A Selection of Northern Economics Projects by
Topic Area:
Utility
Industry and Energy Projects
Our services to the energy and utility sector have included economic
feasibility assessments of smaller scale projects aimed at providing
affordable power to a limited number of potential customers in rural areas as
well as assessments of relatively large scale projects intended to serve
urban areas. We have experience with demand-side management projects and
master planning, and are familiar
with generation capacity issues,
utility capital costs, market
divisions, and other factors
important to energy production,
transmission, and marketing.
Our energy clients include the Alaska Industrial Development and Export
Authority, Denali Commission, McGrath Power and Light,
Alaska Energy Authority, Alaska
Division of Energy, Chugach Electric Association,
SRT Group, Inc., and Golden Valley Electric Association.
Selected Projects:
- Alaska Rural Energy Plan (Phase 2B)
Client: Alaska Industrial Development and Export
Authority, U.S. Department of
Agriculture, and Denali Commission
Northern Economics analyzed options for reducing the
cost and improving the reliability of energy in rural Alaska. Topics included
diesel efficiencies, alternative
technologies, waste heat, space and water heating,
bulk fuel storage, and end use
conservation. In addition to identifying alternatives that were judged the
most cost-effective, Northern
Economics recommended implementation strategies and government policies.
- Bulk Fuel Storage Project Business Operating Plan
Client: Alaska Industrial Development and Export
Authority and Denali Commission
Northern Economics developed a business operating plan
for bulk fuel tank farms in rural Alaska. Remote Alaska communities typically
require bulk fuel storage facilities with sufficient capacity to meet their
needs for an entire year. The business plan developed by Northern Economics
described a communities’ ability to operate a consolidated, code-compliant bulk fuel tank farm and
calculated the revenue required to operate,
maintain, and refurbish the
facility to ensure its sustainability.
- Market study and Preliminary Business Plan for
Development and Commercialization of an Energy Storage and Hydrogen
Production System
Client: SRT Group,
Inc.
Northern Economics identified the market opportunities
in Alaska for halogen-based processes for electrical energy storage and
hydrogen production. The report included cash flow predictions for operable
systems in different regions of the State.
- Economic Analyses of a Small Coal Mine and
Coal-Fired Power Plant for McGrath,
Alaska
Client: McGrath Light and Power
Northern Economics conducted a financial analysis of a
coal-fired power plant, mining
operation, and transportation
system for a small electric utility in rural Alaska.
- Final Environmental Impact Statement for the
Northern Intertie Project
Client: U.S. Bureau of Land Management
Northern
Economics prepared the socioeconomic impact analysis and benefit-cost
analysis included in the EIS for the proposed Golden Valley Electric Association
electrical transmission line between Healy and Fairbanks, Alaska. The 97-mile, 230-kilovolt transmission line is intended to
provide reliable, low-cost energy
to Fairbanks from the Healy Power Plant and Anchorage area.
- King Cove Hydroelectric Facility
Client: City of King Cove
Northern Economics performed a financial analysis of a
hydroelectric power project for King Cove,
a small fishing community in rural Alaska.
- Renewable Energy for Kotzebue and Nome
Client: Alaska Energy Authority
Northern Economics assessed the economic feasibility of
renewable electrical power generation and district heating alternatives
(hydropower, wind, coal,
and biomass) for Kotzebue and
Nome,
Alaska.
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Community
and Regional Development Projects
Northern Economics has helped a long list of communities
and regions improve their financial situation by diversifying their
economies. We have assisted with development projects as large as an economic
recovery plan for an entire borough,
and as small as a feasibility analysis for a bowling alley in a remote Alaska
village.
Clients include the U.S. Minerals Management Service,
Alaska Department of Commerce,
Community, and
Economic Development, Alaska
Department of Transportation and Public Facilities,
Alaska Department of Environmental Conservation,
Kenai Peninsula Borough,
Matanuska-Susitna Borough, Lake
and Peninsula Borough, Bristol Bay
Borough, North Slope Borough, Denali Borough,
Municipality of Anchorage, City of
Delta Junction, City of King Cove, City of Wasilla,
City of Valdez, City and Borough
of Juneau, City of Bellingham, City of Unalaska,
Southwest Alaska Municipal Conference,
Bristol Bay Native Association, Yuut Elitnaurviat Consortium, Salamatof Native
Association, Inc., Municipality of Anchorage Heritage Land Bank, Southwest Anchorage Economic Development
Corporation, Alaska Municipal
Conference, and Denali
Commission.
Selected Projects:
- City of Unalaska Economic Development Plan
Client: City of Unalaska
Northern Economics prepared an economic development plan
to enhance existing businesses and to attract or create additional
appropriate businesses to better serve residents,
businesses, and visitors in the
major U.S. fishing port of Unalaska,
Alaska. The economic development plan was built upon previous community
vision efforts and current comprehensive development planning activities as
well as information collected in interviews conducted with numerous
stakeholders in the community,
including city government staff,
industry representatives, and
village corporation officials.
- Mountain View Arts & Cultural District
Feasibility Study
Client: Municipality of Anchorage Heritage Land Bank
Northern Economics conducted a land use study for 25
acres belonging to the Municipality of Anchorage Heritage Land Bank. Tasks
included developing a conceptual overview of feasible activities and land
uses for the property and recommending several alternative land uses. The
study provided a socioeconomic profile of the neighborhood; analyzed existing
conditions and four alternative land use concepts; and outlined strategies
necessary to implement the proposed land use concepts.
- Economic Impacts Analysis of Alyeska Lay-offs and an Economic Diversification Strategy for Valdez
Client: City of Valdez
The economic impacts analysis and diversification
strategy prepared by Northern Economics drew from the City of Valdez's
comprehensive plan, regional
comprehensive economic development strategy (CEDS),
and public meetings in which community strengths,
weaknesses, opportunities, and threats were discussed. The direct and
indirect impacts of job lay-offs were assessed utilizing a regional economic
model. The economic diversification strategy identified action statements for
three areas: strengthening existing industry,
education and training, and public
infrastructure development. The strategy included funding and implementation
recommendations for the actions identified.
- Demand and Feasibility Study of Proposed Anchorage
Parking Structures
Client: Anchorage Parking Authority
Northern Economics conducted a demand and feasibility
study for new garages to support development in the central business district
of Anchorage. Northern Economics consultants conducted a review of existing
and future parking demand within the central business district to determine
whether sufficient demand exists to justify development of any or all of
three proposed new parking facilities. The review included current parking
garages, surface lots, metered spaces,
and free parking spaces. The financial analysis provided revenue projections
for the proposed facilities and the existing parking system.
- Kotlik Sanitation Facility
Feasibility Analysis
Client: Alaska Native Tribal Health Consortium
Northern Economics was part of a team that conducted a
feasibility study of sanitation facilities for Kotlik, Alaska. Northern Economics was responsible for
providing an economic analysis,
including an evaluation of the net benefits of building new facilities, or expanding existing facilities under different
development scenarios. The operating costs,
capital costs, debt-servicing
costs, and sinking fund costs for
repair and replacement were compared to potential revenues to determine the
financial feasibility of the sanitation facilities development alternatives.
In addition, alternative sources
of revenue were explored,
including user fees or other fee structures to ensure the sustainability of
the operations.
- Economic Impact Assessment of the Proposed Prison
Facility
Client: Matanuska-Susitna Borough
Northern Economics assessed the economic impacts of
building a 2,251-bed correctional
facility in the Matanuska-Susitna Borough,
Alaska. The proposed facility would cost an estimated $303.9 million to build
and have an annual operating cost of about $60 million. The impacts on the
regional economy were evaluated based on the direct,
indirect, and induced employment, labor income,
value-added, and tax revenues that
would potentially result from the construction and operation and maintenance
investments.
- North Slope Economy,
1965 to 2005
Client: U.S. Minerals Management Service
Northern Economics prepared this study to provide a
historical region-wide perspective of the changes in the economy of the North
Slope. Information from the study establishes an analytical baseline for
environmental impact statements and other National Environmental Policy Act
documentation for oil and gas lease sales,
development and production plans,
and related Outer Continental Shelf activity in the Beaufort Sea, Chukchi Sea, and Hope Basin planning areas. The study
explored structural changes in the regional economy that have had significant
institutional and social impacts. The study included an analysis of revenue
and expenditure patterns of the North Slope Borough and other local
governments; changes in employment and economic activities in the region; the
role of the regional and village for-profit corporations in the economy; the
role of federal and state governments,
tribal governments, and non-profit
organizations; and household responses to economic change.
- Girdwood Industrial Park Feasibility Study
Client: Municipality of Anchorage Heritage Land Bank
To prepare this industrial park feasibility study for
Girdwood,
Alaska,
Northern Economics reviewed prior and current engineering studies of
municipal land zoned for industrial development in the community. Appraisal
reports and economic forecasts were reviewed and local business owners
interviewed. The information obtained from these sources was used to develop
market absorption rates for potential leases or land sales.
- Yuut Elitnaurviat People's Learning Center Feasibility Study
Client: Yuut Elitnaurviat Consortium
Northern Economics teamed with Livingston Slone, Inc. to conduct a feasibility study for the Yuut Elitnaurviat People’s
Learning Center in Bethel, Alaska.
This vocational learning center is intended to help local residents fill the
high wage jobs in the Yukon Kuskokwim Delta region.
Northern Economics evaluated the financial feasibility of the project, explored alternative financing schemes, assisted in estimating facility operational
costs, and provided an economic
and demographic profile of the region to help assess the need for the
facility.
- Economic Geography of Southwest Alaska: The Role of
Southwest Alaska in the State Economy
Client: Southwest Alaska Municipal Conference
In this study,
Northern Economics investigated how the regional economy of
Southwest
Alaska (comprised of four incorporated boroughs and two census
areas) functions in relation to the rest of the State. The economic linkages
and exchanges among regions were evaluated according to the flow of goods, services,
people, and income. The multilevel
strategy employed to collect the information required to analyze these
economic relationships included a review of existing studies, compilation of secondary data, and primary data collection by means of surveys
of households, government entities, and businesses using mail and electronic
(Web-based) survey instruments.
Client: Alaska Department of Community and Regional
Affairs (currently Alaska Department of Commerce,
Community, and
Economic Development)
Northern Economics examined the economic feasibility of
public and private reuse of the territory encompassed by the Adak Naval Air Station in the Aleutian Chain. The
assessment included an evaluation of reuse options in terms of expected costs
to the State of Alaska,
probability of occurrence, and
employment generation.
- Sakhalin Island Infrastructure Development Plan
Client: Sakhalin Regional Administration, U.S. Agency for International Development, Exxon,
Marathon, and Mobil.
Northern Economics was the prime contractor on this
study conducted for the Sakhalin Regional Administration (
Russia
),
several consortia of companies led by Exxon,
Marathon, and Mobil, and the U.S. Agency for International
Development, to prepare a
development plan for physical infrastructure on
Sakhalin
Island.
The plan provided a strategy for undertaking the economic reform and
restructuring necessary to establish a sound environment for private and
public infrastructure providers,
and a strategy for engaging potential investors and lenders. Included in the
plan was a long-range strategy for the improvement and development of basic
public services, such as electric
power and heat (primarily coal-fired),
transportation, water, and waste treatment,
and for the enhancement of the urban landscape in Yuzhno-Sakhalinsk.
- Population
Projections and Future Demand for Residential Land and Infrastructure in
Whatcom County,
WA
Client:
City of Bellingham, Washington
In this
report, Northern Economics
described the potential effects of varying population projections for Whatcom
County on expected future demand for residential land,
infrastructure, and related public
services over a 20-year planning period. The report also addressed timing
issues related to providing infrastructure and the costs associated with
inadequate or excessive infrastructure capacity.
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Transportation
Projects
Northern Economics has extensive experience in transportation economics and
travel demand forecasting for major projects,
including several studies that involve intermodal and multipurpose facilities. We have developed travel demand models and
conducted numerous surveys to assess potential demand and identify customer
preferences for rail, highway, and airport projects.
Our transportation project clients have included public
agencies such as Alaska Department of Transportation and Public Facilities, Anchorage International Airport, Alaska Railroad Corporation, Alaska Industrial Development and Export
Authority, and numerous port
entities, as well as private
companies such as Cominco Alaska and Totem Ocean
Trailer Express.
Selected Projects:
- Knik Arm Crossing Draft
Environmental Impact Statement
Client: Alaska Department of Transportation and Public
Facilities
Northern Economics prepared the economic and social
impact analysis for a proposed vehicular toll bridge crossing Knik Arm between the Municipality of Anchorage (MOA) and
Matanuska-Susitna Borough (MSB),
Alaska. This $600 million transportation infrastructure project has major
implications for existing and projected population and economic growth on
both sides of Knik Arm. Northern Economics
developed the economic assumptions used in forecasting population, employment,
and other parameters with and without the project,
and the effects of the proposed bridge crossing on the socioeconomic
environment. The work entailed development and analysis of a survey of MOA
and MSB residents to determine where people might reside within the region
with a Knik Arm crossing,
and interviews with a number of potential stakeholders and representatives of
major industries to determine how Southcentral Alaska might develop with and without a bridge. This information was
incorporated into a regional economic model that developed forecasts of
population and employment for the region,
and also for use with PlanBuilder software that was
used to allocate this growth to traffic analysis zones (TAZs)
in the MOA and MSB. The TAZ data were used to assess the regional
socioeconomic impacts of the bridge.
- Makah Ferry Feasibility Study
Client: U.S. Bureau of Indian Affairs
Northern Economics evaluated potential demand for a
regional cross-channel passenger-vehicle ferry service from Neah Bay,
Washington to Vancouver Island,
British Columbia, Canada. This
study provided information on potential ferry passenger volumes for five
hypothetical ferry runs. The report results offered supportive information
for selection of a route and operational characteristics of the ferry runs.
- Naknek Crossing Intermodal Economic Impact and Airport Use Study
Client: Alaska Department of Transportation and Public
Facilities
In this study,
Northern Economics assessed means to improve access to communities in
Southwest Alaska and reduce system-wide transportation
operation and maintenance costs. The analysis focused on an extension of the
road system to South Naknek,
which would possibly enable the State of Alaska to close the Naknek and/or South Naknek airports or transfer them to another entity. The project included an
assessment of potential crossing alternatives and their corresponding effects
on airport use; an area airport plan for each identified crossing scenario
and the associated enplanement forecast; a plan of
finance that equitably distributes costs associated with the project; and a
benefit-cost analysis intended to improve the quality of policy decisions
with respect to crossing alternatives.
- Assessment of Airport Alternatives for the
Anchorage International Airport
Client: Ted Stevens Anchorage International Airport
Northern Economics estimated the impact of six regional
capacity alternatives considered for the Anchorage International Airport on
jobs, airport payroll, and taxes to the Municipality of Anchorage, along with population distribution and surface
transportation costs. One alternative involved moving the airport to the
Matanuska-Susitna Borough, while
another alternative involved moving only cargo operations.
- Knik Arm Ferry: Socioeconomic
Impacts
Client: Matanuska-Susitna Borough,
Alaska
Northern Economics assessed the economic impacts of a
year-round ferry between Port MacKenzie in the
Matanuska-Susitna Borough and the Ship Creek,
Port of Anchorage, area across Knik Arm. Project work required revenue and traffic
forecasting, projections of
passenger, vehicle, and cargo use for Port MacKenzie;
an estimate of peak commuter and truck vehicles by year and time of day;
recommended fares; and suggested levels of service frequency. The study
findings were used to augment the environmental assessment prepared for the
proposed ferry project.
- Anchorage International Airport Rail Station Market
Identification and Analysis
Client: Alaska Railroad Corporation
Based on a survey of cruise ship passengers, air travelers,
and commuters, Northern Economics
identified markets and generated ridership forecasts for a $28 million state-of-the-art central rail station at
Anchorage International Airport.
- Chena Hot Springs to Circle Hot
Springs Road Planning Study
Client: Alaska Department of Transportation and Public
Facilities
Northern Economics prepared a planning and economic
study for a proposed new road northeast of Fairbanks and an alternative for upgrading
the existing highway. The proposed road would link Chena Hot Springs Road to Circle Hot Springs Road/Steese Highway in the Central area and would establish a scenic highway loop via the Chena Hot Springs Road and the Steese Highway north of Fairbanks. A planning level benefit-cost analysis was
conducted of alternative road corridors.
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Fishery and
Aquaculture Projects
Northern Economics is one of the nation’s leading economics consulting firms
for fisheries issues. Staff members have more than 10 years of direct
employment with federal regional fishery management councils and more than 20
years of personal participation in the commercial fisheries off Alaska and
the Pacific Northwest.
Clients for fisheries management and fish marketing
analyses include the North Pacific Fishery Management Council, Pacific Fishery Management Council, Pacific States Marine Fisheries Commission, NOAA Fisheries-Alaska Regional Office, NOAA Fisheries-Pacific Islands Regional Office, NOAA Fisheries-Northwest Regional Office, Alaska Department of Fish and Game, Washington Department of Natural Resources, Alaska Crab Coalition,
Pacific Seafood Processors Association,
Norwegian Seafood Export Council,
Central Bering Sea Fishermen's Association and other Western Alaska Community
Development Quota groups, and
Alaska Commercial Fishing and Agriculture Bank.
Selected Projects:
- Alaska Groundfish Fisheries Programmatic Supplemental
Environmental Impact Statement
Client:
NOAA Fisheries-Alaska Regional Office
This
programmatic Environmental Impact Statement serves as the central
environmental document supporting the management of the Bering Sea/Aleutian
Islands and Gulf of Alaska groundfish fisheries in
the Exclusive Economic Zone off Alaska. The scientific information and
analytical discussions are intended to provide a broad,
comprehensive analysis of the general environmental consequences of fisheries
management and provide an overarching analytical framework that will be used
to define future management policy. Northern Economics was responsible for
describing and analyzing current knowledge about the economic aspects of the groundfish fisheries off Alaska,
assessing the economic impacts resulting from past and present fishery
activities, and describing the
potential economic consequences of alternative policy approaches and their
corresponding management regimes for management of the groundfish fisheries. The analysis included an assessment of current contributions of
the groundfish processing sector to community and
regional economies using an input-output model with income and employment
multipliers derived by the NOAA Fisheries Northwest Fisheries Science Center.
- A Survey of U.S. Salmon Markets
Client: Norwegian Seafood Export Council
The purpose of this study conducted by Northern
Economics was to provide a comprehensive assessment of how the
U.S.
market
for salmon products has changed over the past two decades and to determine
how current market trends will shape consumption and trade patterns in the
future. The study reviewed prior salmon market research; examined changes in
consumption trends using data from the National Fisheries Institute’s annual
estimates of per capita consumption of salmon products; analyzed fifteen
years of U.S. trade data from 1989 to 2004 to determine how U.S. salmon
imports changed during that period and to identify emerging trends; and
conducted a survey of salmon market participants and experts..
- Pacific Coast Groundfish Fishery Management Plan Bycatch Reduction
Program Environmental Impact Statement
Client: Pacific States Marine Fisheries Commission
This environmental impact statement analyzed the Pacific
Fishery Management Council's objectives for its Pacific Coast groundfish fishery bycatch mitigation program and evaluates alternative programs to achieve those
objectives. Drawing on a wide array of theoretical and applied studies, Northern Economics developed a qualitative
economic assessment of alternative approaches to reduce bycatch, including fleet reduction through buybacks, sector allocations and potential development of
cooperatives, area closures and
establishment of marine protected areas,
requirements of full retention,
and the development of individual transferable quotas.
- The World Geoduck Market
and the Potential for Geoduck Aquaculture on
Washington State Lands
Client: Washington Department of Natural Resources
Northern Economics conducted an in-depth study of the
world market for geoduck,
the world’s largest burrowing clam. The potential for the geoduck market to change is considerable as private culture companies in Washington
compete with the wild fishery for access to public tidal lands. With the
permission of the client, the
study findings have been presented to numerous groups,
including representatives of the
Puget Sound
treaty tribes.
- Initial and Final Regulatory Flexibility Analyses
of Critical Habitat Designation for West Coast Salmon and Steelhead
Client: NOAA Fisheries-Northwest Region and NOAA
Fisheries-Southwest Region
Northern Economics examined the economic impacts on
small entities of the designation of critical habitat for 19 evolutionarily
significant units of endangered or threatened salmon and steelhead in the
Pacific Northwest and California. The analyses estimated the impacts on each
of 12 industry sectors by county and watershed in Washington, Idaho,
Oregon and California. Included were an estimate of the number of small
entities to which the regulation would apply,
an estimate of the compliance costs of the regulation,
and a determination of whether compliance costs would impose a substantial cost
burden on small businesses.
- Fishery
Management Plan for the Pelagic Fisheries of the Western Pacific Region
Final Environmental Impact Statement
Client:
NOAA Fisheries—Pacific Islands Region
The analysis
prepared by Northern Economics for this EIS evaluated the economic effects of
an array of management alternatives for pelagic fisheries in the Exclusive
Economic Zone surrounding the U.S-affiliated Pacific islands, including Hawaii,
Guam, American Samoa, and the Northern Marianas. The pelagic fisheries
discussed were the longline, handline,
pole-and-line, troll, recreational,
and charter fisheries. The economic impacts analysis included projections of
changes in the fishing industry resulting from court-ordered area closures
intended to reduce interactions between sea turtles and the Hawaii pelagic longline fishery.
- An Assessment
of the Socioeconomic Impacts of the Western Alaska Community Development
Quota Program
Client:
Alaska Department of Commerce,
Community and Economic Development
Northern
Economics conducted this comprehensive assessment of the socioeconomic
effects of the Western Alaska Community Development Quota (CDQ) Program. The
CDQ program was developed in 1992 as a means of extending the economic
opportunities of the productive fisheries in the Bering Sea and Aleutian
Islands area to rural communities located near these resources. Previous
literature and federal and state reports on the CDQ program were reviewed, summarized and presented in an annotated
bibliography. In addition,
available demographic information about CDQ communities was compiled from
U.S. Census data and other sources. The past and current organizational
structure, goals, revenues,
royalties, quota shares, fishing industry partners,
employment, training/scholarship
programs, investment programs, and development programs for each CDQ group were
described. In order to assess the economic effects of the CDQ program on
community residents, adjusted
gross income data by zip code were used to compare income in CDQ communities
with non-CDQ communities in the same boroughs or designated census areas.
Finally, over 400 surveys were
sent to community leaders in CDQ communities to supplement information from
externally compiled data sets and to assess community awareness of the CDQ
program.
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Port and
Harbor Projects
Northern Economics has extensive experience in waterfront and harbor
development planning and has played a pivotal role in the expansion of many
port facilities. We have investigated demand,
feasibility, and access issues for
small boat harbors, general cargo
docks, cruise ship terminals, bulk materials terminals,
and fuel terminals. The scale of these projects has ranged from large
deep-draft ports at Anchorage and Dutch Harbor to barge landings at Kuskokwim and Yukon River communities.
Our clients include the
Port
of
Anchorage,
Port of Kodiak,
Alaska Industrial Development and Export
Authority, City of
Unalaska,
City of
Chignik, City of
Wrangell, and City of
Valdez.
Selected Projects:
- Harbor Economic Impact Model for the State of
Alaska
Client: State of Alaska
Northern Economics developed an economic impact model
that quantifies the benefits of Alaska harbor facilities at the local, regional,
and state levels, and provides a
standardized measure of economic impacts that allows decision-makers to
evaluate projects more effectively and efficiently. The model is a
user-friendly tool that project proponents can use to generate reports
showing the value of the harbor investments on the financial position of the
harbor, the fiscal effects on the
community and/or regional government,
and the economic effects on the community,
regional entity, and/or the state.
This information can be used to support local funding decisions and requests
for state and federal matching funds,
as well as provide information to local residents on the value of a harbor to
their economy.
- Port of Anchorage Master Plan: Strategic Marketing
Plan
Client: Port of Anchorage
Northern Economics assessed the demand for Port of
Anchorage facilities and services based on Alaska's natural resource and
visitor industry production levels; profiled competitor ports; described
inbound and outbound cargo flows; and identified markets in which the Port
could expand.
- Unalaska Ten-Year Port and Harbor Development Plan
Client: City of Unalaska
Northern Economics prepared a 10-year development plan
for the City of Unalaska/Port of Dutch Harbor to identify, evaluate,
rank, and schedule projects for
development and funding. The plan analyzed current and future conditions at
the Port, including the
competitive environment, and
provided recommendations about facilities and services to offer, capital project priorities,
scheduling, and financing and
funding strategies. Interviews with fish processors,
fishing vessel owners and operators,
and various policymakers were conducted to determine anticipated changes in
the fishing fleet composition over the next ten years.
- Valdez Small Boat Harbor Mater Plan
Client: City of Valdez
Northern Economics evaluated various projections for
population and visitor activities that could affect the small boat harbor in
Valdez,
Alaska,
thereby providing a preliminary forecast for activity levels at the harbor in
the coming years and a context for making long-range planning decisions. The
study examined the demand for space and services from recreational boaters, tour and charter operators,
and businesses offering kayak rentals,
skiff rentals, and seaplane rides.
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Oil, Gas, and Mining Projects
Northern Economics understands the oil,
gas, and mining industry in Alaska
and elsewhere. Our staff members have worked on North Slope oil and gas
projects and
Alaska's
largest mining projects. These projects have included environmental impact
statements of oil. natural gas,
and mineral resource development; economic evaluations of construction and
operation of natural gas handling facilities,
replacement of Trans-Alaska Pipeline System line segments, and Outer Continental Shelf oil exploration;
simulation models estimating support industry activity with varying oil
prices; and market and financial analyses of proposed mines.
Clients include the U.S. Mineral Management Service, U.S. Bureau of Land Management, Alaska Department of Revenue, Alaska Department of Natural Resources, Alaska Department of Transportation and Public
Facilities, Washington State
Department of Ecology, Alaska
Natural Gas Development Authority,
North American Natural Gas Producers Group,
Pacific Star Energy, Phillips
Petroleum Company, Alyeska Pipeline Services Company,
ARCO Alaska, BP Exploration, and Anadarko Petroleum Corporation.
Selected Projects:
- Benefits Analysis of ANGDA Natural Gas Project
Client: Alaska Natural Gas Development Authority
Northern Economics developed a spreadsheet model that
provides comprehensive measures of the economic benefits of the Alaska
Natural Gas Development Authority’s (ANGDA) natural gas project. The model
incorporates the benefits of natural gas infrastructure development, in-state use of natural gas and natural gas
liquids for power generation and industrial uses such as small-scale
manufacturing of petrochemical products,
and operations associated with processing and transporting natural gas. The
model was designed to accommodate changes in prices,
quantities of natural gas produced,
size of operations, size of pipeline,
financing structure, and other
assumptions. The model outputs include jobs and labor income generated, payments to local and state government including
severance, royalties, corporate income taxes,
and property taxes, power cost
equalization savings to the State of Alaska,
total industry output or gross sales,
increase in Permanent Fund Dividend checks,
amount of taxes avoided by a typical household,
and changes in household utility bills.
- Buckhorn Mountain Mine Supplemental Environmental
Impact Statement
Client: Washington State Department of Ecology
Northern Economics completed a Socioeconomic Discipline
Report and Recreational Discipline Report describing the socioeconomic and
recreational impacts of proposed operating alternatives for an underground
gold and silver mine on Buckhorn Mountain,
located near Chesaw,
Washington. The environmental and social impacts of the proposed mining
operations have been the subject of much public debate. The detailed analyses
prepared by Northern Economics,
which included the effects of both the mining and milling operations, were incorporated into the supplemental
environmental impact statement.
- Economic Impact Study of Natural Gas Exploration
and Production from the Foothills Region of North Brooks Range.
Client: Anadarko Petroleum Corporation
Northern Economics evaluated the potential economic
impacts of natural gas exploration,
development, and production
activities of the Anadarko Petroleum Corporation in the Brooks Range
Foothills. This study was used by Anadarko to support its bid on the State of
Alaska’s royalty gas. Input-output models of the North Slope Borough and
State of Alaska were used to estimate the direct,
indirect, and induced effects of
gas exploration and development on employment,
revenues to the state and local governments,
labor income, and gross state
product.
- Assessment of the Contribution of Red Dog Mine
Operations to the Economy of the Northwest Arctic Borough
Client: Alaska Industrial Development and Export
Authority
The Red Dog Mine located near Kotzebue, Alaska is the world’s largest zinc mine.
Northern Economics quantified the relative importance of mine operations with
respect to employment and income in the Northwest Arctic Borough using an
input-output model of the regional economy. The impacts measured included
payments to labor, payments to the
vendors that supply Red Dog Mine's inputs,
royalty payments to the regional Alaska Native corporation (NANA Regional
Corporation), and PILOT payments
(payments in lieu of taxes) to the Borough.
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Visitor
Industry Projects
While many Northern Economics studies have included a
visitor market component, we are
increasingly involved in projects with tourism development as a primary
focus. Projects range from conducting statewide studies of this growing
economic sector to assisting particular visitor facilities that are exploring
options for expansion.
To date, our
clients have included the Alaska Department of Community and Economic Development, Bellingham/Whatcom Convention and Visitors
Bureau, Anchorage Civic and
Convention Center—Yes,
Municipality of Anchorage, Alaska
Museum of Natural History,
Anchorage Museum of History and Art,
and the City of Fairbanks.
Selected Projects:
- Alaska Visitor Statistics Program IV
Client: Alaska Department of Community and Economic
Development, Division of Tourism
The Alaska Visitors Statistics Program (AVSP) is a
significant visitor industry research project conducted periodically by the State
of Alaska. The AVSP provides the state and the visitor industry with critical
data on the visitors that travel to Alaska. These data include information on
the number of visitors, general
demographic and other characteristics of the visitor population, as well as information on visitor expenditures, activities,
and opinions. Northern Economics developed visitor surveys, prepared a sampling plan,
and conducted interviews to determine the number and composition of visitors
by entry mode, trip purpose, and place of origin. The surveys assessed
visitor expenditure patterns and satisfaction with all major components of
the Alaska experience and identified characteristics and interests of
first-time and repeat visitors.
- Visitor Profile for Bellingham/Whatcom County, Washington
Client: Bellingham/Whatcom Convention and Visitors
Bureau
Northern Economics prepared a tourism market study in
Whatcom County, Washington based
on intercept surveys conducted with almost 700 visitors. The study included a
trend analysis (comparing findings to information collected with a similar
survey in 1993) and an analysis of primary findings for summer and
fall/winter visitors. The study included demographic information on visitors, length of stay,
information on trip objectives and trip planning,
overall opinions of Bellingham/Whatcom County,
activities and interests, and
expenditures.
- Sustainable Tourism and Recreation Tax Alternatives
Client: Alaska Tourism Industry Association
Northern Economics investigated the means of funding an
annual, statewide tourism
marketing program, with revenues
provided by sustainable tourism and recreation-related taxes. The intent was
to determine the best means of raising $20 million annually and to
progressively reach a sum of $40 million in five years,
with the purpose of using new tax revenues raised from tourism and recreation
sources within the State of
Alaska
for marketing the State as a visitor destination for outside residents.
- Economic Analysis of the Proposed Anchorage Civic
and Convention Center
Client: Anchorage Civic and Convention Center—Yes
Northern Economics conducted this study to assess the
economic impacts of a proposed new Anchorage Civic and Convention Center
Complex on the Anchorage economy. The study examined current usage of the
Egan Center, national market
demand for convention space,
potential fiscal impacts,
financing arrangements and risk sharing,
and economic benefits of the proposed convention center. A primary focus of
the study was to identify and evaluate different funding options for the
facility. Among the options that Northern Economics examined was a hotel bed
tax, which was eventually adopted
through a public referendum.
- Alaska Museum of Natural History Market Analysis
and Feasibility Study
Client: Alaska Museum of Natural History
Northern Economics prepared a feasibility study to
identify a suitable approach to creating a new Alaska Museum of Natural
History in
Anchorage.
The study developed attendance forecasts for a larger facility based on a
concept plan created by an architectural firm,
estimated future revenues and expenditures,
and identified funding sources for the facility.
- Economic Impacts of Expansion of the Anchorage
Museum of History and Art
Client: Anchorage Museum of History and Art
Northern Economics conducted a quantitative analysis of
the economic impacts of the proposed Anchorage Museum of History and Art
expansion project. The analysis examined the financial impacts on Museum
operations, fiscal impacts to the
Municipality of Anchorage, and economic
impacts to the community of Anchorage. The study also assessed the impacts of
the expansion project on property taxes.
- Morris Thompson Cultural and Visitors Center
Client: City of Fairbanks
Northern Economics developed a business plan for the
proposed Morris Thompson Cultural and Visitors Center,
a facility in Fairbanks, Alaska
that would be dedicated to preserving the cultural and natural history of
Interior of Alaska and providing educational opportunities for visitors and
residents. Visitor estimates were based on historical usage of comparable
visitor facilities in Fairbanks and Anchorage and projected forward for the
first several years of operations based on current trends in the visitor
industry. Northern Economics also provided feedback on the marketing and
operational issues of attracting and serving visitors. Since the Center would
not charge visitors for admission,
funding and financing strategies were developed to ensure that the facility
would remain viable. Northern Economics developed an initial business plan
for the facility that consolidated all of this information in a useful format
that the partners could use and expand upon as the Center's concept evolved.
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Environmental
Valuation Projects
Over the years, Northern Economics
has prepared many studies that have examined the impacts of economic
development on the natural environment. Currently,
we are expanding our involvement in projects that focus more directly on
resource valuation and the benefits and costs of conservation.
Our clients for environmental valuation projects have
included the U.S. Environmental Protection Agency,
Sauk-Suiattle Indian Tribe,
King County, Washington, and the City of Unalaska.
Selected Projects:
- Economic Analysis of the Sauk River for Petition of
Tier III Designation
Client: Sauk-Suiattle Indian
Tribe
Northern Economics completed a study of the economic
value of preserving the pristine Sauk River and Sauk River Forks watersheds
using non-market and market valuation methods. The study was used by the
Sauk-Suiattle Indian Tribe as part of a petition to
the Washington Department of Ecology for Tier III Designation of the
watersheds.
- Review of "The Benefits of Instream Flow in New Hampshire's Rivers Management and Protection Program"
Client: U.S. Environmental Protection Agency
Northern Economics completed a peer review of a draft
report to provide information on instream water
values for selected streams in New Hampshire. The report was part of a broad
effort to develop instream flow regulations for major
rivers in New Hampshire. Flow standards are intended both to protect instream resources like water quality and fisheries and
to allow for public benefits,
including recreation and public water supplies.
- Southeast Maury Island Ecological Economic Evaluation
Client: King County Department of Natural Resources and
Parks, WA
Northern Economics worked with other team members to
estimate the total economic value of ecosystem goods and services on and
around Maury Island, Washington, and the potential economic loss caused by
development activities.
- Review of “Draft Economic Analysis of Critical
Habitat Designation for the Steller's Eider”
Client: City of Unalaska
Northern Economics reviewed a report prepared for the
U.S. Fish and Wildlife Service to assess the economic impacts that may result
from designation of critical habitat for the Steller's eider. The report identified current and future land uses and marine
activities and assessed whether or not the designation of critical habitat
would have any net economic effect in the regions containing the proposed
critical habitat designations.
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