Social Cost Summary (Cont.) 



Fuel and road oil consumption 



41,500 gallons diesel fuel 

 7,000 gallons gasoline 



22,500 gallons road oil 

 Increased recreation pressure on the natural system 



Social Benefit Summary 



The most significant social benefits are the primary and secondary 

 employment and income effects. Primary employment and income effects are 

 based on figures from a study by Polzin for Region One of the U. S. Forest 

 Service. 5/ An employment multiplier for western Montana of 2.78 and an 

 income multiplier of 3.29 were used for the analysis. 6/ 



Estimated direct employment — cutting, skidding, 



hauling, road construction, and processing 

 Estimated direct salaries and wages 

 Estimated secondary employment effect 

 Estimated secondary salary and wage effect 

 Increased recreation use 

 Increased water yield 



Increased production of big game forage 

 Initiation of more intensive commerical management 

 of the stand. 



32.4 man-years 

 $275,400 

 57.6 man-years 

 $630,600 



40 hunter-days/yr. 

 148 A.F./yr. to 

 zero over 30 yrs. 



Economic Summary 



As a short-run action, the internal benefits far surpass the internal 

 costs. After paying for road work and sale administration, an estimated 

 $330,000 will be turned over to the State Lands Department for the State 

 School fund. Furthermore, the sale will result in an estimated 90 man-years 

 of direct and indirect employment and $906,000 in income. The sale will 

 serve as the major feature of a management plan which will put this portion 

 of State Forest land in a more productive posture. 



5/ 

 6/ 



Polzin, Paul E. 1973. Economic Impact of Alternative Timber Harvest 

 Schedules, Region 1, Missoula, Montana. 



Johnson, Maxine C. 

 Business Quarterly, 



1972. "Wood Products in Montana," Montana 



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