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Executive Summary


The Buffalo National River (BNR), in the Ozarks of northern Arkansas, is the destination for over a million recreational visitors per year. They come to enjoy its pristine water, its unique bluffs, and its abundant wildlife. The environmental quality of the BNR is threatened by ranching, farming, and logging activity in the surrounding watershed. This study outlines the scope of the problem and recommends what the Stewardship Foundation can do about it.

The counties adjacent to the BNR are some of the poorest in Arkansas. Unemployment is high, education levels are low, and the population is aging as young people move out. The local residents are predominantly cattle ranchers. The current tax structure and price structure provide an incentive for clearing forests for cattle pasture.

Soil runoff from deforestation, manure runoff from cattle, and runoff of fertilizer (usually chicken litter) from pastures, are the primary sources of pollution in the river. Pollution-control regulations, promulgated by DPC&E, are difficult to enforce since doing so could cause severe financial hardship. The USFS controls 224,000 acres of the 860,000 acre watershed, and still clear-cuts acreage and fails to implement other best management practices. The NPS controls 95,000 acres in the National River boundaries, but does not extend its pollution-control power beyond its borders, in order to maintain good relations with local residents.

In financial terms, farming, ranching, and logging ("agribusinesses") provide substantially more income and jobs to the region than do recreational activities and tourism. Agribusiness yields $36 million in annual net benefits, and 1,800 jobs, while tourism yields $4 million annually and only 550 jobs. But in economic terms, where the external costs and benefits are taken into account, preservation of the river and its recreational opportunities equal the financial benefits of agriculture and forestry. The demand for recreational activity indicates that people enjoy an additional $38 million annually in recreational benefits beyond those which they pay for. The "intrinsic value" of preservation of the BNR also yields $6 million annually in economic benefits. The total economic benefit of maintaining the BNR as a pollution-free recreation site is about $48 million.

The recipients of the financial benefits are the local residents, who are typically poorer than visitors to the BNR. Hence, distributional issues focus attention on the financial benefits over the economic benefits. The recipients of the financial benefits, local residents, are the voting constituency of the region, while the recipients of the economic benefits are outsiders.

Recreational visits to the BNR are increasing by about 46,000 per year. The focus of recreational activity is switching from water-based activities to land-based activities. Boating (primarily canoeing), fishing, and hunting are decreasing, while overnight stays (camping) and hiking are increasing in popularity. Table ES-1 summarizes the annual trends.


Trends in Recreational Activity                           Table  ES-1              



                    Average    Trend (change        Percentage    Confidence
                    1989-93      in days/yr)   Change per year         Level 


Total             1,031,000         +45,500              +4.4%           93%       
Visitation                                                                     

Overnight           122,900         +18,900             +15.4%          >99%       
stays                                                                        

Boating Days         91,900          -5,400              -5.9%           69%       

Fishing Days         19,100          -1,100              -5.8%           75%       

Hunting Days          9,650          -1,200             -12.4%           97%       

Hiking Days          31,100          +4,400             +14.1%           92%       



This study analyzes four pollutants. Turbidity measures the effect of soil runoff. Fecal coliform measures the effect of cattle manure contamination. Dissolved oxygen measures the effect of fertilizer runoff (higher nutrient loads lower the oxygen level). Acidity (pH) is a general measure of chemical contamination. The trends in pollution levels are much more ambiguous than the recreation trends. The only pollutant trend we can state with fair confidence is that fecal coliform levels are increasing, by roughly 46% annually.

This study analyzes the effect of the four pollutants on recreational activity. Turbidity has a significant effect on the amount of fishing activity (as turbidity increases, fishing days decrease). Acidity levels have a lesser effect on fishing. Dissolved oxygen has some effect on both boating and on total visitation. Overall, the effect of pollution levels on recreation is not great -- although there may be a greater effect above an undetermined threshold.

This study analyzes the effects of potential increases in pollution levels. The "plausible worst case" assumes that the pollution level of the worst month of the year occurs in every month. At that pollution level (all of which have actually been measured, but only in one month of the year), visitation would decrease by 77,000 visits per year, costing $12.5 million in gross revenues and costing 200 jobs in travel-related industries. In a more conservative contrast, the "possible worst case" assumes that the worst pollution level within each month occurs (e.g., the worst January of the five years studied were to occur along with the worst February and so on). That represents a lower overall pollution level, since there are strong annual cycles. At the "possible" pollution level, visitation would decrease by 44,000 visits per year, costing $7.1 million in gross revenues and costing 110 jobs in travel-related industries.

This study describes the political orientation of the region, based on interviews with representatives from all the relevant parties. In choosing a policy option to deal with BNR pollution, private and voluntary means are preferable because of the prevalent anti-government orientation. Decision making should include agribusiness representatives because of the prevalent pro-development orientation. Policies should be stated in terms of their economic benefits because of the prevalent anti-environmentalist orientation (local residents do believe in environmental stewardship, but do not believe in environmentalist groups). Policy choices should address distributional impacts (which in the BNR means lowering the burden on the relatively poor local residents while raising the burden on the relatively rich visitors) because of the prevalent recognition of income disparity and a need for burden-sharing.

This study sets out a framework for analyzing available policy options. We address:

This study recommends action for six policy options within that framework, bearing in mind the political orientation of the region.


glossary


AFDC

Aid to Families with Dependent Children (federal welfare program)

AG&F

Arkansas Game and Fish Commission

AR

State of Arkansas

avg.

Average (typically weighted average)

BMP

Best Management Practice

BNR

Buffalo National River

BRSF

Buffalo River Stewardship Foundation

COC

Chamber of Commerce, county-level organizations for economic development

conf.

Confidence level for regressions; 90% or 95% confidence is 'statistically significant'

distortion

Prices which do not reflect true costs, usually due to government intervention

D.O.

Dissolved Oxygen, a measure of nutrient overload in the river

DPC&E

Arkansas Department of Pollution Control and Ecology

F.C.

Fecal Coliform, a measure of river contamination by animal waste

float

Traveling the river by canoe

johnboat

Flat-bottomed boats, popular for fishing, sometimes motorized

MPU

Monthly Public Use reports by the National Park Service

MUSYA

Multiple-use sustainable-yield administration, USFS management policy

NPS

National Park Service, an agency of the US Department of the Interior

pH

Acidity level, a measure of river chemical pollution

regression

A statistical technique which finds correlations, or fits trend lines to data.

SCLDF

Sierra Club Legal Defense Fund

SCS

Soil Conservation Service, an agency of the US Department of Agriculture

TCM

Travel Cost Method, a means of determining demand for a recreational attraction.

turbidity

A river pollution measure; how much sediment is being carried in the water

USFS

United States Forest Service, an agency of the US Department of Agriculture

watershed

The area which drains into the river (defined for BNR as a three-county area)