The Economic Impact of Beaver Lake Reservoir: A Cost Benefit Study

This study was undertaken to determine the impact of Beaver Lake Reservoir on four contiguous Arkansas counties. Analysis of economic data indicated that lake related personal income in the area has, since the project was completed, been about 2.5 percent higher than it would have been had the lake not been constructed. The greatest impact has been associated with the counties having the largest share of the shore line. In the aggregate, however, the most significant cause of economic growth in the area has been associated with growth of manufacturing employment. Also the relative economic position of each of the counties remained virtually unchanged since the project was undertaken. From the viewpoint of economic efficiency, revenues to the Federal Government attributable to the project have been sufficient to result in the project having a net annual yield of 2.8 percent even without considering the free recreational benefits of the lake