Value of Natural Resources: Deschutes River Corridor and its Water

The Deschutes River in Central Oregon provides numerous ecosystem services benefits to the region.This study analyzed the market and expressed values to six industries in the region: agriculture, tourism,recreation, hotels, real estate, and commercial salmon fishing. Using revealed preference methodologiesto assess ecosystem services benefits to these industries, the study found the river provides a totaleconomic value to the industries of $185.2 million annually, of which $134.7 is direct revenue to theregion, $28.0 is revenue outside the region, and $22.5 million is the expressed value of products andservices that residents receive for free in their market value equivalent. The benefits of the river tothese industries create 3,433 in full time equivalent jobs for Central Oregon with an estimated value inwages of $73.0 million. The study built a model to analyze the economic impact to the four industries ofdifferent water management regimes including one to maximize agricultural revenues, another tomaximize recreational revenues, a third that increases productivity in all industries without adverseimpact to any one industry, and a fourth which examines the current distribution under droughtconditions. The four scenarios result in gains in total economic value from 19.1 to 66.2%, changes inmarket value from -10.5 to 47.6% and changes in expressed value that varies from -34.2 to 204.5%. Theresults demonstrate the potential economic tradeoffs and gains within and among industries that will bemade under different water management decisions.