In 2011 the Division of Ecological Restoration contracted with Industrial Economics, Inc. to generate estimates of the economic impact of DER’s projects. Cost data from four representative restoration projects from around the Commonwealth were analyzed to estimate the direct, indirect, and induced effects from the dollars spent on these projects.
There is a very promising relationship between ecological restoration projects and resulting economic productivity. The results of the analysis show an average employment demand of 12.5 jobs and $1,750,000 in total economic output from each $1 million spent on these projects underscoring the development of a “restoration economy” in Massachusetts.
Additionally, these projects produce substantial benefit in terms of enhanced ecosystem services (e.g. water purification, flood protection, biodiversity) which is not captured in this estimate but DER is examining as Phase II of this work.
Ecological restoration projects help support a number of markets including design and engineering, construction, wholesale construction materials, nursery products, and non-profit science. Because of this diversity of contributing sectors, the “ripple effects” from a dollar spent on ecological restoration travel widely through the Massachusetts economy. For more information read the report: Economic Impacts of Ecological Restoration in Massachusetts file size 1MB .