The Economic Impact of the Proposed Marvin Nichols I Reservoir to the Northeast Texas Forest Industry

This study assessed the economic impact of the potential reduction of timber supply to the local forest industry and the local economy from a proposed reservoir in Northeast Texas --Marvin Nichols I Reservoir. The study first evaluated the forested acres at the reservoir site and those under habitat mitigation requirements, providing a foundation for timber supply impact assessment. Then, the timber supply impact in terms of the lost timber volume and value was estimated. Finally, the direct and total economic impacts of the reservoir to the local forest industry and the local economy were assessed using input-output method. The study found that the forest industry and the local economy would incur significant losses due to the substantial reduction in timber supply from the reservoir project. Furthermore, the economic impact of the reservoir would likely be uneven in the region. The manufacturing facilities and the communities that are dependent on hardwood resources near the reservoir site or the mitigation management areas would probably be impacted the most. The magnitude of the total impact will be primarily dependent upon the amount of forest acres set aside for mitigation wildlife habitat requirements.