Historical, current, and future economic benefits and costs relating to Lake Waco, Texas

Abstract

Lake Waco is an important economic asset for Central Texas. Since 1964, Lake Waco has been utilized as a multiple-purpose reservoir, providing flood protection (more than $258 million in damages prevented), a public drinking water source for 200,000 Central Texans (the City of Waco Utilities Department budget is $40 million per year), and recreational area by up to 2 million people per year. A rise in the conservation pool level increased the drinking water yield by 26 million cubic meters per year but temporarily interfered with recreation. Despite a drop in recreational usage for several years (2001–2005) and significant increases in the quality and quantity of recreational facilities during the pool rise project, the economic impact to local communities remained between $8 and $27 million dollars per year, depending on the method applied. Results from application of the Money Generation Model Version 2 indicate that approximately 750 local jobs are supported by recreational spending. There is a substantial economic return on investments in the enhancement and protection of Lake Waco.

Key words:

• economic recreation model
• lake value
• Lake Waco