estimated use of the project because impacts vary for different greenways. Potential economic impacts will largely depend upon the amenities offered, the scale and magnitude of your project, accessibility, level of projected use, and intended users. The greater the size or amenities provided by the project and the heavier the potential use, the greater the potential economic impacts are likely to be. If your goal is to maximize economic impacts, it is important that you keep these factors in mind throughout the planning stages of your project.

Once the project and geographic area are clearly identified and you have reviewed the sections, you should select one or more methods of analysis and work through each applicable section. We recommend you select sections which address primary concerns to your community and decision makers.

After you select the appropriate section(s), you should read them carefully. You are encouraged to use references, handbooks, textbooks, or training which may help in understanding the concepts and the strategies. Once again, we remind you that detailed economic studies requiring the services of a trained economist may also be warranted. If an economic issue is likely to be the key factor in the decisionmaker's evaluation of a project, we recommend a trained economist be involved as either a volunteer or paid consultant to evaluate or perform the appropriate analyses.

Assistance from Local Economists

This Resource Book is not intended a a substitute for more detailed economic studies, which may be necessary for larger-scale or controversial projects. Our purpose is to inform individuals and groups working toward corridor conservation about the usefulness of economics in conservation planning, introduce basic economic concepts, and methods of analysis. You are encouraged to seek help from local professionals who have economic credentials to enhance the credibility of your findings.

Possible sources of expertise that may help you include:

o Economists (banks, marketing firms, large corporations)
o Economic consulting firms
o University business or economics classes, masters or doctoral candidates, and their professors
o Staff with an economics background

Acknowledgements

The idea for the Resource Book was conceived by Ray Murray, Chief of Planning, Grants and Environmental Quality for the Western Region of the National Park Service (NPS). Principal investigative writers and editors for the Resource Book were Ray Murray and Western Region Rivers, Trails and Conservation Assistance staff members Kathleen Williams, Susan Harris, and Erika Campos. We thank all those who have provided valuable input to this project and who served as our official, hard working reviewers, including Joan Chaplick, John Crompton, John Loomis, Stuart McDonald, William Penn Mott, Richard Trudeau, Keith Hay, Alan French, Bill Carle, John Haines, Gary Guthrie, George Goldman, and Rivers, Trails and Conservation Assistance national and regional staffs. Also, thanks to Eugene Fleming for providing graphic design.

We also thank The Conservation Fund for contributing to the printing of the Resource Book. The Conservation Fund is a national, non-profit, scientific and educational organization dedicated to the conservation and wise stewardship of America's natural heritage.

The American Greenways Program of the Conservation Fund was established in 1987 to meet the informational and service needs of greenway projects at the local, state, and national levels. The program includes, among other things: the publication and distribution of the book Greenways for America; in cooperation with the National Park Service, a monograph entitled The Ecology of Greenways; a national greenways data base and referral service that will enable individuals, organizations, and public agencies to network with one another; grants for demonstration projects that are models of innovative approaches to financing, economic analysis, or other areas related to greenway planning; and other projects to advance and promote the greenway concept.

National Park Service staff are available to assist in using this Resource Book to protect and promote rivers, trails, and greenways in your community. Your comments, suggestions, and additional case studies for this Resource Book would be greatly appreciated. Please contact the Rivers, Trails and Conservation Assistance Program (RTCA):

Rivers, Trails and Conservation Assistance
National Park Service, Pacific Great Basin
600 Harrison Street, Suite 600
San Francisco, CA 94107-1372
(415) 744-3975
http://www.cr.nps.gov/rtca/rtc/rtcahoe.htm