Table 3. Benefit-Cost Analysis Results, Arundo donax Control, Lower Rio Grande Valley,
2009.
|
Social Benefits (Using Normalized Prices) Low Value of Water High Value of Water Costs | |
|
NPV ($) Value per Year |
$73,430,163 $136,591,524 $16,849,799 $4,740,027 $8,817,187 --- _______________4.36________________________8.11___________________--- |
Since the present value of the benefits is greater than the present value of the costs, in both
cases, these results suggest that the biological control project is economically viable. The
benefit-cost ratio is an indication of the returns to society per dollar of government cost.
Economic Impact
Multipliers for economic activity, value-added, and employment are applied to assess the
economic impact of controlling Arundo. The impacts are estimated based on increases in gross
returns to crops for the Lower Rio Grande Valley (the Southernmost region of Texas - the four
counties of Cameron, Hidalgo, Starr, and Willacy) and for the state of Texas. The IMPLAN
program (Minnesota ImPLAN Group, Inc. 2004) is the source for the economic multipliers.
Additionally, the gross revenues for each crop have been obtained from the Texas AgriLife
Extension Service crop budgets. Results for this phase of the project are currently in the process
of verification.
13