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Outside Magazine, March 2005

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As a Matter of Fact, Money Does Grow on Trees
With an anti-environmental backlash inflicting one defeat after another on conservationists, a band of maverick economists is riding to the rescue with a startling revelation about the true value of our natural resources: Follow the money, and you end up in a very green place.

By Bruce Barcott


	(Photograph by Dan Winters)

WHAT'S WILDERNESS WORTH?

For more than a century, the people who run America's extractive industries—logging, mining, and fossil-fuel drilling—have offered one answer. Conservationists and the environmental movement have offered another. Developers have touted job creation and the connection between industrial exploitation and economic vitality. Environmentalists have grounded their appeals in ecological science and the value of wilderness to the human soul. Always at odds, locked in ideological opposition, the two sides, it seems, have long been speaking different languages.

Currently, with tens of millions of acres on the line and developers enjoying a stiff political tailwind blowing out of Washington, D.C., the mutual incomprehension has become nearly absolute. The environment reflects the red-state/blue-state divide and plays out in vitriolic debate.

Amid all the noise, both sides are failing to hear the whisper of a bold development that could break the deadlock and revolutionize sustainable environmental policy: the arrival of wilderness economics, a dollars-and-cents way to attach a fair and reliable estimate to the seemingly uncountable value of preserving wild spaces and pristine natural resources.

The lyrical phrases of John Muir, Aldo Leopold, and David Brower never came with dollar signs attached. They couldn't. In bill and coin, nobody in those days could say what wilderness was worth. Now we can. Studies of rivers and lakes reveal that healthy watersheds provide millions of dollars' worth of water filtration, just one of many such natural services critical for healthy communities. Researchers digging into the economy of the West are finding that forests often have a higher cash value standing than they have as cut timber. Small towns born as logging outposts now thrive as recreation gateways.

"Fifteen years ago we knew intuitively that cutting down these forests didn't make sense," says Bob Freimark, Pacific Northwest director of the Wilderness Society. "We couldn't point to any economic studies to back us up. But not anymore."

This new economic paradigm couldn't arrive at a more crucial time. The failure of environmentalists to sell their agenda to voters has run headlong into an administration that's put energy development at the top of its list and is making it easier than ever to siphon private resources from public land. While mainstream media have focused on hot spots like the Arctic National Wildlife Refuge, Bush administration officials have quietly opened millions of acres of wilderness-quality land in the lower 48 to developers. Much of the 58.5 million acres of roadless national forest preserved by the Clinton administration will soon lose its protection. In Wyoming, ranchers who've wisely tended their land for generations are watching energy companies ruin their soil and water in a natural-gas free-for-all. In Utah and Colorado, nearly 150,000 acres of wildland—including previously protected sections of Desolation Canyon, as well as spectacular tracts of Sagebrush Pillows and the Dolores River Canyon—have been leased for drilling in the past 14 months. Tens of thousands more will likely follow.

President George W. Bush and his supporters defend these actions in the name of energy security and jobs. But set against the West's new economic reality—a long-term shift away from extractive industries and toward recreation, tourism, the service sector, and information technology—the aggressive drive to cut and drill without factoring in long-term effects on the value of public wildland isn't just environmentally unfriendly; it's economically unsound. Converting the natural wealth contained in the nation's pristine forests, deserts, canyons, and mesas into a one-time hit of corporate profit is a swindle of the first order, one that should outrage anyone, Republican or Democrat, who favors combining sound business practices with smart environmental stewardship.

Fortunately, the new way of thinking, if embraced by both sides, could lead to an era of compromise, in which decisions about extraction and preservation are based on assessments of long-term value, and of how that value might or might not be sacrificed for short-term gains.

If that happens, we'll owe thanks to people like John Loomis, 52, an economics professor in the Department of Agricultural and Resource Economics at Colorado State University in Fort Collins and one of the pioneer thinkers in wilderness valuation. Loomis has written dozens of papers showing that mining, logging, drilling, and grazing are rarely the most economically beneficial uses of public land. His personal revelation came 28 years ago, in 1977, shortly after the young Cal State Northridge graduate took a job with the federal government's Bureau of Land Management, which put him to work in the slickrock canyons around Moab.

"My second week on the job," Loomis recalls, "the Forest Service held a public hearing. About three-quarters of the people there said they didn't want any wilderness in Utah, period. And I thought, Now wait a minute. Surely there's some economic value in wilderness." Along with a handful of like-minded colleagues scattered around the West, Loomis would spend the next quarter-century proving that there is.

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Contributing editor BRUCE BARCOTT co-moderated the debate between Christine Todd Whitman and Robert F. Kennedy Jr. in the November 2004 issue.

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