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HomeMy WebLinkAboutAPA573·K OunCES LTBRARY US.D T.OF I ~TERIOR Alaska Economic Projections for Estimating Electricity Requirements for the Railbelt Volume IX S.Goldsmith E.Porter Institute of Social and Economic Research Anchorage -Fairbanks -"Juneau,Alaska September 1982 Prepared for the Office of the Governor State of Alaska Division of Policy Development and Planning and the Governor's Policy Review Committee under Contrad 2311204417 Banelle Pacific Northwest Laboratories LECAL NOTICE This report was prepared by Battelle as an account of sponsored research activities.either Sponsor nor Battelle nor any person acting on behalf of either: MAKES ANY WARRANTY OR REPRESENTATION,EXPRESS OR IMPUED,with respect to the accuracy,completeness,or usefulness of the information contained in this report,or that the use of any informa- tion,apparatus,process,or composition disclosed in this report may not infringe privately owned rights;or Assumes any liabilities with respect to the use of,or for damages result- ing from the use of,any information,apparatus,process,or composition disclosed in this report. ,] ~. i;qr ~Ii. '{' ~j ~~ ~'t( ~ ~ li I ',,'.:~':J ,; ALI~;~,T{{.1'r",OUnCES LTBRARY D.D.L';~"-T.OF L\'T2RIOR '/I- ; "7 CIL(c·.J k....> ~1 '1 1,,,,'i,,' \''}/) D ':J ;) ALASKA ECONOMIC PROJECTIONS FOR ESTIMATING ELECTRICITY REQUIREMENTS FOR THE RAILBELT Volume IX S.Goldsmith E.Porter Institute of Social and EcoGomic Research Anchorage -Fairbanks -Juneau,Alaska September 1982 Prepared for the Office of the Governor State of Alaska Division of Policy Development and Planning and the Governor's Policy Review Committee under Contract 2311204417 Battelle Pacific Northwest Laboratories Richland,Washington 99352 W":lr'b "!Ill PROLOGUE:THE EFFECT OF LOWER OIL PRICES At the time the employment and population estimates in this document were done (August 1981),they reflected the main body of expert opinion concerning future world petroleum prices.As late as December 1981,the Alaska Petroleum Revenue Division (APRD)was projecting that the weighted average price of Prudhoe Bay type crude oil would increase from $32.38 per barrel in FY 1982 to $117.56 in FY 1998--about an 8.4%nominal rate of increase or (given 7% inflation)about a 1.4%real price increase per year.This was within the range of increase of 1%to 3%per year assumed in this study.The dramatic collapse of world oil prices in January through March of 1982 reduced nominal crude prices by between $4 and $6 per barrel,dividing oil analysts into two schools of thought--those foreseeing a stabilization of prices at about $25 per barrel and those forecasting further declines to as little as $15 per barrel. Even without substantial economic recovery in the United States and Organization for Economic Cooperation and Development (OECD)economies,the OPEC market price appears to have stabilized at $32 to $34 per barrel.The prospects for the longer run are much less clear.Industry sources now are forecasting real price increases for the 1980s ranging from minus 3.3%in constant 1982 dollars to plus 2.8%,with low-probability political crises resulting in possibly higher rates of increase (Oil and Gas Journal,May 17, 1982).In any event,the most recent (March 1982)forecast of the APRD for the weighted average price of Prudhoe Bay type crudes between 1982 and 1998 is an increase from $29.84 per barrel in FY 1982 to $87.95 per barrel in FY 1998 or about 7.0%per year (0%above our assumed 7%inflation).The netback wellhead price was assumed by APRD to increase annually at about 8.1%in nominal dollars (1.1%above inflation)due to changes in markets and the Trans-Alaska Pipeline System (TAPS)oil pipeline tariff. The new lower starting point for oil prices and slower rate of increase now being forecast have resulted in much lower State of Alaska revenues than v.ere assumed in this study.The difference between the March and December forecasts ranges from minus 8.0%for FY 1982 to minus 61.3%for 1998.The difference could actually be even more profound since oil exploration activity iii ~I i' and pipeline construction could well be deferred or cancelled at the lower prices.In Alaska,this has been reflected in a slowing down of North Slope field operations and in the now-indefinite delay of the Alaska Highway (ANGTS) gas pipeline.The Alaska economy,which is heavily dependent on oil field activity and state spending,could be expected to grow at a much slower rate at the lower oil prices represented by the new forecast.Moreover,because oil and natural gas prices would not rise as rapidly,the incentives for conservation of oil and gas and for fuel switching into electricity by consumers would be much reduced,possibly further reducing electricity demand. The original estimates of economic and population growth in this study were done using the Alaska economic models of the University of Alaska Institute of Social and Economic Research (ISER).To estimate the effect of the state's revised oil price projections,a series of calculations were done without benefit of the model to determine whether the low-case government expenditures assumed in the study could be maintained with the revised (lower) state revenue projections.To do these calculations the following assumptions were made: •The ISER low-case economy,population,and government expenditures forecasts would apply. •Petroleum revenues available to spend equal severance taxes plus 75% of royalties.Alaska Petroleum Revenue Division forecasts were used. •General Fund revenues equal available petroleum revenues,plus earnings of the General Fund and Permanent Fund,plus "other unrestricted'~revenues:other taxes,licenses,fees,permits, rents,intergovernmental receipts,investments,and miscellaneous. State Department of Revenue forecasts were used to FY 1984,then simply increased with inflation."Other unrestricted"revenues are forecast to be about $728 million in FY 1985. •The average balance in both the General Fund and Permanent Fund earns 10%per year throughout the forecast period. Table 1 summarizes the results of our comparison between new revenues and old expenditures of 1990,given those assumptions.The state is shown to be running deficits after FY 1985. iv The state of Alaska cannot legally run the deficits shown in Table 1 for the years after 1985;consequently,the level of expenditures by state government would have to be lower than that shown in the low case.This would reduce employment and population below that shown in the low-case forecast used in the study. TABLE 1.Alaska Revised State Revenues and Low Case Expenditures (million $) Production Tax (Million $)Genera 1 Fund Plus 75%of Genera 1 Fu nd Expend itu res Average General FY Royalties Total Revenues(a)(Low Case)Fu nd Ba 1ance 1982 2717.0 4292.5 3238.5 2481.1 1983 1932.0 2941.5 3539.2 1863.3 1984 2315.9 3113.4 3893.8 1090.5 1985 2695.0 3797.7 4322.9 539.8 1986 3130.8 4267.8 4913 .4 -120.5 1987 3665.5 4889.9 5517.5 -627.6 1988 3759.8 5134.8 5907.3 -772.5 1989 4243.5 5708.1 6306.7 -598.6 1990 4294.8 5893.8 6789.5 -895.7 (a)May not correspond to Department of Revenue estimates because of differences in assumptions concerning General Fund expenditures (affecting the size of the balance),rate of return on General and Permanent Fund, and growth in non-petroleum production revenues. To estimate the likely size of the change,we altered the moderate and low-case forecasts by reducing government employment to 40 thousand persons in the Railbelt in the years 1990 to 2000 (compared to 72 thousand in the moderate case and 62 thousand in the low case).We proportionately reduced statewide government employment and re-estimated the size of the Railbelt and statewide economies for the moderate and low cases.Table 2 summarizes these results for the Railbelt. v b =41 ..+ P "dO "._--",,"_..,••.•-."C-:~~§l.S&&8£,"-, TABLE 2.Revised Year 2000 Forecast of Railbelt Employment and Population (thousands of persons) Rev ised Government Revised Revised Previous Government Basic Plus Tota 1 Total Total Employment Employment Basic Employmend a )Population(b)Population(C) <Moderate 40.0 56.5 96.5 178.5 385.6 484 ~. Low 40.0 39.0 79.0 146.2 315.7 405 (a)Based on the low-case ratio of total employment to basic plus government employment equal to 1.85. (b)Based on the low-case ratio of population to employment of 2.16. (c)See Figure 3.3 in Volume I. .. Without actually going through the simulations in the ISER econometric model,it is not possible to say whether slashing government employment as was done in these calculations would actually balance the state budget.However, if government employment in the Railbelt in 1990 were reduced to 40 thousand and the study's low case government spending of $72,726 per worker for 1990 were maintained,General Fund expenditures would be about $4.5 billion in 1990.This about equals petroleum revenues shown in Table 1 for 1990 and shows a substantial current General Fund surplus to take case of inflation in the 1990s.It thus appears that at the level of population and employment shown in Table 2,the budget of the State of Alaska would be in rough balance. Table 2 results indicate that reduced oil prices,through their effects on state governr~nt spending alone could trim Railbelt population by 80 to 100 thousand persons by the end of the century.This would delay the date when new electric generating facilities might be required by about 10 years.For example,population of the Railbelt would reach the vicinity of 400 thousand persons in the moderate case in about the year 2000 to 2005,instead of 1990. September 1982 vii .. PREFACE This analysis,performed by the University of Alaska,Institute of Social and Economic Research,was funded under a subcontract to Battelle,Pacific Northwest Laboratories as a component of their study entitled liThe Railbelt Electric Power Alternatives Study."The study,consisting of seventeen reports (listed below)~was undertaken to analyze the economics of various methods of meeting the electric power requirements for the Railbelt portion of Alaska in the coming decades.The study was administered by the Office of the Governor,Division of Policy Development and Planning. The primary purpose of the subcontract with the Institute of Social and Economic Research was to provide the study with documented projections of economic activity for a twenty-year planning period.The results of that work are reported in this document,Volume IX of the series.All the projections were done using the Man-in-the-Arctic Program (MAP)econometric model of the Alaskan economy,which is extensively described in a separate document published by the Institute of Social and Economic Research. The projections describe the different growth paths that the Alaskan economy may take during the next twenty years.Each projection assumes certain developments occur in the private sector and a certain state government response to the demands and pressures put upon it by its overwhelming reliance on petroleum revenues to finance government. The assumptions used in the projections have been chosen by a consensus of interested experts coordinated by Battelle with the approval of the Governor's Policy Review Committee.The Institute provided the initial suggestions for the particular elements to be included in the assumptions,but the ultimate decision for inclusion was made by Battelle. As the projections are presented in this report,they are descriptions of what the Alaskan economy may look like in the future,but none are predictions of what will occur.It is left to other elements of the study to interpret these results in light of all factors relevant to the determination of the most cost-effective methods of providing electric power to the Railbelt. October 1981 ix Volume I Volume II Volume III Volume IV Volume V Volume VI Volume VII RAILBELT ELECTRIC POWER ALTERNATIVES STUDY Railbelt Electric Power Alternatives Study:Evaluation of Railbelt Electric Energy Plans Selection of Electric Energy Generation Alternatives for Consideration in Railbelt Electric Energy Plans -Executive Summary -Candidate Electric Energy Technologies for Future Application in the Railbelt Region of Alaska Candidate Electric Energy Technologies for Future Application in the Railbelt Region of Alaska Preliminary Railbelt Electric Energy Plans EXisting Generating Facilities and Planned Additions for the Railbelt Region of Alaska -Fossil Fuel Availability and Price Forecasts for the Railbelt Region of Alaska Volume VIII -Railbelt Electricity Demand (RED)Model Specifications Appendix -Red Model User's Guide Volume IX -Alaska Economic Projections for Estimating Electricity Requirements for the Railbelt Volume X -Community I~eeting Public Input for the Railbelt Electric Power Alternatives Study Volume XI -Over/Under (AREEP Version)Model User's Manual Volume XII Coal-Fired Steam-Electric Power Plant Alternatives for the Railbelt Region of Alaska Volume XIII -Natural Gas-Fired Combined-Cycle Power Plant Alternative for the Railbelt Region of Alaska Volume XIV Chakachamna Hydroelectric Alternative for the Railbelt Region of Alaska Volume XV Browne Hydroelectric Alternative for the Railbelt Region of Alaska Volume XVI -Wind Energy Alternative for the Railbelt Region of Alaska Volume XVII -Coal-Gasification Combined-Cycle Power Plant Alternative for the Railbelt Region of Alaska x TABLE OF CONTENTS Preface I.Economic Projections for Alaska and the Railbelt 1 A. B. C. D. E. The Base Case (Moderate-Moderate) The Low Case (Low-Low). . The High Case (High-High) The Industrialization Case Two Sensitivity Cases 1 12 18 24 31 l. 2. The Fiscal Crisis Case The Super High Case 31 38 F.Summary 42 II.Comparison of Current Projections with Earlier Work 47 A. B. C. D. Comparison of Results New Initial Values Scenario Changes Model Changes 47 53 54 60 III.Summary of Appendix Material Appendix A.Economic and Policy Scenarios for Railbelt Electric Power Study Appendix B.Assumptions Used to Calculate OCS Employment Appendix C.Description of the Household Formation Model Appendix D.MAP Model Wage Rate Specification Appendix E.MAP Model Migration Specification Appendix F.Regionalization Model Appendix G.Stochastic Equation Estimation Results xi ...b --._ 67 I.Economic Projections for Alaska and the Railbelt I.A.The Base Case (Moderate-Moderate) The base case assumes moderate growth in basic sector economic activity and moderate growth in state government expenditures.These factors combine to produce the aggregate statewide population projec- tions shown in Table 1.1. The general pattern of growth reflected in these figures is for a decade of growth in the 1980s similar to that of the 1970s followed by a decade of slightly slower but more stable growth.The cyclical growth in the 1980s is attributable to the simultaneous construction of several large construction projects.These result in a rapid employment and population buildup,followed by a few years of slack activity as the economy "fills in."The assumptions underlying this and all other projections are detailed in an appendix to this report. Population increases from 400 thousand in 1980 to 562 thousand in 1990 and 675 thousand by 2000.Employment grows from 206 thousand in 1980 to 299 thousand in 1990 and 352 thousand in 2000. A description of the structure of the economy projected in the moderate-moderate case is shown in Table 1.2 which shows the distribu- tion of total employment by three categories.Over time,the propor- tion of employment that is government related falls,while private sector employment grows.The proportion of employment defined as basic increases from 23 percent to 25 percent.Support sector employ- ment growth is more rapid.It increases from 39 percent to 43 percent. Some of the important characteristics of the population are highlighted in Table 1.3.Both the military and Native segments of the population decline as a proportion of the total over time.This is the result of the substantial net positive migration which augments population by 107 thousand over the twenty-year projection period . ....,-----~-- r~:;r·,.."';::'.!}...(;c·J.-:-:r-.~r-=')C?-·c::C:():0 C:::}..7"Q-..r.....cc CD :),0..::c 0'-.-:-:~:>~r-.~r'..·.r'···.~"~t."'O c.....C'=C?..0'"c::0 ~-:-:-:-:":-i ~c:(:-":)..G'"G'":::::0',0',0 ::::::0 ::::::0 ()c:++..~~~~~~~~(~oco~(~O~~~~~~~'-'-(lJeou I:: ~ I::+JoI:: -..-I QJ l-I ~~~ .....0 :i .......... Q..o.,CIlo e QJ l::l-.;..;:IiZ 4-14-11::o 0 '..-1 r-....".0 '-.0 ~ c""-r-:-;r·".:",o ;:--.J :~:.:::0 :."".J i.:'1 CO C·,; t·:;-=::r r:1 t·;.~r·.... • +•+ C;-..'.0 f·....1.:1 '.-0 r.-.~c>-·::::=~C :..:.,::::~~~..-(:;0 ... ~-:;t<;c·~L;1 L1 M ::.~?'<::r<:J ~0-.~:::'=--:~~t·J ('.~~C·~:,--.1. ~::):0-.::::::::~::;:,,:):C::::::::0 0 0 :".::: (:-.,~:....Go,·;....f':;CD ",."3 ~t·:")~..~.c (?--:.;..:c·J.c:......-...-,......,...._" ".:)--:~.i·:-.='..'.:._.~...:_:.:~C;-.·f;~:;o:~;"-0 . ,..-:'J C·~G'""-0 1·:;.• , .'. ';~"l-:.:"::)...:)-:}"C::G··C::C::C~......:-:C·~(".J t·r-;':::r-Lr:: '••;:'01 ('.J.:'.;::--'·1 C,;'c·~r"~:-...~1'=::C·.l r-lw,l 1"'1'::r':;rJ r-:-::~.:;r-l)r<::r':;~.(; 0·· Z 0--. :.:,:: c L"}CO CO c'~'..:..:LrJ C:-"rjJ .____t·J.t:;u;r.....c::(:-::r-:):.;o::'/.""-iJ C',l (). .::,).--:--:~~~c·J ~"'~~~O~~~~00~~~~_.··....,..O~~OOC .>.. ~c·J.......: r-.~(,.J C,;'("'~ o C::0 0 II II II U 0"I1::l-. 1::l-.0000iZ O::E::H 1::l-.;..;:I1::l-. oC,;)C,;) .:.L-j G',.. ..~":'"'""'!••••.• :•...:.:::'.'r··:... .,;(:')'::t '.-, CO .~.~. r-~~... .;":""'=-:::]-G··'_.__:.1.':>.~~..r·:;[':"J r·:-;:)...(..""-?-=-;1':; L"'::G··L"':::>f ....~.n ~':::,:'.:.;:::::~-:~:;'0:-:-{:C")".0 r··...~0'"r··..CO .~........::}-. c 2 , Table 1.2.Distribution of Total Employment Moderate-Moderate Case :H •j'ii"i E::(ii::;~:',.[(i [i'/i 13 '~~'•E:;.j E::r·ii-·!~::;"[j····i J ':?b()o '>::::;9~:.::().3lS:'O.~22(? :i.':;':·U.l :i,9::::::.:.:: J.-:::;:::;?; .i,::'t:;::, .1..:?a ~~:.~ ().;.3"/'9 0":':'::.;'i;;' ().~:'::;,:::,9 0.):':::;)'{~, 0.;.::::;::;" (),.:.:")::::~·4 O~:;)B9 ().;.::5"79 0.37:1. o t ::~:4::2 0 ....?:'::)'.:,:,! o ~~:.~:;'{...:+ o •:~::,'5:1. :\.•...r"..... I.j .;.,.::'~..),:~I ..........."'1 I....'.,..,':.{::./ ~L 0:.:.:'E ,S :i.':?d'7 ().;....:~;';?3 o .~~:~;~.;.:I ~:5 ().33·'i· 0 ....:.:~:·41-E:, 0,:::.:)'::.:: ().~.2 ~::j (? J .;:,E;3 ().;.:;'~.()6 0:.3~.:.:.i3 ()..~.:.::l~.:I. :L :.:.::~3 ~.:;(),.";'~.:!.)'o (.:?~:;l·4 ().....~::~3 ':.;.:' :/.':.;.:'':?() .i.:.;.:':?:i. Cf .~,·::l·:i.:I- ().~':'~.t :::~:; o (.3<"~:5 ().;.:3:.':';:::.:.:. o .~.::'::':'~.··;l I,).'..~~::.:'.~~::,' .i.':,::.:::.:.:.:-:J ~..~;.J .1.()\.:.'::;:..;:~.:::.::<)v .~.'.::.•.:;.'.~;' .i."..:.,'?~::. J :7 ..~.:..::~ .!.,i '::,:';'.! C...)··:l:r.,;'::, .....",.,, I~.•I .;.J:.:.J . o ,~.':'~..L ~::: ()t :::::.::~':;:' ()to :3:3~5 ................... I,)_,..:)..::-,,:~, o ~.::.".::::':;.~:.; (:...::...::.:~.::;:, "'..'.'.::.:.:...::;.':,;:0 J.":::.':.:}.::)c'.,..~::,:.:,.i.I..}.:•••J ..~:' .... \.j ~...:::.~".::' .1.",:.,';--.'(.t .:./~..::.:::.-:::;().;.::::?\::1 0,,:,.'::'.;.1 1,::,:0 ':;.:-;::l,().:...:~~.:.:.:::.:.:.;().;.:,'::;::~~~:.:.;.'.',1::' I / J ~?.:?.:?().;.·4 :..:~;..•..-..r·..1 I')'J>..:')..:::.1.".····,1···~.).~...:.....l ..:••I...'"'..1 I,,)(>'i -4:3~':::().;.:':::;.i.E ()\.::.:.::~.~~i :L Proportion of Local Serving Employment Proportion of Government Employment =Proportion of Basic Employment EMSP.EM = EMG9.EM = EMNS.EM 3 Table 1.3.Components of Population Moderate-Moderate Case (thousands) FUF FLFD':? ,,"-.....•." ,'.t'!\':••:.\,}~~.:) :.~~.:-~:.~;0 :L ~:).~·4 ()~:~ 4.;.0<:';{;.:' ~5 +:I.,.;':~t:.:.:r .:?~I::';••;~4 12.~O(.;J~} -"6-:-~?4 ...,,?0) .-......"0"••", ....'to:;;-:1'().;~)/ ~::~:::~.:-~:~1 ·4 ?().:-·404 ,"~.!..~.••..•,", ::;J.-:-"':i..,.:7 \:)~t ~2 ::)::? <:)~:~;i·~:}~:.~t~ F::~.~•::;?4 :1. C)J.:i..,1.?:1 4 POP =Population POPC =Civilian Population NATTOT =Native Population MIGNET =Net Migration PLFD9 =Potential Domestic Labor Force .j.~?8() :l.SJ i::;:L 1 ~?B ~;.~ 17'Bi~' :L i?i:j/ The potential domestic labor force grows from 250 thousand to 420 thousand. The number of households and their distribution by type are shown in Table 1.4.Although the number of total households does not double over the twenty-year projection period,growth in civilian non-Native households is rapid enough to more than double their total in twenty years.The number of Native households doubles in twenty years. The number of households grows more rapidly than the population because of a fall in the average size of the household.This is traced in Table 1.5,which shows the average household size in Alaska falling from 3.086 in 1980 to 2.657 in 2000.A description of the methods and assumptions of the household projections is presented in an appendix to this report.(The average household size multiplied by the number of households will be slightly less than population because of people living in group quarters.) Average household size varies considerably by status of the head of household as well as the rate at which household-size diminishes. Native households are much larger than either civilian non-Native households or military households. Table 1.6 shows the aggregate state fiscal variables to be con- sistent with the overall growth projected in the moderate-moderate case.Revenues exceed expenditures consistently until the final year, and the permanent fund and general fund balances increase accordingly. 5 Table 1.4.Households,Moderate-Moderate Case (thousands) :I.:.;:::::;.;:') .i.':~:a'7 1 '?af::) .f.':.~-':?(.i 1..:.:)':;;..i. .i.~)(?~:.:: .i.:.~:::":1 .i..:.:.:':;:".::; :i.':.:.:":;.:'.:.:: .i.')':;;';3 .i.(?':,;;(;:' 2()O() HH .I.~:'.<).•,(.'02 .r ....."','.'.~....,'..." .I..:~I ..:'\.i::~t..}"~' .i.~~:?.:.~:'j :':7 4 :1.,:::,::::;.~::;1:::' :I.,::::6 ,.':;;E~?; ..... ...."·,)e·,;;, ...::_.::'.:',.'..•.l ~:.,_.::' CHH 103 y 68/) .i.OS (-·:S3:::~ ,........')"', .1.'I.:j .....'+C)J.....I :I.4:1..·4'~~'/ :1.4)'.1':)''7- 1,·{·'i-!.6?6 .,.f r:;"":"I::",r.D.;..;.,._r ..•)....1 /·iHH 14.3~:.)2 :1.·4.3~:5:? :I.4.::)~::i.~~ 14.3:::i2 :I.-4 •::)~:.i :;:: .I.4.3~5:? j\IHH 19 •.:?1 .,:~...-.:.:.,/ HH =Households CHH =Civilian Non-Native Households MHH =Military Households NHH =Native Households 6 1"ci.'~:!IIt if ! Table 1.5.Average Alaska Household Size Moderate-Moderate Case ;,~~.~f:::;'::~::i :~.~~:::~:;..~::~; B.1"1r-j :I.':;:'B () :1.::.;'~8:i. :l.':;:':::5::~ :!.':;:';::::3 .1.!o:;:'B4 1 ~?E:.:.:j i 9E::6 :1.9 E ~i' :1.:~;.E:~;~~ .L 1-l ~.:)-'.~~ .i,::~.~:'r••..' .i,:.;:'':~).!. ..-,c',. .~.~;..'-',:/._",:' "."".:,'••<.:.:;:::.;,:.. J.'~.''7 C· .:.::'-'.:"';::' .i.':?')~.~:. ..:'.::c;()(' HHi:;IZE;:j\l "::~.0)6~?!,:5 ..:'~\"~::.i ~~.;(? .<+i.·4'7'~5 l::..:..4 :.~::;:":::; ::":}+3",74 ,::},.::'i.l.)' 4 .~;.~~;-::'J. ·4 ~...~.~0 ~:~ ·4 ~.J.~::i <:~ ,·;·f ~.1 ().:::l ..~.~.C':.:5 / ,~:~,.;.<~',>:L '.:'.;.".:·"C).j :?;"';':.L :;:. :~~;~,I::~~:';::: ::::;.:.(:~:..::.(:;; ~~~;".':7 ~::~:;'i· :.3 t'"?.:;..r. :::::;.~.::')':~:'':::; :3 ,'.(::;~:.~:...' _.::1.;."i.:'.::; HH:::)IZEC ::~~(.B::~':.;:' :2 .~;:~;::2 -4 ~:~~~:~:~~:i. :~:.::.,1:)·4:1. 2 "."~::~-4 \':) :~~~v ~:j :i.~:) ::~~-:r ::.:.1)'..;~ ;?oJ>:7·4 t:; :~~.~~?~l.~~:~ ~~:.:{o ~:)':;:'~:.~ .:?:...:~;(:;~~:~ ::::,.6/{·.l. 2,-6:1.9 .~~:.;.~:.~i -;i ? .::'::~.~:;",7 :7 ..:.:.;.~.).:.:r (::l ::~:',':.::.;:':::;l~. .;.....1.I.J... "'~:.;.....;.',::: HHE;IZEi'''-j ~::.~.~6:3 ~~5 ~~:.;\~)::~~~) ::~~...6 ~:)~:) ~~~;)\:>::~~5 ~~.;..::)::~:~5 ;.:~~i:::~:3 ~:5 ~:.~l',~::r:3 ~:r .::.~v li :":)~:5 ::.~.;.{~::}~~; ::?(.6:.:j~:; .::.~\'.~:'J ::}~5 :::~.1-.::i :.~~;:::; .:?.}{::I:':::;~:S ::.~~.:.=,~':I ::::;~:.:i :~~::.;.:::;':::::~:5 :::::~r:::,:3~) ~:.:~oJ>(-;;::~;~:5 .:;.~.:.(::.:.5 :5 :::.::.;.::s :::~;~:5 .::.::.:.IS :."::;:~.~:.i :::.::.:(::.?:~~~i HHE}IZE ::1 J;OB6 ~5.,()I'~) :3 -eo ()1~~4 :",+():.:5 :3 3~04 :3 ~0·41 :3 _,03:1. 2t9~;~B ~:.~~o 9 (;) ,.'\.....'.y ~... ",,'.~"7 ••::'.",:• 2,,9 ::~.;,B '7 ):~~ ;.~~v ~::~~;~•.:;: ~~.;.~:~:?-4 ~~~~~3 ().I. ;.:.~.~'7~?:7 2 +'7 ::;.;4 ~::.~4 ~::":3 1 ~~.:.~;'():7 :;.=:~~r:::r ;:3 :~:.~ ~~::.:-6 ~~~;~7 HHSIZE =Household Size HHSIZEN =Native Household Size HHSIZEC =Civilian Non-Native Household Size HHSIZEM =Military Household Size 7 Table 1.6.State Fiscal Variables Moderate-Moderate Case (million $) E·:,.I·ii·j F'FB(ll...GF~B{11 ... 2244.29 .1.4021:1.2 483 t 2 1549.1 3375~~~~3 238:1,.69 1760~5 .1.440+ 49:1.6.46 323E~~56 4076.29 8()2.:I.:i.4 5999~61 3582.56 6209.62 1()E~5tE~3 67'97~58 4033.22 8J.22.34 :1.937.4:' 2()8:;.~~~f4 .1.33E;9~9 25:L08~6 673S7t5 2();~~~6~;'.i.h~E~:;.8~7 26395~8 ;'2()6~~~,2 1.~~:3;5~3 .l0043+6 2()79f~+~~~4(S439+9 ~()326~4 :1..!.():i.f;~5 2230215 5~l244~ 30Ei:l.t55 4556.82 9~~23+93 376().62 9278+g~2 5410.38 :lj.328~8 6:1.23+77 'L()~~48+9 6319~2:l :1.2664~E~93:~7~49 .:..~.:..L ..'?.:?~.(.'?:L :~:.;.;.F:·4·t 3 ;::;;1 \:).;-~5 J ',:';;..:~};.:.::H.;.';) 1.:.::;.;?;:::;.1 ..:.:1.~:.:':':~~~:.~;·4 .:.::~j~?.L ~j ()B ':?.;.6 :1.r::",:it ~:~2 .:.:1. :i.3(:'74~;3 79()8~3:E 1642()~3 246:i.'7 t 2 16682.8566.23 17830.4 3:1.328.9 2 ()00 8 :i.'/')::.;0 1 ':?':;':;::j .,,"~,"',..~. J.'x .::)\] J t?C4 :i.'/;30 J 9 ::::.f :I.'~;,a~:. =General Fund Revenues=General Fund Expenditures=Permanent Fund Balance=General Fund Balance REVGF EXGF PFBAL GFBAL The statewide moderate-moderate economic projections are disag- gregated in Table 1.7 to show the values for the railbelt defined as the following Census Divisions: Anchorage Matanuska-Susitna Kenai-Cook Inlet Seward Fairbanks Southeast Fairbanks Valdez-Chitina-wnittier In this projection,the railbelt share of state population and employ- ment remains relatively stable over time. The final table in this section (Table 1.8)presents three vari- ables used to monitor the credibility of the economic projections. The ratio of civilian employment to population increases in the late 1980s and then falls in the early 1990s.This reflects the rapid population growth from in-migration in the late 1980s.The subsequent decline in this ratio does not return it to its former value,indicat- ing that employment as a proportion of the population is continuing its historical trend upward. The ratio of the Alaskan to the average U.S.price level is projected to decline over time.This is also consistent with the historical trend in the relationship. The ratio of real personal income per capita in Alaska and the United States is likewise projected to decline over time in a return to the long-standing historical relationship.This trend is reversed in the mid-1980s,the years of very large construction activity. 9 Table 1.7.Railbelt Projection Values Moderate-Moderate Case G.,F:B .L ::'".::::",' . .....'?.:~, ,:....-. •1..:-'':.-/ -....;:) ":....':.' .-,:.'",:...•.'".": ;~~d '.::;,:.:~::.":~:-4 ,',....,.,.,.",,.;.;...-:_);../.1..,,1. <.;...:.;...::,•./.1. .!.;.~;•:S :.":".:') :i.),,~;....:~:i.~~ ...:..:.:,....,,::••1..1. l::.;:::,_..,:::,..:::,:i. ~SB .~~:~.:;;J l}()~.li:;l ~5 ~:~+:5 J.~::i !5 S .,:~:.::',7 ~5 .".".~,",..~.r::j.Ci (10 .~.}~•.)••::- P.RB =Population M.RB =Total Employment B.RB =Basic Employment G.RB =Government Employment S.RB =Support Employment 10 Table 1.8.'Projection Monitoring Values Moderate-Moderate Case Ii.HI'i Ei:~1:(F'I.CFI F'I '::i •F I U .1-(?~3 () .i.':;)f::~1 .i..~:)a 4:'~: ""',!,,"~;~:" 1••/.;.....··c (J \.,1 ()~.·4·':';;: ()i--.;{..:?:.":") !7'J.I••\./~I .i.t37 :t.353 1 ~\()~:~(::i :L.~09~3 .L .;.1.\:i :.:' .L -:07'E::.3 .1.::,;:::::::.•:~. (),;..,;:}~?'? ()oj-~5 ()"4 .l .:.:?S ~~~·4 1 ;..:.~)1 :::j :i.•.i..1.3 :L .;..I..:;.~~;.: :i.':.:.:':J :.:~.I :i.".7'~:5~::. :i.':,;:-~:5 ';.:.: :i ~:.:.~::~':::' ()<.::)J.~? (){.~:~~~.:.:.(::. ~){.~~);;.:::;. G .;~:~j .~?£~ .:···f.t 0}..;') :L .;..~;.~~?~~:i l ~.~:~~~:j :1. .,'..'.-.1..;...::..-:-:-....:. :r..;..:.:.::<>':;:' :l..:.::.:.:~?J. 1 •;.~::.i..i .1..;..L ~}.~:: 1 ':.:.::;::;':;.:= .:.';.:.:.':.~.::() ()~~.~~i';? ()?:~;1i .~"',.',.r..;..!!:'...~ ,1 , .:..;••••::..~j'.... .'....... .1..:."."'';;;'.•J J..;.<)..:'::....:.:: J ':,:,:":.:,:':1.=).:.~.~~()':,:,::J -:.~~~~::;..;~..i..;...).~:.::E; :L (?':.;.::?().;.:,:.:.;<>..:.~.:L ..~?~.~~;::3 :L .:.~)(:,.::' .L '?='l?:.~~().:.~:.:j ()::.:.:::L ,;~:.::::.:.::";':~G ,~.'::;:';:::~_.:~. ;.:.:}9 ..:~.i..,.!.:.~:)i.).1.:i.~.::.:::!.'.?:1:.../.~'?.i. .l.t.~.:::?~::;o .:.~~5 :i.;~::.:.:()<?I;)+::l C:l .:..:?'?:::.()~~::;:i..;..:.:.::():I.V .i-.:;:::~'j .i.;;:S:;' .L './'::1 ~:::; .r.~.;}~;!:~;' '~";:()()() ().;.:::;():i. o .:.~5 f):~:: ().:.~::t (}:~=: ()~.:.::.i ().-:"{. :1..,.L:?;.::. j,.,.I.:::::::.:.:: I .t-~-~ .1.~.!./~) 1.164 (.i<.~{.~::':; .............. !"').~x ....'..:.. (),::;.;.~::.:.~ '".'.;'-;-..t.C) 11 Civilian Employment/Civilian Population Alaska Price Level/U.S.Average Price Level Alaska Per Capita Real Personal Income/U.S.Per Capita Real Personal Income ER = RPI.CPI = PIA.PIU = Ii ~ it 1; ;: I: Ii I II r ~L=----.,_ I.B.The Low Case (Low-Low) Tables 1.9 through 1.13 present the results of the low case projection.This case assumes low growth in basic sector activity in the private economy and growth in state government spending at a rate which maintains the initial real per capita level. Aggregate growth resulting from this case (Table 1.9)is much lower than in the moderate case.Growth is rapid in the mid-1980s during construction of the gas pipeline but slows considerably in the decade of the 1990s,during which population growth is about 50 thou- sand.Even more striking is the fact that employment peaks in 1987 just as pipeline construction is concluding and does not regain that level again until twelve years later in 1999.During this period, out-migration must be occurring as natural increase in the"resident population generates larger yearly increases in the labor force than jobs provided by the economy. This same pattern is observed in the railbelt (Table 1.10). Population growth is slow in the 1990s after a period of rapid increases in the 1980s primarily due to pipeline construction. Employment declines after 1987 and only recovers its previous peak in 1998. Table 1.11 shows that the employment mix or the structure of the economy as measured by employment remains more influenced by govern- ment in this case in spite of slower growth in government spending. This results from the associated slow growth in private sector basic activities and the continuing strong presence of the federal government. The number of households displays annual growth with a spurt in the mid-1980s (Table 1.12).Average household size falls in the same general pattern as the base case. 12 "'4 ',_.-'.:li1 ::;'.i ~<: :.;,:-',:,-:...::;i"·.J ....j G··::::: ::"=1 ;_:;Ci :_'i L=1 C"1 c::_:; c.~C1 :-::.~~.::':··1 ::.~.!1",..:["'oj c~'=J ...c:...(:':'}''':::'..(:....C ...;,::..{:O~)~~)~~~~~·~i"~)~_.~.~..~.~!J~:~U~_~O)CG !.,J ::...~"·0 =-=1 C::(:):';":..~..;,)-~.G'":~:.!~:....:_:.::_:......,.r·..:G:::C::OJ .~ Q):..:.,!i·..~:f.d :-(.:-;0--......j 0:::.:"..{:-··G C..:.'-i',.j .~C::C:1 G~~~~~~~..~·G~J~(~~a ..~GJr~J"o :..:..: ~+~00- OOC;OC:OC~OC~C::"CO~D000C)C:OO"~):--:-~:--:-~:-:;:::::::::c::"':::..-.'-{:C'::..;'.G·,:.:)r·.':':C,,!r-..:;'w'." ~J~J~J~~:--~~~~~"O~·~·~..~~Gjm,o~t~ CJc;'}CJ ""Ctrl""C ~::3:0 :::tl1O""C ""CIOn \I II \I o t-<o ""C ~""l I 0t-<t....o I'll ~n ('1'n ~. QI 0 CIl i:l I'll <: C>..... I:: I'll CIl ...(: ....,::.. c~.......'1 0-..C"(.:; .....1 ..·..1 j 0::c;:..:..~ .•..;C:,J.~-...0 .....j r·.) ::';'~1-:'!r.}~ "·0 ~!::.:.0'"c::...t:.:.C::G·,:.,...: "'C:··c ...c c::c::::::c::C~C7:C::C7: CO e.G ._....C:.....j .....j r,;.~r·..j ~(;.~c: '''[J 0··r·..;::':"i ::'=1 (:.1,-..0 r·..)err .....1 ?.j ::':1 ~:--..0 ~0'"j co :-:. :)-.-..0 j "-..j to...;~r·.,;t·.,;t·.)t·..)t·..)~:--:--:-:.:-:..:......:.--.:.:-:.. ~;....;.-...0 0'"J.:::.r·J 0 OJ .....j ::.~~(I·J.G·).G·~(:.~ CD co :-:-c......W ~..::.-.a::r·.]-..0 j :..:,;~G-~c:: :..;-.l U1 W 0.......1 ::':1 t!1 :::;:til t:"i .1 L!1 "-0 0::~..,,:: G-i r·.J 0'-.r·..)CD ~0).....j 0 ...J',.::.G")r·J :";'l :"..1 CC.... . _~....~....,j 0"t.~r·.,;C!'..{).,L:'1 '-..j G-~'--0 c:t =1 C>r·..)-..:.):-:-c:....~.::...~:.-:.·...c S::._._.G'":--...;:.:.~:..:.....!0-., o-··-..o~G·J.:-~ l:-;::c ()'!t·.)0 .....j Z).C1 0'-,'..(:_i:;;'.....j C::C'; +.~<-~* . ..... OC::C::C~OOC::C~···G·,,(: ~;-:.:-:-:-:-0 ~c::::::...[:-..::: (;...i r·J :-t·..;"<J .:::.~::'=1 r- CJc;'}CJ ""l ""l ""l 000 ~~~ ('1'('1'('1' ::r::r::r ~.0 0 i:l~~ :::tltrl""C I'll 3 0 QI'ti'ti ..........1::o ..... ""C '<QI I'll 3 ('1' ""l I'll .... i:l 0 n('1'i:lQI 'ti.... ('1' C> ;.:: ~:-:-~:-:..~:-:-~~~oooco:-~~~~~o v ••••••••••••••+.r-.: OOOOOOOOO~~~~~OOOOOO~ :-:":-:"~~OOOOCJ-..o~~N~mmN~~~~ :-:..~~-..o-..o~~~m ~N~-..o~~~OO~ _______________________________1_ r[1 i Table 1.10.Railbelt Projection Values Low-Low Case F~B (.L.i... F.,F:B ...,.....~0'"..... /t~\.t;./";} E ()(a ~?;:.::,;:::,i ;::)1 {o ():5 ~:) ;::::J -:-.::;.(~:::;. !58 -i ::}S:i. 60ft ~.~:j ();;::; 6:!..,:1.04 (;):!.,~/4 :.~.:i t:):!..:.:3:i.:J. c·!:f.+1.'7·4 •·.r •••.,",'".:::r.l•.;./.Co ·~i\. ••'\.••...•.•...···e .. ..:':~..j ~i,.1 /i::. 40.:1.;;~G 36.'?:f.:':; ::}.:::.+~3·4 ~'+0 f 'i ~.:::3 :~;~5 +:5~?:1. ~3!5 +:~)():i. -:.'~":'1..:j \)+..:>~..:••,::..~.",l'.....,''l..J'J..it r~J ~_.:}tj r:J: .LE:::::.,/1 :i.?::!;.,.:::.;;':.:::J. :i./"":1.,:i.3:.'5 :i.5()...·4()~~; :i.~:56 ~7t:~2(S :l.B:l..1c';l:5 :L f:~~~~.:.:4.(+if 1::30~943 l ~:~G .:.:1.,5~5 1·4l(>;;?69 3'7~~::i .;.ooe AOCr +1:~:;~5 2f~~).~9~~:4 ;.~S~l ..1 ~3 {:'i 3:3 t:?{o ()~j :..~:; ::)~:)?+~~;7 3 -:::.:.:}~::)B ~] 3 ,:~:~:~~.\;)B :i. 14 :1.S·:'':;::{) J.S·;l ':;;':1. r'o ~'.....;:\l ti :1••/ 1 ':?EJ"7 J.S·:'::J S P.RB =Population M.RB =Total Employment B.RE =Basic Employment G.RB =Government Employment S.RB =Support Employment Table 1.11.Distribution of Employment Low-Low Case B .I_L E;'·j~:;;::'.[i"i E::i'·jG9.Ei"i Ei'·1NS.I:::l-1 l':;;'DO :I.':?G:I. 1982 1983 1984 1985 1986 :i.':?B"7 :L <?E::::~ ·'r~;~(·'~707 1990 1991 :i..:;.~.:;}::.:: :i.'?':.~I ::~; 1 ')(?·4 !r',,''',,·:,.I.'7 -;.,..•.1 :1.':;·;'':.:·:'6 :1.(?':.;.:'~-;... .I.:.:.:.(.~.:'E J ':)':,i(? :?O()O 0.393 0.38 0.369 0.371 0.381 {)~J(T':~j O.}3''7'(;·) o ~3::?d ().~::<.:l.~'::~ 0.)·4:1.',:·:·1 ()~.:;':;.:i.2 t:)",'.~.:L :l. o ~,..;.~~J 1 (),.·4:1 :::) r..'..1 •••••(j •":f .I...~, O.,4:i.-::":- 0""::i:l::::: 0 ...l{.:~:::i. o ~t;'~,::.:.=:ll· ().)i:~:::.::)' 0.)l:~3 O.3Ell O.3E18 o f-~~':?~5 0.388 0.379 ()~3~:;4 0.339 o •3~:;3 ..,··Vi.:",... \)to \:)\••1 D {).~3~56 .•..'-." I.)~."OJ (::' o +::~;6:1. <)~36:L ()~3~)9 o +::::;~:5 B o .):3 ~.:5 ~:5 o y ::::::~:5 ~:) o to :3~::.i 0,,:'::;47 O.:':')·44 ().3'4 I~~~)I (j."O 0.231 0.239 0.241 0.24 ()0)::?~:.:.;2 o to 2{;)2 0*:2 it ':;' ()~2~:29 o +;.~:::.~6 o ~:::.::~:.:::3 ()':0 ::.:.:::::.::s} ()~.?:::.~~3 o ~:::.~::3.'7' ()f-:~:2 ';:' ()+~:~::;.~'"7) o -:-2:::.~·? o.2~:::':,:i o 0):::.~:::.~9 0.,:?~.::':) 0.;2:2':" EMSP.EM =Proportion of Local Serving Employment EMG9.EM =Proportion of Government Employment EMNS.EM =Proportion of Basic Employment 15 • Table 1.12.Statewide Household Characteristics Low-Low Case :H .1...1... .I.~~in() :1.':1'i;)1 J ::.':,:? HH :i.::?:;':}.;.()0 :2 J :::'.:'',:?~(;;'0 .4 .,:..-,:,' .I.~:!..::'.~.!.c:'.... I.;':).7.,::.:.'::.:: :I ..;::.:,":0"O)'::.,~ 1...:....:;:',3:.":·; :'::'.":.;::; i'....-·· HI-1:;:)I ZE 3 \.OB6 ~.'5vO·7·2 3"y ()~~;l :::.~ :'5 .~0 -4 c':- ::::::(0 O:,:}.l. :~~::-i .9 J ,~~ ~~.:.~c;G ~:.j .............,..._:.:~.....tJ :.'."J F'[)F'CiG 18 ~60'7 It:i-:-CI /4 :i.':;:',.::)-4'7 :L "?::';33 f.').,/}:::.:9 I.':,;:-"::::::::;'7 :L .;;:../~:L ..:::. :/.':.::';.(;.E::?; f.'::.:',.E::i.:::j :i.':7'"':,:.:/f ',7 HH = HHSIZE = POPGQ = Households Household Size Population in Group Quarters 16 Table 1.13.State Fiscal Variables Low-Low Case E·:.,LI... ':'::·:'::;:0 i..::'1:;:1 :l.';?~3:::.:: .1.'.~.;'.:::;:.":::: .i.::.::::::..:) :i.:,:.:·::::::.:.:.i i.':;h(, i.'.::'::;)';':' .i.::;':::::b .1.-:.:·:'d'7' 1.,:,;.'::.:.~) :.:.:'I. .1 ':::')::.:.'. .!.:.•..:) .1.':,:::).:::. .i.',:-..~7 .,) '::. .1..::: ...c' ;.,..'~. .i. ,'."'''''."\.> F~:I::.t.)GF' ::}~?li :.~~'.~E:~) :3 3 ',7 ::)+~:.~j .;~.) 4'11.1..:7(. ~.~j ,?(::B \\(~.):;'f {:)7 )'9 .,.~;5 .:s :3 0 ::5 :..:~:t ::5 2 ::.;'::.~.~3 .il ~',:.:.,~.:.:; :L Ofj()(",'.;.3 :l.::::::i.,S~~'::';'6 :i.,.;'{.().L 3":":) .1...o:}',i!)',:';.•;;.:: ,",',.1 .!{:;.'.::0 !..}I;.~+J. J ",:,:.'?:";':;.().:.:'::, J :;:::(:':,()",:./'~ .J.':.::.:.'::;,..:,:,;.:.::<.:':::: "i..:.:.)~.:.:.;i:')'.:.:r .;.IS :1.(.~.:'(:').,:~~:.:~:.;..1. :i.':.:)~...:.;(;·:':3 '.'::.:j .L (,:.:·l:}:"S:.::.i .;. .L ':;.:::L '7 (>\.':.;.:: .i.E~:7::;~.:.~j ,,)\.t~:~ E:>:C-)I:' J.·402\~12 ::.~:3 8:l.(.\~}./ :..:~::?::~;E ,.·4 f~ ::!.~:5 :;~'7'v :I.E~ :3 E:(?:.:~:~E:~:.~i ..:l3 ~:.:~::2 \\9 :1. if'i:L;:;"4~:5 ~::.;~::i :L '.:.:.,-;..Il (~, ~:5 ':;':'().)'\\:..:~;.<'::. .;S:?::O':;:,.)':L (:')"7 .~:::':?.~..::}~.:.~.; ~:.:'3 :~?~:.~;.:.,:.:.::.:? '.:.:!';.:':i.'::.:'•.:.:.'.<;~. t::,,::~,:L :L .:'~:::'-:::. ::,;.:'J '/.;.:.'.:.n·,::} :L Ci I)():L .;.1. :1.1)':';:L L •.,,:: .I.:L ~:;;:3 ::,;.::':;:::; i..:,:,:::.:.;~:,;::::::.':'; :1.·..::·1.3:1.,.2 J ~~.:;...~~().i..:.~~.) FFb(:lL. ,":}B3 Y o? :1.'..";,r 6 ()~~;.; ·4 0 '.:7,:::,{.~?9 (~'j 2 0 .:?.:-I:::'~.:.~ (:~J .:.:.~::.:.~\\:.:~:,4 ':;.:<~:::~:.:::'::;.:-':;'~:3 ::.1 3 ::.:::~:~~::~, J."':':,:)64 "G :L :~.::;:::;:.1..:":':,.~~,:.~i J ~::;()'..;,:'J .~:~:.:: ~i.(::'<;":)4 '.\ :L /·.:·:'c,,,·~.;':i: :i.(;.:j '::)0:)• :?('1 :.~~;:,'.~;F~{.c:' ::?:r.';},..~.()V':;';' :2 3 ::,:.::,::~,::.:.::v ,·S .?·4 .,:~.:....;.:.;:'(0 ~:.:' .:.:.::',:i ::~;:,;.:'...:~,~:."~:; ..:::(:j .:::..::.'......;,"::' .~:.::',7 ~:,~;,\':;.)'.:.S ~'::d .';;';::::(::0 '.'f::; GF·B(II... :J.;54(i.:l :1.440,. :?','?.:.l~·:3 ,:;;' :L:I..L:3 .:.6:? .?()E:6 \0 (:.:1. .,+:l.:I :'.:;.,6:.::; (:'::;):."::)::?~()·4 :l.0 ~:~n::;".~'? :J.::';'3:':';-:L ,..;':! 2 ::?.,::~:::.:~~:~::.;.:..:~; .:~.:~9 ::?':?7',~:~.:: ..:...','",.i'~',,.::'(:)1.".,1 ~. ,{~,~:~;:l.:3 :~~.::1. ::.~!:.::;':?:'5}'<.(-::, ,~:):?',7 ";':~.0 .:.~:.:.; .,:.:.,.J.()()~.:5 .~::~~ ?;:::;~'.:;:i.:,;:-\.,;::r H~.:.";(,jb;:::;.:.I:::' ':;,:'{):.:.~.i ::.:.::';;.:'.:•.::.~ (?i{.(:';,..;'{.:I..:.:::.~ ~?.)':::.:::.".:,i:i.:.:~:j REVGF = EXGF = PFBAL = GFBAL = General Fund Revenues General Fund Expenditures Permanent Fund Balance General Fund Balance 17 Finally,Table I.13 shows the primary state fiscal variables in this case.State government runs a surplus throughout.Consequently, the general fund balance grows at a rapid rate and reaches $97 billion in nominal dollars by the year 2000. I.C.The High Case (High-High) Tables 1.14 through I.18 present the results of the high projec- tion case.This case combines an assumption of high growth in the basic sectors of the private economy with high growth in state govern- ment spending.The result is rapid growth of the economy and popula- tion throughout the projection period. The aggregate results shown in Table I.14 indicate the cumulative effect of rapid growth rates.Population growth at 4 percent annually results in a population of 884 thousand by 2000.Employment growth at 4.5 percent annually results in 497 thousand by 2000.The associated growth in personal income is sustained throughout the period. Under this high growth scenario,the railbelt growth is rela- tively more rapid than that of the state as a whole.Table I.15 shows the results for the railbelt.Population growth occurs at 4.1 percent annually,while employment growth is again 4.5 percent.In marked contrast to the low case,the growth does not stop in the 1990s.It is more rapid in the decade of the 1980s due to the simultaneous construction of several large proj ects,but there is no appreciable pause as the decade of the 1980s ends. Table I.16 shows how the structure of the economy evolves in this high growth case.Both government spending and basic private sector activity are increasing rapidly in this case,but private sector growth on net grows faster.As a result,the proportion of employment classified as government falls from 38 percent in 1980 to 30 percent in 2000,and basic sector employment grows from 23 percent to 28 per- cent,almost matching government. ~-------------- 18 61 .'-','_.' ....j :::',G cr-·(:1 :-::c..~:. .;:~;-'i"'~:·..C G·, 0-:-.-:::-=.....j ...._.::":"1 r·.~::,.:.:...:):-:::: co .....j -..;-.·..n ...:)'.:'"":..{:"·0 ·..C ·~u ...::;c:...[:<••(:-.{:..{:-··n '''0 '-.:)--.I..:·"C ...::;'oN '.'.''."_'••.••CO '.'.''_'.'..;.:;'-'.'.....j :';":.:..:;:-.::.:~r·o.:C::...·0 ............j C'"C:1 .....j .....~....j :-='":.;. .......Co~G·.~::::::en C~C·.l ..i:;:.::"=1 .....j .....j '-.0 C1 C'".....j ·....1 ....::;~.r.J ~_:..)j~ ~.C:"1 ..i:;...t·..::0-.,"·0 ~:::.C,:D'".....:-:-' ....j ...:):.:"i<;j j ::':1 .....j C;)C;)C;) "'O~"'O H::l:O ::0\.0"'0 "'0\.0(j II II II OC)C)OOOC)C:OC0~C~(:~OC)C~C:O"D W&~&~W~~w~~~·.~~GJGJ~~O·~~~~~~. w~~~WG~~::'~~~~.~J ...~G,~~~~~~~ "·0 .....j t·..::::';'.; ;"•..':(;.~f.>~::~..0..:---;"~:~r·.,;'.j !"'.~:--:-0"-.~c::CO r·..):':"G..i ;-:.t=1 l~(;.;, ~..~ :-':':-':'OOC::OO:-...:.r-:-:-:-:--:.:-...:.:--:-:-..:. • • +++ + c::-..tJ ....c::""<"J ....,;)-..0 :-:-:--C:0 :::)C-:C: ~-..c -..0 OJ C=1 -..0 c::c::~v;'t·...::--:-c::;-.:.co 'c'}0--.C...t·..)~-..0 ::'=1 ~t·..).....1 0'.. ~~~~~~~·~~~l~~~m'j~~ r·.j ::"=1 -..0 ['>"~•..:: 0 ..G..C:~r·.j :-:.0::CD c)t=1 ~.. o c::c:c::c::c::C::C';c::::;C::0 :-- r·.~i ::.:.~::'>.;~r·.J:--r·...:.i:::-0··::':"~ ...+ • + (:::OOOOC::O r-:-:--OC:=C:::-:-:-:' r-0::-..0 :_11 r·J ~.~.J -t.::..r.::-J'.;...~~:.:-i :";'':G..~..:..;L:-~c.~:.;..;c:)r·.)1".j j.....::!....::r,.~:i"'~: "·G :..:.;0··lr;t:..j r·..:::-~'..(:"~::;_:_:....i G··:j".1:::·t<::..:_:=-'1 !:.:.~t·.~::-c:: (.j r·..)0··~.1 ~'.1 CD G··.....j .....j '.'.':>~c..~:_:~C..:"1 (:;:.....-~".J :--:.:-G··; r~)~~~~~~j G·~·~;~C w~w·~ ~~~~&~:-..~(~~C~0~·~·~~~~. r<:O·l=1 t.=1 W :-:- G..i :......:.-..0 ::.:.~..;.)~.::';'.1 .......,:"J 0'....'::..~:)"r·.)co t .~:"',j co :--td C1 t:'i =-:'1 --~~:,,)-~:.;-;'G-~r·..::r·J r·J r·..; -.0 t>~CD G·J.-..c '.j W 0 .. t:'i '-.c").....j .....j 0::t.:j '0 t..>.l '-"-.......,......... .....j :--:-0·· H ;:lno S (lI ;1>;1>;1> ='='=';:l =';:l I:I:I: II>II>II>............... C;)C;)C;) '"l 1"1 '"l 000 ~~~("'t("'t("'t ::r;:r;:r 1-"0 0 ='1-+>1-+> ::o~"'O (lI S 0 11>'0'0 ..........1:o ..... "'0 '<II> (lI S ("'t '"l (lI 1-'- ='0(j("'t=' II> '0 1-"("'t II> __________________________1_ , F:r:.HH Table 1.15.Railbelt Projection Values High-High Case 19E."5 .j ~....;'~,"',.I.::.0::;,'1 .i.;~~:'O .L 79:L .,_,. .1.'r 'r ,.. 1.9':;;b .i.,?i;:.;; F',h:B ···.···Y···T ,',...,' ••:)\:~,,/0;.{:)~).::> 61:.:':;,.:1.(,9 i'i ,.Fi E·; :~::";i:1 .:.1::::;';.:' ~::.CI '::;..;...~.I .\':. .................,'..::'..:~I C)~.'x'.-:.:.() 2)'t ·466 ::?B ->'7'():.~.~ :3::2v:r.C;'7 '7"7 '7"';"::".,',.\\I ::•.,•.' .....,"....,"t,u.;./t:. ~;.~.;?+';.;I~:f.9 ~:5 1":1 .:-~:5 6 ~:.) ~.."....-,..... l:~)./.;.(::../,:) ·:;·;'.i..,4::::7 ::5fi+)'58 ~~;B~.:i.:l.B 6S.:1:1./1· 7 i?79l ci':I.,:,5()·4 l.l.O.2d9 :L :I.:i.,:':;d .;:':, :i..?';;;,.:::.1.'7 P.RB =Population M.RB =Total Employment B.RB =Basic Employment G.RB =Government Employment S.RB =Support Employment 20 ., Table 1.16.Distribution of Employment High-High Case B.HH :1.'780 ::.'?BJ :i.':?B) 1 '~.!E:·5 .I.')~f:j 4 J.(~:'~:5 ~:i J ~.;}86 :i.'))::37 J.'?:::J::3 J :;~.I~:;':;' .I.':,;:-':,;:-0 J ':.;;.c..:':I. .I.i;)'7'.:~~ J.';.?9~3 .1.:';:-':)·4 .i..:.;)9 ~.~:; J ':?96 j ':.;)~?)' :i.,:;:r':)H J .:.:.:'I:?':,;:" ~.~()(>\) [,··j:3;::·•Ei"j O+39:~ 0.):~;)'B O.3/;[i ()..367 ()+:::;?::~~ 0.,3G4 o ~\:;):~~~~j 0.,.:.:~;:33 o .;.l~. o y 4()':? ().~.,:~.!.:1. 0.;...·l.f.:L ()•":;.:i."1- ().;.:::;.J .\~:. ().)":'~.J ':;) ().",....;.:1.(S ().),.;':;..i.~:: o .:.....:.~:.:~,~.~: ()(0 ..:~:.::.:.::··:"t o .;.l~i..:.?)' <>~.,~~..~.:.::H [i"iGC;.[iv ; ""'""7-'~}.:-..:}0"/ .........0 1::.~I +..j •._,__-, o ~3::36 0 ....:376 ')-."~'11'..:':1 (~~\~ ().3:3~) O.,:3:l.'i O+33'~::~ G -,-..,...., j (0 ~,j ...:')/ 0,,33:2 ().,.:':)::.::6 0.324 o .,:':~;:i.E~ 0,,3:1.'7' 0.3:1.2 0.;.30'~; ().~::::::0 E: o ~:~~;()4 o v ~:::{)~.:: ()v ~:.::()':;;' ()~:~:.::I::.:'~:5 [i'iNS.[i'"i 0.231 O~~~36 ()~~~~·4 t:) 0.)::57 (),.~?,:l:l. O.~~~f.l:l. O(o~~91:S o ~.~.::?~3 ()+;'~64 0<.::2 ~::;'::;' ()•2 .::':.:; ()-:-?/jl~. 0.;·::2.:·);J 0.)2(~:,·.:,:·· 0.,::.:.~·7 I".•••.••••,.. I..}:';. ()~:::.~·7 ./~ o .:-~.~.;::.;.,/~ 0 ....2?":l o (0 :~~~';.:.'·4 o-:-~?'?{) ~ EMSP.E~l =Proportion of Local Serving Employment EMG9.EM =Proportion of Government Employment E~rnS.EM =Proportion of Basic Employment 21 Table 1.17.Statewide Household Characteristics High-High Case VJ p"HH HH i-iH:::1I~~,[ ,:;:::1 ,,':},::';:; :::,;':1."(:"i.7 ~:~().;.~;.:'0 6 :I.tJ.'57:1. :l.B ->':.;.:'~.~.:.i '.? :L (.:;v 6B (? :?()"~5 .::':~~:;. :I.)'-:-(;.~~:5 9 1 B ,;.:::.~,::'j::' :I.7.'7':';;:L 3 v 0 ~7:.;~2 3 .;(j ~.:.:.;:":j }"O::.:.::~5 2,;.':':;-(?3 •••••.'~I ," ••~,oCr t....'.;')(~j 3 ~()!.:)'7 J ':l,::.=:"',7':,\:=i, .I.6 ::.~.::.;.~::.;::;:.,\~~ J ',:.:.1 .;?.;.~.~~i d :'::: 1.3,,:;,,::1.:1.:3 .:?()()() :i.',:,:":;1:3 :L ':.:)':,;·:'·4 .i.':.:':';j:':.:.:.; .i.';;;";,:,;'(;. 22 J ':,7'd4 .I.':,)b',':,; :I.,);::::(') .I.'::,:'H7 !.";;'bG :i,:,::'::::,',.:;' :i.':,:,:'':;-() I ,",n" ..'J D.!. =Households=Household Size =Population in Group Quarters HH HHSIZE POPGQ Table 1.18.State Fiscal Variables High-High Case F~.HH i.':.;);=::;() .1 ':,;.:'1~:):i. ,',,".'" .i..~.c·..::. ,I.~';:::',::' .\...'.,."'1' .i.:.;.:';:::;:.:".; .i ':?:;:::C':l ~i.':;·;';3 '.:.:' 1.(?EF: .J ..:.:.;';:::~9 ;'".;.:'".)(J .L '?".. .'".' '..;. ? .1...'x .;::,.::;,.... .'...' .J.'7 ..•.••... ..:".1..:.,</!.) F<E::(.)GF· :~.~;.~~i~.~~:;y (:;,4 :3 :.:~.;?{:)+':7'9 4 ()::2 (...,1 :,~'j 6 ()()':?(.::?(~':. .;~:.~~~J :~:;+~::.;.;:':. d:i.J :J.~(::'~:.:: ::.:):.:);::::()t ~:5 ~:.:: .I.J ()(),.:.:.,y ? .i.;':':'.?::.:.::.;"::•.;.6 .i.~.:5 ":':}()',:?+/:1 :i.'.:.:'.i .:.:.::.:~,.,,::. J .;.;.;..:.:.::':::;...~~<.':::: ::?I,):::~;:::;;~:::.:.J .:.:.::::.:.::..:":~,:::.:3 <.:.:.:' "',":""',.'.",..' ..;:.~::,~;:...1."'-j'y .;::, .:.:.:::.~':;.i.,:.::::.'.'.i .,.)' .:;'::.::.:::..:'.i c~,., .:.:::::.:.:.<>.~:'i:;..~":l ,..::.;,~'.::::?:.:':,...~ ::.:.:.1.):':.~·7 0:':').:.::~; J ':':':".::",::;:.0::,.(::. j::XGF~ :l.40:~.13 2 3 ;::~J..;.\~)7 324:1..,?:::l 3640.24 4 J ~:::::~<-:::_~:3 4 ~:~l:~'.7 .;.-4 '.;' 6 0 ":l (?\'(;)E; ;'/:.4:1.•:i.:'.'j G/:...;~:.::,;;-:-:..:~;(:} ::.:·::·4 ...::...~.:.,\\:L ..:~l :i.O:L ;::::f:)~~~J ::':i.:I.':?:3 .,.:I. 1 ::.:.::()':.~.:',,:';..;.~:.:.i J ~·S :.:.=.;:~~::()\\;? :I.:;'{.':?~.:.:.;(;.-:-,,;'~. 1.:·:·:,~3::?:.:.=.;\\:::.:: J ::;:::;!3 ::..'.7 2 :i.:i.l~.().;.(':~ ::2 :.::~7 ()2 .;..~:' .~~::/:'...:;.',7 ':.~'\\':.:.:. .~.:.~:r '7 ()(I ~.{::' F'F'B(:·,I... 4D3.:? :r.7 ..~,O~:5 ..;'~.0 )'(,.;.~.:~(? .:5 :::.~0 'i +.;~:'::.~:: :3 :L ):::.~'lo :":~;-4 t:?E:2:3 .;.':;.):.:~: 1 :I.:::;:~:.::B -:.:3 12664.8 13862.7 15287.1 16843.3 1:::l542.6 ~.:.::():3 :.':~;::.:.::.:.{::. :?;.;~:i."'~-4 •~.::; .:.:.~:.':)':;;';.~::::::;-;.-4 ~?~.~~;:.:.:;::::~:.:).:.::.~ ~:.::'7 :L 0 ..;'::.~.4 :~:.:::::::.\'~.G';';;-.:.:L :::':::,;:'·)'::?:.:.:.i.;.:3 :":'~()f:::':':;:i..:.l~. :.':·:;:LH:?:i..:..::.:: GF'E:'::'1 L. :I.~'.;49":I. J..4 l{.().;. ~:~()2 <-:;5?~~:.; :l.():.'::;::J .;.::.:.::() .i.',:.:.'~.'.:.i ::?~.~:~';,:.' :':):..:~)l ~.::.i ~.';':}:.:::: ~~:.;J .-.~.1 .;.?;:::~ 7:1.)':1."':;"'.7 .L ()Ci r.::;t ,;.::~ l·t :~;:::::';:'•..,::. :L '::.:'':?c:''.::'~:I. 2 (S ~'::~~:...;:,;:-.~~'.=j :.:~;3 ~:~;.:::'1 .;..I. l:;.(),~:~t ':;.:':::.::~.G 4,:;':;·)6)'.:I. !.'5:l.'::'1.0.,,~:, ~:.:.i :..:~;H ':.:.'..:':~.:.::.:., ~.~~;::~:;..;;~.::.'::~'::;.;.'7 ..;.~~'~,\'/'.>'~:~,.1 4::?..;·::·.:::,d ,':~:I ........................, ..:)i.)D (::'..::'<..... REVGF = EXGF = PFBAL = GFBAL = General Fund Revenues General Fund Expenditures Permanent Fund Balance General Fund Balance 23 i _ Growth in the number of households occurs at 4.9 percent annually over the twenty-year period (Table I.17).As with the other cases, this reflects a decreasing average household size as well as popula- tion growth.Average household size falls over time in the same pattern as the other cases. The state fiscal variable projections are reported in Table 1.18. The rapid growth in government spending has not exhausted the finan- cial resources of the state,but by the end of the 1990s,the growth in expenditures has surpassed that of revenues.The general fund balance peaks in nominal dollars in 1996 at $53.9 billion but falls off rapidly in subsequent years.It is clear that if this projection were to continue for three more years,the general fund would be completely depleted. I.D.The Industrialization Case This case is equivalent to the base case (moderate-moderate)with the addition of a series of industrial developments in the private sector predicated upon the availability of electric power in quanti- ties and at a price which makes a railbelt location attractive.The industrial developments which we assume are as follows: 1.Natural gas-based petrochemical production:This deve- lopment occurs in the late 1980s and early 1990s.It is patterned after the Dow-Shell proposal phase 1 and phase 2 project descriptions consisting of ethylene plants and the production of ethylene derivatives. 2.Beluga coal development for export and synthetic fuel production:This development occurs in the mid-1980s, and production eventually reaches 11 million tons annually. 3.Aluminum smelting:This development occurs in the early 1990s.Production is 180,000 tons annually. 4.Synthetic fuels production:Development of this facil- ity occurs in the late 1980s.Input is 7.3 million tons of Beluga coal annually to produce methanol. 5.Local serving manufacturing:Manufacturing to serve the Alaska market grows over time to equal 5 percent of total manufacturing. 4 .,I i I The results of the projection are presented in Tables 1.19 through 1.23.Growth is more rapid with industrialization,primarily as the result of the steady growth in the manufacturing sector for local requirements.Table 1.19 shows population to be 35 thousand higher than the base case in 1990 and 72 thousand higher in 2000. Employment growth is more rapid by a comparable proportion. In this industrialization case,growth is more concentrated in the railbelt.Analysis of the growth in railbelt employment and population from Table 1.20 indicates that the railbelt proportions of both of these variables increase over time.The railbelt proportion of population grows from 71.3 to 73.6 percent,and that of employment grows from 67 to 69.5 percent. The structure of employment,shown in Table 1.21,reflects a more rapid growth in basic sector employment than the base case and a resulting decline in the relative importance of the government sector. The number of households and average household size shows the same pattern as the other cases (Table 1.22). The industrialization case state fiscal variables (Table 1.23) show the government spending more to provide services to the addi- tional population with the result that the general fund balance shows a peak in 1998 at $64 billion in current dollars and subsequently begins to decline. 25 ALASl{A [''''SO (}~CEc:.;LP:~"RARY U.S.DEPT.OF 11'iTEHIOR QJeou d H 00 ().... C".~(".~ 00::::=::~=-:) r::;C...·L;r-.~.~ r-r::CO C·~r,-.J....... r..··.L-J '·0 r.....:":;: :.,:>~.......::000......cor.....co--..:t-=10'0c....0 ..••4o'"..'CO(.:::c:::~OO.......:r<::-..o-..oo--"C-:-ir.......-::t !'.Qo-.--:n ...a-0-a-C"0 0-- -:-:.~L"1 ::~.r....r~0'"r....... 0----'()f".J. :::;=-:-:~:::-::.::~Cr-,0 :::::0 ...·C.;=.... -:::r 0-..-:-""l La::t·~:~:_;...:}ir;L;;::.~.. . C:=Ln .......:::;. ."·0 :_=.::.....::::C:--.C-.~ r··...0",=>J.:":'"r:-:;,.:.:...::::;;···C ...:-:C)(~.~; co r-.~<:t'r-.~~0 0'"OOo:-l=-':::-:.+ • • ..'::r'':::r 1.;"':= :..:.:.. CO :'....f".. -·G --;::;-7 L"":::.1.:"::::".0 r··..1,.:-).~f·...~.~C::.=:-,,:.--:---:0"-,;::-..::0 ('lo.•.• ::::::--:C·J ;.;~<::!'":"'..:::::--:(""~(".~("'.J.~"S ~":'""j -:o:".t ":"''';--L:J L-.!'..(1 r.....:.:.;::::: C',1 C·.i C·)'C)r"~r"~r:')i'-:'J 1'<::f-:~:;..:-:;r-:;:':-'~.:-::;.~:f·:",;;.-:;:';i'ry r'~;~ ::~r...~..()C'0..'., ·O~·~·.~~~~OG~J~N~~~~ro~~N~ ~~~t00 ..t<::N~t~~ro~r·'C~100~~1~ ~~ootrym·~~·~OOG~~..~~~~~~~~ ~~D~~~~~L1~r'ffiON~~~N~~~~ ~~~--:. .-:-:('".~:...~r.-.~r"~r.-.~t·:'"")r-:;rr.:.~~ .,::.- II II II 0'1 ~O'I 0::<::'-; ~~~ "II " U O'I~ ~O'I~ O~H ~~~... ~~~ G...0 G'":::: C;--·(:: r·;, '::"',r "7 :...:..::.....~':::r <::1~ ••.:}":::?'"Ln .....:.....:--::..~...........--=...........;-:--:--:~ 26 :'J.: ~ C::C';'G'"...::;r·..."';:::c~".0 CO t··..r····.("..j 0",C·.;.:;-;-GJ ~-:::..:::0 :....".0 r····."·0 ::0 1"~;":1,"':::'r ""'=-:_:_1 ._....;":)C·;'. . ..C·.;-:-::•.~ G'":::~'._.'.......C::C:::'~::::::::~::~:::::=:::.-:c:::::> 0'1...... F~B Ti··j Table 1.20.Railbelt Projection Values Industrialization Case .I.';:'f~O .J.'=)(;;;1 :1.7':32 :I.';';:-;33 .1.'?S4 .~to,,....r.:" .1.'"C)..J :L =:?E6 J.9B? .1.';?::3d :1.;?i::,'? J ':,f S·;·~) .L .:?:.).L .1.,;;:.,;.:::.:: :i..:;;c>'~':~; .i.)':;:-..:1· .I.,;,:,::':;.;'~:.:.; .1.'?';).::';. :/.':.:·:''.:.;·)7 J ':~'9:3 .1.9 ':;'(? ~:.::()O () F'•F~B 2B~:i t·4:i.'7 2(?:L.442 :'?}()3 .~2():I. 3:1.6.(l'")':'2 :3:::~3 ~6S.:'? :3 {::I :J.40 b 0 ~:} '3 'i .2 ~~7 .:::. 4 0 ~.~:.i ~n :.~;? 4;?O ~')B~.:5 4 ;.:::.~~./..:'~.0 :i. l:l·:.:~;1 .:.;:.::':,;::':;' ·4 ";1·::~;\..E;r:~? ,.;':}/;.:::;:....(:rl:':,::.:. 4 .;"::,0 +0 :.?::~.:.J ·4 6 (.:},~()J.:i. l';':7r:?~.7:L6 ..·l (.:.>::;.::i·().•;":!.d ~~:.;()~.~~....o:S 6 :? .:-5 1 ':;f ::?::"~. :~j ::~;-4 ~.:.~:;()..:'~. ~::j·4 ':""::;::::'):1. i';i •F~B :1.38.64 142.507 148.611 :1.56.651 167.1 :LF:6 v :1.:'::::3 2 ())'~?.-:::.~:5 ::::I.~5 ~~5r.:,6 ::.:::::.:::~.~~':?::5 3 ;:.;;?:i.•)''.7 ;.:.~ .~:.:.:~':~..:.:;.:.t.)'.?'":;.:' :2.:?r;~....~::::?(, .:'.~.:?>'•:::;./.) .?3 ::}.~(.:::i \~) 2 :3 ~::'_)::?'::''.7 2 ,4.L y :2 ():~,:' ::~::l~.',:7 .~:..:~)..::}8 ::.:.:::.:.:.;·4.;...::;.{:')':? ."./,. ....::(~:'.J..:..:.'.1 .1. ::.:.::',7 ().:.:..:~;()·4 ::.:.~.).;::~~u()(~ F.:•F~B ::~~/".,~528 :~8 +"j?9 31.9G3 3~.~;~~?:36 39.,302 -4 6 y ~"5 ()~~.~ :.:.:.;:.:5 .~:1.:3 ~::; ~.:5 ~~;.~:.:)(:,:~ ~::;~:.:;~~:5 S ~5 ~.:):5 ,\4 ::;I~) :.:.:j·4 ~~.:5 8 ~:.:; 5E~.,623 57t63 58.95:1. (::,0.'7:1. .::',~~.~.;.'.?B '7 (~:I ::5 y :i.';,~3 ,~::'~?.:.';.~'?;.~: '·'1 r<,./i,.J ..~C).I. '.:.:':3 .~"'j/1 9 )")1 ~291 G.F~B ~::j2.76 !.:.'j~'j.:I.9:1. ~5?~?'? 59 v ()2'-:" C)()•·4·4 ;;.~ (:i:l.,.3(,:1. 64 ~f~B )'()•()(~.~5 7:1..:1.42 70.~E~6~:5 69.;.9S:'3 '.:.:!().:.2':;::':.~) '.:.:!1 ..'·4··:·~·(:) )'1.,l~:~B )I:L ....,::.~':~;':.+ ?:~~.~:::.~IS ~:) )'::.~.;.9 (.:.:.~.:.:; '.:.:.1 :':~;....'::}:::.~j ).~.:.:;.)0 :':~:1 ?~:.:;.,-:;;:..:~:;.;? :??.,O':?? ~1.F,:B ~:.:.;d ;.~:5 ~:.:;::.:: ~:jB ~:336 ~:j B •E.:'::;;t} <:)::2 .~:3 ;:::~(~:. 6,-'.;.:·::)~:.:;;:5 .•••,'.,~···.1 ....C~'!o :..... i:ii'.;/3.1 ~:)':;)~rr'\?B \?~:')(.;?::6 9::·:'•4~";.1. I:.;;':::~+-:~~; ':?':;.l.,3:1. .:)~:)~::.:.,..:.!,3 :1.02 -;-9:1.)' :i.03.d6?: :L (),S ~:L ~5 '.:,:! :I.0:)(?•:J.~:.:;'::: :I.:i.;?.;.~.::.;)':.:.:.; 1 :i.~.~:.;.:.:?~'.:;'.:.' :1.::.:.::0,...)46 :J.:::24.,.'<:f:J.6 P.RB =Population M.RB =Total Employment B.RB =Basic Employment G.RB =Government Employment S.RB =Support Employment 27 Table 1.21.Distribution of Employment Industrialization Case B.I [v'j EhSF'.Eri E i"'j GS'•E:jv'i Ehi·,iS.Ef-'i 1 ':;"fjO :i ':;;'tll J S'~~;::~ 19E13 :J.9i34 1985 1.':;:'t;/ 1 ':;"::::B :1.';:.::::9 1'"7'90 2()OO o y 3';':-'8 O~3c:,6 O~36B.......,....... lv/.:.\:)./·';t (),,41? .....\......., '\).>..~{.I.,)./ ()->..:"~()(:) o .~.,:+:i."'~~ ()"..:~.J :~) <).:.:::;·l '7 0+37"j> 0.3D3 .....~,-:....'~)+\;:.Ci/ ......~....,"'} ~)t ..:-J// ().36'? ...... ~)<-..;••:}(;) ..............,' '.}(0 ..:...:'i ti O.3:J.3 ~,..:."·el~)••'",,:)I,,' 0.247 ()<-2 ~5 ~:.:; o .~:.2?/,1. 1\.-,r::-r::'~/••',:"J ".J "','''1'''''1~../t .~'.:I .. .....-),'r:"~}.)0 .:..·••O..:..J ().)',::'2 I EHSP.EM =Proportion of Local Serving Employment EMG9.EM =Proportion of Government Employment EMNS.EM =Proportion of Basic Employment 28 Table 1.22.Statewide Household Characteristics Industrialization Case Ei ,.T /"l :I.(?:30 :I.':?f3:1. :1.S-~~:$:~ 1 '=1:'(;):;) :J.'}E4 :r.'):~;~5 .f.(?G6 .I.':?B:? Hi--! .i.;.~~l~.~.<>0 ~:.~ :I.?b";:;;:::::)' :l.3··:~·.;.:i.()':::. :I.';1·Co.J ::::::':~: :i.,)7 v ":';':.::':r. 1'.".;:::',.f;;;...{:r. I"',.,.",.•••..I.,/.<.~.;.f.••j ......~• .1 E :i ..;.....~(..1.1. HH~:;J:/i:: :;)+0 ::::.\~) ::!;"0 "/-4 :3 t (),:)!.:i 3,;.O!5!.::.; :..:~;.},)l~.":'f ~:~:.:.()···f '7 3.041 :.:::~<)()(? F'C)F'CJ Cl :1.7.'79:1. 1?•'7::14 :J.~::~\~:?~:jB lEi ':-~5:.34 1:::;:,.F:?:i. 1':;'~~::;23 :~2 0 t ::.~J S> :~o ~:~)',?{, :L .:.:};::::f3 .1,:::'.... .."I ..L ;?~.';?')'.~.:.=.i ."".'::.~~()\\.\'.};'(~) ,····,...'n.J.'7'D"7 .i.'::,:'':p () i.':.?'I;::i. i ':;:(;:') .i.:.;.:':;:'~'~':; .I.(;:":"::-4 .:.'::.;''~;:l ~:.~; .1.9':,;:'~S .I.'~:'')'.:,:! .1.':;~(?G .1.S)(?? :::.::O()O :i.':;,:".:?.'..::.:....;:,:.) J ':;:':::'""i.~:.:.,..;.~ ::'r ::",1 ~:::";.,:~'"::' .....:.'_,-'f ::.~"H;:::: ;.~:.I.':::.v '.!<'(:! ......~'?.~.:;:",:;::;'',':~ .':.)(;;..f.....,-;.' ::0 (::~".j,C) ..:::··:·:.·.·.1 •.=•.;.,••••;- J.~::~~j ::::,',....;..j ~'.:: .:?,;"::';.~::.;.7)'~.? ::.:.::':.:':~~.::':':'.:.;:~~;:.':::: .:?.;.')41 ::,,::,;':?:I. !,••• .':...:..;::'c··...1 :?~':?:,~·.i ••:~. .~:.::.:.C:;?\.:.:' :::.::.:;:::;Cll~, .::.::.:.·.?f::; .:.?"-:;':.:.:;~.:5 ;.:.~"'~7 :':~;.:.~ ::?,~":':"(j)' ::.:.::~..:::':::3:::.:: .~:.::.',.:;,:~~(:; ::?().;.:.:.~;:i.:;, ::.:.~(),;.:=".i ,:.~.';':-' .::'::0 ..\';.:"::;":.;.:' ;.:'::CI .;.E;,.;·~,';? .~:,:1 :.0 ::~~..;"~. ;':'::i.v 1.':~:-:i .?:1..j .,':}();:::: .:::~:1.,..C:r ~.::~.:"::' .:?.i..:.'i :::~;'.7 :::::2,.,'':':1)1. 2 ~:.:.:.;.~:5 ()6 ?:::)"b:i.·4 HH = HHSIZE = POPGQ = Households Household Size Population in Group Quarters 29 Table 1.23.State Fiscal Variables Industrialization Case f:,Ih LJFE:(:1 1... .i.':::::::;.,:;. ::::.;:~,.;',./.,"'...'....' .1.:;,:;:::,,,? .1 ',;'.;":",, l.:~:.(,;.:'.i. i,e:;::.:':: i.,.':?..:~. L ...."," 2244.39 14()2.:L2 4~~~3~2 j.549~1 3376+26 23E~:L.69 :L760.5 ].440~ 49:1.8,03 3239+47 4076~29 ~3()2.766 6()03~32 3594.65 6209t62 1078.J. (~E~04+46 4()6:1.•46 E~:i.22t34 1908~37 a095+~34 462().65 9823.93 36~~~:I.t98 93.L3.3 5559.87 11328.8 593()•.5J. :L()E~94+9 6667.54 :L2664~8 E~82:1.83 :1.2225.7298~6f~J.3E~:I.(S+5 .i.2~96.4 :!.4007.:1.;~34()+69 :L~()E;9+6 L·::r<E~9i8 20171.7 11852.1 22302.5 49329.1 2()()6~~~~6 .i.7~~~4:I.i:l.2;~6E~+9 6h~.i.~IA4 :;.94(~2.4 :1.97~~;()+5 2E~633~4 c)2198.7 REVGF = EXGF = PFBAL = GFBAL = General Fund Revenues General Fund Expenditures Permanent Fund Balance General Fund Balance 30 _____________________________l __ I.E.Two Sensitivity Cases I.E.l.The Fiscal Crisis Case Recent events confirm the hypothesis that state government spend- ing may increase as a function of the availability of revenues and that projections of petroleum-based revenues may turn out to have been too optimistic.In the foregoing cases,government spending growth has been tied to demand factors--prices of government purchases, population,and income.The temptation to spend all available reve- nues immediately was not considered.In addition,petroleum revenues were generally projected to be adequate to fund whatever growth of government spending chosen--at least until 2000.This was in spite of the fact that in some cases,a continuation of the projections for several more years would show the state exhausting all of its accumu- lated balances in the general fund. To examine the situation which may arise in future years if state government spending follows closely,the flow of revenues,and reve- nues peak in the late 1980s,a special fiscal crisis case projection was done.The essential difference between this case and the base case is that a massive capital expenditure program in the 1980s and early 1990s is stimulated by the availability of general fund bal- ances,and revenues from the development of petroleum resources in the 1990s are much less than anticipated in the base case. The nature of the revised fiscal situation is shown in Table 1.24. Capital expenditure (EXCAP)growth is rapid until a peak of $5 billion is reached in 1990.Subsequently,it falls off to a floor of $200 million.Because of this,the general fund balance never accumu- lates more than $5.3 billion and is exhausted in 1996.Because of this,operating expenditures must stop growing in 1997 because they have also been partially financed out of accumulated general fund balances.(Revenues still exceed expenditures only because the reve- nue measure includes mandatory contributions to the permanent fund.) 31 Table 1.24.State Fiscal Variables Fiscal Crisis Case F:.i i:;·:F!j(:"F E::.·'-CJF F'F f:(:L.GFI,':"'1...C\CJF'~:;LYC(iF' I,,I 1.":',:':':::.":::,:."..',',.;.~/..(::.:'::::':;,.',~'.''.:.::.;, :::.,.";.-:.\;.()::.:')."i.'.?(:')'.,4:.\:i.(){,;.:'I.)(:~,~..:.:.:: ..;,1.,.1 ':;,..','.1 ,::.~'"i "::'~/Cl .;.(>,:".:;f::},4 :.;;:a". I .n:I ;'.:.'.;/i ...-;...:::i../.:.I.):,'~~j ~/~:~:r..','1-.;~::j :I.:I."7:?;,,43 ~:~49;?B4 349::).1 :I. B i:~~:.~~(::.::,:?'/ 1 :::.;::)~:5 {o ;,:?~':} ;.:~OO • ;.:,:()O t> ~3 <S 0 ~:.~j)::~;{:i ~::.i .I.~;5 y {::\OO + ~'::)(?'::.)~,~}.:~~::) 4:':~lE~+1 ~::; 44:t::)tB6 ·4 t:??,'::,~.4 ~~; -4 ~::;~:.~~::j •~:J (~) 2340.()5 1259+06 200~ 2()O+ .,"',..".'"...,,:)..-.::'(~>to (~)..:) ::_~9 :?~::i ~:;)(~) )1 I:?I:~'~1:::_y ~~,:j ~.:i B .\~~·4 :I.~0 ~.;':j 6:L22.48 6645 •.L6 /'356.46 ~:5:30·.?....:I./ .I.0 t:)O <,'.-:'.~?~,;,::".:'::OO t )'~:5 B ~.~::.",/'7 ::;.~i~.9 .1.\-9 9 1.j49~:I.:I,2()9~9 i.440~:1.684. :3 :~:{~ir ::?(.9 :::.~ :3 0 G:":).~"/~:~ :.:~;.,?B ()\.··4 4682.07 5609.:1.:1. 4806.~:'):I. 2347.6 32cSOt:L 36591():l 4()70.7:1. 4642~39 4929.57 .1.483~59 2944.28 237;1.83 9()29.28 :L:L76t73 9758.77 94+7~~~9 10475~7 0.164 10995.7 0.016 :1.0908.2 0.012 109:1.9.4 0.19:1.:1.0931.6 J 1:-:)G')'7 .;.:.~:.; :i.G():,5 ~:,:i .;.:,:.~ J ~?::.:.::~;.:,i ~:3 .~'/ ;:.::{;'j :I.,;'{-'.7 .,.:? :i.~:.:.;.:?:,::~'.:.:',;.'::.~ ;.:.::i~,';.~~n:3 ~ :I.';::.:,',;J;:':;:',.:;:' 2153E~t5 I""'!I::"'~'r~' ~~(J ...I~)t ..,) ;?',7 :..:~:i.;.:,::y ~::,i ::.?()/}3 B ~::.:,~ .:.:.::~:~;H .I.B v :2 J ::?(.·4 :.~.~.;','-4 J ~?.;~.';':~:.3 ,;. .I..~?}'~..~~:3 «~.:) 1 ,~.:.:B ~;l b .>)' 1;?D}'(),:.4 1 .~:.~.::.'::.":){::'.:.~:5 :1.2599.3 .1.2:1.60.9 :l.22~1.2 :1.:1..,.:':':',('),:,:<: :I..:,::::37,').:'U :I.::.~:1.::,;;,;;:,.:.)'I.,::,::?(/-'::'" ,',;..~','(:)3 :i ,'·ll.),:'.:.:.J ::,::.,::;.::::':_:~r '....~, :~;~~~;~{~~:;\~3~~;(:~~.1.4 :l.;'t)~j~~ J :.:::;.::.':,;),.::;~,,,:,~, ;'1;:;:;.';\;.::.:.(:':'."::./:.:;3.:,:.::,;.d'/~':J -:?':,:'"~:)J.?~'.:.; t :..:~).;::.:L !::,;-;.G .I.~':')Ci <)')'.:.',7 'I :":'~:':i.')'.~:'':.\ .i\;:;EJ.I).;.:.;:;: .I.::\'':':''::,0 'f B :I.:?/:,.I.;.:.::,4 :1,::;:::~::~::I.,. i.l.,,~,'I.'.:.".:',.;;,'.,>..:~.::::.;.d (:';.t ::?1 ';.;,;'6 .}'/ :!..I,7;'5~.I,:L()63~~4 :[J297'~7 :i.::~.(.:::~:::::;~{~.) .I .:.:,:'.~::;().<".:\~l) .I.::.:,:0 n()~.?.:.H 1 ....,':: I "/db ··..c· I.',• i.....:-!.. t "?f:j ':? 1.(/9::.:' I,'.i ;'{'"",, I.'?':':,:'i) i,:::',/l} '::"".,' J ':;;'~?ei ,I.';,:/~:.:'~':'I .I.,/':)::? i.';,;.:'I;,:,'!,:.:j .I qt;?6 :i.;:!;j~? ,i.(.:.:~;.:'() i.{:;q:l. .i ";:;:;~:,;j .'.:.(:1 I.}() W N REVGF =General Fund Revenues (including permanent fund contributions) EXGF =General Fund Expenditures PFBAL =Permanent Fund Balance GFBAL =General Fund Balance EXOPS =State Operating Expenditures EXCAP =State Capital Expenditures i <'i The capital expenditure boom created by state spending is reflec- ted in a boom in construction employment (Table 1.25).It rises from 12 thousand in 1980 to almost 46 thousand in 1990,only to fall again almost as precipitously in the 1990s to 17 thousand by 2000.The growth and subsequent cutbacks in government operations spending is also reflected in state and local government employment.It falls from a peak of 72 thousand in 1991 to 51 thousand in 2000. The effect of this drawn-out boom-bust cycle on the aggregate economy is shown in Table 1.26.Population and employment growth are both much more rapid than in the base case in the 1980s.In the 1990s,however,growth ceases.Employment falls from a peak of 355 thousand in 1990 to 303 thousand in 2000.The boom was the result of government spending,and a bust results from the elimination of that spending.Population peaks in the early 1990s and falls slowly through the decade to close out in 2000 at about the same level it had in 1990. The substantial drop in employment opportunities in the 1990s and the maintenance of a constant population level is reflected in a decline in the civilian employment rate (Table 1.27).This is a reflection of the fact that out-migration of job seekers from Alaska is occurring among the young,mobile population with few dependents. This leaves behind a population with a large proportion of dependents. This is the reverse of the situation encountered during the boom in the 1980s when in-migration of workers with a small average number of dependents causes the civilian employment rate to grow to over 55 percent. Finally,the railbel t proj ection values for this case are shown in Table 1.28.During the state capital spending-induced boom,the railbelt share of population and employment grows;but in the 1990s, its share returns to the proportion it had in the early 1980s. 33 Table 1.25.Employment Patterns Fiscal Crisis Case :L 9B() 1 :;.:':;.:''J :1.';,.:":.:,;'.!. 1 ~::.::~.():t ? :t:3 \'~:.:'J ::!:: ..::.:::.1 "c:·'.:',;.:; .1 •.'.:...:.:.:..t. i;.::~':I ~.',:.:.1 ():l. ~:~.i 0 .>E ();:::: ~::~().:.:.:~;:L ..::;. "'j .••.,',',.r/Lt .~::"::•..;.~.L .:.;..i.,.:::;:I.;.:~ .',',···.····r.···.{:;...;+','..::=.•:},.::• nlCN =Construction Employment Et-1GA =State and Local Government Employment 34 Table 1.26.Aggregate Projection Values Fiscal Crisis Case FUi·;'C!•FUI:;'r:::j.j ':;:0 ':)G ,.E::I-/';1'';';:-F'I G ,.F'1 f~F'C w V1 .1 ':.?;:::;1:) .I.':.':::L .I.';.)H:::.:: i.':~·:':3 :.:'; :i.':/E ..·{· I.':):3 ~..i ....,"".' ')..:::":::. 1 :.:::::;.::' I.{,?,:::;::::; ./'.;",:::,'/ .1.'..,,:'i..' 1 ':.;::.:.i. i ,;''):.::: .J.:;:':):.:':; J .:?':.)....~ ::,:.'.~'":'... 1996 .L997 J998 1999 )000 :'i·1.::J (,.;.4~::)·.:,:·' .).I..!,.OJ';;·:' "~':.?.:.:'.:.::.:.::.::?~;) .::~:....;C·.;,···l·/~·() ':1 /:'I.·.~;(.{::'.:;)3 ~·.~i<>;:::;"E::.. ,........', ....I ...·'.!..::.\,}... :....;.::.,,;',.~.:,~;.~.~} !'.:.,;':.:,:'(i ~_~~; '::",.1 ',.. ,,~:.:..:')"q (.1' ,:':):.:-~>'.;../d(:') {.)::::;H \':L i:~:,-:" (:':0 :3 n .;.::~:'()I. .'.•,."":'1'"':::'':'{\/.:.,:~'...' /':.-:)'.;.:'.~'./()'7 (:.~:':~;H ,.B ,:?{;;. .:';'!:::;c:o "':?::.:,~:1. {,:.:;;···l ":?;n)' (:...::'':~,.;.(')~:~ ..':.,:',:;(.~.:;;t)1 (),<;.:"H ~:.:; J (.().~.:.::(:') 1 v ()J9 :I.:.(,I ~:.:.;/~ :i.'.'():::::..:{. J ,.<>,,/...:} J .:.'::.+:32 J i ()....~;:::: .i ;."..'"). L U.", i.,(,~)./ .I.:.OJ3 1 ..U():I. .i.;.C'O:l. .1.~.C.I ,~:.,:,'::; (),~':,;:-':.;).:) 0.:-';;.l(?':? o ,~~?r:.:.:r)' o v (?,)() (),\(?';~~)~? 1'\v "J"~:)':.;: 206v2:1.4 212.9 222.14.1. 239·177 ~:.::··:l 0:":)i'HG :~:.::',:7 U -:'.~:.::'.//) ......."I ••/.,,••, ,:}l...'/.:.,.:)~)/' ~':);,:.::(;)':.•..1 ':.:.!'..: :'S :,-:':;(?.~:I.~'.~; :?'.\.~-;.:.'.;.:::.::() :":'.;:...;/~"'/I~:).L :3 ~~:.i /~~I)().::.:~ 34(,,.';;).S/ :'::)..':~0 '.:~.;:::::C? ::~:'.)::.~;':-':;}..::;,(,ii ::::;)~.:.:'"(~.)~?::.:: ::::;)3 +(~)J:I. 3:1..)'v16)' :.':::,:I.()"(~'l 1 :-:> :::)0 (;..;.:?(:~1 30?-:''/4':? :1..0:1.~'.):·:;:'4?vO~? .I.•O:.':\~:.::610:::::.3 1 "0 ::l ~':)(:.i.Y'~::j:3 f 2 ~:..; 1v077 8247.~9 :l.v()32 9232.51 .1.•.1.27 .1.2026.3 :1..104 :1.4948.4 1 (.06:.5 J ():':~:B/)f :I."O':~G :I.·/10::.:i,,3 :1.~();~4 .1.847904 1.•022 )()347f6 o Y 9 ';.;'''B ::.~1 D~.~.:;~:5 •:I. ()~.:?.,:.:.'':)./~~::~:::9 6 f ::.~ O~.·9H;?:?··;·lJB1.(j' ()~(?:::::./~:.~~::j 9 -4 ()(-~:~ ()+98:1.27607t4 ()o9i~~2 29355. ()~98 31204~3 0.979 33242.4 o Y 9n<~):3~~~.i·.?OB f::) ()~<;'b ():":')n·4 ():::)+)' O~(?(1{? :1..019 :1..017 1.05 :I..0?2 :I.•11:1. :i.•0':?2 o t 9<'/4 o (-!)~56 o •<)G~:.:j :I..00;:; 0.991 0.9'73 O.9·7B 0.992 0.988 O.9f37 0.988 0.991 0,997 ()•':;"I:;:'<), POP = EM99 = PI = Population Total Employment Personal Income G.POP = G.EM99 = G.PIRPC = Annual Growth of Population Annual Growth of Employment Annual Growth in Real Per Capita Income Table 1.27.Employment Rate and Household Size Pattern Fiscal Crisis Case T·:·:~.C: .............,,0••. ..:.',{../.:~)'7 >..~./':;: ...........,..... .".~.;.t:i .1.'':-- •••••,",.'••1 ~:),"I.,}A.:..I. ••oy ,''\,~;••••• .:')';'i.)..:.;.t:i ..........." ••::.-')t..)j .•::; :3 ,,0':·:'::.:.:: .•~•••••~.t .., t..}:.~;~~.)t) -. 1:,:=..;.:::.1 .-:-:-':::1 36 ,t'"••••••-.-·····.f !~.:ro ';" :.:::':::;'7 Civilian Employment Divided by Civilian Population Average Household Size ER = HHS1ZE = Railbelt Projection Values Fiscal Crisis Case Table 1.28. 1;;~E'i.;.C:c; '?E;l) 1 ··.:..t:;.1. ~.::::=::::...;, .J./'••.'..:•• ;::):::::~3 .;:;::;l~ .•:;"{~f ~.) ..:.:~::j ::~ .;.:':':';3'.:7 .;'::.;;::;;:::; '..'... :::-~::'r·· .?..•. ',:--~:~~ .:::.:.~.l:;. .i,....':;.:'~.:,i ",'.:..c:· '.;.~.~..~ ....::;) .\.''..: F:.:.i'::':E.; :.:~::::::.::;'..::::::..:~~.-:".:- ~.~~;.:'().:.;.~~':;: :.~~(.:l.(.J.=5 ~?.....,..~,......,..~~.~ '.:~.,:::I:..•:.;.'\.::.J."";" :::::30·,-;)96 :.:~:;I:·:'::;::.;.E; :.:.~;E:~.;.;..:.'~.:';.~.~~ l:f,:i.::.:.::"~.::i9 I:::' ,',. ..:.:..:·~i.j .;.C::..::.t:; ..::~/}J .;.'7 .-::;.:::~ ,..~;.~~~.~::.~',_,-~.:~~r 4 ~.~:;::'::.;.)'~.;.:'E ~:7 :.~~!~~::.;-2 ';.:;E: ..:':~:.~o.;./~.r:;~;.::':::- ..(~~....l ':::~.;,'..:~~.L :~':' ii,~~,:6 .:..~:~:.~.?f;:~ ..{!~:',~··..j·.4 E "..;.·...·.L .;.';':(;:=./ "';',,).f.:'::;"/:0:':; /;:.:.·.i .i....:·..'C,·.:·:' ,~~..",.. ':i'I.L (.C.·;..c i'"1 ,.F:T:3 J.:.3 f::~.·4 ::.i'B :1.if:l..:.::);::;::) J·4~?\.. :L~~)9 ....4()l4 J.(~:~£}..,.',7 ~:S .~~: :L ~::;',7 .;.:~i ..:.:t 1":::, ::.:?<)',:.:1 ,'1>0 ':.:.:'i{. :::.::::.~::::}.;.:L .:;:::.:: ::.:.~:..:~~:::.::.;.~?:::~4 ~:.:::.J?.:.~::~E 6 ~:.~,..:;.~~~:~.1 ~~~)'7 .~~:.:{.G ~.:::.".?.i ~~::,,':::~~~;~...::'c:'.;+ .:.:.::::~:L .;.:i..::.::2 :~::::"7 .;..l./{.=:-::. .:.~.~2 1 .:.:;:~:~j :L 2 J 7'.:.c·~~_:1. ::.~:~i.:L .~......i 3 .:.::..)~:.:.,~.(?~":':;:5 .:.:.:.<>~~:i .;.;.:.:::i..,::~ .::::(:':::.::.;.f)/:.:~.: :8 y F:E{ ::.::'7 .:-~.:.~0 :.":} ~.~~S (>::5 9 :3 ~.~)1....()<:j ~7 ~~;:?~.~:5 :,~; :.:>?.~.~3 (}·4 .-:'~.,:.::..;.6 l {.r::':. :.:.:i .-:':~\.'/'()'7 :.:59~.·406 /j :i....~:)0 :.:::; (:')J .;,::}l~.:i. 6.-f+-:..i.'7E~ .,.'..·.····1~:~)J,';c .-i:+~:}.... :j ~.'.)...~::~:~:·4 ~::;:::~:;.:-:1.~.~'.; :.::;.1..,()/::::;: ..;.~.:;.:.~.~.:.~r:r..-::} .-.:;.{~:•.;.~:r:.:.~:••::) ......,...., ....;-~;;;.:.C...::.,~:) ,~:;.:..S .~.)'~:;'(; ..::~:."::::.:.':?:.=.:.;;::'~ ..,,~.'.. "'i ,..;.~•.l.Co ..:':; G.F~B ~:5 ;.:.~~.~:.,(:) ~5·4 \\6t13 ~~.i :::,1 .>~~~2 4 58.717 61t:[73 60.95j. {~;:5 ~:~:().:? ?Otl~;-:L '7 :~~.;0 ~}:=3 ~:? ";;':.~~~:..:~;()'.? ...,....'"\'.'\.'. /••:':,o!-••:')'••.-t .,:+ ;':'~:~.'i ()::~;:.:=; '7 ~::;v ::":':,i~::.=.; "'!"'T ••.,.••~..... /:::.~......:':'..::',:.: .?:L .:~::.:·~i·7 ?C:<,)1 C')~;:~.E 5·,;':;, )::~.{:).;.<~::? ':::.':::.~.(>.:?:::.~ {::':::~:.;':~)7 ~:~: ,:'~':I .:.:.::.;.2 2 ~::i s ~.F;.~fj ~:5:::~~:5 1 :.:; :'5:~5 ~079 ~:5B <'~~5EB 6 2:;.:.~:::l~b li :=:;.;.::::~::.;.-::? ::,:.'.~:?.}':.;)E~ B ',7 ~.(j~:)3 ~.7'::~::~.::>i ~.~5 9 B ~.;.~:~A·:.":.;.....:.....,1 ()3 ....~~:..::1 ".- :L 0 ;.:5 .;.':~;:~;~~J 3.\):.:5 <':1.B i ()~:;~.~::;'~?,..:; :t ()~~),.?.(, J.():':).:.9 ~::;of. :1.():r..;.'.:.:::.:::'.~.;: :L {)()~.:7 .:?':.;: 9 '9 .:.~'::)~.:.::....:.~ .::.)E ~...i.:L '7 ':.;.:''.?,~:.~~:;E:~;:~:I I:.:':{::I v ..;+\:)':::' 11 II I] P.RB = M.RB = B.RB = G.RB = S .RB -= Population Tota~Employment Basic Employment Government Employment Support Employment 37 I.E.2.The Super High Case (Extreme High) It is possible that industrialization,as defined by the projects included in the industrialization projection,may accompany the high case proj ection.The economic activity associated with 'this possi- bility is projected in the super high (extreme high)case.Since the high case includes petrochemical development and Beluga coal produc- tion,the elements of the super high case in addition to the high case scenario are as follows: 1.Petrochemical development.This described by the Dow-Shell report. is phase II as 2.Synthetic fuel production from Beluga coal. 3.Aluminum smelting. 4.Local serving manufacturing growth to account for 5 percent of total employment. The addition of these projects and especially the assumption of rapid growth in local serving manufacturing has the effect of stimu- lating rapid growth of the economy.Analysis of the results shown in Table 1.29 indicates an annual growth rate in population of 4.3 per- cent and of employment of 4.9 percent annually. The railbelt projection values are shown in Table 1.30.They reflect the same trend as in the high scenario of increased concentra- tion of population and employment in the railbelt. The state fiscal results are presented in Table 1.31.Government spending to provide support to the increased population has reduced the general fund balance.It remains positive,but it is clear that if the proj ection were to continue for two additional years,the general fund balance of the state would become negative. 38 l ! iL Table 1.29.State Aggregate Projection Values Super High Case (.;,.::,H ;.I.jj::C!\.F'Ci?Fi·j:::·::G.[i'F;':".;"F'T G.F'Jf(F'C :1..0:::;4 333(':':1..B :I.-;.OJ?:·~;7::.~~?6 ~9 :I.v ()3 ~?::.:.~l{.6 0 4 •2 :1..032 4:1.302.7 :1..037 46:1.08.8 :J.•():~~::.: o.9~~:;7 :1..006 :1.•0:1.G 1.034 1.045 :1..109 :1..:1.06 0.993 0.98B :1..003 1.008 1.007 :I.• 1.01 1.0:1.2 1.005 1.009 :1..008 :1..01 :1..0:1.1 )'0 ~::j 2 ~..:':~B ,l •••,•••••••••:'.•",".I./~-..r ~:)\}.:.,:';' 1 (~;I ()()(;:.y ~:5 8146.59 9539.9:1. :1.23:1.2.7 J -:.O(·:·)i::: 1 \~O~:59 J::I..~?'J .I.•1 i{~:.: .i.~.O()4 1 t 0 ~.~5 ::.~ :1.1()28 27276.7 :L~()24 29924t4 .1.t()49 :1.E~499~3 :1..029 20098.:1. J.026 22:1.39.:1. :1..016 5375.63 :1..033 613:1..96 :1.•()33 ~~:L293.2 :l~()36 573()OI>5 :1..038 64:1.98 • 3 \S ~~;.i ~.-:'}.~.::.:::.:: >:~?~~,:.;I>::.:.;::.:.::I? J )'(:')~..1,·7,··{· ,,;'::.J 9 v :'.:.;:',~;~:.:.i i:~()(.:),~~:)J :I. .j .'.::-.:,:'.:.::~:::')I':f ~:::().:?1 l+)'~.~~.; 3':?:::::.;.::'.::/)'.7 ~".".i ::-;4 •':.:'6 )' 44').,)'4U i:i ()A'l (.~:.;:::.:;.)' .,.{~'::)3 .;..)'~.:.:: ;.~~J 4 I>..::~.()~5 .•:~-':,?',:?-}.~?:i.G ~.~,:.;J ~".:,;"..I./:1 ? :.-:,:;::.;::,.:.,::,H.i. :..:~;G:::.;'j ./?~._~; ··:1 B J .:.3 .,?~.~:.; :':'~·-·;·f;-:.:'::;0::::: :::.::~':':;G .~U (?3 ,~:.~~.~_;~'.:).:.1 :':~:~.:.:.; ~i.,(t ::.:.:~':.'-i' J ~..:)':.;:.:'" I ,. J .:-():.:::.~:!. J ...()....~::.:,; J (.():..:~:-::::; .I..0 ..·1.1. :I .O:."::;;{i .L ,'...~..:,~:i .:~ I ,.."....~..I.I ...... :I..~():j ~,~:.; o .:.r;.:·:'H:'.~; .I.•()::;.I. 1..,0:;';;,\ 1 <();:;:.:'\ 1 .U ,',:':~~; 1 .;.()3 (:) :I..;.()~':::;::..; :I..,()'.':;)' 1 ,.O;·;·if 1 .".1:.:.1 ::",i :,-.~ ':.:.':.':')/;.{.::,",::/))' .;.J .1 .:.:..:~;(?C ',7 .I.:':':;~.H ~_'.:.;<? /}0 l)(./:~.~·.:.i )' .~.::..:.~;;.J U () r''.I'"',"',.~. -..J.L " "....,.",::0 ',:.:.,~.:.:.;'.:.:'oW':.'.:.i ~'5 ::? \.)():I.\.·4 ':? ,::')(:')r::.;.(,':t:.":"::(/ ';_~.:~.:)".::.,9.·:{. .,::0 ,...1 :.' H",7 I.).:./)i{.:.:~; {I (?(>~.D 4 4 ...•••!••..••,.j.: "I ••1.",":.,J,.' C')1.).1 ).'~.....;C .):':'~..;-:;.~.)'0 ~:::; .:,'j ._~.E,t·()?::I. .;::,}u ,.:::ld <:::.i..:,:,::.~')'.;:'7 /H)',:I.44 H4:::::{.:';'::3-··l j ':::;,, L :?H::? i':),;:::J I 9 ':?~7 i.\.:.:'I':~~) i (.;:.\?<> "~;.:f;;~:.I J ·:.)9H .I.':.)d".:·:' i,,),)J J ':;.:"?,:? I q':::",':; .i :.:':')":i .::".)I.j () ,i.';.:··'H<? :1 ':.~:;H.~::. I r",,"',r",.1.'7 'X '7 .i.(?';.;)~.:.:.i ,I C:'::;;,:::. :I.q,;?/) 1 (?GH w '" POP = EM99 = PI = Population Total Employment Personal Income G.POP G.EM99 G.PIRPC =Annual Growth of Population =Annual Growth of Employment =Annual Growth in Real Per Capita Income ·::....c ..::'.':: .. !-,,;::"', t···.···':.....:c:;\.1••.••1 ••::. ,:;a <.,:i .1•.•::' ...,....'.....,')';-' ,'......'~,....,',-:::1 :.•~.;...i.j c~.i{_ .:>~j '::.",.~~~.;.! 40 -.::'.1.....}',":5n"':~ ..:.'.........;.•:.c:''.:1 -•.,l '0_··..•.',_.•..::::::;;.•":.....';:~:.d .~:",:"~'".' •...:c;..:;·i.',:".•;.: ~••••••0..~....., .•..;.\}t:)~.::::;,.::..t. {~"..~j ',.::.'-'j ; Table 1.30.Railbelt Projection Values Super High Case ...../" -. ,....;... I'',',! ,"......~:.. "l ':"~>.." .t.'?::..'(} .L -,,:..';:::i ".::" P.RB =Population M.RB =Total Employment B.RB =Basic Employment G.RB =Government Employment S.RB =Support Employment Table 1.31.State Fiscal Variables Super High Case 41 State General Fund Revenues State General Fund Expenditures Permanent Fund Balance General Fund Balance :r.9 ~:5 l:;.~:j .:.6 1037~45 174E~•.l3 3302.57 5114tO:l. :1.·4l~.();} B02 0}'?::~: '7 0 ';?::}\.S'~~) ':;.:'~::~~;~~:~~.0 ~:~ 4 ~::~1 :5 ,··'f .;.:3 ;.:~;:~j ':'::.B ~:;.;.{. :i.!.5·4 ~)(.:L ............,/. '\y ..::1 1.):::5 ~',).:-",.1 1·4~=;2::?-:~3 -4 .,::~.:':')()0 .;. :..~)~~~:t ":':"?.:-)' ....","."',',....~ ,:~l ....~\,}..::'~.,).;..... i3 F B (~:'t L. :.7,f~)':::::.::').:. ./};::::.::;.IS :::.;..::~ .,':~'-:;7'.;';':,.:p .;. .:~~0 :.:~:Cl ().;..1. :1.~52 (:~:7 .:.1 :L B:::.;..;~~~~~<:) ..:"{.B ~:~;+:::.~ ..;l ():7 15 'lo :::.~':;;~ :I.::7 0:"::1 ().J.~:j ~:::.~~:()9 ~.~::'~:.: 2 '::,.'/:~:.::.::.;.)~'5 J {::'E:·4 ::~:.~~'::~ E~:i..::.~;,~~::)..:t 9 ;::i ~:.~:3 -:s:·~3 ;:::;::i ,.:,::;';',.:J. :l.::.~~(::''~:1·4 ~~:j :i,:::=;:3 I::;::.~.:.'.? :I.l ~.:}~:~~B.:.f3 2 ()::::;:':3 ::~:~i-<:) P F I·:·:(',L. 2~71(·4.~,,·1 :,:';():::;:'::;:1..,4 .:~;:L a ,::.~;.':';.::: ••••-••~.,A,'",••> ::.~..:.~,i..~.;.....1'(.....J ,~:.:3 ':.:.:::.:.::;::~-:--4 :?:.:~;:.::.;~:~~=5 .;.::~.:: ·4 ~:::~::.;i::;+·4·:::: ·~~·:i '7:::;.}~:~B '.?)'()\':~;-:-:.:.:;{:; :J ~?:::::;:;)~.::.::..:.:,1 :~.~:~;B.L i'6~? ::s ':~:',\:;.~:.:.:.:.·..1:? E:)(GF {'::.()'.:."1 ().:.S:'1::1 :i:.::r:?:i ,.t:...·t t ..;~~()::.~.~:I.::~; :.:~;;::;':1 :1,,.':;;? 1.:;:..::{~::~..?~.~? :1.:i...;:;.';?;.~~~..:~:: .i <>3 '/:i..,:L 1 ::~~.;::.·4;J ~.~~~i :i ..;~.():::';.·~t .:.?; ..~.••....,.'r,.•.•, ,..::.::....~:..J.~..,~.;.:.:. .i.:.:!.::;i.:'.:;.,.';:' ?::::;<...:::.:{:':,...~:::: ?:L~.:.:.;".?..;":;..;.6 ::.:.::..::;.::.;.::::~{:':...../;. :!.?~~~;:7 ':;~.:.;;:;; 2 :'.~?.i·f ~5 ,"? .:?~:~B?.;.:?'7 ~..:~)~:;';;':?y ;?::~: L::::;;:::;..:...' (:':.:;;::.!.:.:.1 (.;?E; ........'.'....,'"t:;.L .i.l ..:.~..-:.~....:: ...."~~'"...."..•....;~--'7 ......:\}.;••:~).,. ......,. .·.·c,·:c·.;: 60:1.().;.:.:'::::::: :!":':';::;::::.:.:.H.}B J :.~:.i .,:~.~:2 ~::;.;.3 .~:...:~.,.:~':?~:).:-(:.:= .:).;.;.::;··.r .:::. .~•••1..',••,r ••••';.~•.t :L ',7 :L .,;~~f::...)' :!.;;.:?4 .I..,;:-; 1 J.C=:I.-:;:'~~~~; ::.:..:;'.•;:.~.~~:~v / F;~f::'t.}t:;r:' .:.:.::C!.:?~.:':;:.).;-",:: ::...:~;?l:;.H /;..:.~....: .\'.::()();::)3 ....:::: :::.:.:i.=:?~:::i:::''.'::.:.:: ",:.•';','l (,) ••.••y ? =.-:~.-;.~:. Ei .,.~:;H :L ~:}::;.:;:L .I..::)'?;.:.:: .i.':."(::' ." .i.::.:::;I:~. .l..;...;.•..::: .i.'t;:::;d .!~>a ':.~.:' ~L ,:;,~.~~:~:t i '::·:.3',7 :;.',.;.:':::::,:::: :1.::,;:=;:::;~.~:.; i ':.;.:';::~::~; .!.-.;--(:§~.} :i.':.~,:'k:);.:~ .i.-:/b .";'~. ..-::'-)\)\/ REVGF = EXGF PFBAL = GFBAL = I.F.Summary The final three tables (Tables 1.32, 1.33,and 1.34)summarize the statewide population,employment,and household proj ections for the four basic projections presented in this chapter. 42 f I j ; 1 Table 1.32.Summary of Four Projections Population (thousands) PDP -ENDOGENOUS 19H() !,··•.···,.r .1.:7 D.L .L :.;:E.? ,I.';'':::;'.::' .•••J .••,. ..:""'..: .1.:.::.:::;,::':, .J.',.n / .l ":I:.::~l7:: ,j :;:'H :.; ./,,::.;:.:-,::, .L '7 ":: ......,,- L ::.... .i.:'.::,:'/ '" .i.'....•:::. i.:: .~::\..'':) f,•i...i... ·40()~.it~:S/ ·4l0<.H()'?1 -4 ;;.::(:~..~0 ,,:~.2 ..:::.::~~.::".:.6 2 ::~; ...~~:.'.:.;.:.~::~.~.:.:.:.....;:L ..~'.?::.;}.:.;::;.:.c· :.~~;Ct :?~.I.)():":') ~.:~;:i.:':~:.~:.::;0 :,3 :::;J .l ,"·::·:L ':;: ~:';,1.:.':';:.j :".'~.j :.::;.J."::..,,)'7 ..··1 ::.;i ",<.'::. ~:5 .i.,::').:...;.~,:::;,3 .........,••,•••,'1 .:.".1 ..::•.1..;.'.i. ....1.<..;::....·.::'C'.·::. I.,::,.:..'".:":...!',:.' ~:~;:.:~;:::'.:.'."~,1 .L 'r ..:.:.'...:'.;....:;.,",·...l~3·,·) ~~:.;~.::;C.'..".:/I::. ..~·.l ....l"".:.'..1.'::'6 \..!().••~.'.'.,:.'.,~"",..../ E:;"(ii·; ·4 0 ()~";'f ~:.~;? ll·:i.:2 ~.2:':;:'~::j .-::~.:~:~~~~:::.::~.~;:t. 444 ~·4 ':;:2 ...:;.{;':.:.":">,~:~:.::"7 ";'~. .,<~;:.:;:H -:.J :.:~;.i. ::,:i:::::I.,.:/3::;} :~j ··::t·:.~.!~.~'::;().\'~. :,:~;..·f ::.:''.'(~;,c':;; :.~~r :.~j ':::;.;.::.:.:.)d .:::...:::~....~;:.:~;E:~ ••.1 .....':.(.'":'••:').:.:.: ::.".1 ./'•./..:~;.;:":'...;. ~:.:.;::::;':::;.~C'::'.:.~. !.~5 ::;':::....:.~:.;,,:.:~:..~; (,:.::.';~::i .;.,.,.'':j .::~. (:)..::..i..I.""...:0 ·5 ..::'..~-.;.!:::;.i.:;.: (':,..:~(:'::.;,d :.;:::;: .'.'":..;~).;";;'i.j '.::::..;'..:;' c ......::;....i C:',) I:i .,.'i:i"j "::;'0 0 .~4 ~::j )' ..:~.1 .:~~.;6 l \~) -4 :::7'(.~.~(::. .,.:~.~.:~(~:'~\:;:..::);:~: ...~~6 :::,1 y (~(~,:~:.: ;.~j 0 6 .:..,:!..:.;;..:.~.:~ ;::.;4 ,?•,~;.I.:::i !.::.;':~:I {;).;.:?..;·t <:':! ~:))':3?904 ::.:;G'7 .~:3 ::?~:.:.; r::'r"',''''' ...,1 'J'/'~:) ,;::.:i.}"/:1.'.:; (,l 9 .:.':::1:::;::~.:.:: ':i ~'::)::.::~.:....:.::':;.:.::~ 0:':')••.~..:':;'{.:~~i :L A:.~:;d .:..~:?;:;:.':;:' (::')':..:~~.;.':.:} .S ')1 .:~:'::~.~..,it /Ob<-J.··:i· '7 .?)'.,:;:,"~'i·"f '''-'.",..'"',..•.,...,...."·f C).;.c'...~..:;:. P.HH -<lOO.4~)/' 4:t.1t~~~~?:i. 4 :~:~:.::\....;l '7 ·4AE}~~5G4 ·4 ;:'::~~<-(:'>::::::~~: :3 :I.~5 (.f:~:1.:::: 5 (:'!:::::~f.~,::':,4 ~~)r,~/~49':;.' (..:~~t)(.-4 )'::.:.' .;~;,4 ()~..j.:1.';.~" .::;,:::1 .::0 -;..::;~.:;:-6 ':::l}1.-lo )';::::~:.:.; t::':;o :.?)y .::·:,n ':.:.:. /'.J.()~().•:.:'). ~:.:.:..s:~~:.;..,}'/? ....:.':.~:;:;:'....':;).~?~::i .:.:'b ().~,"':"..::\{;•••,'j" ~::;<.~,c'~:::..::.::.,:1. e 3 <)(0 i:.i{../;. S ~:.:;{:').:.:.~:;')':::) f3 ;::).<~.:.·4 ~3 ~::; B.LL B.t1I'1 B.1M B.HR =Low-Low Projection=Moderate-Moderate Projection=Industrialization Projection=High-High Projection 43 Table 1.33.Summary of Four Projections Employment (thousands) ;:.;.;.:...L•.J::.•I"j.j ........~I ...,.:i C:t.L 'J / .:;.'.:':;:.:\.,:;' "'1 ()J '.-'.:~.1 u":"f ~::.:,::.:.1..:....J ...: "',···.r··· ..:'.:::...)':..!.!...::. •"',f'-..:~../~.:~-;.'::~•...~.~....., \."::....:'."......t:;",,;. ",'::;:).... ;.:.::,.;::.'.'....\/.i ..::......1..;.'?::-";,- ..::.{".','.:.:',}.i ;;:::::.i .::....(:;.,..,: ....,'". ..::.......:::.'.'Cj.t.,i. 44 Low-Low Projection Moderate-Moderate Projection Industrialization Projection High-High Projection ;:;·:·'::·:·b ';:;;,-:::.~~:. l..,"~.''.... .i .""'.... ~.•••..•••. I .L '?'J'.t B.LL = B.MM = B.1M B.HR ''!,I Table I.34.Summary of Four Projections Households (thousands) to'1 f··f _..DE~j::'I i\1 I T I C)r~ L~·:Et) .:':::'C"j.i...'\_.~.1. L ':.:.:'E:;::.:.:: :L ::.;~-E ::)' .i.~;:.:l::~i.:} L'r'i:i;) .i.:j.:';:::'.::j i.':;'>;3'/ .1.(/:::::;3 .;S;';::;;':,:': '.~;:..:.;:.:) .i.''::'/:l. ':;~''~:.::~:~: ::;~".;.:'..::; "y"-:/:) -....-":.:':) ..'::.;..:.:.;/ ::.:.::';;.:';:::: ':....,•... ...\:',,~'.j E;~.L.i... :f ::?4 ~()O.~;? :1.~:~::~"?.:-~~)()·4 !.:..:~:3 ·i :L;:::;? ,••••••,!"'r .-', j ...::'./.;./',\.:: .L ·4 :::~.:.()'7 ~.:.: 1 :5~?.;.:i.0::;(~} 1 .::~::~:{.1 :.:):.~) "L ':~:.~5 -;.~::}()E :i.(:':,'7 .;.()::.?B .I.0:::":;,:--:.";':;.J =::':, ,'.I'<>.;.::.:.:'E;~) .f .......:";..L .,::: .i.',:.:":".:.;.:.··::f.6:? j..!b .;."'~'t:).-.::~ -r.;::~;:L -i".:::.~:.:.':..:~ ..~.,~:~:"-~'.'.:;.:-;::'l:. .1.t:~~;G ';'l:}/:.7 .L t••;.:",:,::.:.,:;::::.:.:~.:., .i.';.:·;',S .:../.\::.:..~; ;;.:~<.):.).;.2 1 6 :;2 ,::J{-.,.,;+i.:.? B •r'iH J.,:~.~·4 .;.0 ()::~~ 1 .~:E:7 :3 .:~:B .'.../......,"'".-,-.'.I.,.:~J ~j .;.t:'t./-"'::. J :::~;':;.:'~~:i ~:)A· ~~.l~.<5 o!o ::.:.~()':.;:1 1 ~:5 .:)<~";'~.~~~i 1 J 6::'=)y t::·;2~-::' .f •••••••••,...,••••.t .~'.;.)~...J./':::; :1.'7 ;::~+.:~~.~}l:~' .L i::;3 <;'5.1.c:.:- .i.,j.:::•.;.':.:.;'::::::':::; ::.'::)::.:::.:.:!.:L '.:,:.1 :~.':p {::I .:.::.~::.3 '.7 ...-:.(j t•.:'.;..:/i::~,/ :~:;~t)6 +3 ~':;.:.:~; ;:~t J .;.~?9? ::?:I.)'~.~?:;.::2 ::,?:}·4 .~~.::;~::~~3 ..\••~•.r . ",:,..:';.,j,(0 I.)~•...:) 2 ~'::::E~.:.:':~):1.:L ;.::~4.::.:.~.:.'.~.:.l :.~:i ~:5 Ii.11'1 :i.:::.;:-4 .:-()()::~:: :r.::.:.::E.):;~;D? ,I •••~.0..r .".•'J.-.J i.{-.~.I.~.l a:J 1 J.{.().)J.~:;:.3 .,~."'1 .'.r"./.i•.(.~.....';lo .':;\~·:.I .1. :l.~.:.~i ':,;).:.E .~.:~:l. :1.:;:'4,·0'7·<:;· .I.~:~J .:.";':}0 :t. JE?..·ll :i.9 ~:.:~.;.:7 :::.~~:5 :l.9S,.:1.74 2 0 ~:~~.~.:i.I::)~:; ~:~::0 9 oJ-'.:?'E;d ::.:.:::i.().:.t)·4':';: :::.::::?.~..:~.:-2 9 :.:~ .~.:.;:::.:.::'::.:'.:.:L :.:-::~:.:., :;.~:::;6 \~'7 1 (~ :~~~...;t:5 'r 0 (~~..;~: .::.::;:5 ~:j 1 "·i,:3 ::.:.: .~~~6~?.~'7 '.7 ~:.:.~ ~.:.::'.:?::.:.::y :.:S ~.:5 :,:) l:~.,HH .I.:;.:·4 ~.0 0 :~: 1 ;:'B.0.::::a 1.3';l-.,:L J.a 1 ..q.().~(::.;:::::::.~ 1·4 ~:~.:.'7 .~;'B :1.6:2.,~.'i::';4 J.?1 Sf ...:5 ~3 ~:~; J.':;.)0 "6 :..:~;':2 ?O()'i-~?::'4 ::.::0 ':;.~~.0 ()9 ••••••1.·.•....1 ".oL~·.1.(::-~.'f .1.....:. ~~~~,~.:.If:}\.~.::.;i::.::::: ;.:.~:-;·4 .;.t :::~;..;:;. ::::··:t ~:::~,;.~..:"{.";~t :?:5 ::.::~l::i ~~~£::; :::.~':~:I~).)~5 1 E ~:?'.7 l~'i :l.£:~E; .::~~::;6 .:.()2 ::;.~...,;,r ::?...'.?::.:.::::.:.:: :3 :L ()'i ::';;4 ~5 3 ~.:.:~:3 ~,E~?:.::i B.LL =Low-Low Projection B.l1M =Hoderate-Noderate Projection B.IH =Industrialization Projection B.HR =High-High Projection 45 II.Comparison of Current Projections with Earlier Work In this section,we analyze the factors responsible for the differences in the economic proj ections reported in this study and those :presented in the earlier study entitled Electric Power Consump- tion for the Railbelt:A Projection of Requirements (Institute of Social and Economic Research,June 1980).We begin the section with a short comparison of the results of the two studies. II.A.Comparison of Results Table 11.1 compares the moderate-moderate scenario (moderate economic growth and moderate state expenditure growth)statewide projections of population (POP),employment (EM99),and number of households (HH)taken from the 1980 study with those developed for the current study.The differences between the two studies for this moderate-moderate case are relatively small.The new projection begins slightly lower,is somewhat larger in the middle of the period, and ends again slightly lower. This pattern is primarily the result of two factors.First,the new projection begins in 1980 with the actual values experienced in that year which are lower than had been predicted,and this slightly lower starting point for the projections carries forward to reduce the values in all years proportionately.Second,the starting dates for several of the large economic projects have been postponed several years,and their combined impact on population and employment is experienced toward the end of the 1980s rather than the beginning. Although the values for population,employment,and households are lower in 2000 in the new projections,the growth rates over the period from 1980 to 2000 are higher for population and households than previously.Table 11.2 shows that in the new moderate-moderate case, the annual growth rates of the three variables are 3.48 percent for households,2.64 percent for population,and 2.70 percent for employment. 47 r Table 11.1.Comparison of Old and New Economic Projections: The Moderate-Moderate Case Population (000) :i.:::'H:i. .',..,....,..., i,)'C;''''' .i.·::U:::) ."', '~•',7''..' ,"',,","" .":';'::: ..::~(I ";'.~\'..;.~~J'.:s ~:}J ~~~;~0 E:.:::. ,'","',..J t..}\)+I,}.-;.~ ~:j ():."::::.;.(.;;....:;-;,:.:. ,•••t \ .,).1....{..;..:::',~>.\':. ,..."'."....,-~. .":J ,:;'.1..;...:).L ":) .,-,.,-,", ':::'C ...,".-..1........... B.hl'i ·}(::'3,::;:·;:'4 /1 i I:),..i ~.::.i :L :~:,3:L ,'.?33 ,".•••,,I I "'/••~.{:),,:::.L ~.L .....,:"j "":1.3.<S:l.tl ....1 (~)+'2 S ,.:.:., ~..~:)1 ~-<l B::.:.:: ""3'/.,43:1. _\,"'-;:'1"-'::' .i.D·;...:!.~.I ....' ....:l.6.:l.C)·;:' NES.GM = B.~1M = B.NN ER = 1980 Railbelt Study Current Study Difference Between Old and New Projections 48 r 'f.\:3 ;.:i~':;:: T'::;('::.:.~:,.;~: f~:;:::~0 \\f :;":"::;:~:: ~:::I~;r .~t~·T2~: !~,..![....1 •~,r .~.::~~;~t··~.~:{)~:'; ~:.::t.:\0 v :~~';(){:; "I",f "or:.':::::?~ ~:)/l.T"..'';...'...'" ..../..t.T ,c•••i.,.'.••'.f 0.48 NA NA NA -8.494 -1.091 --0.88 -3.809 -7.545 -0.317 -13.421 -10.517 -11.513 -11.813 -12.676 NA NA NA 183.519 175.175 168.926 196.237 128.328 :L33.803 200.98~' B.MM 192.117 146.209 157.451 238.311 217.922 50 164.996 124.253 125.534 .l62.082 135.625 170.017 142.297 152.975 HH -DEFINITION Number of Households (000) Table 11.1.(continued) 1994 .i998 1978 1986 -··"n~\~~)\)~} 1980 1982 :l993 199:1. :L999 :i.99cS :L9E~5 1979 1987 1981 1939 1984 1977 :[993 Table 11.2.Annual Average Growth Rates in Economic Projection Variables a (percent) Households Population Employment 1980 Railbelt Study 3.42 2.57 2.90 Current Study 3.48 2.64 2.70 aCalculated between 1980 and 2000. The moderate-moderate case is the only one which is directly comparable between the two studies.The other cases analyzed in detail in the 1980 Railbelt study were low and high economic growth, respectively,combined with moderate state government spending.In the current study,low and high economic growth cases are analyzed, but they are combined with low and high state government spending growth,respectively,to produce a wider "fan"of projection values. Nevertheless,the projection values in 2000 for the low-low and high- high cases in the old and current studies are available and are pre- sented in Table 11.3.The fan is consistently lower in newer projec- tions.The difference is quite small,however,and consistent across both cases primarily reflecting the downward revision of the initial model values for 1980. The regional allocation of statewide economic activity to the railbelt is practically identical between the old and the new projec- tions.A slightly larger proportion of the state's population is allocated to the railbelt in the new projection,but the variation in that proportion over time is consistent between the old and new studies. 51 Table 11.3.Comparison of Year 2000 Values for Former and Current Extreme Projection Cases (thousands) 1980 Railbelt Study Current 'Study Low-Low Scenario Table 11.4.Proportion of State Population in the Railbelt Table 11.4 indicates this by showing the proportion of the population allocated to the railbelt in the moderate-moderate case in each study. 884 497 324 565 275 204 71.70 71.25 Current Study 908 510 343 574 288 211 52 67.45 67.45 1980 Railbelt Study 2000 1980 Population Employment Households Population Employment Households High-High Scenario As a consequence of these two offsetting changes between the old and new studies--slightly lower statewide projections but slightly higher proportion allocated to the railbelt--the resultant economic projections for the railbelt are quite similar to those published in 1980.Table 11.5 compares the railbelt projection values for the moderate-moderate case.These numbers reflect a slightly larger initial proportion of economic activity allocated to the railbelt throughout the projection period in the new study.In addition,the differences in 1990 reflect the change in assumptions about the timing of large project activity. Table 11.5.Moderate-Moderate Case Economic Projections for the Railbelt (thousand) Population 1980 1990 2000 Employment 1980 1990 2000 1980 Railbelt Study 284.4 370.4 472.6 134.3 173.0 231.3 Current Study 285.3 398.0 483.7 138.5 200.1 237.8 II.B.New Initial Values The new projections start in 1980 (rather than in 1977)using actual values or close approximations of values for that year for all variables.These values are somewhat lower,particularly for popula- tion and households,than had been previously predicted.For example, the actual value from the 1980 Census is now used for population rather than the predicted value of 421 thousand.The value for house- holds for 1980 in the projections is still an estimate because the 53 1980 Census result for this variable is not yet available.Likewis~, final employment totals for 1980 have not yet been published,but estimates based upon data for the first three-quarters are possible and have been utilized. assumptions,this has resulted in the addition of new categories of expenditures as well as a higher initial base for future growth in expenditures. Table 11.6 provides a brief description,by project or sector of the economy,of input scenario assumption changes for the moderate- moderate case.Several projects have been delayed,most notably the Northwest Gas Pipeline,petroleum refinery,and the Pacific Alaska LNG II.C.Scenario Changes The input scenario assumptions describing both economic activity levels and state government activity levels have been completely revised and updated since the 1980 railbelt study.For the economic assumptions,this has resulted in the addition or deletion of specific projects,changes in the timing of particular projects,and changes in For the state government level of petroleum-related activity has Local-serving manufacturing employment is now assumed to The generalproject. increased. the employment requirements of projects. expand more rapidly.The base for calculating the growth of state government spending is higher. The result of these changes for the economic assumptions of the moderate case,as well as similar types of changes for the low and high cases are shown in Table 11.7.Exogenous employment projections are higher in the current study than in the 1980 railbelt study. Comparisons of employment in agriculture-forestry-fisheries and in manufacturing cannot be made due to differences in model structure between the two studies. 54 Table 11.6.Description of Revised Scenario Assumptions for the Moderate-Moderate Case Project or Sector 1981 Study 1.Trans-Alaska Pipeline 2.Northwest Gas Pipeline 3.Prudhoe Bay Petroleum Production 4.Upper Cook Inlet Petroleum Production 5.Development of National Petroleum Reserve Alaska 6.Outer Continental Shelf Petroleum Production 7.Petroleum Refinery 8.Pacific Alaska LNG Project 9.Beluga Coal Production 10.Other Mining 55 No Change Delayed to become operational in 1987 Across-the-board increase in activity beginning in 1981 No change Leasing begins in 1982 with eventual discovery and development of 5 commercial fields representing 1.85 billion barrels of oil and 3.73 billion cubic feet of gas About 6.7 billion barrels of recoverable oil and 16.4 trillion cubic feet of gas are discovered and developed from the following lease areas (year of initial lease): Beaufort 1 (1979) Cook Inlet (1981) Beaufort 2 (1983) Navarin Basin 1 (1984) Chukchi 1 (1985) Chukchi 2 (1989) 100,000 barrels per day refinery (reduced from 150,000)con- structed between 1983 and 1985 (delayed one year) Delayed one year Development begins in 1985,and production eventually reaches 4.4 million tons per year Other mining employment grows at 1%annually Table 11.6.(continued) Project or Sector 1981 Study 11.Agriculture No change 12.Fisheries/Food Processing No change 13.Forestry/Lumber and Pulp No change and Paper Manufacture 14.Other Manufacturing Employment grows to equal 2% of total employment 15.Federal Government No change 16.Tourism Tourism employment grows at 4%annually 17.State Government Growth in real per capita expen- ditures at same rates as real per capita income based upon higher FY 1982 budget. 56 Table 1I.7.Comparison of Old and New Exogenous Employment Assumptions Low Case LES.b!-i EMGF EeDNX ErIP9 ErlT9X t.<•I.L :1',77 42.f.l3:1 ~).3 ·4.6 1"..., GiGF [eDNX EMF'9 EMT9X 1978 ·42.B::~5 o•:5.~)62 1 •~.:; 1979 43.0.09 4.827 1 •~:) j ~f'HI)41.320 0.09 6.377 1.53;3 19BO 43.2 ()•0<1 ~).075 .1.•~; 17fJ.1 41.4111 O.4(H 7.11~'j :I.•~;(;9 :l9B1 43.4 O.~.~9 ~;.it,;3 1.5 I..:?;.:;:")41.308 1 •()1 'I 7.~3~.)B 1.6 1982 43.6 ;!.n8~j 7.322 1 •~:; Inu '11,:')',9 1,763 7.441 1 •~;B8 1983 43.7 7.823 8.0'7'6 1 •~J I.(r'U4 4:1..6'/3.:l.i,9 6.461 1 •~:j ~~:j :I.',a4 43.B 7.038 7.6.24 1.~; .I.qi-J'~;4J./13:'.:?JlJ~:.~b.b??1 •~.:;,4 :I 98~;43.":1.563 5.13·1 1 •~.~ I.~'bD 41.U74 1.1.•()~'.;(;'6.',4',:1..546 1906 '14.o •5.097 1 •'7 V1 I -:,.'d?41.967 l)•~:j~):i 7.070 1 •66~_:;:l9f.17 ·14 .1 o •5.073 :1.7 --.J I ';'HH 42.06 :1.30:1 7.34 1.6:";8 1 ',OB "l"'l •2 ().5.034 1.7 I \.H'T'4?:I.~::.i4 O.bO 7.::.~?:'!l.b::.!'?198',44.3 o •"1.2~:;1."7 /~,.\j -4 :'.~•:.!"1 n 0.664 7.307 1.619 1990 +4.4 O.~).OI1 :1.7 q(;,.I.4::'.343 ().~:j64 7.:~43 1.619 1991 "1"1 •~.)O.4.',',1."I' ':~':.,..)42.4:5f:l 0.61.1.7.::'1:,9 J.619 1'7'92 '1'1.6 O."I.(,6r.;1.7,,. '/':7''j <I ;.:.~:j3·1 {).~::j27 7.~'32 1.6:L "1'193 44.7 O.'1.'7'49 :1.7 '.';"/4 4:·,~.bJ ().26,,1 7.34 1.619 1 '7",4 44.8 O.4.9~11:l 1.7 ';':',':'.j -4 ::::•):'~6 o ..1'n 1.31:lB 1.<'>19 1 ',9:')44."O.'1.908 1.7 ,/1;/(-,4~.~.n;·'3 O.OH4 7.34:1.1.619 J °196 4~:;•o.4.BBn 1../ ':,'9 ?,,)2.(l::.::1 ().:I.3::~/.30/1.619 1 ',97 "1 ~:;• 1 O.4.1:l6fl .L.? ';"?O 4:':>•()1.S'O •.1.:-i:~7.203 :L.619 l',9B 4:::;.:2 o.4.8·lfl i./' .I '/'1'1 4:·',.1:1 7 O.O~)"7.21:l1 1.619 1999 45.3 O.4.8:'9 1.? ~"~dOO 43.216 o •0 lFJ 7.278 1.619 2000 "1~)• 4 O.4.81 1.7 B.LL =New Scenario EMGF =Federal Government Employment ECONX =Exogenous Construction Employment LES.GM =Old Scenario EMP9 =Mining Employment EMT9X =Exogenous Transportation Employment =,_'W~~'"&LL .&-T~_!!ttR~,.~'AI'ti~,:~~:;:::;:;:;;;;;;~3 _",,~..__b~£"'gf!-4""",q;;:;;;;;¥z:a1i4f#!C·-'~--.c-'~T _~?E'''!''_'''",,"_ Table II.7.(continued) Moderate Case dEG.Gi1 EI-!GF ECONX I:t-lf'9 [hl'/X F'•111-1 :I.(jl//42.B31 ~'j •:1 II.(,1 ...• EHrJF FCDNX Ertf'9 EP1T'1X I'?/B "12.025 O.~.j.~:"Jb2 .1.:.", 1';'/9 43.(i.,)9 4.f:':·.~/1 •~.ii.~J'no 4:1 •;',;'B ().()9 I,.-lOB 1.:J33 1';00 ,\3.~,O.O'l ~..; • 1 ~3 '}1.•~:j I"HI ·11.·1 J n 1.()i;'2 7.112 1.~j't9 1 'iB:1 '13.-1 0.714 ~·i.317 L .:; ":"'H,..:O ..1.1.•~JOH .I.•b::.~6 /.34 1.6 1 '7'U:!43.6 4.33~~'j 7.713 J ..~~j :.)~..., I';"';:;41.~.j9(;3.:5(~)6 /.632 1.641 l'i'B3 43./9.BB9 8.477 .I..:',,36 I "\'·1 -1 J •{,':;:'j.432 (.~.92 1..6';2 19B4 43.B 9.JB3 B.(Jed.1 •~.'jb j':;'U:",ItJ •/H2 l~).Bl~:.:j 7.T76 J.(/BB 19B:".:;43.,;.2.35:3 ~).423 L•~'j ~"'7 I iT'~jn 4.1 •H"I'~l :l.3.0:j6 "7.60::.:;I.B69 :I.C,\8b 44.J.027 ~).'77 '1 ::_~•J H:-.' I 'ffl.'4.1.i".,,\{,/,H.~:.}a 7.744 2.0'13 :I'1Bi'44 •.1.1.13'1 b.3,~')6 :'.:.3.1.8 .I."HH 4::.~.0,:')::>.;:'10 7.73 2.2 1 '?flU 44.2 J.•.I.38 6.6::.}~~;l.31U1I',iN 4:.'.1.;j·l J.2~:.)(?n.:1.::.~2 2.331 190'1 '14.:3 I.OG::>6.747 :~.3'l<,00 I ';",'(l 4 ::.:•;.~~4 n 3.329 B.n~::;6 2.t)b '14.4 0.4fl:!6.~',37 ;>.3311'7''tO1'?'i I .o1.:.?•~':)A~.:)3.4'1 .L O.O;'j 2.'137 1991 44.~5 1.90';6.~'j:":)B 2.?:.·j9.I.(.:ril'.....'42.4~;)n ::!•.669 :l.O.4tl7 2.761 19';>2 44.6 ).~'.):1.9 6.f:j'19 :'.~•~..j·1 qI.C/'/,:)~12.~:.:j34 1.906 :l.O.il.1.:!.n :1.9'7'3 4-1.7 2.70:L 7.;·:61 2.62.LI"'j'·1 42.6:.~::'.47:3 :l.O.fl::'::'2.7:~~2 1 '1'7'4 ,14 .U 1.0U·1 B.Oflc;'2.b6GI.(~.'')~',';~12./21.2.31:3 .L 1 .O:"ifl 2.72?.199~j 44.9 O.~5()l 8.1~j 1.2./'O::'=;I.?(/t;4:·~.n23 2.19:~:;1:1..431 2.722 1.9'7'6 45.o.2~)2 8.2'19 2.B76 L'1'i''"il~?.(")2.1.2 ....1~:;7 11.7:34 2.7:~2 19'17 45.:1.0.152 8.16:J 2.716 :i ~;:'f'U 43.019 I.•;~:;9:.?12.0;"j 2./'22 1998 4~.:.).2 ().305 8.007 2.662 .l.?q?43.117 1 ,::.~c;~.)12.426 2.7:~2 1 C;'(,',4~j.:3 ()•'I 8.0·1::'2.~"j'~·'b ...?OOO 43.216 1.472 12.4~j'1 2."l2::.~2000 4~j.4 ().~)~1::;8.()~.)4 2.:~'7] B.MM MES.GM New Scenario Old Scenario EMGF = ECONX = EMP9 EMT9X Federal Government Employment Exogenous Construction Employment Mining Employment Exogenous Transportation Employment Table 11.7.(continued) High Case HES.CiM EMGF ECONX EtiF'9 ElH9Xf..HII 1't'77 42.B3:l ~:.)•3 "'1.6 J......, FiliiI'LCONX [1'11"9 EhT'IX 1 'iii:!42.825 o.::).~)b2 1..:::j J 9'79 43.O.or,.4.827 1.•~jI.'Y';.:);,,}<H .4l7 O.J 6.~.J99 J.•~)33 :l900 "13.2 0.24 5.163 1 •~.:; t ?H"l .ill •~:'j '?D ()•~:,.I./'.2l~:·j J.•~;34 J'il'll.43.4 O.7fl9 5.:564 1.JI.',;),"'41./l'll .I.•~::j,4 7.423 :l •:',';6'1 1 ?E~2 43.6 3.?6 7.7B4 1.•:j2~jIi,'H,,)41,.96:";4.30:'\7.701 J..6::i9 19B3 4:'~.B 1 J..213';'8,69:.,1 •:~jH2 I ','H·1 42 •.I.~·.12 7.:1 4 7.06',1.7:1.7 19E4 43.9 14.480 8.-II.1.644I.C:.j:,,,-1:'.:\-1 :l4.7:,'7 )'.?/':r J.904 "I.s'n:':;44.J.0.963 6.O~i 1 1 •8~.)~jI.7'f;>u 42 t ::."j3 ::'J .477 B.B43 2.417 :l'iB6 44.3 8.372 6.~j99 2.481l.{j'G/4:~.722 :l4.844 ',.929 2.93'1 1.<?n/44.5 ~5.4~j8 7.2~j9 2.~):~'i8I':;.'\:::H 42.S':l6 n.31:13 12.3',3.l'l3l'l .I "'GB -44.7 2.933 7.<"99 2.c;.'~~9(J1 '13,1:1 ;:::6.224 :I.:'~.624 4.3134 19B9 4·1.'T'2.749 8.40J :'.!.6621.0 I.(.r"Li,' I ~~.':j"(i 4:".3:l :,;•I.J :l6.0f'::l 4.~jl.)(f 1 'NG 4~;.:L :.1.SB-l 9.8G~:)2.744 I 'i \'1 "1 j •~:';1 4.743 16.777 4.B26 19';>:[4:'\.3 6.293 /0.601 2.972I','q::,43.71::>6.707 16.B7B 4.722 1992 45.5 6.701 l:L •:'61 3.291Ir,'(;j":')43.'i,I,6 4.',16 1.'7.::;J.6 4.0'12 19'13 4:';.8 6.21'9 1:l.91l 3.397I.(":,:;".)44.1 ::':!3.(;'Hb :1.',1.~.)35 ~\.16:'~:l994 46.4.1.58 12.?49 3.?22JI,'~/:'.1 ·1 <j.::\3 ~;.103 20.:L ~;.O44 .I.9(1:j 46.::>':5 .193 :l3.::'<13 3.776I.?i/6 44.:,\4 3.',93 20.726 ~;.09 19'j!(j 46.4 ,3.436 13.1'108 :3.90 J1'1'/.7 44.?~:,2 ::'.681 2:'~.027 ~j.09 1997 46.6 :3.:/0:l 13.966 3.9B6l'in1 44,'16(:):!.067 22.1 13 ~:i,09 1998 46.8 2.66 :l4.::~~'i9 3.'f:l.3[9';\9 "l~:j f .lfJ3 0.0:'\4 23.05 ~j.0'1 1 ',','I 47.0.714 14.6~.':3.796:'O')()4:";.40:/:/.34::\22.8(/4 5.09 2000 47.3 0.798 :l4.639 3.7~\1 B.HH =New Scenario EMGF =Federal Government Employment ECONX =Exogenous Construction Employment HES.GM =Old Scenario EMP9 =Mining Employment EMT9X =Exogenous Transportation Employment II.D.Model Changes A large number of changes to the structure of the MAP econometric model and the regionalization procedure have been incorporated into this study.These changes are designed to improve the ability of the models to describe the economy and its response to change.The changes are described briefly in this section,and then the effect of the changes is assessed. Stochastic equations.All of the stochastic equations in the economic component of the model as well as a majority of the equations in the other model components have been reestimated incorporating data for 1978 and 1979.These new equations,the resulting coefficients, and the accompanying statistics are presented in an appendix to this report. In general,the relationships represented by the equations proved to be relatively stable with the addition of two new data points covering the post-Alyeska pipeline "soft"years of the Alaskan economy. The major exception to this is in the set of equations which deter- mines wage rates by industry. What has happened is that for the first time,a time series is available covering all phases of the maj or economic event of the 1970s--Alyeska pipeline construction.Thus,we can now more accurately assign explanatory power for wage rates between direct pipeline construction activity and other activity within the economy. The new results reflect an increase in the proportion of the annual change in the real wage rate explained by direct pipeline construction activity.The implication of this is that the long-run general respon- siveness of real wage rates as reflected by the model is somewhat reduced.This leads to a reduction in projection results when other factors are held constant.This change is analyzed in more detail in an appendix to this study. 60 In addition to adding two data points to most stochastic equa- tions,the specification of some equations has been changed.These specification changes are designed to better represent the relation- ship between the independent variables and the dependent variable. Tourism.The tourism industry is now explicitly identified within the model,whereas it was previously only implicit.Implicit treatment of the industry did not introduce major problems in model projections as long as tourism was projected to grow at about the same rate as the overall economy. The primary reason for not explicitly treating the tourism indus- try has been a lack of any reliable employment or output data for the industry in time series form.This is because tourism is a component of several industries,primarily transportation,services,and trade, but the proportion of each of these industries which supports tourism actively is difficult to separate out from other demands for industry output. It is important to treat tourism explicitly in two instances. First,for impact analysis,the implicit treatment of tourism results in an overestimate of the economic impact of projects and policies since some of the calculated impact is really a change in tourism activity.Second,when projection scenarios require different assump- tions about the growth of the tourism industry which is one of the basic sectors of the economy,it is necessary to treat tourism explici tly. Tourism is explicitly treated in the current version of the model by netting out a portion of activity in the transportation,services, and trade industries and reassigning that activity to tourism.This tourism activity is a function of the number of tourists who visit the state.The analysis underlying this model change is described in detail in a working paper prepared for the Alaskan Outer Continental Shelf Office of the Bureau of Land Management,entitled Improvements to Specification of the MAP Model (November 1981). 61 Fisheries.In the past,data on the number of Alaskan fishermen has not been available in a form comparable to employment data for other industries.A comparable time series for Alaskan fishermen has recently been compiled by George Rogers and published in Measuring the Socioeconomic Impacts of Alaska's Fisheries (ISER,1980). The previous method of dealing with the fishing industry was to treat it primarily as a component of proprietary employment with a small portion as wage and salary employment in the agriculture- forestry-fishery sector.Since proprietary employment is a function of total employment,the fishing industry generally grew at the same rate as the overall economy. Now economic activity in the fishing industry is independent of other proprietary income or employment.It is specified as a part of the economic scenario and is added to nonfishery proprieLary employ- ment to yield total proprietary employment.The analysis underlying this change is described in detail in the working paper Improvements to Specification of the MAP Model. Manufacturing.Previously,manufacturing was treated exogenously as a single industry.Employment and output were specified in the economic scenarios.In recognition of the fact that there is a small but identifiable local-serving component of the manufacturing industry wi thin the state,manufacturing is now divided into exogenous and local-serving components. The local-serving component of manufacturing is now a function of overall local Alaskan demand.The exogenous component of manufactur- ing is also divided into two parts.One part,cons isting of all current exogenous manufacturing in lumber,pulp and paper,and food processing,is defined as regular-wage manufacturing.The other part is defined as premium-wage manufacturing and is des igned to accom- modate manufacturing employment additions at substantially higher wage rates than the current industry average.Examples of such industries would be petrochemicals or large-scale petroleum refining. 62 Construction.The construction industry has always been sepa- rated into exogenous and local-serving components.Furthermore, exogenous construction is of two types.The first involves premium- wage,remote-site,enclave-type employment,while the latter involves employment at the normal construction wage in urbanized parts of the economy. In addition to earning different annual average wage rates due to special skill differences as well as hours worked,the two types of exogenous construction employment have different effects on the economy in other ways.Specifically,the disposable income associated with premium wage construction employment has a different effect on aggregate demand than other sources of income. In past versions of the model,exogenous construction employment has also had a positive effect on real wage rates,reflecting the fact that this employment was associated with labor market tightness.In the current version of the model,only premium-wage construction employment has this effect.It is assumed that regular-wage exogenous construction employment by itself does not directly affect the lever of real wages in other industries. State Expenditures.In this analysis,as in the 1980 Railbelt Study,state government expenditures are programmed to grow in a way which reflects different elasticities of real per capita expenditures to real per capita income.In the previous version of the model,the definition of real per capita income included all income and all population.As a result,during periods of substantial high-wage, temporary construction employment which would increase the level of real per capita personl income substantially above the long-term trend,state government expenditures would rise rapidly and essen- tially ratchet upward. This result does not appear consistent with the historical pat- tern of growth of state expenditures which appears to follow a trend 63 more closely and to ratchet upward when state revenues increase at an unexpectedly rapid rate.Consequently,in the current version of the model,the definition of real personal income used to drive growth of government spending excludes premium wage enclave-type construction- related income.This is consistent with the idea that a portion of that income and population are only in the state temporarily. Household Formation.The household formation model has been recalibrated based upon recent national trends and fragmentary non- census data for Alaska.Data from the 1980 Census with which to do a full recalibration is not yet available.The changes made and current model structure are described in an appendix to this report. The Components of State Government Spending.Since the formula- tion of the model to do the projections for the 1980 Railbelt Study, state government spending has expanded much more rapidly than had previously been anticipated.The growth in government employment, however,has not kept pace.Rather,what has happened is that a large portion of the additional expenditures has gone into new or expanded programs which do not require a lot of labor.These include transfers to individuals,expanded tax assistance programs for local government, subsidies for certain activities like home purchase,special capital project funds,and wage increases for employees. These structural changes are reflected in the current version of the model.The specific assumptions surrounding these new programs are described in more detail in the appendix in which the economic and policy scenario assumptions are discussed. Effect of Model Changes.It has not been possible to compare the model version used in the 1980 Railbelt Study with the current version of the model used in this study.This is because -changes in the structure of the model make it impossible to use exactly the same economic and policy scenario assumptions in each model.For example, in the old version of the model,tourism and fisheries employment were 64 not specified while in the new version of the model,they are exogen- ously determined ..On the other hand,manufacturing employment now has a local-serving component while previously it was all exogenous.It is particularly difficult to force comparability between the two models in the state government sector. Nevertheless,some exploratory testing was done to compare the two models by running both with the same input scenario as much as possible.The newer version of the model results in substantially lower projection values than the older version of the model.If we look at employment,it appears that about half of the difference is the result of differences in starting values (1980)and different levels of government spending.The rest of the difference apparently is due to the new coefficient values in the wage rate equations. 65 III.Summary of Appendix Material The appendixes to this report are technical documents which will only interest the specialist.They describe various model elements and studies of the structure of particular model elements in an effort to document as completely as possible the work done under this project. Brief summaries of each appendix follow. III.A.Economic and Policy Scenarios for Railbelt Electric Power Study All the assumptions about economic activity and state government spending behavior used in the proj ections are laid out in detail. III.B.Assumptions Used to Calculate OCS Employment Development of petroleum resources of the Outer Continental Shelf is an important element of the development scenarios.This paper describes in detail how the assumptions about discoveries are con- verted into assumptions about employment which can be used to project economic activity. III.C.Description of the Household Formation Model The household formation model was revised for this study.The parameter values were adjusted to reflect the trend toward smaller average household size observed since 1970.The assumptions used to project a continuing decline in average household size in future years are presented and defended. III.D.MAP Model Wage Rate Specification The form of the equations used to determine the wage rates in the MAP model is described.Historical patterns of wage rate movements in Alaska and the United States are reviewed to support the form of the equations chosen.The results of several simulation tasks are pre- sented which test the sensitivity of the projection results to changes in coefficient values and projected national trends.The projections 67 r are insensitive to coefficient variation but exhibit sensitivity to the projected growth rate in the real wage in the United States. III.E.MAP Model Migration Specification The method used in the MAP model to project migration is described.Test results are presented which indicate the stability of the projections to this formulation.Simulation test results are presented which test the sensitivity of projection results to changes in coefficient values and projected national trends.The model is not sensitive to the projected growth rate of real per capita income in the United States.It is sensitive to a change in the coefficient of the migration equation determining the migration response to a change of employment in Alaska.The projection results in such a test are not reasonable,however,because the proportion of the total popula- tion employed rises too high (reduction in coefficient value)or falls too low (increase in coefficient value). III.F.Regionalization Model A new method was developed for allocating statewide economic activity to the railbelt-for this study.It is based upon a sound theoretical framework which reflects the idea that railbelt economic growth is determined not only by activity occurring within the rail- belt but also by activity which occurs outside the railbelt.This is because the railbelt forms the economic support center for the entire state. III.G.Stochastic Equation Estimation Results Most equations of the MAP model using coefficients which are statistically estimated have been re-estimated incorporating data from the most recent years.The statistics for these equations are pre- sented in this final appendix. 68 r 7 xarrlS H3MOd JIHIJ~1~I1~a1IVH HOd SOIHVN~JS XJI10d aNV JIWONOJ~ Contents I.Introduction II.The Economic Assumptions A-l A-2 A. B. Overview . Special Project Assumptions. A-2 A-3 l. 2. 3. 4. 5. 6. 7. 8. 9. 10. ll. 12. 13. 14. Trans-Alaska Pipeline . Alaska Natural Gas Transportation System Prudhoe Bay Petroleum Production Upper Cook Inlet Petroleum Production. Development of the National Petroleum Reserve in Alaska Outer Continental Shelf Development Alaska Oil Company Refinery (Formerly ALPETCO). Pacific Alaska LNG . Petrochemical Development. Beluga-Chuitna Coal Production U.S.Borax Mining Development Aluminum Smelting Synthetic Fuels Development State Capital Move A-6 A-9 A-12 A-15 A-18 A-24 A-40 A-43 A-46 A-51 A-56 A-59 A-62 A-65 C.Industry Assumptions .A-68 l. 2. 3. 4. 5. 6. 7. Other Mining Activity Agriculture Fisheries/Food Processing. Forestry/Lumber,Pulp and Paper Manufacturing Other Manufacturing. Federal Government Tourism. A-68 A-75 A-82 A-89 A-94 A-95 A-102 D.Summary A-102 III.The Fiscal Policy Assumptions A-113 1I I I I.Introduction The forecasting of future economic activity requires the use of a methodology which adequately captures the inherent uncertainty char- acteristic of events and policies critical to the shaping of such future development.The approach used in this study involves con- struction of a set of scenarios,each consisting of a consistent set of explicit assumptions concerning the variables treated as exogenous by the forecasting model.Collectively,these scenarios span what we consider to be a plausible range of future development patterns, although no single scenario is to be interpreted as a best guess of such development.This report describes in detail the scenarios to be utilized in the study. Each scenario combines two general categories of assumptions-- those concerned with the level of employment in the sectors of the Alaskan economy treated as exogenous by the MAP model and those con- cerned with policy choices which will be made by state government. These two categories of assumptions,which will be described as "economic"assumptions and policy assumptions,are described fully in the following two sections. A-I II.The Economic Assumptions A.OVERVIEW Five sets of economic assumptions were developed.The first three sets of assumptions correspond to a range of economic activity whose occurrence depends largely on factors other than the avail- ability of Susitna hydropower.These three scenarios--the high, moderate,and low cases--are updated versions of the three economic scenarios presented by the Institute of Social and Economic Research (ISER)to the State of Alaska House Power Alternatives Study Committee (see Goldsmith and Huskey,1980)in May of 1980.The fourth scenario, which will be called the industrialization scenario,consists of the addition of several major industrial projects in the railbelt region, at least several of which may be contingent on the availability of low-cost hydropower. A fifth scenario,which will be called the "extreme"high case, consists of all activities in the basic high-growth case as well as those included in the industrialization scenario and,consequently, may be interpreted as a somewhat extreme upper bound on activity likely to occur during the forecast period. These scenarios consist of two general types of assumptions-- those concerned with employment generated by specific projects affect- ing several industries simultaneously and those concerning the development of several exogenous industries in the Alaskan economy. Part B proceeds to describe the special project assumptions.Part C then turns to the industry-wide assumptions. B.SPECIAL PROJECT ASSUMPTIONS Widely differing special projects with major implications for future Alaskan development have been proposed by a variety of federal and state agencies and private developers.Each project generates direct employment in one or more of the sectors of the Alaskan economy A-2 i i I I treated as exogenous by the MAP forecasting model.These sectors are manufacturing,mining,and parts of the construction and transporta- tion sectors.This section examines the direct employment generated by each of the maj or proj ects either currently in operation or pro- posed,the sectoral composition of such employment,and its location in the state. Each of the tables prefixed by "s"on the following pages pre- sents a breakdown of statewide exogenous employment by sector,as shown in Table 1.Each table prefixed by an "R"presents the loca- tiona 1 breakdown of such exogenous employment by region,with the regions given in Figure 1 and Table 2.Generally,the regions cor- respond to census divisions,with two exceptions.Region ~6 corres- ponds to a combination of the Bristol Bay and Bristol Bay Borough Census Divisions,and Region 11 corresponds to the eight census divisions of Southeast Alaska. TABLE 1. Code EMP9 ECONXI ECONX2 EMMXl EMMX2 EMT9X EMA9 EMPROF EMGF EMPLOYMENT SECTOR CODES Sector Mining High Wage Construction Average Wage Construction High Wage Manufacturing Average Wage Manufacturing Transportation Agriculture and Forestry Employment Fish Harvesting Federal Government A-3 (\\) -- Centr.,1 cities of SMSA's with fewer thana50,000 inh<lbit.,n:~ Fcirb<lnks (¢f::J) FIGURE 1 Census Divisions ~Sl<lnd<lrd Metropolitan St<lti51ic.,1 Arc."(SMSA's) 0Southe<lSl F.,irb<lnk,(1.4) ~:::i;;1~cordOV"'~~~~Y(~)_~-H"ine~- --..>\\<.~~)~Juneau\\S~U',~~.,.._Angoon I Skagwa,.6 \c f \ \Valdez·Y't t ~...Bmlol Bay .r . ,a~u a '(;;--:>!~.r:~CMI~'"(1.<O~\\~~;f~"') '(/.'f<>.......r\~. .Whllller I Silk.,~,)t'~':l<;t~"\~'O{jU!:AfJ AnC;lor<lge (CS'Z.)•~".~\:~t\'"./I l~\:~Bristol Bay BOt(lu~h \Seward (1.,)~\' Kenai.Cook '"le:(It.)»Prince of Wales _- ----- - -KelChik<ln •~4~':Odiak L~Aleutian hlands (parI)I~_Outer Ketchj':an (.IS)~(qi,).e:.tJ Co --- •11 ~o 0 'l:/.tJd>--~ ~.. I" '1 A:c'J';an I.sland~(part) (01)~<J,Ci..., o or:'..r?~ CI ~ I ·1> .1 p;.,......,_.~~_.."._--- -, TABLE 2.REGIONAL IDENTIFIERS Code Region ~1 ~2 ~4 ~S ~6 ~8 ~9 11 Aleutian Islands CD Anchorage CD Barrow/North Slope CD Bethel CD Bristol Bay,includes: Cordova/McCarthy CD Fairbanks CD Southeast,includes: Bristol Bay CD Bristol Bay Borough CD Angoon CD Haines CD Juneau CD Ketchikan CD Outer Ketchikan CD Prince of Wales CD Sitka CD Skagway-Yakutat CD Wrangell-Petersburg CD 12 Kenai/Cook Inlet CD 14 Kobuk CD 15 Kodiak CD 16 Kuskokwim CD 17 Matanuska/Susitna CD 18 Nome CD 21 Seward CD 24 Southeast Fairbanks CD 25 Upper Yukon CD 26 Valdez/Chitina/Whittier CD 27 Wade Hampton CD 29 Yukon/Koyukuk CD A-S p--------------------r 1.Trans-Alaska Pipeline (Alyeska) Trans-Alaska Pipeline Service (TAPS)employment through 1977 included only the exogenous construction employment engaged in the initial construction of the pipeline.After completion in 1977, employment has been of two types.First,there is additional con- struction of four pump stations (see Oil and Gas Journal,2/25/80,p. 72),and second,there is exogenous transportation sector employment associated with operation of the line.These employment schedules are given in Tables S-l and R-l and are common to all five economic scenarios. A-6 TABLE S-l.STATEWIDE EMPLOYMENT BY SECTOR TAPS PROJECT -ALL CASES - TAP.XXX ECONX1 EMT9X MTOT 1980 0.09 1.5 1.59 1981 0.09 1.5 1.59 1982 0.09 1.5 1.59 1983 O.1.5 1.5 1984 O.1.5 1.5 1985 O.1.5 1.5 1986 O.1.5 1.5 1987 O.1.5 1.5 1988 O.1.5 1.5 1989 O.1.5 1.5 1990 O.1.5 1.5 1991 O.1.5 1.5 1992 O.1.5 1.5 1993 O.1.5 1.5 1994 O.1.5 1.5 1995 O.1.5 1.5 1996 O.1.5 1.5 1997 O.1.5 1.5 1998 O.1.5 1.5 1999 O.1.5 1.5 2000 O.1.5 1.5 SOURCE:Construction estimate based on assumed installation of four pump stations adding capacity of .15 mmbd each,from Beaufort OCS Development Scenarios,Dames and Moore,1978. Operations employment from Alaska Economic Trends,Alaska Dept. of Labor,October 1978. A-7 ----------------------............ TABLE R-l.REGIONAL DISTRIBUTION OF EMPLOYMENT TAPS PROJECT -ALL CASES - TAP.XXX 604 B09 624 B26 B29 MTOTR 1980 0.474 0.169 0.079 0.316 0.552 1.59 1981 0.474 0.079 0.079 0.316 0.642 1.59 1982 0.474 0.079 0.079 0.406 0.552 1.59 1983 0.474 0.079 0.079 0.316 0.552 1.5 1984 0.474 0.079 0.079 0.316 0.552 1.5 1985 0.474 0.079 0.079 0.316 0.552 1.5 1986 0.474 0.079 0.079 0.316 0.552 1.5 1987 0.47-4 0.079 0.079 0.316 0.552 1.5 1988 0.474 0.079 0.079 0.316 0.552 1.5 1989 0.474 0.079 0.079 0.316 0.552 1.5 1990 0.474 0.079 0.079 0.316 0.552 1.5 1991 0.474 0.079 0.079 0.316 0.552 1.5 1992 0.474 0.079 0.079 0.316 0.552 1.5 1993 0.474 0.079 0.079 0.316 0.552 1.5 1994 0.474 0.079 0.079 0.316 0.552 1.5 1995 0.474 0.079 0.079 0.316 0.552 1.5 1996 0.474 0.079 0.079 0.316 0.552 1.5 1997 0.474 0.079 0.079 0.316 0.552 1.5 1998 0.474 0.079 0.079 0.316 0.552 1.5 1999 0.474 0.079 0.079 0.316 0.552 1.5 2000 0.474 0.079 0.079 0.316 0.552 1.5 A-8 2.Alaska Natural Gas Transportation System In December 1980,the Northwest Alaskan Pipeline Company received rights of way for the Alaskan portion of a 4,800-mile pipeline to transport natural gas from Prudhoe Bay to the United States West Coast and Midwest (see Oil and Gas Journal,12/8/80,p.50).Construction of the 741-mile Alaskan portion of the line and an accompanying gas conditioning plant on the North Slope is expected to get underway in 1981 and to be operational by 1987.Construction employment is expected to peak at 10,589 in 1986,falling to a long-term employment of 319 persons in transportation and petroleum sector employment,as shown in Tables S-2 and R-2.These assumptions are common to all five economic scenarios. A-9 Table S-2.Statewide Employment By Sector Alaska Natural Gas Transportation System -All Cases - NWG.MG1 EMP9 ECONX1 EMT9X MTOT 1980 O.O.O.O. 1981 O.0.217 O.0.217 1982 O.0.217 O.0.217 1983 O.0.563 O.0.563 1984 O.2.435 O.2.435 1985 O.7.103 O.7.103 1986 0.16 10.589 O.10.749 1987 0.2 6.074 0.119 6.393 1988 0.2 0.468 0.119 0.787 1989 0.2 O.0.119 0.319 1990 0.2 O.0.119 0.319 1991 0.2 O.0.119 0.319 1992 0.2 O.0.119 0.319 1993 0.2 O.O.119 0.319 1994 0.2 O.0.119 0.319 1995 0.2 O.O.119 0.319 1996 0.2 O.O.119 0.319 1997 0.2 O.0.119 0.319 1998 0.2 O.0.119 0.319 1999 0.2 O.0.119 0.319 2000 0.2 O.0.119 0.319 SOURCE:~1.Nogford and S.Goldsmith,"The Relationship Between the Alaska Natural Gas Pipeline and State and Local Government Expenditures,"Institute of Social and Economic Research, 1980. A-10 t Table R-2.Regional Distribution of Employment Alaska Natural Gas Transportation System -All Cases - NWG.MG1 B04 B09 B24 B25 MTOTR 1980 O.O.o.O.O. 1981 0.046 0.069 0.037 0.065 0.217 1982 0.046 0.069 0.037 0.065 0.217 1983 0.209 0.225 0.047 0.082 0.563 1984 0.787 0.741 0.33 0.577 2.435 1985 2.207 1.637 1.185 2.074 7.103 1986 2.997 2.062 2.069 3.621 10.749 1987 1.663 1.491 1.191 2.048 6.393 1988 0.331 0.145 0.126 0.185 0.787 1989 0.228 0.008 0.043 0.04 0.319 1990 0.228 0.008 0.043 0.04 0.319 1991 0.228 0.008 0.043 0.04 0.319 1992 0.228 0.008 0.043 0.04 0.319 1993 0.228 0.008 0.043 0.04 0.319 1994 0.228 0.008 0.043 0.04 0.319 1995 0.228 0.008 0.043 0.04 0.319 1996 0.228 0.008 0.043 0.04 0.319 1997 0.228 0.008 0.043 0.04 0.319 1998 0.228 0.008 0.043 0.04 0.319 1999 0.228 0.008 0.043 0.04 0.319 2000 0.228 0.008 0.043 0.04 0.319 A-ll 3.Prudhoe Bay Petroleum Production Prudhoe Bay developments include employment associated with primary recovery operations from the Sadlerochit formation,secondary recovery (using water flooding)of that formation,new developments of the Kuparuk formation west of Prudhoe Bay,and the permanent work force of Atlantic Richfield Company (ARCO)and British Petroleum (BP) at the main Prudhoe base headquarters,and a variety of exploration efforts outside of the Sadlerochit and Kuparuk areas.The key assump- tions serving as the basis for the employment forecasts are the following: •Seven rigs (4 Sohio,3 ARCO)continue development drilling at a rate of 14 wells per year per rig through 1983 (based on estimated activity in Oil and Gas Journal,2/25/80,p. 88). •The proposed Prudhoe water flooding project begins in 1981 and is completed by 1985,adding approximately 1 billion barrels of recoverable reserves to Prudhoe.Construction employment peaks at over 1,000 in 1983,and operations employment adds 300 to the permanent Prudhoe work force (Corps of Engineers,1980). •The Kuparuk formation west of Prudhoe is developed.Produc- tion at a rate of 60,000 bbls.per day begins in 1982, rising to 120,000 bbls.per day by 1984 (Oil and Gas Journal, 4/2/79). •Permanent ARCO and BP employment on the North Slope rises from 1,000 in 1977 to 1,667 in 1983,remaining constant thereafter (based on Prudhoe Bay Case Study,OCS Program Technical Report No.4). •Ten additional rigs are active in exploration and develop- ment outside of the Sadlerochit and Kuparuk areas. The resulting employment forecast for Prudhoe Bay,which again is common to all economic scenarios,is presented in Tables S-3 and R-3. A-12 ......_- Table S-3.Statewide Employment By Sector Prudhoe Bay Petroleum Production -All Cases - PRB.081 EMP9 ECONX2 MTOT 1980 2.369 O.2.369 1981 2.907 0.035 2.942 1982 3.018 0.491 3.509 1983 3.129 1.065 4.194 1984 2.202 0.484 2.686 1985 2.502 0.05 2.552 1986 2.502 O.2.502 1987 2.502 O.2.502 1988 2.502 O.2.502 1989 2.502 O.2.502 1990 2.502 O.2.502 1991 2.502 O.2.502 1992 2.502 O.2.502 1993 2.502 O.2.502 1994 2.502 O.2.502 1995 2.502 O.2.502 1996 2.502 O.2.502 1997 2.502 O.2.502 1998 2.502 O.2.502 1999 2.502 O.2.502 2000 2.502 O.2.502 SOURCE:Construction employment is that associated with Prudhoe water- flood project,from U.S.Army Corps of Engineers,Final EIS, Prudhoe Bay Oilfield Waterflood Project,pp.2-60.For mining employment sources,see text. A-13 Table R-3.Regional Distribution of Employment Prudhoe Bay Petroleum Production -All Cases - PRB.081 B04 MTOTR 1980 1981 1982 1983 1984 1985 1986 1987 1988 1989 1990 1991 1992 1993 1994 1995 1996 1997 1998 1999 2000 A-14 2.369 2.942 3.509 4.194 2.686 2.552 2.502 2.502 2.502 2.502 2.502 2.502 2.502 2.502 2.502 2.502 2.502 2.502 2.502 2.502 2.502 2.369 2.942 3.509 4.194 2.686 2.552 2.502 2.502 2.502 2.502 2.502 2.502 2.502 2.502 2.502 2.502 2.502 2.502 2.502 2.502 2.502 -...L 4.Upper Cook Inlet Petroleum Production Petroleum sector employment in the Kenai-Cook Inlet Census Divi- sion was 778 in 1979 (4 quarter average employment,taken from Alaska Department of Labor,Statistical Quarterly,1979 issues),consisting of exploration,development,and production associated with the Kenai oil and gas fields.Currently,the 120,000 barrels per day output of oil is expected to decline drastically over the forecast period, possibly as fast as 15-20 percent per year.The decline may be par- tially slowed,however,by a possible redrilling program being con- sidered by the operators (see Oil and Gas Journal,2/4/80,p.36);and in any case,the prospects for gas development are brighter than those for oil.Gas production is likely to expand from its current 5,000 MMCF per day once the LNG facility proposed by Pacific Lighting and Pacific Gas and Electric (see below)are constructed even without any substantial new discoveries.It is assumed that these increases, coupled with continued exploration activity and possible enhanced recovery of oil,will be adequate to maintain Upper Cook Inlet petro- leum employment at its 1978 level throughout the forecast period,as shown in Table S-4 and R-4.This employment forecast is common to all economic scenarios. A-IS Table S-4.Statewide Employment By Sector Upper Cook Inlet Petroleum Production -All Cases - UPC.011 EMP9 MTOT 1980 0.778 0.778 1981 0.778 0.778 1982 0.778 0.778 1983 0.778 0.778 1984 0.778 0.778 1985 0.778 0.778 1986 0.778 0.778 1987 0.778 0.778 1988 0.778 0.778 1989 0.778 0.778 1990 0.778 0.778 1991 0.778 0.778 1992 0.778 0.778 1993 0.778 0.778 1994 0.778 0.778 1995 0.778 0.778 1996 0.778 0.778 1997 0.778 0.778 1998 0.778 0.778 1999 0.778 0.778 2000 0.778 0.778 A-16 Table R-4.Regional Distribution of Employment Upper Cook Inlet Petroleum Production -All Cases - UPC .011 812 MTOTR ~ 1980 1981 1982 1983 1984 1985 1986 1987 1988 1989 1990 1991 1992 1993 1994 1995 1996 1997 1998 1999 2000 A-17 0.778 0.778 0.778 0.778 0.778 0.778 0.778 0.778 0.778 0.778 0.778 0.778 0.778 0.778 0.778 0.778 0.778 0.778 0.778 0.778 0.778 0.778 0.778 0.778 0.778 0.778 0.778 0.778 0.778 0.778 0.778 0.778 0.778 0.778 0.778 0.778 0.778 0.778 0.778 0.778 0.778 0.778 5.Development of the National Petroleum Reserve in Alaska (NPR-A) The National Petroleum Reserve in Alaska (previously NPR-4)has been the target of publicly sponsored exploration for oil and gas since World War II,first by the Navy and later by the Interior Department.The first exploration program began in 1944 and ended in 1953,after discovery of nine oil and gas fields,all but one being noncommercial (the largest gas field,the Barrow gas field,currently produces for local consumption).In 1974 Congress directed the Navy to resume exploration,eventually transferring the program to the Department of Interior in 1977.To date,this most recent exploration program has produced 22 dry holes and several test wells planned or in progress (Oil and Gas Journal,12/8/80,p.36). Nonetheless,USGS estimates that NPR-A can be expected to contain 5.96 billion barrels of oil in place and 11.3 trillion cubic feet of gas,about 26 percent of which is likely to be recoverable.A study of alternative methods for development of the reserve was completed in 1979 by Interior (see Final Report of the 105(b)Economic and Policy Analysis,12/15/79).In late 1980,Congress passed legislation requiring that the reserve be opened to private leasing by 1982 (Oil and Gas Journal,12/8/80).Interior has issued a call for nominations and has scheduled the first sale on December 16,1981 (Oil and Gas Journal,September 21,1981). In the high and extreme high scenarios,it is assumed that leasing begins as planned late this year.Traditional bonus bidding with fixed royalties is the leasing method,as described in Management Plan 2 of the Interior 105 (b)study.Five commercial fields are discovered and developed,representing 1.85 billion barrels of oil and 3.73 trillion cubic feet of gas,as in the mean scenario of the 105(b) study.Construction associated with the development includes 525 miles of pipeline.Construction employment peaks at about 1,000 following each of the several discoveries.Petroleum sector employ- ment averages 460/year,and pipeline operation adds 137 to the trans- portation sector work force,as shown in Tables S-5a and R-5a. A-18 ~. Table S-Sa.Statewide Employment By Sector National Petroleum Reserve in Alaska -High Case - -Extreme High Case - NPR.HGH !:MP9 ECONX2 EMT9X MTOT 1980 O.O.o.O. 1981 O. O.o.O. 1982 O.0.075 O.0.075 1983 O.0.075 O.0.075 1984 0.088 0.363 O.0.451 1985 0.176 0.987 O.1.163 1986 0.23 1.099 O.1.329 1987 0.443 0.765 O.1.208 1988 0.354 0.314 0.107 0.775 1989 0.374 0.541 0.137 1.052 1990 0.354 1.092 0.137 1.583 1991 0.408 1.174 0.137 1.719 1992 0.533 0.765 0.137 1.435 1993 0.444 0.314 0.137 0.895 1994 0.464 0.541 0.137 1 .142 1995 0.444 1.092 0.137 1.673 1996 0.498 1.174 0.137 1.809 1997 0.623 0.765 0.137 1.525 1998 0.534 0.314 0.137 0.985 19£9 0.554 0.541 0.137 1.232 2000 0.534 1.092 0.137 1.763 SOURCE:See text. A-19 Table R-Sa.Regional Distribution of Employment National Petroleum Reserve in Alaska -High Case - -Extreme High Case - NPR.HGH 802 B04 MTOTR 1980 O.O.O. 1981 O.O.O. 1982 O.0.075 0.075 1983 O.0.075 0.075 1984 0.009 0.442 0.451 1985 0.018 1.145 1.163 1986 0.023 1.306 1.329 1987 0.044 1.164 1.208 1988 0.035 0.74 0.775 1989 0.037 1.015 1.052 1990 0.035 1.548 1.583 1991 0.041 1.678 L 719 1992 0.053 1.382 1.435 1993 0.044 0.851 0.895 1994 0.046 1.096 1.142 1995 0.044 1.629 1.673 1996 0.05 1.759 1.809 1997 0.062 1.463 1.525 1998 0.053 0.932 0.985 1999 0.055 1.177 1.232 2000 0.053 1 .71 1.763 A-20 ... In the moderate and the industrialization scenarios,it is assumed that the same level of resources are eventually discovered, but at a far slower rate.Again,leasing begins in late 1981,but employment reaches only half the levels assumed in the high scenario, as shown in Tables S-5b and R-5b. In the low scenario,private leasing again occurs in 1981,but the ensuing development consists only of a string of unsuccessful exploratory wells.In this case,the only employment generated is that associated with exploratory drilling,which simply replaces employment lost in phasing out the public program ending in 1981 so that there is no net increase in exogenous petroleum employment. A-21 Table S-Sb.Statewide Employment By Sector National Petroleum Reserve in Alaska -Moderate Case - -Industrialization Case - NPR.MOO EMP9 ECONX2 EMT9X MTOT 1980 O.O.o.O. 1981 O.o.o.O. 1982 O.0.038 o.0.038 1983 o.0.038 o.0.038 1984 0.044 0.132 o.0.176 1985 0.088 0.494 O.0.582 1986 O.115 0.55 O.0.665 1987 0.222 0.383 O.0.605 1988 0.177 0.157 0.054 0.388 1989 0.187 0.271 0.069 0.527 1990 0.177 0.546 0.069 0.792 1991 0.204 0.587 0.069 0.86 1992 0.267 0.383 0.069 0.719 1993 0.222 0.157 0.069 0.448 1994 0.232 0.271 0.069 0.572 1995 0.222 0.546 0.069 0.837 1996 0.249 0.587 0.069 0.905 1997 0.312 0.383 0.069 0.764 1998 0.267 0.157 0.069 0.493 1999 0.277 0.271 0.069 0.617 2000 0.267 0.546 0.069 0.882 A-22 Table R-5b.Regional Distribution of Employment National Petroleum Reserve in Alaska -Moderate Case - -Industrialization Case - NPR.MDD B02 B04 MTDTR 1980 O. O.O. 1981 O.O.O. 1982 O.0.038 0.038 1983 O.0.038 0.038' 1984 0.004 0.172 0.176 1985 0.009 0.573 0.582 1986 0.012 0.653 0.665 1987 0.022 0.583 0.605 1988 0.018 0.37 0.388 1989 0.019 0.508 0.527 1990 0.018 0.774 0.792 1991 0.02 0.84 0.86 1992 0.027 0.692 0.719 1993 0.022 0.426 0.448 1994 0.023 0.549 0.572 1995 0.022 0.815 0.837 1996 0.025 0.88 0.905 1997 0.031 0.733 0.764 1998 0.027 0.466 0.493 1999 0.028 0.589 0.617 2000 0.027 0.855 0.882 A-23 6.Outer Continental Shelf Development USGS estimates that between 7 and 32 billion barrels of recover- able oil and between 30 and 97 trillion cubic feet of recoverable natural gas will eventually be discovered in the offshore areas sur- rounding Alaska (Oil and Gas Journal,3/17/80,p.85).The expected levels of discoveries and the associated 5-95 percent confidence intervals for those discoveries are distributed by area as follows: Location Oil (billion barrels) Gas (trillion cubic feet) Gulf of Alaska Kodiak Lower Cook Inlet N.Aleutian Shelf St.George Navarim Norton Hope Chukchi Beaufort S.Aleutian Shelf 95% o o <0.1 o o o o o o o o Mean 0.1 0.23 0.5 0.2 1.6 3.8 0.3 0.13 6.4 4.3 0.04 5% 0.7 1.1 1.5 1.0 5.8 U.8 1.3 0.6 14.5 10.4 0.2 95% o o 0.4 o o o o o o 4.1 o Mean 0.4 0.69 1.5 0.8 6.2 14.2 1.2 0.86 19.8 16.5 0.08 5% 1.9 3.5 3.3 3.2 15.7 38.3 3.8 3.3 38.8 32.0 0.5 In order to exploit these resources,the Department of Interior in 1976 extended the federal OCS oil and gas leasing program to Alaska.Since 1976,four sales have already occurred,as follows: Sale Location Date 46 Gulf of Alaska 1976 CI Lower Cook Inlet 1977 BF Beaufort Sea 1979 55 Gulf of Alaska 1980 A-24 ~ },___________________~l__ High Case OCS Development Year of Sale Location Discoveries Oil Gas (BBO)(TCFG) 1976 Gulf of Alaska 0 0 1977 Cook Inlet 0 0 1979 Beaufort 1.9 4.75 1980 Gulf of Alaska 0.45 1.25 1981 Cook Inlet 0.67 1.173 1982 Bering-Norton 0.38 1.2 1982 St.George 2.16 6.12 1983 Beaufort 1.3 3.25 1983 Kodiak 0.332 0.581 1983 N.Aleutian 0.332 0.581 1984 Navarin 2.16 6.12 1985 Chukchi 1.9 4.75 1985 Hope 0.5 0.37 1986 Beaufort 0.8 1.6 1987 Navarin 2.16 6.12 1988 Chukchi 1.9 4.75 1989 Navarin 0 0 1990 Chukchi 1.9 4.75 Total 18.844 47.365 USGS Mean 17.56 62.15 The employment generated by this level of OCS development is presented in Tables S-6a and R-6a.1 Petroleum sector employment peaks at over 11,000 in 1999;and construction,at nearly 3,300 in 1995. Exogenous transportation employment reaches over 3,100 by the late 1990s as manufacturing reaches 80. lSee Appendix B for a description of the method used to derive employment estimates from discoveries. A-25 Table S-6a.Statewide Employment By Sector OCS Development -High Case - -Extreme High Case - OCS,HGH EMP9 ECONX1 ECONX2 EMT9X EMMX1 NlTOT 1980 0,209 o.0,06 0.033 o.0.302 1981 0.223 O.0.018 0.034 o.0.275 1982 0.255 O.131 0.086 0.069 o.0.541 1983 0,361 0.018 0.086 0.159 o.0.624 1984 0.494 0.154 0.099 0,217 O.0.964 1985 0.717 0.261 0.24 0,404 O.1,622 1986 1.19 0.685 1.74 0.84 O.4.455 1987 1.645 1.716 1.492 1.127 O.5.98 1988 2,981 1.744 0.182 1.919 O.6,826 1989 4.12 2.407 0.23 2.435 O.9.192 1990 5.193 1.876 0.432 2.62 0,08 10.201 1991 5.775 1.063 1.126 2.877 0.08 10.921 1992 5.571 1.848 3.044 2.773 0.08 13.316 1993 6.117 1,139 2.613 2.923 0.08 12.872 1994 8.033 0.873 1.772 3.214 0.08 13.972 1995 8.533 0.619 2,672 3,095 0,08 14.999 1996 9.019 o.2.019 3.141 0,08 14.259 1997 10.107 O.1.766 3.141 0.08 15.094 1998 10.193 o.1.603 3.141 0.08 15.017 1999 11.018 O.0163 3.141 0.08 14.402 2000 10.789 o.0.103 3.141 0.08 14.113 SOURCE:See text. A-26 Table R-6a.Regional Distribution of Employment OCS Development -High Case - -Extreme High Case - OCS.HGH BOl B02 B04 Bll B12 B14 1980 O.0.021 0.167 O.0.114 O. 1981 O.0.022 0.111 0.058 0.084 O. 1982 O.0.025 0.126 0.116 0.274 O. 1983 0.151 0.036 0.126 0.116 0.117 O. 1984 0.323 0.049 0.139 0.139 0;117 O. 1985 0.631 0.072 0.324 0.055 0.151 O. 1986 0.794 0.119 2.095 0.093 0.766 0.037 1987 2.109 0.164 2.005 0.265 0.88 0.036 1988 2.725 0.298 1.589 0.284 0.757 0.042 1989 3.97 0.412 1.617 0.406 0.771 0.042 1990 3.76 0.519 1.811 0.407 0.813 0.026 1991 3.484 0.577 2.484 0.416 0.755 0.006 1992 3.883 0.557 4.467 0.305 0.755 0.064 1993 3.717 0.612 4.219 0.316 0.755 0.378 1994 3.962 0.803 4.628 0.318 0.755 0.377 1995 3.733 0.853 5.907 0.321 0.755 0.413 1996 3.364 0.902 5.808 0.321 0.755 0.427 1997 3.42 1.011 6.532 0.321 0.755 0.37 1998 3.484 1.019 6.366 0.321 0.755 0.377 1999 3.456 1 102 5.688 0.321 0.755 0.377 2000 3.429 1.079 5.443 0.321 0.755 0.374 B15 B18 B27 MTOTR 1980 O.O.O.0.302 1981 O.O. O.0.275 1982 O.O. O.0.541 1983 O.0.079 O.0.624 1984 0.071 0.126 O.0.964 1985 0.1 0.214 0.075 1.622 1986 0.114 0.311 0.126 4.455 1987 0.133 0.159 0.228 5.98 1988 0.445 0.334 0.352 6.826 1989 0.474 0.498 1.9.192 1990 0.431 1.207 1.226 10.201 1991 0.442 1.184 1.572 10.921 1992 0.39 0.914 1.981 13.316 1993 0.403 0.724 1.747 12.872 1994 0.403 0.697 2.028 13.972 1995 0.403 0.778 1.835 14.999 1996 0.403 0.778 1.5 14.259 1997 0.403 0.778 1.504 15.094 1998 0.403 0.778 1.514 15.017 1999 0.403 0.778 1.522 14.402 2000 0.403 0.778 1.531 14.113 A-27 SOURCE FOR EMPLOYMENT ESTIMATES HIGH CASE OCS DEVELOPMENT 9.1983 Kodiak 10.1983 N.Aleutian Year 1.1976 2.1977 3.1979 4.1980 5.1981 6.1982 7.1982 8.1983 11.1984 12.1985 Location Gulf of Alaska Cook Inlet Beaufort Gulf of Alaska Cook Inlet Bering-Norton St.George Beaufort Navarin Chukchi } Source Activity associated with this sale has terminated. Exploration employment estimates from Alaska OCS Office as estimated for Sale 60 EIS. Alaska OCS Studies Technical Report 18, Beaufort Sea Petroleum Development Scenarios:Economic and Demographic Impacts,Table 3.2,p.80. Moderate Case,Eastern Gulf of Alaska Sale 55 Final EIS. From Lower Cook Inlet Statewide and Regional Population and Economic Systems Impact Analysis,Table 3, p.7. Low Case from Bering-Norton Petroleum Development Scenarios Economic and Demographic Analysis,Table 24, p.140. Moderate Case Scenarios as received from the Alaska OCS Office for St.George Sale 70 OCS Study. Adapted from Moderate Find Scenario, Alaska OCS Studies Technical Report 18, Beaufort and Demographic Impacts, Table 3.8,p.89. Both adapted from Low Case,Lower Cook Inlet Statewide and Regional Popu- lation and Economic Systems Impact Analysis. Adapted from case described in (7). Adapted from case described in (3). A-28 SOURCE FOR EMPLOYMENT ESTIMATES HIGH CASE OCS DEVELOPMENT (continued) Year 13.1985 14.1986 15.1987 16.1988 17 .1989 18.1990 Location Hope Beaufort Navarin Chukchi Navarin Chukchi Source Based on Low Case Scenario received from Alaska OCS Office describing develop- ment of Western Beaufort Sea (Sale 71). Adapted from Low Find Case,OCS Studies Technical Report 18,Beaufort Sea Petroleum Development Scenarios: Economic and Demographic Impacts, Table 3.6,p.86. Adapted from Moderate Find Scenario developed by Alaska OCS Office for study of development in St.George Basin after Sale 70. Adapted from case described in (3). Exploration Only Scenario adapted from Low Discovery Scenario developed by Alaska OCS Office for Study of St. George OCS Sale 70 Development. Adapted from case described in (3). A-29 In the moderate and industrialization scenarios,it is assumed that lease sales are held as scheduled until 1985 but that the results of exploration are more discouraging than in the high case,resulting in fewer post-1985 sales than in the high case.About 6.7 billion barrels of recoverable oil and 16.4 tri Ilion cubic feet of gas are discovered on properties leased in such sales,as shown below: Moderate and Industrialization Case OCS Development 1976 Gulf of Alaska 1977 Cook Inlet 1979 Beaufort Sea 1980 Gulf of Alaska 1981 Cook Inlet 1982 Bering Norton 1982 St.George 1983 Beaufort Sea 1983 Kodiak 1983 N.Aleutian 1984 Navarin 1985 Chukchi 1985 Hope 1988 Navarin 1989 Chukchi Year of Sale Location Discoveries Oil Gas (BBO)(TCFG) 0 0 0 0 1.3 3.25 0 0 0.332 0.581 0 0 0 0 0.8 1.6 0 0 0 0 2.16 6.12 1.3 3.25 0 0 0 0 0.8 1.6 Total 6.692 16.401 A-30 The employment generated by this level of OCS development is presented in Tables S-6b and R-6b.Petroleum sector employment reaches over 4,400 by 1999;construction peaks at over 2,100 in 1991; and transportation employment reaches about 900. , t_________________L Table S-6b.Statewide Employment By Sector OCS Development -Moderate Case - -Industrialization Case - OCS.MOD EMP9 ECONX1 ECONX2 EMT9X MTOT 1980 0.09 o.O.0.033 0.123 1981 0.224 O.o.0.099 0.323 1982 0.309 0.028 0.012 0.1 0.449 1983 0.458 O.0.052 O.141 0.651 1984 0.596 0.005 0.03 0.192 0.823 1985 0.675 0.071 0.122 0.488 1.356 1986 0.683 0.205 0.242 0.369 1.499 1987 0.642 0.238 0.735 0.434 2.049 1988 0.639 0.195 1.298 0.487 2.619 1989 0.986 1.165 0.873 0.603 3.627 1990 1.486 1.075 0.858 0.879 4.298 1991 2.409 0.873 1.2~1.104 5.666 1992 2.747 0.619 0.917 0.928 5.211 1993 2.981 O.0.999 0.897 4.877 1994 3.046 O.1.452 0.889 5.387 1995 3.255 O.1.017 0.889 5.161 1996 3.564 O.0.858 0.889 5.311 1997 3.767 O.1.324 0.889 5.98 1998 4.091 O.0.685 0.889 5.665 1999 4.419 O.0.274 0.889 5.582 2000 4.419 O.0.176 0.889 5.484 SOURCE:See text. A-31 Table R-6b.Regional Distribution of Employment OCS Development -Moderate Case - -Industrialization Case - oeS.MOD 801 802 804 811 812 814 1980 O.0.009 O.O.O.114 O. 1981 O.0.022 O.0.216 0.084 O. 1982 O.0.031 0.088 0.216 O.114 O. 1983 O.114 0.046 0.143 0 ..165 0.1 O. 1984 0.213 0.06 0.196 0.036 O.114 O. 1985 0.467 0.067 0.283 O.0.133 O. 1986 0.328 '0.068 0.389 O.0.445 0.038 1987 0.322 0.064 0.829 O.0.474 0.086 1988 0.277 0.064 1.522 O.0.431 0.048 1989 0.908 0.099 1 .271 O.0.442 O. 1990 1.011 0.149 1.737 O.0.39 O. 1991 1.304 0.241 2.415 O.0.403 O. 1992 1 .1 0.275 2.333 O.0.403 O. 1993 0.759 0.298 2.659 O.0.403 O. 1994 0.756 0.305 3.166 O.0.403 O. 1995 0.783 0.325 2.866 O.0.403 O. 1996 0.765 0.356 3.021 O.0.403 O. 1997 0.747 0.377 3.705 O.0.403 O. 1998 0.73 0.409 3.392 O.0.403 O. 1999 0.756 0.442 3.224 O.0.403 O. 2000 0.783 0.442 3.072 O.0.403 O. 815 818 827 MTOTR 1980 O.O.O.0.123 1981 O.O.O.0.323 1982 O.O.O.0.449 1983 0.046 0.038 O.0.651 1984 0.118 0.086 O.0.823 1985 0.281 0.048 0.075 1.356 1986 0.105 O.0.126 1.499 1987 0.046 O.0.228 2.049 1988 O.O.0.277 2.619 1989 O.O.0.908 3.627 1990 O.O.1 .011 4.298 1991 O.O.1.304 5.666 1992 O.O.1 . 1 5.211 1993 O.O.0.759 4.877 1994 O.O.0.756 5.387 1995 O.O.0.783 5.161 1996 O.O.0.765 5.311 1997 O.O.0.747 5.98 1998 O.O.0.73 5.665 1999 O.O.0.756 5.582 2000 O.O.0.783 5.484 A-32 SOURCE FOR EMPLOYMENT ESTIMATES MODERATE AND INDUSTRIALIZATION CASES OCS DEVELOPMENT Year 1.1976 2.1977 3.1979 4.1980 5.1981 6.1982 7.1982 Loca·tion Gulf of Alaska Cook Inlet Beaufort Sea Gulf of Alaska Cook Inlet Bering Norton St.George Source Activity associated with this sale has terminated. Same as (2)in High Case. Alaska OCS Studies Technical Report 18, Moderate Find Scenario,Table 3.8, p.89. Exploration Only Scenario from Northern Gulf of Alaska Petroleum Development Scenarios:Economic and Demographic Impacts,OCS Technical Report 34, Table 58,p.187. Low Scenario from Lower Cook Inlet Statewide and Regional Population and Economic Systems Impact Analysis, Table 2,p.6. Exploration Only Scenario,Bering-Norton Petroleum Development Scenario:Eco- nomic and Demographic Impacts Analysis, Table 23,p.139. Low Scenario provided by Alaska OCS Office for study of Sale 70. 8.1983 9.1983 10.1983 11.1984 12.1985 Beaufort Sea Kodiak N.Aleutian Navarin Chukchi } Low Find Scenario in OCS Technical Report 18,Beaufort Sea Petroleum Development Scenario:Economic and Demographic Impacts,Table 3.6,p.86. Exploration Only Scenarios from scenarios provided by Alaska OCS Office for study of Sale 46.See 95 Percent Scenario Exploratory Phase. Adapted from source described in (15)of High Case. Adapted from source in (8)in High Case. A-33 SOURCE FOR EMPLOYMENT ESTIMATES MODERATE AND INDUSTRIALIZATION CASES OCS DEVELOPMENT (continued) Year Location Source 13.1985 Hope Adapted from Exploration Only Scenario in Bering-Norton Petroleum Develop- ment Scenario:Economic and Demo- graphic Analysis,Table 23,p.139. 14.1988 Navarin Adapted from source described in (17)of High Case. 15.1989 Chukchi Adapted from same source as (8). A-34 ------------------------_\ p In the low scenario,the areas of lowest resource potential are dropped entirely from the lease schedule,and discoveries are limited to the Beaufort Sea.No sales are held after 1985.The schedule and corresponding discoveries are as follows: Low Case OCS Development Year of Sale Location Discoveries 1976 1977 1979 1980 1981 1983 1984 1985 Oil Gas (BBO)(TCFG) Gulf of Alaska 0 0 Cook Inlet 0 0 Beaufort Sea 0.5 0.875 Gulf of Alaska 0 0 Cook Inlet 0 0 Beaufort Sea 0.5 0.875 Navarin 0 0 Chukchi 0 0-- Total 1.0 1.75 Except for the Beaufort Sea,employment in this case consists solely of activities associated with exploration.As shown in Tables S-6c and R-6c,petroleum sector employment peaks at nearly 770 in 1995;construction,at 833 in 1988;and transportation peaks at 100 in 1983 before falling back to zero by 1990. A-35 Table S-6e.Statewide Employment By Sector DCS Development -Low Case - oeS.LOIII EMP9 ECONX1 ECONX2 EMT9X "lTOT 1980 0.09 O.O.0.033 0.123 1981 0.29 O.0.062 0.099 0.451 1982 0.422 0.028 0.188 0.1 0.738 1983 0.394 O.0.135 0.088 0.617 1984 0.341 O.0.25 0.05 0.641 1985 0.257 O.0.212 0.04 0.509 1986 0.369 O.0.47 0.046 0.885 1987 0.458 O.0.479 0.046 0.983 1988 0.72 O.0.833 0.039 1.592 1989 0.652 O.0.68 0.008 1.34 1990 0.687 O.0.664 O.1.351 1991 0.623 O.0.564 O.1.187 1992 0.649 O.0.61.1 o.1.26 1993 07 O.0.527 O.1.227 1994 0.72 O.0.264 O.0.984 1995 0.768 O.0.191 O.0.959 1996 0.721 O.0.084 O.0.805 1997 0.687 O.0.132 O.0.819 1998 0.663 O.0.132 O.0.795 1999 0.661 O.0.059 O.0.72 2000 0.658 O.0.018 O.0.676 SOURCE:See text. A-36 Table R-6c.Regional Distribution of Employment OCS Development -Low Case - oeS.LOW 1980 1981 1982 1983 1984 1985 1986 1987 1988 1989 1990 1991 1992 1993 1994 1995 1996 1997 1998 1999 2000 1980 1981 1982 1983 1984 1985 1986 1987 1988 1989 1990 1991 1992 1993 1994 1995 1996 1997 1998 1999 2000 B01 B02 B04 611 612 627 O.0.009 O.O.0.114 O. O.0.029 0.121 0.216 0.084 O. O.0.042 0.365 0.216 O.114 O. O.0.039 0.312 0.165 0.101 O. O.0.034 0.457 0.036 0.114 O. 0.034 0.026 0.331 O.0.084 0.034 0.047 0.037 0.71 O.0.043 0.047 0.055 0.046 0.826 O.O.0.055 0.049 0.072 1.422 O.O.0.049 0.024 0.065 1.227 O.O.0.024 O.0.069 1.282 O.O.O. O.0.062 1.125 O.O.O. O.0.065 1.195 O.O.O. O.0.07 1.157 O.O.O. O.0.072 0.912 O.O.O. O.0.077 0.882 O.O.O. O.0.072 0.733 O.O.O. O.0.069 0.75 O.O.O. O.0.066 0.729 O.O.O. O.0.066 0.654 O.O.O. O.0.066 0.61 O.O.O. MToTR 0.123 0.451 0.738 0.617 0.641 0.509 0.885 0.983 1.592 1.34 1.351 1.187 1.26 1.227 0.984 0.959 0.805 0.819 0.795 0.72 0.676 A-37 p SOURCE FOR EMPLOYMENT ESTIMATES LOW CASE OCS DEVELOPMENT p Year 1.1976 2.1977 3.1979 4.1980 5.1981 6.1983 7.1984 8.1985 Location Gulf of Alaska Cook Inlet Beaufort Sea Gulf of Alaska Cook Inlet Beaufort Sea Navarin Chukchi Source Activity associated with this sale has terminated. Same as (2)in High Case. Low Find Scenario in Beaufort Sea Draft EIS,Table III.C.2.3,p.238. Exploration Only Scenario from Northern Gulf of Alaska Petroleum Development Scenario:Economic and Demographic Impacts Technical Report 34, Table 58,p.187. Adapted from source described in (2) in High Case. Adapted from source cited in (3). Adapted from source described in (7) in Moderate Case. Exploration Only Scenario adapted from Minimum Case in Beaufort Sea Draft EIS,Table III.C.2-3,Exploration Employment Only. A-38 l- 1 7.Alaska Oil Company Refinery (Formerly ALPETCO) In 1978 the State of Alaska awarded Alaska Petrochemical Company a 27-year contract to purchase up to 150,000 BPD of state-owned royalty oil to build and operate a petrochemical complex at Valdez. Revision of the original proposal to a 150,000 BPD refinery complex, combined with ALPETCO's difficulty in financing the revised proj ect, caused the state to cut the amount of royalty oil to 75,000 BPD and to require that a 100,000 BPD refinery be designed by 1981 and opera- tional by 1986 as conditions of the contract (Oil and Gas Journal, 6/23/80,p.97). This year,further financing difficulties initially led to an announcement of the plan's abandonment (Oil and Gas Journal,June 8, 1981).However,in a more recent proposal to the state for purchase of 1982 royalty oil,AOC announced that it has revived its plans to construct a 100,000 bpd refinery at Valdez (Oil and Gas Journal, September 28,1981). In the moderate,high,extreme high,and industrialization sce- narios,it is assumed that the 100,000 bpd facility is constructed, beginning in 1983,and is operational by 1986,generating direct employment as shown in Tables S-7 and R-7. In the low scenario,it is assumed that no refinery is constructed. A-39 Table S-7.Statewide Employment By Sector Alaska Oil Company -High Case - -Moderate Case - -Industrialization Case - -Extreme High Case - ALP.100 ECONX2 EMMX1 MTOT 1980 O.O.O. 1981 O.O.O. 1982 O.O. O. 1983 0.752 O.0.752 1984 0.752 O.0.752 1985 0.752 O.0.752 1986 O.0.386 0.386 1987 O.0.386 0.386 1988 O.0.,386 0.386 1989 O.0.386 0.386 1990 O.0.386 0.386 1991 O.0.386 0.386 1992 O.0.386 0.386 1993 O.0.386 0.386 1994 O.0.386 0.386 1995 O.0.386 0.386 1996 O.0.386 0.386 1997 O.0.386 0.386 1998 O.0.386 0.386 1999 O.0.386 0.386 2000 O.0.386 0.386 SOURCE:Assumes construction of a 100,000 bpd refinery with manpower requirements two-thirds of those required for the 150,000 bpd facility described in EPA,Draft EIS,Alaska Petrochemical Company Refining and Petrochemical Facility,Valdez,Alaska, 1979,p.42. A-40 Table R-7.Regional Distribution of Employment Alaska Oil Company -High Case - -Moderate Case - -Industrialization Case - -Extreme High Case - ALP.100 626 MTOTR 1980 1981 1982 1983 1984 1985 1986 1987 1988 1989 1990 1991 1992 1993 1994 1995 1996 1997 1998 1999 2000 A-41 o. O. O. 0.752 0.752 0.752 0.386 0.386 0.386 0.386 0.386 0.386 0.386 0.386 0.386 0.386 0.386 0.386 0.386 0.386 0.386 O. O. O. 0.752 0.752 0.752 0.386 0.386 0.386 0.386 0.386 0.386 0.386 0.386 0.386 0.386 0.386 0.386 0.386 0.386 0.386 8.Pacific Alaska LNG Pacific Alaska LNG Associates,a partnership consisting of Pacific Lighting Company and Pacific Gas and Electric Company,has proposed an LNG facility on the Kenai Peninsula at Nikiski to liquify gas from various natural gas fields in Cook Inlet (see above).The project calls for construction of a 300-mile pipeline gathering sys- tern,a 400 nuncf per day liquefaction plant,and a loading dock. Approval of the plan was granted by the Federal Energy Regulatory Conunission in August 1979.Construction is expected to begin in 1983. In the high,extreme high,moderate,and industrialization sce- narios,construction begins in 1983 with employment peaking at 1,323 in 1985,becoming operational in 1987,employing a permanent work force of 100,as shown in Tables 8-8 and R-8. In the low scenario,it is assumed that the plant is not con- structed due to lawsuits in California over the vaporization plant proposed for receiving the Alaska LNG. A-42 > Table S-8.Statewide Employment By Sector Pacific Alaska LNG Project -High Case - -Moderate Case - -Industrialization Case - -Extreme High Case - PAL.EIS ECONX2 EMT9X EMMX1 MTOT 1980 O. O.O.O. 1981 O. O.O.O. 1982 0.146 O.O.0.146 1983 0.844 O. O.0.844 1984 1.323 O.O.1.323 1985 0.42 O. O.0.42 1986 O.0.04 0.06 0.1 1987 O.0.04 0.06 0.1 1988 O.0.04 0.06 0.1 1989 O.0.04 0.06 0.1 1990 O.0.04 0.06 0.1 1991 O.0.04 0.06 0.1 1992 O.0.04 0.06 0.1 1993 O.0.04 0.06 0.1 1994 O.0.04 0.06 0.1 1995 O.0.04 0.06 0.1 1996 O.0.04 0.06 0.1 1997 O.0.04 0.06 0.1 1998 O.0.04 0.06 0.1 1999 O.0.04 0.06 0.1 2000 O.0.04 0.06 0.1 SOu~CE:Construction employment estimates based on letter to Alaska Department of Natural Resources from Southern California Gas dated March 17,1978.Other employment estimates from Federal Energy Regulatory Commission,Western LNG Project:Final EIS, 1978. A-43 Table R-8.Regional Distribution of Employment Pacific Alaska LNG Project -High Case - -Moderate Case - -Industrialization Case - -Extreme High Case - PAL.EIS 612 MTOTR ... 1980 1981 1982 1983 1984 1985 1986 1987 1988 1989 1990 1991 1992 1993 1994 1995 1996 1997 1998 1999 2000 A-44 o. O. 0.146 0.844 1.323 0.42 0.1 0.1 O.l' 0.1 0.1 0.1 0.1 0.1 0.1 0.1 0.1 0.1 0.1 0.1 0.1 O. O. 0.146 0.844 1.323 0.42 0.1 0.1 0.1 0.1 0.1 0.1 0.1 0.1 0.1 0.1 0.1 0.1 0.1 0.1 0.1 9.Petrochemical Development In the spring of 1980,the State of Alaska issued a call for proposals to build a world-scale petrochemical plant in Alaska using natural gas liquids (NGL)from Prudhoe Bay (Oil and Gas Journal, 5/5/80).After six proposals were submitted in June (Oil and Gas Journal,6/23/80),the state selected a group headed by Dow Chemical Company and Shell Chemical Company to conduct feasibility studies of a petrochemical plant in the state.Dow has proposed a plant to produce polyethylene,ethylene glycol,ethyl benzene,styrene,cumene,propy- lene,butanol,and other products from the 230,000 BPD of NGL which will be produced once the Northwest gas line becomes operational and Prudhoe gas is produced for sale (Oil and Gas Journal,9/8/80). However,the State of Alaska has only a one-eighth royalty inter- est in the NGL produced.The major owners are Exxon,Arco,and Sohio. Since studies indicate that a large proportion of the NGL will be required to make a plant economical,the final decision on what type, if any,plant will be constructed is presently uncertain even if a plant is determined to be feasible.Exxon has authorized its own study of alternatives,and the Dow/Shell feasibility study will not be completed until late this year.Consequently,estimation of future development is quite speculative. Employment estimates were developed based on preliminary results of the Dow/Shell feasibility study as presented in monthly progress reports to the state.Currently,Dow/Shell sees the development as a two-stage process,the first involving construction of a natural gas liquids pipeline between Prudhoe and either Fairbanks or a tidewater location,as well as development of a plant and marine terminal facility,and the second involving an expansion of Phase I capacity. In the high case,it is assumed that only Phase I capacity is developed,generating employment as shown in Tables S-9a and R-9a. In both the industrialization and extreme high cases,both phases are completed,generating direct employment as shown in Table S-9b and R-9b. A-45 Table S-9a.Statewide Employment By Sector Petrochemical Development -High Case - PTC.DW2 EMP9 ECDNX2 MTOT 1980 o.o.o. 1981 o.O.o. 1982 o.O.o. 1983 o.O.o. 1984 o.0.409 0.409 1985 o.2.001 2.001 1986 o.5.2a4 5.284 1987 o.3.747 3.747 1988 1.14 4.875 6.015 1989 1.14 1.987 3.127 1990 2.28 1.177 3.457 1991 2.28 ~.868 5.148 1992 2.28 1.027 3.307 1993 3 23 O.3..23 1994 3.23 O.3.23 1995 3.23 O.3.23 1996 3.23 O.3.23 1997 3.23 O.3 23 1998 3.23 O.3.23 1999 3.23 O.3.23 2000 3.23 O.3.23 SOu~CE:See text. A-46 p L Table R-9a.Regional Distribution of Employment Petrochemical Development -High Case - PTC.OW2 804 809 824 826 829 MTOTR 1980 o.O.o.o.o.O. 1981 O.o.o.o.o.O. 1982 O.o.o.o.o.o. 1983 O.o.o.o.o.O. 1984 0.054 0.07 0.011 0.266 0.008 0.409 1985 0.292 0.326 0.062 1.279 0.042 2.001 1986 0.846 0.822 0.184 3.306 0.126 5.284 1987 0.436 0.669 0.087 2.496 0.059 3.747 1988 0.86 0.763 0.19 4.073 0.129 6.015 1989 0.244 0.395 0.049 2.406 0.033 3.127 1990 0.308 0.215 0.07 2.816 0.048 3.457 1991 0.603 0.465 0.135 3.853 0.092 5.148 1992 0.222 0.225 0.048 2.779 0.033 3.307 1993 0.182 0.03 0.045 2.943 0.03 3.23 1994 0.182 0.03 0.045 2.943 0.03 3.23 1995 0.182 0.03 0.045 2.943 0.03 3.23 1996 0.182 0.03 0.045 2.943 0.03 3.23 1997 0.182 0.03 0.045 2.943 0.03 3.23 1998 0.182 0.03 0.045 2.943 0.03 3.23 1999 0.182 0.03 0.045 2.943 0.03 3.23 2000 0.182 0.03 0.045 2.943 0.03 3.23 A-47 Table S-9b.Statewide Employment By Sector Petrochemical Development -Industrialization Case - -Extreme High Case - PTC.DW1 F.MP9 ECONX2 MTOT 1980 o. o. o. 1981 o.o.o. 1982 o.o.o. 1983 o.o.o. 1984 o.0.409 0.409 1985 o.2.001 2.001 1986 o.5.284 5.284 1987 o.3.747 3.747 1988 1.14 4.875 6.015 1989 1 .14 1.746 2.886 1990 2.28 o.2.28 1991 2.28 Q..2.28 1992 2.28 o.2.28 1993 2.28 o.2.28 1994 2.28 o.2.28 1995 2.28 O.2.28 1996 228 o.2.28 1997 2.28 o.2.28 1998 2.28 o.2.28 1999 2.28 o.2.28 2000 2.28 o.2.28 SOURCE:See text. A-48 p l \ Table R-9b.Regional Distribution of Employment Petrochemical Development -Industrialization Case - -Extreme High Case - PTC.DW1 804 B09 B24 B26 829 MTOTR 1980 O.O.o.O.O.O. 1981 O.O.o.O.O.O. 1982 O.O.O.O.O.O. 1983 O.O.o.O.o.O. 1984 0.054 0.07 0.011 0.266 0.008 0.409 1985 0.292 0.326 0.062 1.279 0.042 2.001 1986 0.846 0.822 0.184 3.306 0.126 5.284 1987 0.436 0.669 0.087 2.496 0.059 3.747 1988 0.86 0.763 0.19 4.073 0.129 6.015 1989 0.212 0.354 0.032 2.26 0.028 2.886 1990 0.137 0.023 0.033 2.064 0.023 2.28 1991 0.137 0.023 0.033 2.064 0.023 2.28 1992 0.137 0.023 0.033 2.064 0.023 2.28 1993 0.137 0.023 0.033 2.064 0.023 2.28 1994 0.137 0.023 0.033 2.064 0.023 2.28 1995 0.137 0.023 0.033 2.064 0.023 2.28 1996 0.137 0.023 0.033 2.064 0.023 2.28 1997 0.137 0.023 0.033 2.064 0.023 2.28 1998 0.137 0.023 0.033 2.064 0.023 2.28 1999 0.137 0.023 0.033 2.064 0.023 2.28 2000 0.137 0.023 0.033 2.064 0.023 2.28 A-49 10.Beluga-Chuitna Coal Production USGS has long recognized the potential economic significance of a large number of beds of subbituminous coal on the west side of Cook Inlet near Tyonek (see USGS,Coal Resources of Alaska,1967).Recent- ly,several alternative proposals for developing the Beluga-Chuitna fields for export to Japan or other Pacific rim locations have been considered (see Pacific Northwest Laboratory,Beluga Coal Field Deve- lopment:Social Effects and Management Alternatives,1979,and Bechtel, Preliminary Feasibility Study:Coal Export Program,Chuitna River Field, Alaska,1980).In addition,a feasibility study is currently underway to examine the potential for use of such coal in the production of synthetic fuels (see below). In the high scenario and the extreme high scenario as well as the industrialization scenario,it is assumed that an ll-million-ton-per- year operation is developed in the Beluga-Chuitna area for export or use as input to a synthetic fuel production process.Construction employment peaks at 400 in 1984,and the mine becomes operational in 1986,requiring a labor force of 765 (80 percent in mining,20 percent in transportation)as shown in Tables S-lOa and R-lOa. In the moderate case,a more modest export program is implemented on a slower timetable.Production begins in 1989 and eventually reaches 4.4 tons per year.Construction begins in 1985,with peak employment of 400 in 1987.Operations employment is 524 distributed 80 percent in mining and 20 percent in transportation,as shown in Tables S-lOb and R-lOb. No coal development is assumed to occur in the low case. A-50 r Table S-10a.Statewide Employment By Sector Beluga-Chuitna Coal Production -High Case - -Extreme High Case - -Industrialization Case - BCl.11T FMP9 ECONX2 EMT9X MTOT 1980 O.O. O. O. 1981 O.O.O.O. 1982 O.0.3 O.0.3 1983 O.0.6 O.0.6 1984 O.0.8 O.0.8 1985 O.0.7 O.0.7 1986 0.306 0.4 0.077 0.783 1987 0.612 0.2 0.153 0.965 1988 0.612 O.0.153 0.765 1989 0.612 O.0.153 0.765 1990 0.612 O.0.153 0.765 1991 0.612 O.0.153 0.765 1992 0.612 O.0.153 0.765 1993 0.612 O.0.153 0.765 1994 0.612 O.0.153 0.765 1995 0.612 O.0.153 0.765 1996 0.612 O.0.153 0.765 1997 0.612 O.0.153 0.765 1998 0.612 O.0.153 0.765 1999 0.612 O.0.153 0.765 2000 0.612 O.0.153 0.765 SOURCE:Construction employment based on Battelle Pacific Northwest Laboratories,Beluga Coal Field Development:Social Effects and Management Alternatives,1979.Other employment based on Bechtel,Preliminary Feasibility Study:Coal Export Pro- gram,Chuitna River Field,Alaska,1980. A-51 -p Table R-IOa.Regional Distribution of Employment Beluga Chuitna Coal Production -High Case - -Extreme High Case - -Industrialization Case - Bel.11T B12 MTOTR 1980 1981 1982 1983 1984 1985 1986 1987 1988 1989 1990 1991 1992 1993 1994 1995 1996 1997 1998 1999 2000 A-52 o. O. 0.3 0.6 0.8 0.7 0.783 0.965 0.765 0.765 0.765 0.765 0.765 0.765 0.765 0.765 0.765 0.765 0.765 0.765 0.765 o. O. 0.3 0.6 0.8 0.7 0.783 0.965 0.765 0.765 0.765 0.765 0.765 0.765 0.765 0.765 0.765 0.765 0.765 0.765 0.765 -,i Table S-lOb.Statewide Employment By Sector Beluga-Chuitna Coal Production -Moderate Case - BCL.04T EMP9 ECONX2 EMT9X MTOT 1980 O.O.O.O. 1981 O.O.O.O. 1982 O.O.O.O. 1983 O.O.O.O. 1984 O.O.O.O. 1985 O.0.15 O.0.15 1986 O.0.3 O.0.3 1987 O.0.4 O.0.4 1988 O.0.35 O.0.35 1989 O.0.2 O.0.2 1990 0.21 0.1 0.053 0.363 1991 0.419 O.0.105 0.524 1992 0.419 O.0.105 0.524 1993 0.419 O.0.105 0.524 1994 0.419 O.0.105 0.524 1995 0.419 O.0.105 0.524 1996 0.419 O.0.105 0.524 1997 0.419 O.0.105 0.524 1998 0.419 O.0.105 0.524 1999 0.419 O.0.105 0.524 2000 0.419 O.0.105 0.524 SOURCE:Pacific Northwest Laboratories,op.cit.,and Bechtel,op.cit. A-53 Table R-IOb.Regional Distribution of Employment Beluga-Chuitna Coal Production -Moderate Case - BCL.04T ~B12 MTOTR 11~ 1980 o.o.h: I 1981 O.O. 1982 O.O.~1983 O.O.~ I 1984 O. O.!~1985 0.15 0.15•1986 0.3 0.31j I 1987 0.4 0.4 1988 0.35 0.35 1989 0.2 0.2 1990 0.363 0.363~1991 0.524-0.524!~1992 0.524 0.524~1993 0.524 0.524~;1 1994 0.524 0.524!1995 0.524 0.524, 1996 0.524 0.524 1997 0.524 0.524 1998 0.524 0.524 1999 0.524 0.524 2000 0.524 0.524 A-54 11.U.S.Borax Mining Development U.S.Borax holds claim to a large molybdenum discovery near Ketchikan.In the high and extreme high scenarios,it is assumed that this deposit will be developed quickly.Mining employment begins in la te 1980,reaching a long-term level of 440 by 1993,as shown in Tables S-ll and R-ll.In the moderate and low scenarios,as well as the industrialization case,no development is assumed. A-55 Table S-ll.Statewide Employment By Sector Molybdenum Mining -High Case - -Extreme High Case - BXM.EIS EMP9 MTOT 1980 0.04 0.04 1981 0.04 0.04 1982 0.04 0.04 1983 0.04 0.04 1984 0.04 0.04 1985 0.07 0.07 1986 0.07 0.07 1987 0.07 0.07 1988 0.07 0.07 1989 0.07 0.07 1990 0.24 0.24 1991 0.24 •0.24 1992 0.34 0.34 1993 0.44 0.44 1994 0.44 0.44 1995 0.44 0.44 1996 0.44 0.44 1997 0.44 0.44 1998 0.44 0.44 1999 0.44 0.44 2000 0.44 0.44 SOURCE:U.S.D.A.Forest Service,E1S:U.S.Borax Mining Access Road for Quartz Hill Proposal,1977. A-56 p Table R-II.Regional Distribution of Employment Molybdenum Mining -High Case - -Extreme High Case - BXM.EIS B 11 MTOTR 1980 1981 1982 1983 1984 1985 1986 1987 1988 1989 1990 1991 1992 1993 1994 1995 1996 1997 1998 1999 2000 A-57 0.04 0.04 0.04 0.04 0.04 0.07 0.07 0.07 0.07 0.07 0.24' 0.24 0.34 0.44 0.44 0.44 0.44 0.44 0.44 0.44 0.44 0.04 0.04 0.04 0.04 0.04 0.07 0.07 0.07 0.07 0.07 0.24 0.24 0.34 0.44 0.44 0.44 0.44 0.44 0.44 0.44 0.44 12.Aluminum Smelting One possible effect of the availability of low-cost hydropower on Alaska would be the attraction of energy intensive industries to the state.Recent studies have examined the potential of low-cost hydro- power for attraction of such industries to the state (see,for example,Pacific Northwest Laboratory,Energy Intensive Industries for Alaska,1978).Of all industries generally examined for such poten- tial,the primary aluminum industry generally emerges as the most likely to succeed in Alaska. In the industrialization and extreme high scenarios,it is assumed that a 180,000-ton-per-year aluminum smelter is developed in the Railbelt area,with construction beginning in 1990.The plant is operational by 1992.Construction employment peaks at 1,126 in 1991, and operations employment reaches its long-term level of 800 by 1992, as shown in Tables S-12 and R-12. No such development is assumed in any of the other scenarios. A-58 Table S-12.Statewide Employment By Sector Aluminum Smelting -Industrialization Case - -Extreme High Case - ASM.ALX ECONX2 EMMXl MTOT 1980 O.O. O. 1981 O.O.O. 1982 O.O. O. 1983 O.O.O. 1984 O.O.O. 1985 O.O.O. 1986 O.O. O. 1987 O.O. O. 1988 O.O. O. 1989 O.O.O. 1990 0.414 O.0.414 1991 1.126 0.083 1.209 1992 0.327 0.705 1.032 1993 O.0.8 0.8 1994 O.0.8 0.8 1995 O.0.8 0.8 1996 O.0.8 0.8 1997 O.0.8 0.8 1998 O.0.8 0.8 1999 O.0.8 0.8 2000 O.0.8 0.8 SOURCE:Battelle Pacific Northwest Laboratories,Energy Intensive Industry for Alaska,Volume II:Case Analysis,p.2.21, Table C.l. A-59 Table R-12.Regional Distribution of Employment Aluminum Smelting -Industrialization Case - -Extreme High Case - ASM,ALX 817 MTOTR 1980 1981 1982 1983 1984 1985 1986 1987 1988 1989 1990 1991 1992 1993 1994 1995 1996 1997 1998 1999 2000 o. o. o. o. o. o. o. o. 0, o. 0.414 • 1.209 1.032 0.8 0.8 0.8 0.8 0.8 0.8 0.8 0.8 A-60 o. o. o. o. o. o. o. o. 0, o. 0.414 1.209 1.032 0.8 0.8 0,8 0.8 0.8 0.8 0,8 0.8 13.Synthetic Fuels Development Together with Placer Arnex,Inc.,of California,the Cook Inlet Regional Corporation has begun to investigate the feasibility of con- structing a $1.6 billion synthetic fuels plant on Cook Inlet,using coal from its Beluga field coal leases (see above).The plant would consume about 7.3 million tons of coal annually (Anchorage Daily News, 4/26/80)and produce 54,000 barrels of methanol per day,using tech- nology demonstrated in about 20 methanol conversion facilities outside of the United States.The companies were awarded a grant in August 1980 from the Department of Energy to conduct a $3.8 million feasi- bility study for the plant,which is not expected to be complete until late 1981.Consequently,employment estimates are highly speculative. In the industrialization scenario,it is assumed that the syn- thetic fuels plant is constructed in conjunction with the 11 million ton/year Beluga mining development,with the 7.3 million tons required by the plant used on site to produce methanol for export to the West Coast. Construction begins in 1986,and the plant is operational by 1990,employing a full-time work force of 200 persons. No synthetic fuels development is included in any of the other scenarios. A-61 Table 8-13.Statewide Employment By Sector Synthetic Fuels Development -Industrialization Case - -Extreme High Case - SFD.PAX ECONX2 EMMX1 MTOT 1980 O.O.O. 1981 O.O.O. 1982 O.O.O. 1983 O.O.O. 1984 O.O. O. 1985 O.O.O. 1986 0.5 O.0.5 1987 0.5 O.0.5 1988 0.5 O.0.5 1989 0.5 0.1 0.6 1990 O.q.2 0.2 1991 O.0.2 0.2 19"12 O.0.2 0.2 1993 O.0.2 0.2 1994 O.0.2 0.2 1995 O.0.2 0.2 1996 O.0.2 0.2 1997 O.0.2 0.2 1998 O.0.2 0.2 1999 O.0.2 0.2 2000 O.0.2 02 SOURCE:Construction estimates assume 2,000 man-years for plant con- struction.Operations employment estimates based on informal conversations with Placer Amex officials.Includes only syn- fuels plant operations employment,not mining employment (which is included above as part of Beluga coal development). A-62 p Table R-13.Regional Distribution of Employment Synthetic Fuels Development -Industrialization Case - -Extreme High Case - SFO.PAX B12 MTOTR 1980 O.O. 1981 O.O. 1982 O.O. 1983 O.O. 1984 O.O. 1985 O.O. 1986 0.5 0.5 1987 0.5 0.5 1988 0.5 0.5 1989 0.6 0.6 1990 0.2 0.2 1991 0.2 0.2 1992 0.2 0.2 1993 0.2 0.2 1994 0.2 0.2 1995 0.2 0.2 1996 0.2 0.2 1997 0.2 0.2 1998 0.2 0.2 1999 0.2 0.2 2000 0.2 0.2 A-63 14.State Capital Move Alaskan voters in a referendum in 1974 elected to move the state capital from its current site in Juneau to a new site subsequently chosen at Willow,on the railbelt. In the high and extreme high scenarios,it is assumed that this move begins in 1983.It is a full move involving the relocation of some 2,750 state employees,completed in 1996.As shown in Tables S-14 and R-14,construction employment peaks at 1,560 in 1990. In the low,moderate,and industrialization scenarios,it is assumed that no capital move is successfully funded so that state government remains in Juneau. A-64 Table S-14.Statewide Employment By Sector Capital Move -High Case - -Extreme High Case - CAP.SCS ECONX2 MTOT 1980 O. O. 1981 O.O. 1982 O. O. 1983 0.85 0.85 1984 0.65 0.65 1985 1.16 1.16 1986 1.11 1 . 11 1987 0.7 0.7 1988 0.65 0.65 1989 1.15 1.15 1990 1.56 1.56 1991 1.23 1.23 1992 0.98 0.98 1993 0.7 0.7 1994 0.65 0.65 1995 0.65 0.65 1996 0.65 0.65 1997 O.O. 1998 O.O. 1999 O.O. 2000 O.O. SOURCE:M.Scott,Southcentral Alaska's Economy and Population,1965- 2025:A Base Study and Projections,1979,High Scenario. A-65 Table R-14.Regional Distribution of Employment Capital Move -High Case - -Extreme High Case - CAP.SCS B17 MTOTR 1980 1981 1982 1983 1984 1985 1986 1987 1988 1989 1990 1991 1992 1993 1994 1995 1996 1997 1998 1999 2000 A-66 o. o. O. 0.85 0.65 1.16 1.11 0.7 0.65 1.15 1.56 1.23 0.98 0.7 0.65 0.65 0.65 O. O. o. o. o. o. O. 0.85 0.65- 1.16 1.11 0.7 0.65 1 .15 1.56 1.23 0.98 0.7 0.65 0.65 0.65 O. O. O. O. ~' ilIIilII L C.INDUSTRY ASSUMPTIONS In addition to the project-specific assumptions described above, other portions of the exogenous sectors are affected by trends and events which must be anticipated,although they are not as directly traceable to specific development projects.These sectors include the following:the portion of mining sector employment not accounted for by the above projects,which will be called "other mining";the agri- culture,forestry,and fisheries industries in their entirety;and the residual component of manufacturing employment not accounted for by specific projects or by activities associated with fisheries (i.e., food processing)or forestry (i.e.,pulp and paper manufacturing). The final exogenous component of employment is federal government sector employment.We turn now to a discussion of the assumptions used to describe developments in these sectors. 1.Other Mining Activity In 1979,total mining sector employment in Alaska was 5,773,of which 5,354 was in oil and gas.Of this,2,633 was accounted for by proj ects discussed above.The residual,or 3,140,is classified as "other mining."It consists of administrative personnel in Anchorage associated with minerals industries,a variety of petroleum explora- tion activities on the North Slope and elsewhere not broken down by project (i.e.,the Husky operation in NPR-A,various drilling contrac- tors on state and Native lands,seismic work being conducted offshore prior to OCS lease sales,etc.),and hardrock mining activities. In the high and extreme high scenarios,it is assumed that such employment increases at a 2 percent annual rate from its current level.In both the moderate and industrialization scenarios,it is assumed that such employment increases at 1 percent annually.In the low scenario,such employment is assumed to maintain its 1979 level, as shown in Tables S-15 and R-15. A-67 Table S-15a.Statewide Employment By Sector Other Mining -High Case - -Extreme High Case - OMN.08H EMP9 MTDT 1980 3.203 3.203 1981 3.267 3.267 1982 3.332 3.332 1983 3.399 3.399 1984 3.467 3.467 1985 3.536 3.536 1986 3.607 3.607 1987 3.679 3.679 1988 3.753 3.753 1989 3.828 3.828 1990 3.904 3.904 1991 3.982 3.982 1992 4.062 4.06.2 1993 4.143 4.143 1994 4.226 4.226 1995 4.311 4.311 1996 4.397 4.397 1997 4.485 4.485 1998 4.574 4.574 1999 4.666 4.666 2000 4.759 4.759 SOURCE:See text. A-68 Table R-lSa.Regional Distribution of Employment Other Mining -High Case Extreme High Case OMN.08H 001 802 804 805 808 B09 1980 o 015 2.015 0.813 0.004 o 053 0.033 1981 0.016 2.056 0.829 0.004 0.054 0.033 1982 0.016 2.097 o 846 0.004 0.055 0.034 1983 o 016 2.139 0.863 0.004 0.056 0.035 1984 o 017 2.181 0.88 0.005 0.058 0.035 1985 0.017 2.225 0.897 0.005 0.059 0.036 1986 0.017 2.269 0.915 0.005 0.06 0.037 1987 0.018 2.315 0.934 0.005 0.061 0.03B 1988 0.018 2.361 o 952 0.005 0.062 0.038 1989 O.OlB 2.408 0.971 0.005 0.064 0.039 1990 0.019 2.457 0.991 0.005 0.065 0.04 1991 0.019 2.506 1.011 0.005 0.066 0.041 1992 0.019 2.556 1.031 0.005 0.067 0.041 1993 0.02 2.607 1.052 0.005 0.069 0.042 1994 0.02 2.659 1.073 0.005 0.07 0.043 1995 0.021 2.712 1.094 0.006 0.072 0.044 1996 0.021 2.766 1.116 0.006 0.073 0.045 1997 0.022 2.B22 1.13B 0.006 0.074 0.046 1998 0.022 2.878 1.161 0.006 0.076 0.047 1999 0.022 2.936 1.184 0.006 0.077 0.048 2000 0.023 2.995 1.20B 0.006 0.079 0.049 Bll B14 B16 B17 B18 B21 1980 0.04 0.002 0.004 0.008 0.099 o 017 1981 0.041 0.002 0.004 0.003 0.101 0.018 1982 0.041 0.002 0.004 0.003 0.103 O.OlB 1983 0.042 0.002 0.004 0.003 0.105 0.018 1984 0.043 0.002 0.005 0.003 0.107 0.019 1985 0.044 0.002 0.005 0.004 0.109 0.019 1986 0.045 0.002 0.005 0.004 0.111 0.019 19B7 0.046 0.002 0.005 0.004 0.114 0.02 1988 0.047 0.002 0.005 0.004 0.1'6 0.02 1989 0.047 0.002 0.005 0.004 0.118 0.021 1990 0.048 0.002 0.005 0.004 0.121 0.021 1991 0.049 0.002 0.005 0.004 0.123 0.022 1992 0.05 0.002 0.005 0.004 0.126 0.022 1993 0.051 0.002 0.005 0.004 0.128 0.022 1994 0.052 0.003 0.005 0.004 0.131 0.023 1995 0.053 0.003 0.006 0.004 0.133 0.023 1996 0.055 0.003 0.006 0.004 0.136 0.024 1997 0.056 0.003 0.006 0.004 0.139 0.024 1998 0.057 0.003 0.006 0.005 0.141 0.025 1999 0.058 0.003 0.006 0.005 0.144 0.025 2000 0.059 0.003 0.006 0.005 0.147 0.026 825 B26 B29 IolTOTR 1980 0.01 0.004 0.09 3.203 1981 0.01 0.004 0.091 3.267 1982 0.011 0.004 0.093 3.332 1983 0.011 0.004 0.095 3.399 1984 0.011 0.005 0.097 3.467 1985 0.011 0.005 0.099 3.536 I )0.012 0.005 0.101 3.607 1 0.012 0.005 0.103 3.679 1988 0.012 0.005 0.105 3.753 1989 0.012 0.005 0.107 3.828 1990 0.012 0.005 0.109 3.904 1991 0.013 0.005 O.112 3.982 1992 0.013 0.005 0.114 4.062 1993 0.013 0.005 0.116 4.143 1994 0.014 0.005 O.118 4.226 1995 0.014 0.006 0.121 4.311 1996 0.014 0.006 0.123 4.397 1997 0.014 0.006 0.1:16 4.485 1998 0.015 0.006 0.1:18 4.574 1999 0.015 0.006 0.131 4.666 :1000 0.015 0.006 0.133 4.759 A-69 Table S-lSb.Statewide Employment By Sector Other Mining -Moderate Case - -Industrialization Case - OMNoEPH EMP9 MTOT 1980 3.171 3.171 1981 3.203 3.203 1982 3.235 3.235 1983 3.267 3.267 1984 3.3 3.3 1985 3.333 3.333 1986 3.367 3.367 1987 3.4 3.4 1988 3.434 3.434 1989 3.469 3.469 1990 3.503 3.503 1991 3.538 3.538 1992 3.574 3.574 1993 3.609 3.609 1994 3.645 3.645 1995 3.682 3.682 1996 3.719 3.719 1997 3.756 3.756 1998 3.793 3.793 1999 3.831 3.831 2000 3.869 3.869 SOL~CE:See text. A-70 >b Table R-15b.Regional Distribution of Employment Other Mining -Moderate Case - -Industrialization Case - OMN.EPH 801 802 804 805 808 809 811 814 1980 0.015 1.995 0.805 0.004 0.053 0.032 0.039 0.002 1981 0.015 2.015 0.813 0.004 0.053 0.033 0.04 0.002 1982 0.016 2.035 0.821 0.004 0.054 0.033 0.04 0.002 1983 0.016 2.056 0.829 0.004 0.054 0.033 0.041 0.002 1984 0.016 2.076 0.838 0.004 0.055 0.034 0.041 0.002 1985 0.016 2.097 0.846 0.004 0.055 0.034 0.041 0.002 1986 0.016 2.119 0.855 0.004 0.056 0.034 0.042 0.002 1987 0.016 2.139 0.863 0.004 0.056 0.035 0.042 0.002 1988 0.016 2.161 0.872 0.004 0.057 0.035 0.043 0.002 1989 0.017 2.183 0.88 0.005 0.058 0.035 0.043 0.002 1990 0.017 2.204 0.889 0.005 0.058 0.036 0.043 0.002 1991 0.017 2.226 0.898 0.005 0.059 0.036 0.044 0.002 1992 0.017 2.249 0.907 0.005 0.059 0.036 0.044 0.002 1993 0.017 2.271 0.916 0.005 0.06 0.037 0.045 0.002 1994 0.017 2.293 0.925 0.005 0.061 0.037 0.045 0.002 1995 0.018 2.317 0.934 0.005 0.061 0.038 0.046 0.002 1996 0.018 2.34 0.944 0.005 0.062 0.038 0.046 0.002 1997 0.018 2.363 0.953 0.005 0 ..062 0.038 0.047 0.002 1998 0.018 2.387 0.963 0.005 0.063 0.039 0.047 0.002 1999 0.018 2.41 0.972 0.005 0.064 0.039 0.048 0.002 2000 0.019 2.434 0.982 0.005 0.064 0.039 0.048 0.002 816 817 818 821 825 826 829 MTOTR 1980 0.004 0.003 0.098 0.017 0.01 0.004 0.089 3.171 1981 0.004 0.003 0.099 0.017 0.01 0.004 0.09 3.203 1982 0.004 0.003 O.1 0.017 0.01 0.004 0.091 3.235 1983 0.004 0.003 0.101 0.018 0.01 0.004 0.091 3.267 1984 0.004 0.003 0.102 0.018 0.011 0.004 0.092 3.3 1985 0.004 0.003 0.103 0.018 0.011 0.004 0.093 3.333 1986 0.004 0.003 0.104 0.018 0.011 0.004 0.094 3.367 1987 0.004 0.003 0.105 0.018 0.011 0.004 0.095 3.4 1988 0.004 0.003 0.106 0.019 0.011 0.004 0.096 3.434 1989 0.005 0.003 0.107 0.019 0.011 0.005 0.097 3.469 1990 0.005 0.004 0.108 0.019 0.011 0.005 0.098 3.503 1991 0.005 0.004 0.109 0.019 0.011 0.005 0.099 3.538 1992 0.005 0.004 0.11 0.019 0.011 0.005 0.1 3.574 1993 0.005 0.004 0.112 0.019 0.012 0.005 0.101 3.609 1994 0.005 0.004 O.113 0.02 0.012 0.005 0.102 3.645 1995 0.005 0.004 O.114 0.02 0.012 0.005 0.103 3.682 1996 0.005 0.004 O.115 0.02 0.012 0.005 0.104 3.719 1997 0.005 0.004 0.116 0.02 0.012 0.005 0.105 3.756 1998 0.005 0.004 0.117 0.02 0.012 0.005 0.106 3.793 1999 0.005 0.004 0.118 0.021 0.012 0.005 0.107 3.831 2000 0.005 0.004 0.12 0.021 0.012 0.005 0.108 3.869 A-71 Table S-15c.Statewide Employment By Sector Other Mining -Low Case - 1980 1981 1982 1983 1984 1985 1986 1987 1988 1989 1990 1991 1992 1993 1994 1995 1996 1997 1998 1999 2000 SOURCE:See text. EMP9 3.140 3.140 MTOT 3.140 3.140 • A-72 Table R-lSc.Regional Distribution of Employment Other Mining -Low Case - 0"'''1.EPN 601 602 604 B05 608 609 1980 0.015 1.976 0.797 0.004 0.052 0.032 1981 0.015 1.976 0.797 0.004 0.052 0.032 1982 0.015 1.976 0.797 0.004 0.052 0.032 1983 o 015 1.976 0.797 0.004 0.052 0.032 1984 0.015 1.976 0.797 0.004 0.052 0.032 1985 0.015 1.976 0.797 0.004 0.052 0.032 1986 0.015 1.976 0.797 0.004 0.052 0.032 1987 0.015 1.976 0.797 0.004 0.052 0.032 1988 0.015 1.976 0.797 0.004 0.052 0.032 1989 0.015 1.976 0.797 0.004 0.052 0.032 1990 0.015 1.976 0.797 0.004 0.052 0.032 1991 0.015 1.976 0.797 0.004 0.052 0.032 1992 0.015 1.976 0.797 0.004 0.052 0.032 1993 0.015 1.976 0.797 0.004 0.052 0.032 '994 0.015 1.976 0.797 0.004 0.052 0.032 1995 0.015 1.976 0.797 0.004 0.052 0.032 1996 0.015 1.976 0.797 0.004 0.052 0.032 1997 0.015 1.976 0.797 0.004 0.052 0.032 1998 0.015 1.976 0.797 0.004 0.052 0.032 1999 0.015 1.976 0.797 0.004 0.052 0.032 2000 0.015 1.976 0.797 0.004 0.052 0.032 Bl1 614 B16 611'B18 621 1980 0.039 0002 0.004 0.003 0.097 0.017 1981 0.039 0.002 0.004 0.003 0.097 0.017 1982 0.039 0.002 0.004 0.003 0.097 0.017 1983 0.039 0.002 0.004 0.003 0.097 0.017 '984.0.039 0.002 0.004 0.003 0.097 0.017 '985 0.039 0.002 0.004 0.003 0.097 0.017 1986 0.039 0.002 0.004 0.003 0.097 0.017 1987 0.039 0.002 0.004 0.003 0.097 0.017 1988 0.039 0.002 0.004 0.003 0.097 0.017 1989 0.039 0.002 0.004 0.003 0.097 0.017 1990 0.039 0.002 0.004 0.003 0.097 0.017 1991 0.039 0.002 0.004 0.003 0.097 0.017 1992 0.039 0.002 0.004 0.003 0.097 0.017 1993 0.039 0.002 0.004 0.003 0.097 0.017 1994 0.039 0.002 0.004 0.003 0.097 0.017 1995 0.039 0.002 0.004 0.003 0.097 0.017 1996 0.039 0.002 0.004 0.003 0.097 0.017 1997 0.039 0.002 0.004 0.003 0.097 0.017 1998 0.039 0.002 0.004 0.003 0.097 0.017 1999 0.039 0.002 0.004 0.003 0.097 0.017 2000 0.039 0.002 0.004 0.003 0.097 0.017 825 626 829 "'TOTR 1980 0.01 0.004 o 088 3.14 1981 0.01 0.004 0.088 3.14 1982 0.01 0.004 0.088 3.14 1983 0.01 0.004 0.088 3.14 1984 0.01 0.004 0.088 3.14 1985 0.01 0.004 0.088 3.14 ;';j 0.01 0.004 0.088 3.14 0.01 0.004 0.088 3.14 1988 0.01 0.004 0.088 3.14 1989 0.01 0.004 0.088 3.14 '990 0.01 0.004 0.088 3.14 1991 0.01 0.004 0.088 3.14 1992 0.01 0.004 0.088 3.14 1993 0.01 0.004 0.088 3.14 1994 0.01 0.004 0.088 3.14 1995 0.01 0.004 0.088 3.14 1996 0.01 0.004 0.088 3.14 1997 0.01 0.004 0.088 3.14 1998 0.01 0.004 0.088 3.14 1999 0.01 0.004 0.088 3.14 2000 0.01 0.004 0.088 3.14 A-73 - 2.Agriculture The assumptions used for the agriculture sector are based on scenarios developed by Michael Scott in Southcentral Alaska's Economy and Population,1965-2025:A Base Study and Projections,1979. In the high and extreme high scenarios,favorable state and federal policies combine with favorable market conditions to produce maj or agricultural developments in Alaska,with employment reaching 4,600 by the year 2000. In both the moderate and industrialization scenarios,either less favorable market conditions or restrictive land policies lower growth in agriculture,with employment reaching only 1,037 by the year 2000. The low scenario represents a "worst case"for agriculture deve- lopment.Due either to restrictive state and federal policies or to unfavorable market conditions,agriculture begins a long period of decline,eventually disappearing by 1992. These assumptions are presented in Tables S-16 and R-16. t L.......iiiiiiiiiiiiiiiiiiii;iiiiiiiiiiiiii • A .-. 74 •L Table S-16a.Statewide Employment By Sector Agricul ture -High Case - -Extreme High Case - AGR.SCH EMA9 MTOT SOURCE:See text. 1980 1981 1982 1983 1984 1985 1986 1987 1988 1989 1990 1991 1992 1993 1994 1995 1996 1997 1998 1999 2000 0.178 0.178 0.166 0.214 0.27 0.31 0.338 0.376 0.468 0.59 0.784 • 1.014 1.314 1.712 2.122 2.406 2.706 3.104 3.528 4.018 4.608 A-75 0.178 0.178 0.166 0.214 0.27 0.31 0.338 0.376 0.468 0.59 0.784 1.014 1.314 1.712 2.122 2.406 2.706 3.104 3.528 4.018 4.608 Table R-16a.Regional Distribution of Employment Agriculture -High Case - -Extr~me High Case - AGR.SCH B01 B09 B12 B17 MTOTR 1980 0.013 0.044 0.008 0.113 0.178 1981 0.013 0.044 0.008 0.113 0.178 1982 0.013 0.04 0.008 0.105 0.166 1983 0.013 0.054 0.008 0.139 0.214 1984 0.013 0.069 0.008 0.18 0.27 1985 0.013 0.08 0.008 0.209 0.31 1986 0.013 0.088 0.008 0.229 0.338 1987 0.013 0.099 0.008 0.256 0.376 1988 0.013 0.124 0.008 0.323 0.468 1989 0.013 0.158 0.008 0.411 0.59 1990 0.013 0.212 0'.008 0.551 0.784 1991 0.013 0.276 0.008 0.717 1.014 1992 0.013 0.36 0.008 0.933 1.314 1993 0.013 0.47 0.008 1.221 1.712 1994 0.013 0.584 0.008 1.517 2.122 1995 0.013 0.663 0.008 1.722 2.406 1996 0.013 0.747 0.008 1.938 2.706 1997 0.013 0.857 0.008 2.226 3.104 1998 0.013 0.975 0.008 2.532 3.528 1999 0.013 1.112 0.008 2.885 4.018 2000 0.013 1.276 0.008 3.311 4.608 A-76 ....'11I1__ Table S-16b.Statewide Employment By Sector Agriculture -Moderate Case - -Industrialization Case - AGR.SCM EMA9 MTOT 1980 0.178 0.178 1981 0.178 0.178 1982 0.166 0.166 1983 0.204 0.204 1984 0.228 0.228 1985 0.252 0.252 1986 0.276 0.276 1987 0.3 0.3 1988 0.357 0.357 1989 0.413 0.413 1990 0.47 0.47 1991 0.527 0.527 1992 0.583 0.583 1993 0.64 0.64 1994 0.697 0.697 1995 0.753 0.753 1996 0.81 0.81 1997 0.867 0.867 1998 0.923 0.923 1999 0.98 0.98 2000 1.037 1.037 A-77 • Table R-16b.Regional Distribution of Employment Agriculture -Moderate Case - -Industrialization Case - AGR.SCM B01 B09 612 617 MTOTR 1980 0.013 0.044 0.008 O.113 0.178 1981 0.013 0.044 0.008 O.113 0.178 1982 0.013 0.04 0.008 0.105 0.166 1983 0.013 0.051 0.008 0.132 0.204 1984 0.013 0.058 0.008 0.149 0.228 1985 0.013 0.064 0.008 0.167 0.252 1986 0.013 0.071 0.008 0.184 0.276 1987 0.013 0.078 0.008 0.201 0.3 1988 0.013 0.093 0.008 0.243 0.357 1989 0.013 0.109 0.008 0.283 0.413 1990 0.013 0.125 0.008 0.324 0.47 1991 0.013 0.141 0.608 0.365 0.527 1992 0.013 0.156 0.008 0.406 0.583 1993 0.013 0.172 0.008 0.447 0.64 1994 0.013 0.188 0.008 0.488 0.697 1995 0.013 0.204 0.008 0.528 0.753 1996 0.013 0.219 0.008 0.57 0.81 1997 0.013 0.235 0.008 0.611 0.867 1998 0.013 0.251 0.008 0.651 0.923 1999 0.013 0.267 0.008 0.692 0.98 2000 0.013 0.283 0.008 0.733 1.037 A-78 -======.....iiiiiiiiiiiii .lllllt-- Table S-16c.Statewide Employment By Sector Agriculture -Low Case - AGRoSCL EMA9 MTOT 1980 1981 1982 1983 1984 1985 1986 1987 1988 1989 1990 1991 1992 1993 1994 1995 1996 1997 1998 1999 2000 0.178 0.178 0.166 0.156 0.156 0.128 0.126 0.096 0.076 0.058 0.046 0.032 • o. o. o. o. o. o. o. o. o. A-79 0.178 0.178 0.166 0.156 0.156 0.128 0.126 0.096 0.076 0.058 0.046 0.032 o. o. o. o. o. o. o. o. o. Table R-16c.Regional Distribution of Employment Agriculture -Low Case - AGRoSCL B01 B09 B12 B17 MTOTR 1980 00012 0.044 0.007 0.114 0.178 1981 0.012 00044 0.007 00114 0.178 1982 0.011 0.041 0.007 0.107 0.166 1983 0.011 0.039 0.007 0.1 0 ..156 1984 0.011 0.039 0.007 0.1 0.156 1985 0.009 ·0.032 0.005 0.082 0.128 1986 0.009 0.031 0.005 0.081 0.126 1987 0.007 0.024 0.004 0.062 0.096 1988 0.005 0.019 0.003 0.049 0.076 1989 0.004 0.014 0.002 0.037 0.058 1990 0.003 0.011 '0.002 0.03 0.046 1991 0.002 0.008 0.001 0.021 00032 1992 O.O.O.O.O. 1993 O.o.o.o.O. 1994 O.O.O.O.O. 1995 O.O.o.O.o. 1996 O.O.O.o.O. 1997 O.O.O.O.O. 1998 o.o.o.o.o. 1999 O.O.O.O.O. 2000 o.O.O.O.O. I I J i .........A-.80 l 3.Fisheries/Food Processing In all cases,existing fisheries harvesting employment remains constant throughout the forecast period at its current level of about 6,363.2 In the high and extreme high scenarios,major expansion of bottomfishing occurs,with 100 percent replacement of the foreign fishing effort within the 200-mile limit by the year 2000.Total fisheries harvesting and processing employment rises to 17,489 by the year 2000,as shown in Tables S-17a and R-17a. In both the moderate and industrialization cases,a more moderate expansion of bottomfishing replaces 50 percent of the foreign fishing effort within the 200-mile limit by the year 2000.Total employment reaches 16,483,as shown in Tables S-17b and R-17b. In the low scenario,no bottomfishing development occurs.Total employment remains at 13,486,as shown in Tables S-17c and R-17c. (In all cases,food processing employment increases in the same proportion as fisheries employment.This assumes that any increase in the productivity of fisheries can be matched by corresponding increases in food processing productivity.) 2Based on projection to 1980 of estimates presented in G.Rogers, Measuring the Socioeconomic Impacts of Alaska's Fisheries,ISER,4/80. A-81 Table S-17a.Statewide Employment By Sector Fisheries/Food Processing -High Case - -Extreme High Case - FFPoRGH ECONX2 EMMX2 EMPROF MTOT 1980 0.15 70462 6.666 14.278 1981 0.15 70598 6.787 14.535 1982 0.15 70734 60909 140793 1983 0.15 7.869 7.029 15.048 1984 0.15 8.005 70 151 150306 1985 0.15 8.141 7.272 150563 1986 0.15 8.208 7.332 15.69 1987 0.15 8.276 7.393 15.819 1988 0.15 8.334 7.445 15.929 1989 0015 8.412 7.514 16.076 1990 0015 8.48 70575 160205 1991 0.15 80548 7.636 16.334 1992 0.15 8.615 7.696 16.461 1993 0.15 8.683 7.757 16.59 1994 0.15 8.751 7.817 16.718 1995 0.15 8.819 7.878 16.847 1996 0.15 8.887 7.939 16.976 1997 0.15 80955 8.17.104 1998 0.15 9.022 8.059 17 .231 1999 0.15 9.09 8.12 17036 2000 0.15 9.158 80 181 17.489 A-82 Table R-17a.Regional Distribution of Employment Fisheries/Food Processing -High Case - Extreme High Case FFP.RGH BOI B02 B05 B06 B08 811 1980 2.314 0.5t2 0.285 1.724 0.763 3.8'8 1981 2.356 0.521 0.291 1.755 0.777 3.887 1982 2.397 0.531 0.296 1.786 0.79 3.956 '983 2.438 0.54 0.301 1.817 0.804 4.025 '984 2.48 0.549 0.306 1.848 0.818 4.094 '985 2.521 0.558 0.311 1.87'9 0.832 4 163 '986 2.542 0.562 0.314 1.894 0.838 4.197 '987 2.562 0.567 0.316 1.91 0.845 4.231 1988 2.58 0.57\0.319 1.923 0.·851 4.26' '989 2.604 0.576 0.322 1.94\0.859 4.3 1990 2.625 0.58 ,0.324 ,.957 0.866 4.335 1991 2.645 0.585 0.327 1.972 0.873 4.369 '992 2.666 0.59 0.329 1.988 0.88 4.403 '993 2.687 0.594 o 332 2.003 0.887 4.438 1994 2.707 0.599 0.334 2.019 0.894 4.472 1995 2.728 0.604 o 337 2.034 0.901 4.507 '996 2.749 0.608 0.34 2.05 0.907 4.541 1997 2.77 0.613 0.342 2.065 0.914 4.576 1998 2.79 0.617 0.345 2.081 0.921 4.61 1999 2.811 0.622 0.347 2.096 0.928 4.644 2000 2.832 0.626 0.35 2.112 0.935 4.679 . B12 B14 B15 B16 B18 821 1980 1.326 0.045 3.079 0.005 0.057 0.062 '981 1.35 0.045 3 .•35 0.005 0.058 0.063 1982 1.374 0.046 3.'9 0.005 0.059 0.064 1983 1.397 0.047 3.246 0.005 0.06 0.065 1984 1.42'0.048 3.301 0.005 0.06t 0.067 1985 1.445 0.049 3.357 0005 0.062 0.068 1986 1.457 0.049 3.384 0.005 0.062 0.068 1987 1.469 0.05 3.412 0.005 0.063 0.069 '988 1.479 0.05 3 435 0.005 0.063 0.069 1989 1 _493 0.05 3.467 0.005 0.064 0.07 1990 1.505 0.051 3.495 0.005 0.064 0.07 '991 1.517 0.051 3.523 0.005 0.065 0.071 1992 1.529 0.052 3.55 0.005 0.065 0.072 1993 1.541 0.052 3.578 0.005 0.066 0.072 1994 1.552 0.052 3.606 0.005 0.066 0.073 1995 1.564 0.053 3.633 0.006 0.067 0.073 1996 1.576 0.053 3.661 0.006 0.067 0.074 1997 1.588 0.054 3.689 0.006 0.068 0.074 1998 1.6 0.054 3.716 0.006 0.069 0.075 '999 1.612 0.054 3.744 0.006 0.069 0.076 2000 1.624 0.055 3.772 0.006 0.07 0.076 B26 B27 "HOTR 1980 0.056 0.232 14.278 1981 0.057 0.237 14.535 1982 0.058 0.241 14.793 1983 0.059 0.245 15.048 1984 0.06 0.249 15.306 1985 0.061 0.253 15.563 1 )0.061 0.256 '5.69 \'-0.062 0.258 15.819 1988 0.062 0.259 15.929 1989 0.063 0.262 16.076 1990 0.063 0.264 '6.205 1991 0.064 0.266 \6.334 \992 0.064 0.268 16.461 '993 o 065 0.27 16.589 '994 0.065 0.272 16.718 1995 0.066 0.274 16.847 1996 0.066 0.277 16.976 '997 0.067 0.279 '7.104 1998 0.067 0.28''7.231 1999 0.068 0.283 17.36 2000 0.068 0.285 17.489 A-83 Table S-17b.Statewide Employment By Sector Fisheries/Food Processing -Moderate Case - -Industrialization Case - FFP.RGM ECONX2 EMMX2 EMPROF MTOT 1980 00 7.462 6.666 14.128 1981 0.75 7.53 60727 15.007 1982 0.75 7.598 6.787 15.135 1983 0.75 7.666 6.848 15.264 1984 0.75 7.734 6.909 15.393 1985 0.75 7.801 6.969 15.52 1986 0.75 7.835 6.999 15.584 1987 0.75 7.869 7.029 15.648 1988 0.75 7.903 7.06 15.713 1989 0.75 7.937 7.09 15.777 1990 0.75 7.971 7.12 15.841 1991 0.75 8.005 7.151 15.906 1992 0.75 8.039 7.181 15.97 1993 0.75 8.073 7.212 16.035 1994 0.75 8.107 7.242 16.099 1995 0.75 8.141 7.272 16.163 1996 0.75 8.174 7.302 16.226 1997 0.75 8.208 7.332 16.29 1998 0.75 8.242 7.363 16.355 1999 0.75 8.276 7.393 16.419 2000 0.75 8.31 7.423 16.483 A-84 Table R-17b.Regional Distribution of Employment Fisheries/Food Processing -Moderate Case - -Industrialization Case - FFP.RGM BOl B02 B05 B06 B08 Bll B12 B14 1980 2.277 0.502 0.2B3 1.70B 0.758 3.787 1.312 0.045 19B1 2.481 0.557 0.296 1.803 0.79 3.979 1.391 0.045 1982 2.502 0.562 0.298 1.818 0.797 4.013 1.403 0.045 1983 2.523 0.566 0.301 1.834 0.804 4.048 1.415 0.046 1984 2.544 0.571 0.303 1.849 0.811 4.082 1.427 0.046 1985 2.564 0.575 0.306 1.865 0.818 4.116 1.439 0.047 1986 2.574 0.578 0.307 1.872 0.821 4.133 1.445 0.047 1987 2.585 0.58 0.309 1.88 0.824 4.151 1.451 0.047 1988 2.595 0.582 0.31 1.888 0.828 4.168 1.457 0.047 1989 2.605 0.585 0.311 1.896 0.831 4.185 1.463 0.048 1990 2.616 0.587 0.312 1.904 0.835 4.202 1.469 0.048 1991 2.626 0.589 0.314 1 .911 0.838 4.22 1.474 0.048 1992 2.637 0.591 0.315 1.919 0.842 4.237 1.48 0.048 1993 2.647 0.594 0.316 1.927 0.845 4.254 1.486 0.048 1994 2.657 0.596 0.318 1.935 0.849 4.271 1.492 0.049 1995 2.668 0.598 0.319 1.942 0.852 4.289 1.498 0.049 1996 2.678 0.601 0.32 1.95 0.855 4.305 1.504 0.049 1997 2.688 0.603 0.321 1.958 0.859 4.323 1.51 0.049 1998 2.699 0.605 0.323 1.966 0.862 4.34 1.516 0.049 1999 2.709 0.607 0.324 1.973 0.866 4.357 1.522 0.05 2000 2.719 0.61 0.325 1.981 0.869 4.374 1.528 0.05 B15 B16 B18 B21 B26 B27 "'TOTR 1980 3.046 0.005 0.057 0.062 0.055 0.231 14.128 1981 3.242 0.005 0.057 0.063 0.058 0.241 15.007 1982 3.27 0.005 0.058 0.063 0.059 0.243 15.135 1983 3.297 0.005 0.058 0.064 0.059 0.245 15.264 1984 3.325 0.005 0.059 0.064 0.06 0.247 15.393 1985 3.352 0.005 0.059 0.065 0.06 0.249 15.52 1986 3.366 0.005 0.059 0.065 0.06 0.25 15.584 1987 3.38 0.005 0.06 0.065 0.061 0.251 15.648 1988 3.394 0.005 0.06 0.066 0.061 0.252 15.713 1989 3.408 0.005 0.06 0.066 0.061 0.253 15.777 1990 3.422 0.005 0.061 0.066 0.061 0.254 15.841 1991 3.436 0.005 0.061 0.067 0.062 0.256 15.906 1992 3.45 0.005 0.061 0.067 0.062 0.257 15.97 1993 3.463 0.005 0.061 0.067 0.062 0.258 16.035 1994 3.477 0.005 0.062 0.067 0.062 0.259 16.099 1995 3.491 0.005 0.062 0.068 0.063 0.26 16.163 1996 3.505 0.005 0.062 0.068 0.063 0.261 16.226 1997 3.519 0.005 0.062 0.068 0.063 0.262 16.29 1998 3.532 0.005 0.063 0.068 0.063 0.263 16.355 1999 3.546 0.005 0.063 0.069 0.064 0.264 16.419 2000 3.56 0.005 0.063 0.069 0.064 0.265 16.483 A-8S Table S-17c.Statewide Employment By Sector Fisheries/Food Processing -Low Case - FFP.RGL ECONX2 EMMX2 EMPROF MTOT 1980 O.7.123 6.363 13.486 1981 O.7.123 6.363 13.486 1982 O.7.123 6.363 13.486 1983 O.7.123 6.363 13.486 1984 O.7.123 6.363 13.486 1985 O.7.123 6.363 13.486 1986 O.7.123 6.363 13.486 1987 O.7 123 6.363 13.486 1988 O.7.123 6.363 13.486 1989 O.7.123 6.363 13.486 1990 O.7.123 6.363 13.486 1991 O.7.123 6.363 13.486 1992 O.7.123 6.363 13.486 1993 O.7 123 6.363 13.486 1994 O.7.123 6.363 13.486 1995 O.7.123 6.363 13.486 1996 O.7.123 6.363 13.486 1997 O.7.123 6.363 13.486 1998 O.7.123 6.363 13.486 1999 O.7.123 6.363 13.486 2000 O.7.123 6.363 13.486 A-86 -.-------------------------------..t-- Table R-17c.Regional Distribution of Employment Fisheries/Food Processing -Low Case - FFP .RGL BOt B02 B05 B06 B08 811 '980 2.174 0.479 0.271 1.63 0.723 3.615 '9Bl 2.174 0.479 0.271 1.63 0.723 3.6'5 1982 2.174 0.479 0.271 1.63 0.723 3.615 1983 2 174 0.479 0.271 1.63 0.723 3.615 1984 2.174 0.479 0.271 1.63 o 723 3.615 1985 ~.174 0.479 0.271 1.63 0.723 3.615 1986 2.174 0.479 0.271 1.63 0.723 3.615 '987 2.174 0.479 0.271 1.63 0.723 3.615 1988 2 174 0.479 0.271 1.63 0.723 3.615 '989 2.174 0.479 0.271 1.63 0.723 3.615 1990 2.174 0.479 0.271 1.63 0.723 3.615 1991 2.174 0.479 0.271 1.63 0.723 3.615 1992 2.174 0.479 0.271 ,.63 0.723 3.615 '993 2.174 0.479 0.271 1.63 0.723 3.615 '994 2.174 0.479 0.271 1.63 0.723 3.615 1995 2'.174 0.479 0.271 1.63 0.723 3.615 1996 2.'74 0.479 0.271 1.63 0.723 3.615 1997 2.174 0.479 0.271 1.63 0.723 3.615 1998 2.174 0.479 0.271 1.63 0.723 3.615 '999 2.174 0.479 0.271 1.63 0.723 3.615 2000 2.174 0.479 .0.27 \1.63 0.723 3.6'5 812 814 815 816 .818 821 1980 1.253 0.043 2.907 0.004 0.054 0.059 1981 1.253 0.043 2.907 0.004 0.054 0.059 '982 1.253 0.043 2.907 0.004 0.054 0.059 1983 1.253 0.043 2.907 0.004 0.054 0.059 1984 1.253 0.043 2.907 0004 0.054 0.059 1985 1.253 0.043 2.907 0.004 0.054 0.059 '986 1.253 0.043 2.907 0.004 0.054 0.059 1987 1.253 0.043 2.907 0.004 0.054 0.059 1988 '.253 0.043 2.907 0.004 0.054 0.059 1989 1.253 0.043 2.907 0.004 0.054 0.059 '990 1.253 0.043 2.907 0.004 0.054 0.059 '991 1.253 0.043 2.907 0.004 0.054 0.059 \992 1.253 0.043 2.907 0.004 0.054 0.059 1993 1.253 0.043 2.907 0.004 0.054 0.059 1994 1.253 0.043 2.907 0.004 0.054 0.059 '995 1.253 0.043 2.907 0.004 0.054 0.059 1996 1.253 0.043 2.907 0.004 0.054 0.059 1997 1.253 0.043 2.907 0.004 0.054 0.059 '998 1.253 0.043 2.907 0.004 0.054 0.059 '999 1.253 0.043 2.907 0.004 0.054 0.059 2000 1.253 0.043 2.907 0.004 0.054 '0.059 826 827 MTOTR '980 0.053 0.22 13.486 1981 0.053 0.22 13.486 1982 0.053 0.22 13.486 1983 0.053 0.22 '3.486 1984 0.053 0.22 13.486 1985 0.053 0.22 13.486, I 0.053 0.22 13.486 I.,0.053 0.22 13.486 1988 0.053 0.22 13.486 1989 0.053 0.22 '3.48619900.053 0.22 13.486 1991 0.053 0.22 13.486 '992 0.053 0.22 13.486 '993 0.053 0.22 13.486 1994 0.053 0.22 13.486 1995 0.053 0.22 13.486 '996 0.053 0.22 13.486 '997 0.053 0.22 13.486 1998 0.053 0.22 13.486 1999 0.053 0.22 '3.486 2000 0.053 0.22 13.486 A-87 4.Forestry/Lumber,Pulp and Paper Manufacturing In 1979,the Alaskan timber industry harvested approximately 500 million board feet of lumber.Employment in this industry is divided between two sectors of the economy.A small portion of employment (about 23 persons)is classified as forestry.The remain- der falls into manufacturing (3,221 in 1979). In the high and extreme high scenarios,the output of timber rises to 1.3 billion board feet by the year 2000,representing a near doubling of historical growth of output in the industry.Assuming no increase in the productivity of labor in timber,the manufacturing employment component of the industry grows to 8,375 by the year 2000, while forestry grows to 60,as shown in Tables S-18a and R18a. In the moderate,low,and industrialization scenarios,timber output rises to 960 million board feet by the year 2000,implying a rise in manufacturing employment to 6,184,and forestry to 44,as shown in Tables S-18b and R-18b.The rate of growth in output in this case is approximately equal to the historical growth in the industry. A-88 ..""1>I" __________________________n_. Table S-18a.Statewide Employment By Sector Forestry/Lumber,Pulp,and Paper -High Case - -Extreme High Case - FLP.SCH EMA9 EMMX2 MTOT 1980 0.024 3.371 3.395 1981 0.025 3.528 3.553 1982 0.026 3.692 3.718 1983 0.028 3.864 3.892 1984 0.029 4.044 4.073 1985 0.03 4.232 4.262 1986 0.032 4.429 4.461 1987 0.033 4.635 4.668 1988 0.035 4.851 4.886 1989 0.036 5.077 5.113 1990 0.038 5.313 5.351 1991 0.04 5.561 5.601 1992 0.042 5.819 5.861 1993 0.043 6.09 6.133 1994 0.046 6.374 6.42 1995 0.048 6.671 6.719 1996 0.05 6.981 7.031 1997 0.052 7.306 7.358 1998 0.055 7.646 7.701 1999 0.057 8.002 8.059 2000 0.06 8.375 8.435 SOURCE:See text. A-89 Table R-18a.Regional Distribution of Employment Forestry/Lumber,Pulp,and Paper -High Case - -Extreme High Case - FLP.SCH B02 B08 B09 Bll B12 B15 1980 0.137 0.092 0.045 2.276 0.15 0.192 1981 0.144 0.096 0.047 2.382 0.157 0.201 1982 0.15 0.1 0.049 2.492 0.164 0.21 1983 0.157 0.105 0.052 2.609 0.172 0.22 1984 0.165 O.11 0.054 2.73 0.18 0.23 1985 0.172 O.115 0.057 2.857 0.188 0.241 1986 0.18 0.12 0.059 2.99 0.197 0.252 1987 0.189 0.126 0.062 3.129 0.206 0.264 1988 0.197 0.132 0.065 3.275 0.215 0.276 1989 0.207 0.138 0.068 3.427 0.225 0.289. 1990 0.216 0.144 0.071 3.587 0.236 0.302 1991 0.226 0.151 0.074 3.754 0.247 0.316 1992 0.237 0.158 0.078 3.929 0.258 0.331 1993 0.248 0.166 0.082 4.111 0.27 0.347 1994 0.259 0.173 0.085 4.303 0.283 0.363 1995 0.271 O.181 0.089 4.504 0.296 0.38 1996 0.284 0.19 0.094 4.713 0.31 0.397 1997 0.297 0.199 0.098 4.932 0.324 0.416 1998 0.311 0.208 0.102 5.162 0.34 0.435 1999 0.326 0.218 0.107 5.402 0.355 0.455 2000 0.341 0.228 O.112 5.654 0.372 0.477 B21 MTOTR 1980 0.504 3.395 1981 0.527 3.553 1982 0.552 3.718 1983 0.578 3.892 1984 0.604 4.073 1985 0.632 4.262 1986 0.662 4.461 1987 0.693 4.668 1988 0.725 4.886 1989 0.759 5.113 1990 0.794 5.351 1991 0.831 5.601 1992 .0.87 5.861 1993 0.91 6.133 1994 0.953 6.42 1995 0.997 6.719 1996 1.043 7.031 1997 1.092 7.358 1998 1.143 7.701 1999 1.196 8.059 2000 1.252 8.435 A-90 t Table S-lBb.Statewide Employment By Sector Forestry/Lumber,Pulp,and Paper -Moderate Case - -Industrialization Case - -Low Case - FLP.SCM EMA9 EMMX2 MTOT 1980 0.024 3.322 3.346 1981 0.024 3.426 3.45 1982 0.025 3.534 3.559 1983 0.026 3.645 3.671 1984 0.027 3.759 3.786 1985 0.028 3.877 3.905 1986 0.029 3.999 4.028 1987 0.029 4.124 4.153 1988 0.03 4.253 4.:283 1989 0.031 4.387 4.418 1990 0.032 4.5:24 4.556. 1991 0.033 4.666 4.699 199:2 0.034 4.813 4.847 1993 0.035 4.964 4.999 1994 0.037 5.119 5.156 1995 0.038 5.:28 5.318 1996 0.039 5.446 5.485 1997 0.04 5.617 5.657 1998 0.041 5.793 5.834 1999 0.043 5.974 6.017 2000 0.044 6.184 6.228 A-91 Table R-l8b.Regional Distribution of Employment Forestry/Lumber,Pulp,and Paper -Moderate Case - -Industrialization Case -Low Case - FLP.SCM B02 B08 B09 B11 812 B15 B21 MTOTR 1980 0.135 0.09 0.045 2.243 0.148 0.189 0.497 3.346 1981 0.139 0.093 0.046 2.313 0.152 0.195 0.512 3.45 1982 0.144 0.096 0.047 2.386 0.157 0.201 0.528 3.559 1983 0.148 0.099 0.049 2.461 0.162 0.207 0.545 3.671 1984 0.153 0.102 0.05 2.538 0.167 0.214 0.562 3.786 1985 0.158 0.105 0.052 2.618 0.172 0.221 0.58 3.905 1986 0.163 0.109 0.054 2.7 0.178 0.228 0.598 4.028 1987 0.168 0,112 0.055 2.784 0.183 0.235 0.616 4.153 1988 0.173 O.116 0.057 2.871 0.189 0.242 0.636 4.283 1989 0.178 0.119 0.059 2.961 0.195 0.25 0.656 4.418 1990 0.184 0.123 0.061 3.054 0.201 0.257 0.676 4.556 1991 0.19 0.127 0.062 3.15 0.207 0.265 0.697 4.699 1992 0.196 0.131 0.064 3.249 0.214 0.274 0.719 4.847 1993 0.202 0.135 0.066 3.351 0.22 0.282 0.742 4.999 1994 0.208 0.139 0.069 3.456 0.227 0.291 0.765 5.156 1995 0.215 0.144 0.071 3.565 0.235 0.3 0.789 5.318 1996 0.222 0.148 0.073 3.677 0.242 0.31 0.814 5.485 1997 0.229 0.153 0.075 3.792 0.249 0.32 0.839 5.657 1998 0.236 0.158 0.078 3.911 0.257 0.33 0.866 5.834 1999 0.243 0.162 0.08 4.033 0.265 0.34 0.893 6.017 2000 0.252 0.168 0.083 4.175 0.275 0.352 0.924 6.2:28 A-92 _________________________________b.h__ 1.346 l.45 3.559 3.671 3.786 3.905 ~.028 ~.153 ~.283 ~.418 4.556 4,699 4.847 4.999 5.156 5.318 5.485 5.657 5.834 6.017 6.228 5.Other Manufacturing Exogenous manufacturing employment presented thus far consists of special project employment,timber employment,and food processing employment.The residual,composed of 2,356 persons in 1979,or about 1.4 percent of total employment,produces a variety of manufactured products primarily for Alaskan consumption.One interpretation of this residual component is then as the "local serving"component of manufacturing. Under this interpretation,other manufacturing may be interpreted as endogenous,and the question arises as to how the endogenous rela- tionship should be specified in the MAP model. Research done at the University of Washington in the early 1970s by Ullman,Dacey,and Brodsky (see The Economic Base of American Cities,1971)suggests that there is a minimum percentage of employ- ment required in regions to serve local needs and that this percentage rises with the population of the region.That is,as the region becomes larger,its minimum requirements become a larger share of total employment so that larger areas are more self-contained,or autonomous. They estimate that the minimum manufacturing requirement in cities of 10,000 to 12,500 is 1.5 percent of total employment but that for cities of 100,000 to 150,000,this requirement rises to 5 percent; however,for areas as large as a million persons,the proportion only rises to 6.8 percent. In the high scenario,it is assumed that increased population concentration raises the local serving manufacturing requirement to 3 percent.In the moderate scenario,the proportion rises to 2 per- cent from its current 1.4 percent;and in the low scenario,the share remains 1.4 percent of total employment.In the industrialization and extreme high scenarios,it is assumed that this effect is most pro- nounced,raising the required share to 5 percent of total employment. A-93 ,....-_. 6.Federal Government Federal government has always played a dominant role in Alaskan employment.In recent years,however,such employment has been stable as decreasing military employment has been offset by rising civilian employment. In all scenarios,federal military employment remains constant at existing levels,as shown in Tables S-19 and R-19.In the low,mod- erate,and industrialization scenarios,federal civilian employment grows at its historical rate of 0.5 percent annually,as shown in Tables S-20b and R-20b.In the high case,this growth rate doubles to 1 percent annually,as shown in Tables S-20a and R-20a. A-94 ......._----------------------------------------------_.~ Table S-19.Statewide Employment By Sector Active-Duty Military -All Cases - GFM.EPM EMGF MTOT 1980 23.323 23.323 1981 23.323 23.323 1982 23.323 23.323 1983 23.323 23.323 1984 23.323 23.323 1985 23.323 23.323 1986 23.323 23.323 1987 23.323 23.323 1988 23.323 23.323 1989 23.323 23.323 1990 23.323 23.323 1991 23.323 23.323 1992 23.323 23.323 1993 23.323 23.323 1994 23.323 23.323 1995 23.323 23.323 1996 23.323 23.323 1997 23.323 23.323 1998 23.323 23.323 1999 23.323 23.323 2000 23.323 23.323 SOURCE:Current value from Alaska Department of Labor,assumed constant thereafter. A-95 Table R-19.Regional Distribution of Employment Active-Duty Military -All Cases GFM.EPN GOl G02 G04 G05 G06 G08 G09 Gll 1980 2.176 II .864 0.016 0.014 O.369 0.054 5.579 0.686 1981 2.176 11.864 0.016 0.014 O.369 0.054 5.579 0.686 1982 2.176 11.864 0.016 0014 0.369 0.054 5.579 0.686 1983 2.176 11.864 0.016 0.014 0.369 0.054 5.579 0.686 1984 2.176 11.864 0.016 0.014 0.369 0.054 5.579 0.686 1985 2.176 11.864 0.016 0.014 0.369 0.054 5.579 0.686 1986 2.176 11.864 0.016 0.014 0.369 0.054 5.579 0.686 1987 2.176 11.864 0.016 0.014 0.369 0.054 5.579 0.686 1988 2.176 11.864 0.016 0.014 0.369 0.054 5.579 0.686 1989 2.176 11.864 0.016 0.014 0.369 0.054 5.579 0.686 1990 2.176 11.864 0.016 0.014 0.369 0.054 5.579 0.686 1991 2.176 11 864 0.016 0.014 0.369 0.054 5.579 0.686 1992 2.176 11.864 0.016 0.014 0.369 0.054 5.579 0.686 1993 2.176 11.864 0.016 0.0'4 0.369 0.054 5.579 0.686 1994 2.176 11.864 0.016 0.0'4 0.369 0.054 5.579 0.686 1995 2.176 11.864 0.016 0.014 0.369 0.054 5.579 0.686 1996 2.176 1 1.864 0.0'6 0.0'4 0.369 0.054 5.579 0.686 1997 2.'76 ".864 0.016 0.0'4 0.369 0.054 5.579 0.686 1998 2.'76 11.864 0.016 0.0'4 0.369 0.054 5.579 0.686 1999 2.'76 ".864 0.0'6 0.014 0.369 0.054 5.579 0.686 2000 2.176 l'.864 0.016 0.0'4 0.369 0.054 5.579 0.686 G12 G,4'G15 GI6 G17.G18 G21 G24 1980 0.056 0.016 0.89'0.054 0.147 0.042 0.0'4 0.849 1981 0.056 0.0'6 0.89'0.054 0.147 0.042 0.0'4 0.849 1982 0.056 0.016 0.89'0.054 0.147 0.042 0.014 0.849 1983 0.056 0.016 0.89'0.054 0.147 0.042 0.014 0.849 1984 0.056 0.016 0.891 0.054 O.'47 0.042 0.0'4 0.849 1985 0.056 0.016 0.89'0.054 0.147 0.042 0.0'4 0.849 1986 0.056 0.016 0.89'0.054 0.147 0.042 0.0'4 0.849 1987 0.056 0.016 0.891 0.054 0.147 0.042 0.0'4 0.849 1988 0.056 0.0'6 0.89'0.054 O.'47 0.042 O.O'~0.849 1989 0.056 0.016 0.89'0.054 0.147 0.042 0.014 0.849 1990 0.056 0.016 0.891 0.054 0.147 0.042 0.014 0.849 1991 0.056 0.016 0.891 0.054 0.147 0.042 0.014 0.849 1992 0.056 0.016 0.891 0.054 0.147 0.042 0.014 0.849 1993 0.056 0.016 0.891 0.054 0.147 0.042 0.0'4 0.849 1994 0.056 0.0'6 0.891 0.054 0.147 0.042 0.014 0.849 1995 0.056 0.016 0.89'0.054 0.147 0.042 0.0'4 0.849 '996 0.056 0.016 0.89'0.054 0.147 0.042 0.014 0.849 1997 0.056 0.0'6 0.891 0.054 0.147 0.042 0.0'4 0.849 1998 0.056 0.016 0.89'0.054 0.147 0.042 0.0'4 0.849 1999 0.056 0.016 0.89'0.054 0.147 0.042 0.0'4 0.849 2000 0.056 0.016 0.891 0.054 0.147 0.042 0.014 0.849 . G25 G26 G27 G29 "'TOTR 1980 0.028 0.042 0.014 0.4'3 23.323 1981 0.028 0.042 0.014 0.4'3 23.323 1982 0.028 0.042 0.014 0.4'3 23.323 '983 0.028 0.042 0.014 0.413 23.323 1984 0.028 0.042 0.014·0.413 23.323 1985 0.028 0.042 0.0'4 0.4'3 23.323 IF 0.028 0.042 0.0'4 0.4'3 23.32~ 1~0.028 0.042 0.014 0.413 23.32'- 1988 0.028 0.042 0.0'4 0.4'3 23.323 1989 0.028 0.042 0.0'4 0.413 23.323 1990 0.028 0.042 0.014 0.413 23.323 1991 0.028 0.042 0.0'4 0.413 23.323 1992 0.028 0.042 0.0'4 0.4'3 23.323 '993 0.028 0.042 0.014 0.4'3 23.323 '994 0.028 0.042 0.014 0.4'3 23.323 '995 0.028 0.042 0.0'4 0.413 23.323 1996 0.028 0.042 0.0'4 0.413 23.323 1997 0.028 0.042 0.0'4 0.4'3 23.323 1998 0.028 0.042 0.0'4 0.4'3 23.323 1999 0.028 0.042 0.014 0.4'3 23.323 2000 0.028 0.042 0.014 0.413 23.323 A-96 't:'.. L Table S-20a.Statewide Employment By Sector Federal Civilian -High Case - -Extreme High Case - GFC.EPH EMGF MTOT 1980 18.094 18.094 1981 18.275 18.275 1982 18.458 18.458 1983 18.642 18.642 1984 18.829 18.829 1985 19.017 19.017 1986 19.207 19.207 1987 19.399 19.399 1988 19.593 19.593 1989 19.789 19.789 1990 19.987 19.987 1991 20.187 20.187 1992 20.389 20.389 1993 20.593 20.593 1994 20.799 20.799 1995 21.007 21.007 1996 21.217 21.217 1997 21.429 21.429 1998 21.643 21.643 1999 21.86 21.86 2000 22.078 22.078 SOURCE:1979 value from Alaska Department of Labor,Statistical Quarterly;thereafter,see text for assumptions. A-97 • GFC.EPH Table R-20a.Regional Distribution of Employment Federal Civilian -High Case Extreme High Case '990 ,981 '982 1983 '98" '98S 1986 '987 1988 1989 '990 1991 1992 '993 '994 1995 1996 1997 1998 'iggg 2000 ,gao '981 1982 '983 198' '985 '986 1987 1988 '989 1990 '99' 1992 1993 '994 '99~ 1996 1997 1998 1999 2000 ,9S0 '981 '982 1983 198' 1985, 1988 1989 '990 1991 '992 '993 '994 '995 1996 1997 1998 '999 2000 GO'G02 G04 G05 Gee GOa 0 709 9.8043 o.25 0 .,.o.'90 o.0'6 0 716 9.942 o.252 0 •18 0 '96 0.0:17 0 720 to.041 0 255 o.023 o.197 0.0:]7 o.7"to.14 t 0 257 o..27 0 199 0.037 0 738 10 2.3 0 26 o.0"o.20'0.038 0 70S to.345 0 262 o.'35 o.20'0.038 o.753 to 4.9 o.265 o.00 0 206 0.038 0 76 '0.553 0 268 0 000 0 208 0.039 o.768 '0,659 0 27 o.449 0 21 0.039 o.776 to '765 0 27'0 '53 0.212 0.04 o.783 1D.873 0 276 0 '58 0.214 0.04 o.791 10 982 o.279 0 462 o 2'6 o O. o.799 "092 0 28 • 0 467 0 "8 0.04' 0 B07 t 1.202 o.280 0 072 0.22 0.0" o.B'5 11.:],..o.2B7 0 076 0.223 0.0.2 0 8"t 1.4'8 0 29 o.08 I 0.225 0.0.2 0 832 11.542 0 29'0 oB6 0.227 0.0"2 O.S"1 1.657 0 296 0 091 0.229 0.0"3 o S ..S 11 77.o.299 0 096 0 232 0.043 0.857 ".892 o.'02 o.501 0.23"0.0.... 0.S65 12.011 o.'05 o.506 0.236 0.0.... G09 GI1 G12 G..G'5 G'6 2.3.2 02B o.lOS 0.25 0 28B 0.078 2.363 2.'53 o.106 0.252 o.29'0.079 2.3B7 2 077 o.107 0.255 0 293 0.079 2.41 2.502 0 lOB O.:;:57 o.296 0.08 2.43~2.527 0 109 0.26 0 299 0.OS1 2."59 2.552 o.11 0.262 0 '02 0.082 2,4S4 2 57B o.'"~0.265 o.'OS 0.OB3 2.508 2 .603 o.",0.268 o.'OB 0.083 2.533 2 629 o."0 0.27 o."2 o OB. 2.S59 2 656 o."5 0.273 o."5 0.OS5 2.S8..2.6B2 0 116 0.276 0 3lB 0.OB6 2.61 2 .709 o.117 0.279 0 12 •0,087 2.636 2 736 o.liB 0.2S1 0.324 O.OBB 2.663 2 760 o."9 0.2S.0.327 0.089 :1.689 2.79'0.121 0.287 0.33'0.089 2.716 2 819 0.122 0.29 0.334 0.09 2.7.3 2 .8 ..7 0.123 0.293 0.337 0.091 2.771 2 B76 O.'24 0.296 0.3.'0.092 2.798 2 90S 0.126 0.299 0.3".0.093 2.826 2 930 0 127 0.'02 0.3.8 0.09" 2.855 2 963 0 128 0.305 0.35'0.095 G17 G18 G21 G20 G25 G26 0.098 o.179 0.069 o."B 0.034 0.045 0.099 o.18'0.069 o.302 0.035 0.046 0.1 0.183 0.07 o.3.5 0.035 0.046 0.101 0.185 0.071 o.309 0.035 0.047 o.'02 0.186 0.072 o.352 0.036 0.047 0.103 0.1B8 0.072 o.356 0.0'6 0.0.8 0.10"0.19 0.073 0 359 o.oc 0.0.8 0.105 0.192 0.074 o.36'0.0~0.048 0.106 0.194 0.0".o.'66 0.037 0.049 0.107 0.196 0.075 0 37 0.038 0.049 0 'OB 0.198 0.076 0.374 0.038 0.05 0.109 0.2 0.077 0.337 0.038 0.05 0.1'0.202 0.077 0 3B'0.039 0.051 O.it 1 0.20"0.07B 0.385 0.039 0.051 O."2 0,206 0.079 0.389 0.04 0.052 0 ."0.20B 0.08 0.393 0.04 0.053 0.115 0.21 0.081 0.397 0.04 0.OS3 0.116 0.212 0.081 0.401 0.041 0.054 0.117 0.214 0.082 0.405 0.041 0.054 0.118 0.216 0.OS3 0.409 0.042 0.055 0.119 0.219 0.084 0.4 t3 0.042 0.055 '9ao '981 ,982 1983 \984 1985 1986 '987 1988 1989 1990 ,99 t ,992 '993 1994 199!) ~g96 '997 19~8 19'39 )000 G27 G29 JlnOTA o."6 0 26'lB.090 O."7 O.26'18 275 o.13B 0 266 'B.45B o.'0 O.'6B 'B 642 o.10'0 271 'B B29 o.143 0 270 '9 .017 O.140 O.~7"'9 .207 o.14'o.279 '9 .399 0 147 o.2B''9 59' 0 '.8 O.'B5 '9 'B9 0 '5 o.'BB '9 987 0 IS'o.291 'o.'87 O.1S3 0 29'20 389 O.ISO 0 297 20 593 0 156 C 3 '0.799 O.ISB O.302 21.007 0 1S9 0 306 ,,217 O.161 0 309 21."'9 O.162 0 312 21 643 0 '64 0 ,,5 "8!i9 0 '66 O."B 22.O'B A-98 ---IIIIIIII'b__ Table S-20b.Statewide Employment By Sector Federal Civilian -Moderate Case - -Industrialization Case - -Low Case - GFC.EPM EMGF MTOT 1980 18.005 18.005 1981 18.095 18.095 1982 18.185 18.185 1983 18.276 18.276 1984 18.367 18.367 1985 18.459 18.459 1986 18.551 18.551 1987 18.644 18.644 1988 18.737 18.737 1989 18.831 18.831 1990 18.925 18.925 1991 19.02 19.02 1992 19.115 19.1'15 1993 19.211 19.211 1994 19.307 19.307 1995 19.403 19.403 1996 19.5 19.5 1997 19.598 19.598 1998 19.696 19.696 1999 19.794 19.794 2000 19.893 19.893 SOURCE:See text. A-99 .-------------------~..,.. Table R-20b.Regional Distribution of Employment Federal Civilian -Moderate Case --Industrialization Case-Low Case - GFC.EPM GOI G02 G04 G05 G06 Goa G09 GlI 1980 0.7Qe 9.794 0.248 0.4'2 O.193 0.036 2.328 2.4'6 1981 0.709 9.843 0.25 0.414 0 194 0.036 2.34 2.428 1982 0.713 9 893 0.25'0.4'6 O.'95 0.036 2.35'2A4 1983 0.7'6 9.942 0.252 0.4'9 O.'96 0.037 2.363 2.453 1984 0.72 9.992 0.253 0.42'0.197 0.037 2.375 2.465 1985 0.724 '0.042 0.255 0.423 O.'98 0.037 2.387 2.477 1986 0.727 10.092 0.256 0.425 0.199 0.037 2.399 2.49 '987 0.73''0.142 0.257 0.427 O.'99 0.037 2.4',2.502 '988 0.735 10.193 0.259 0.429 0.2 0.037 2.423 2.515 1989 0.738 '0.244 0.26 0.431 0.20'0.038 2.435 2 527 '990 0.742 '0.295 0.26'0.433 0.203 0.038 2.447 2.54 1991 0.746 10.347 0.262 0.436 0.204 0.038 2.459 2 552 1992 0.749 10.399 0.264 0.438 0.205 0.038 2.472 2.565 1993 0.753 10.451 0.265 0.44 0.206 0.038 2.484 2.578 1994 0.757 '0.503 0.266 0.442 0.207 0.039 2.496 2.59' 1995 0.76'10.555 0.268 0.444 0.208 0.039 2.509 2.604 '996 0.764 10.608 0.269 0.447 0.209 0.039 2.521 2.617 1997 0.768 '0.661 0.27 0.449 0.21 0.039 2 534 2.63 1998 0.772 10.714 0.272 0.451 0.211 0.039 2.547 2.643 ,999 0.776 10.768 0.273 0.453 0.212 0.04 2.559 2.656 2000 0.78 '0.822 0.275 0.456 0.213 0.04 2.572 2.67 G12 G14 G15 G16 G17 G18 G21 G24 '980 0.104 0.248 0.286 0.077 0 097 0.178 0.068 0.337 1981 O.'05 0.25 0.288 0.078 0.098 O.'79 0.069 0.338 1982 0.105 0.25'0.289 0.078 0.098 O.'8 0.069 0.34 ,983 0.106 0.252 0.291 0.079 0.099 0.181 0.069 0.342 1984 0.107 0.253 0.292 0.079 0.099 0.182 0.07 0.343 1985 O.'07 0.255 0.294 0.079 O.,0.183 0.07 0.345 1986 0.108 0.256 0.295 0.08 0.1 O.'84 0.07 0.347 1987 O.'08 0.257 0.296 0.08 O.'01 0.185 0.07'0.349 1988 0.109 0.259 0.298 0.081 0.101 0.186 0.071 0.35 ~989 0.109 0.26 0.299 0.08'0.102 O.'86 0.072 0.352 '990 0.11 0.26'0.301 0.081 0.102 0.187 0.072 0.354 199'0.11 0.262 0.302 0.082 0.103 0.188 0.072 0.356 1992 O.,11 0.264 0.304 0.082 0.103 0.189 0.073 0.357 ~ 1993 0.1 tl 0.265 0.305 0.083 0.104 0.19 0.073 0.359 ~'994 0.112 0.266 0.307 0.083 0.104 0.191 0.073 0.361 1995 0.113 0.268 0.309 0.083 0.105 0.192 0.074 0.363 E: '996 0.113 0.269 0.31 0.084 0.105 0.193 0.074 0.365 ~'997 0."4 0.27 0.312 0.084 O.'06 0.194 0.074 0.366 1998 0.114 0.272 0.313 0.085 0.106 0.195 0.075 0.368 r;- 1999 0.115 0.273 0.315 0.085 0.107 0.196 0.075 0.37 ~" 2000 0.115 0.275 0.316 0.086 0.107 0.197 0.076 0.372 .~ i G25 G26 G27 G29 ",rOTA I19800.034 0.045 0.135 0.259 '8.004 1981 0.034 0.045 0.136 0.261 18.094 i'982 0.035 0.045 0.136 0.262 18.185 1983 0.035 0.046 0.137 0.263 18.276 F '984 0.035 0.046 0.138 0.264 '8.367 I'985 0.035 0.046 0.138 0.266 18.459 1 )0.035 0.046 O.'39 0.267 18.55 ~,0.035 0.047 O.'4 0.268 18.64 I; 1988 0.036 0.047 0.141 0.27 '8.737 1989 0.036 0.047 0.141 0.271 18.831 '990 0.036 0.047 0.142 0.273 18.925 199'0.036 0.048 0.143 0.274 19.02 '992 0.036 0.048 O.'43 0.275 '9.115 1993 0.037 0.048 0.144 0.277 19.21 1994 0.037 0.048 0.145 0.278 19..306 1995 0.037 0.049 0.146 0.279 19.403 1996 0.037 0.049 0.146 0.28'19.5 1997 0.037 0.049 0.147 0.282 19.598 1998 0.037 0.049 0.148 0.284 19.695 1999 0.038 0.049 0.148 0.285 19.794 2000 0.038 0.05 0.149 0.286 19.893 A-100 7.Tourism Recent changes in the specification of the MAP model have been made to net out those portions of transportation,trade,and service sector employment generated by tourist activity in the state.Such estimates are now generated in forecasts as a function of an exoge- nously forecast estimate of total tourists visiting Alaska during the forecast period.In 1979,the Alaska Division of Tourism estimated that 505,400 tourists visited the state. In the high and extreme high cases,it is assumed that the number of visitors continues to grow at a constant annual rate of 6 percent, reaching over 1.7 million persons annually by the year 2000.In the moderate and industrialization -cases,constant growth of 4 percent annually raises the number of visitors to 1.1 million by the end of the forecast period.In the low case,the number of visitors grows at 2 percent annually to over 760,000 by the year 2000. D.SUMMARY The following tables summarize the exogenous employment assump- tions for each of the five scenarios. A-IOI Table S-21.Statewide Employment By Sector -Extreme High Case - EPSPH EMP9 ECONX1 ECONX2 EMT9X EMMX1 EMMX2 1980 6 599 0.09 0.21 1.533 O.10.833 1981 7.215 0.307 0.203 1.534 O.11.126 1982 7.423 0.438 1.102 1.569 O.11.426 1983 7.707 0.581 3.724 1.659 O.11 .733 1984 7.069 2.589 4.551 1.717 O.12.049 1985 7.779 7.364 7.363 1.904 O.12.373 1986 8.843 11.274 10.703 2.417 0.386 12.637 1987 9.929 7.79 7.554 2.939 0.446 12.911 1988 12.39 2.212 6.671 3.838 0.446 13.185 1989 13.624 2.407 4.558 4.384 0.546 13.489 1990 16.063 1.876 4.825 4.569 0.726 13.793 1991 16.777 1.063 7.674 4.826 0.809 14.109 1992 16.878 1.848 6.293 4.722 1.431 14.434 1993 18.466 1.139 3.777 4.872 1.526 14.773 1994 20.485 0.873 3.113 5.163 1.526 15.125 1995 21.05 0.619 4.564 5.044 1.526 15.49 1996 21 .676 O.3.993 5.09 1.526 15.868 1997 22.977 O.2.681 5.09 1.526 16.261 1998 23.063 O.2.067 5.09 1.526 16.668 1999 24.O.0.854 5.09 1.526 17.092 2000 23.844 O.1.345 5.09 1.526 17.533 EMA9 EMPROF E"1GF "1TOT 1980 0.202 6.666 41.417 67.55 1981 0.203 6.787 41.598 68.973 1982 0.192 6.909 41 .781 70.84 1983 0.242 7.029 41.965 74.641 1984 0.299 7.151 42.152 77.576 1985 0.34 7.272 42.34 86.736 1986 0.37 7.332 42.53 96.492 1987 0.409 7.393 42.722 92.093 1988 0.503 7.445 42.916 89.606 1989 0.626 7.514 43.112 90.26 1990 0.822 7.575 43.31 93.559 1991 1.054 7.636 43.51 97.458 1992 1.356 7.696 43.712 98.37 1993 1.755 7.757 43.916 97.98 1994 2.168 7.817 44.122 100.392 1995 2.454 7.878 44.33 102.954 1996 2.756 7.939 44.54 103.387 1997 3.156 8.44.752 104.442 1998 3.583 8.059 44.966 105.023 1999 4.075 8.12 45.183 105.939 2000 4.668 8.181 45.401 107.588 A-102 ;, Table R-21.Regional Distribution of Employment -Extreme High Case - EPSPH R01 R02 oc.R05 006 008 1980 5.'228 24.393 ..089 o 718 '2.286 0.997 1981 5 277 24.549 ...67 0.727 :2.:3 19 1.0t? '982 5 326 24 708 S.346 0.737 '2.352 1.037 '983 5.525 24.877 6 214 0.746 :2.385 ,056 t98.5 '4'25 06 5.738 0.756 '2 ..18 1.077 1985 6 10"25.254 8.17 0.765 '2 45 t 1.097 1986 6.295 25.467 "..'6 o 772 '2.468 1.H, 1987 7 639 25.697 9 461 o 779 '2.486 ,.12!5 1988 8 28 25 986 7 734 0.786 '2.SOt t.'38 1989 9 558 26.27 7 34 o 794 '2 52',154 1990 9 376 26.546 8.153 o 80t '2 539 1 '69 1991 9.129 26.782 9 275 0.808 '2.557 '.184 1992 9.557 26 949 '0 603 o 8'5 '2 57 ..1.2 1993 9.42 27.172 9.807 o 823 '2.592 ,.'2'6 1994 9 69 ..27 546 10.485 083 2 61 ,.232 1995 9 494 27.777 ''2.322 o 838 '2.628 t.249 1996 9.155 28 017 ,'2.378 o 845 '2.645 t 266 1997 9.:24 28.327 '2.83 t o 853 2 663 1 284 1998 9 333 28.518 '2.159 0.86 2 681 ,302 1999 9 335 28.796 11.753 0.868 2 699 t.32 2000 9.338 28.969 '2 067 0.876 2.717 1 339 009 0"012 R14 015 016 1980 8.:209 9.287 2.536 0.313 4.45 0.14 1981 8.:214 9.545 2.539 o 316 4.~17 0.141 '982 8.:237 9.808 3 061 o 3'9 4.58!i 0.142 1983 8.433 10.019 3.382 0.323 4.653 0.143 1984 9.062 10.258 4.313 o 3:26 4 793 0.144 1985 to 253 10.426 4 759 0.33 4.89 0.145 1986 1 t .2'10.658 5 076 o 37 4 946 o 146 1987 10.525 11.03 ~074 o 372 5.008 0.147 1988 9.327 11.:251 4.77:2 0.381 5 359 0.148 1989 8,885 11.59:2 4.912 o 385 5 438 0.149 1990 8 788 11.985 4.577 0.372 5 437 O.'5 t99 ,9,132 12.223 4 543 0.354 5 493 0.15' '992 9.006 12.449 4.567 o 4'6 5.486 o 15:2 1993 8.953 12.806 4.592 0.733 5 546 o 153 1994 9 098 13.063 4 618 o 735 5 593 o 154 1995 9.:209 13.33 4.644 o 775 5 64'o 155 1996 9.3:24 13.603 4.671 o 79:2 5.69 0.156 '997 9.468 13.886 4 699 o 738 '5.739 0.157 1998 9.619 14.18 4.727 o 749 5 789 O.,5a 1999 9.789 14.484 4.756 0.752 5 84'O.'59 2000 9.987 14.801 4.786 0.753 5 893 O.'6 017 018 02 ,024 025 026 1980 0.361 0.377 0.666 1.266 0.073 0.463 1981 0.362 0.382 0.691 1.307 0.138 0.465 1982 0.355 0.386 0.71a 1.31 0.139 0.556 1983 1.24 0.47 0.746 1.324 0.156 1.22 1984 1.082 0.522 0.775 ,.62'0.652 1.487 1985 1.622 0.616 0.805 2.53 ,2 149 2.502 1"~1.593 0.717 0.837 3.54 3.69-4.164 1 )1.212 0.569 0.869 2.569 2.l:i:3.355 1988 1.229 0.749 0.903 1.61 0.262 4.933 1989 1.818 0.919 0.939 1.39 0.118 3.267 1990 2.784 ,632 0.976 1.415 0.118 3.678 1991 3.416 t.6,4 1.014 1 483 0.119 4.717 1992 3.207 t.349 1.055 "4 0.12 3.644 1993 :2.983 1.164 1.097 1.401 0.1:2 3.B09 1994 3 23 ,.'4:2 , .141 1.405 '0.1:21 3.81 1995 3 436 ,.:2:29 1.187 1,409 0.122 3.8" 1996 3.654 1.234 '.236 1 413 0.122 3.812 1997 3.293 1.239 t.286 1.417 0.123 3.813 1998 3.6 1.245 1.339 1.4:2 1 O.':24 3.815 1999 3 955 1.25 1.394 1.425 0.124 3.816 '000 4.382 1.256 1.451 , .4~9 0.1:25 3.817 R27 029 MTOTR 19BO 0.382 1.315 '57.55 198'0.388 ,.409 68 973 '982 o 393 1.324 70.B4 1983 0,399 1.328 74 64 '984 0.404 '.341 77.576 t9B5 0.485 ,38 86.735 tge6 0.54 ,468 96.492 '987 a 645 1 406 92.093 1988 0.773 1 48 t 89 606 ,989 '.4:24 ,39 90.26 \990 '.654 1.41 93 559 1991 2 004 t 459 97 458 1992 2 4'6 1.405 98.369 1993 2 '86 t 407 97 98 1994 2.471 '.413 100.392 1995 2 28 t 1 418 '02.954 1996 ,95 1.423 103 387 1997 I 957 1 429 '04 442 1998 1 971 1 435 '05.023 ,999 ,983 1.44 105 939 '000 I 995 1 446 107 588 A-103 ---------- ..-.,.... Table S-22.Statewide Employment By Sector -High Case - EPHGH EMP9 ECONX1 ECONX2 EMT9X EMMX1 ENlMX2 1980 6.599 0.09 0.21 1.533 O.10.833 1981 7.215 0.307 0.203 1.534 O.11.126 1982 7.423 0.438 1.102 1.569 O.11 <426 1983 7 707 0.581 3.724 1659 O.11 .733 1984 7.069 2.589 4.551 1.717 O.12.049 1985 7.779 7.364 7.363 1.904 O.12.373 1986 8843 11.274 10.203 2.417 0.386 12.637 1987 9.929 7.79 7.054 2.939 0.446 12.911 1988 12.39 2.212 6.171 3.838 0.446 13.185 1989 13.624 2.407 3.817 4.384 0.446 13.489 1990 16.063 1.876 3.234 4.569 0.526 13.793 1991 16.777 1.063 3.68 4.826 0.526 14.109 1992 16.878 1.848 4.939 4.722 0.526 14.434 1993 17.516 1.139 3.777 4.872 0.526 14.773 1994 19.535 0.873 3.113 5.163 0.526 15.125 1995 20.1 0.619 4.564 5.044 0.526 15.49 1996 20.726 O.3.993 5.09 0.526 15.868 1997 22.027 O.2.681 5.09 0.526 16.261 1998 22.113 O.2.067 5.09 0.526 16.668 1999 23.05 O.0.854 5.09 0.526 17.092 2000 22.894 O.1.345 5.09 0.526 17.533 EMA9 EMPROF EMGF NlTOT 1980 0.202 6.666 41.417 67.55 1981 0.203 6.787 41.598 68.973 1982 0.192 6.909 41.781 70.84 1983 0.242 7.029 41 .965 74.641 1984 0.299 7.151 42.152 77.576 1985 0.34 7.272 42.34 86.736 1986 0.37 7.332 42.53 95.992 1987 0.409 7.393 42.722 91.593 1988 0.503 7.445 42.916 89.106 1989 0.626 7.514 43.112 89.419 1990 0.822 7.575 43.31 91.768 1991 1.054 7.636 43.51 93.181 1992 1.356 7.696 43.712 96.111 1993 1.755 7.757 43.916 96.03 1994 2.168 7.817 44.122 98.442 1995 2.454 7.878 44.33 101.004 1996 2.756 7.939 44.54 101.437 1997 3.156 8.44.752 102.492 1998 3.583 8.059 44.966 103.073 1999 4.075 8.12 45.183 103.99 2000 4.668 8.181 45.401 105.638 A-104 _________________________1__ EPHGH Table R-22.Regional Distribution of Employment -High Case - 00'002 00'005 006 008 1980 5.228 24.393 4 089 0.718 2.2BB 0.997 1981 !5.277 24 549 •67 0.727 :2.319 ,,0" 1982 5.326 24.708 5.346 0.737 :2.352 ,037 1983 5.S25 24.877 6.'2 14 0.746 2.385 ,.056 '984 5.747 25.06 5.738 o 756 2.418 t .077 1985 6.104 25.254 B.n 0.765 2.45',,097 1986 6.295 25 467 11 416 0.772 2.468 L 111 1987 7.639 25.697 9.461 0.779 :2.486 t 125 1988 8.28 25 986 7.734 0.786 :2.SOt t '38 1989 9.558 26.27 7.30B 0.794 '2.52 t t.154 1990 9.376 26 S46 7 982 o 80t :2 539 t '69 1991 9 129 26.782 8 809 0.808 :2.557 ,'8' '992 9.557 26.949 to.518 0,atS :2.574 1.2 '993 9.042 27.172 9.762 0.823 :2.592 t.216 1994 9.694 27.546 to.44 0.83 :2.6 t 1.232 1995 9.494 27.777 12 277 o 838 :2.628 1.249 1996 9.155 28.017 12.333 0.845 :2 .645 1.266 1997 9.24 28.327 12.786 o 853 2.663 1.284 1998 9.333 28.518 12.114 o 86 2.681 I 302 1999 9.335 28.796 11 708 0.868 2.699 l.32 2000 9.338 28.969 12.022 0.876 2.717 1.339 009 0"012 0"0'5 016 1980 8.209 9 287 2.536 0.313 •••0.14 ,981 8.214 9 545 2.539 0,316 4 517 0.141 '982 8.237 9.808 3 061 0.319 4,585 O.,42 1983 8.433 10.019 3.382 o 323 4 653 0.143 '984 9.062 10.258 4.313 0.326 4.793 0.144 1985 10.253 10 426 4.759 0.33 •89 0.145 1986 11.21 10.65S 4 576 0.37 4.946 O.'46 1987 10.525 1 t .03 4.574 o 372 5.008 0.147 1988 9.327 1 t.25 1 4.272 0.381 5 359 O.,...S 1989 8.844 11.592 4.312 0.385 5 436 O.'49 1990 8.596 1 t .985 4.377 0.372 5.437 0.15 1991 8.69 12.223 4,343 0.354 5 493 0.1S1 1992 8.804 12 449 4.367 0.416 5 486 0.152 1993 8.946 12.806 4 392 0,733 5 546 0.153 1994 9.091 13.063 4 418 0.735 5 593 0.154 1995 9.202 13.33 4.444 0.775 5.641 0.155 1996 9.317 13.603 4.47 t 0.792 5.69 0.156 1997 9.461 13.886 4.499 0.738 5.739 0.157 1998 9.612 14.18 4.527 0.749 5.789 0.158 1999 9.782 14.484 4.556 0.752 5.841 0.159 2000 9.98 14.801 4.586 0.753 5.893 O.'6 017 0'8 021 0"025 028 1980 0.38t 0.377 0.666 1.266 0.073 0.463 1981 o 362 0.382 0.691 1.307 0.138 0.465 1982 0.355 0.386 0.718 l.31 0.139 0.556 1983 1.24 0.47 0.746 1.324 0.156 1.22 1984 1.082 0.522 0.775 1.621 0.652 1.487 1985 1.622 0.616 0.805 2.531 2.149 2.S02 ~1.593 0.717 0.837 3.54 3.69-,4 164 I 1.212 0.569 0.869 2.569 2.1.3.355 1988 1.229 0.749 0.903 1.61 0.262 4.933 1989 1.818 0.919 0.939 1.373 0.118 3.121 1990 2.37 1 632 0.976 1.378 0.118 2.926 1991 2.207 1.614 1.014 1 381 0.119 2.928 1992 2.175 1.349 1.055 1.385 0.12 2.929 '993 2.183 1.164 1.097 1.389 0.12 2.93 1994 2.043 1.142 1.14 t 1.393 0.121 2.931 1995 2.636 1.229 1.187 1.397 0.122 2.932 1996 2.854 1 234 1.236 1.401 0.122 2.933 1997 2.493 1.239 1.286 1.405 0.123 2.934 1998 2.8 1.245 1 339 1.409 0.124 2 936 1999 3.'55 1.25 1.394 1.413 0.124 2 937 2000 3.582 1.256 1 451 '-417 0.125 2.938 027 029 ~TOTR '980 0.382 1.315 67.5S 1981 o 388 1.409 68.973 1982 0.393 1.324 70.84 1983 0.399 1.328 74.64 1984 0.404 1.341 77.576 1985 o 485 1.38 86 735 1986 o 5'1.468 95.992 1987 0.645 1.406 91 S93 1988 0.773 1.481 89.106 1989 '.424 1.385 89 419 1990 1.654 1.385 9'768 1991 2.004 ,39 93 18 I 1992 2 0416 I 395 96 11 1993 2.'86 ,.96.03 '994 2.471 ,406 98 442 '995 2.281 1.4 1 I 101.004 '996 ,.95 1 416 lot 437 1997 1.957 1 ""22 102 492 1998 1 971 1.4'8 103 073 1999 I 983 1 4:l3 '03.989 >000 1.995 ,""39 '05 638 A-lOS h Table S-23.Statewide Employment By Sector -Moderate Case - EPMDD EMP9 ECONX1 ECONX2 EMT9X EMMX1 EMMX2 1980 6.408 0.09 O.1.533 O.10.784 1981 7.112 0.307 0.785 1.599 O.10.956 1982 7.34 0.335 1.291 1.6 O.11.132 1983 7.632 0.563 2.803 1.641 O.11.311 1984 6.92 2.44 2.992 1.692 O.11.493 1985 7.376 7.174 3.641 1.988 O.11.678 1986 7.605 10.794 2.262 1.869 0.386 11 .834 1987 7.744 6.312 2.268 2.093 0.446 11 .993 1988 7.73 0.663 2.555 2.2 0.446 12.156 1989 8.122 1.165 2.094 2.331 0.446 12.324 1990 8.856 1.075 2.254 2.66 0.446 12.495 1991 10.05 0.873 2.617 2.937 0.446 12.671 1992 10.487 0.619 2.05 2.761 0.446 12.852 1993 10.711 O.1.906 2.73 0.446 13.037 1994 10.822 O.2.473 2.722 0.446 13.226 1995 11.058 O.2.313 2.722 0.446 13.421 1996 11.431 O.2.195 2.722 0.446 13.62 1997 11.734 O.2.457 2.722 0.446 13.825 1998 12.05 0 1.592 2.722 0.446 14.035 1999 12.426 O.1.295 2.722 0.446 14.25 2000 12.454 O.1.472 2.722 0.446 14.494 EMA9 EMPROF EMGF MTOT 1980 0.202 6.666 41.328 67.01 1981 0.202 6.727 41.418 69.105 1982 0.191 6.787 41.508 70.184 1983 0.23 6.848 41.599 72.627 1984 0.255 6.909 41.69 74.391 1985 0.28 6.969 41.782 80.888 1986 0.305 6.999 41.874 83.928 1987 0.329 7.029 41.967 80.182 1988 0.387 7.06 42.06 75.257 1989 0.444 7.09 42.154 76.17 1990 0.502 7.12 42.248 77.657 1991 0.56 7.151 42.343 79.648 1992 0.617 7.181 42.438 79.451 1993 0.675 7.212 42.534 79.25 1994 0.734 7.242 42.63 80.295 1995 0.791 7.272 42.726 80.749 1996 0.849 7.302 42.823 81.388 1997 0.907 7.332 42.921 82.344 1998 0.964 7.363 43.019 82.19 1999 1.023 7.393 43.117 82.672 2000 1.081 7.423 43.216 83.308 A-106 Table R-23. £?...oo Regional Distribution of Employment -Moderate Case 00'002 .""005 ooe 008 1980 5.187 2 •.,],]913 O.'7 ,.2.269 o 99 198t S.39~'4 .....2 of 54'0.728 :2.365 t .026 1982 5.4 '9 2.5:29 5.243 0.733 :2.38 t 1.037 1983 5 558 2 •.623 6.156 o 738 :2.398 t .0.' ,g84 5.681 24.721 S .•22 o '.2 2.414 ,.058 '985 5 9.'•.813 7.206 0.747 :2 431 1 069 1986 5.835 2 •.895 8.142 o 75 :2.439 1 076 '987 5.843 2 •.98 '7.187 o 7~4 2.·U8 1.08. 1988 5.812 25 055 6.346 0.757 :2 457 ,.092 1989 6.457 25 172 6.14 o 76':2.466 ,, 1990 6.57S 25 301 6.882 0.764 :2 .75 ,.'07 199'6 881 2S .•78 '7 635 o 768 :2.483 ,."6 1992 6 692 25 •'7 "'6 0.77 ,:2 .492 1.12. 1993 6 365 25 702 '7.486 0.775 :2.SOt 1.132 1994 6.377 25.793 8 127 0.778 2 51 1.14 1 1995 6 .••8 25.897 8.103 0.782 :2.5'9 1 ,.9 1996 6."t5 26 Ot6 8.334 0.786 :2.527 \.158 1997 6.4"26.128 8 882 0.789 2 536 1.167 1998 6.408 26 242 8,313 0.793 2 545 I."6 1999 6.449 26.363 8.279 o 796 2 5~4 I '85 2000 6.49 26 451 8.404 0.8 2 563 1.195 009 ...•'2 0 ..0'5 0'6 1980 8.196 9.171 2.52 0.31 I 4 412 0.14 1981 8.189 9 661 2.575 0.313 •615 0.14 1982 8.199 9.781 2.622 0.315 •651 O.'., 1983 8,379 9.852 2.77 0.316 4.732 O.,., 1984 8.915 9.847 3.5 0.318 4.84 0.142 1985 9.832 9.938 4.166 0.32 5 039 O.142 1986 10.277 10.05 J.736 o 3.4 884 0.143 1987 9.727 10 164 3.558 0.409 4.848 0.143 1988 8 4.,10 282 3.477 0.372 4.825 0'.144 1989 8.304 10 "02 3.351 0.326 4.848 O.,.... 1990 8.334 10.525 3.47"0.327 4.871 0.145 1991 8.364 10.691 3.66'0.329 4.895 0.145 1992 8.395 10.781 J.674 0.33 4.918 0.146 1993 8.425 10.913 J.687 0.332 4.942 0.146 1994 8.456 11.049 3.701 0.333 4.967 0.146 1995 8.487 11.189 3."..0.335 4.991 0.147 1996 8.51B ".331 3.728 0.337 5.016 0.147 1997 8.549 n .477 3.742 O.:138 5.041 0.148 1998 8.58 ".626 3.757 0.34 5.066 0.148 1999 8.611 ".78 3.771 0.341 5.092 0.149 2000 8.6"3 t 1.952 3.7B7 0.3.3 5.119 0.149 0"0'8 021 0,.025 028 t980 0.361 o 37'5 0.658 1.265 o 072 o 463 1981 0.38'0.377 0.679 1.303 0.138 0."65 19B2 0.353 o 38 0.692 1.305 0.138 o 556 1983 0.38t 0.42 0.71 1.317 0.155 '-219 198"0.399 0.471 0.728 1.601 o 65 1.22 1985 0.4"0.435 0.746 2.458 2.148 1.22,j 0.435 0.389 0.766 3.344 3.69"0.855,0.452 0.391 0.785 2.468 2.12 0.856 1988 0.494 0.394 0.805 1.404 0.26 0.856 1989 0.53'5 0.396 0.826 1.323 0.'15 0.857 1990 0.577 0.398 0.847 1.32'5 0.115 0.857 1991 0.618 O .•0.869 1.327 0.115 0.8!J8 1992 0.659 o 403 0.892 1.328 O.t 16 0.8SB 1993 0.701 0.405 0.915 l.33 0.116 0.859 1994 o 743 0.407 0.94 t.332 0.116 o 859 1995 0.784 0.41 0.964 1.334 0.117 0.86 1996 0.826 0.412 0.99 1.336 0.117 0.86 1997 o 867 0.414 1 Ot6 1.337 0.117 0.861 199B o 908 0.417 1.044 t.339 0."8 o 861 1999 0.95 0.419 1.072 1.34 t o 118 0.862 2000 0.992 0.422 t.l04 1.343 0.118 0.863 027 029 IIIlTCTR 1980 0.38 1.313 67.01 1981 0.:191 1.405 69.105 1982 0.393 1.317 70.'84 1983 0.396 1.319 72.627 1984 0.399 1.322 74 391 1985 0.477 1.:124 80.888 1986 0.529 1.326 83 92B 1987 o 633 1.328 80.'81 1988 o 684 I 331 75.257 1989 1.316 1.333 76 n 1990 1 422 1.335 77.657 1991 1.716 1 338 79 648 ,992 1.514 1.34 79 451 1993 ,.174 1.343 79.25 1994 I 174 1 345 80 294 1995 1.203 1.347 80.749 1996 I.'86 1.35 8 t 388 1997 1.17 t .352 82 344 1998 1.155 ,:155 82.19 1999 t.183 '.357 82 672 2000 1.212 •3.83 308 A-I07 Table S-24.Statewide Employment By Sector -Industrialization Case - EPINO EMP9 ECONX1 ECONX2 EMT9X EMMX1 EMMX2 1980 6.408 0.09 O.1.533 O.10.784 1981 7.112 0.307 0.785 1.599 O.10.956 1982 7.34 0.335 1.591 1.6 O.11.132 1983 7.632 0.563 3.403 1.641 O.11.311 1984 6.92 2.44 4.201 1.692 O.11.493 1985 7.376 7.174 6.192 1.988 O.11.678 1986 7.911 10.794 8.146 1.946 0.386 11.834 1987 8.356 6.312 6.315 2.246 0.446 11.993 1988 9.482 0.663 7.58 2.353 0 ..446 12.156 1989 9.874 1.165 4.381 2.484 0.546 12.324 1990 11 .538 1.075 3.745 2.76 0.646 12.495 1991 12..523 0.873 6.611 2.985 0.729 12.671 1992 12.96 0.619 3.404 2.809 1.351 12.852 1993 14.134 O.1,906 2.778 1.446 13.037 1994 14.245 O.2.473 2.77 1.446 13.226 1995 14.481 O.2.313 2.77 1.446 13,421 1996 14.854 O.2.195 2.77 1.446 13.62 1997 15.157 0,2.457 2.77 1.446 13.825 1998 15.473 O.1.592 2.77 1.446 14.035 1999 15.849 O.1.295 2.77 1.446 14.25 2000 15.877 O.1.472 2.77 1.446 14.494 [MA9 EMPROF EMGF MTOT 1980 0.202 6.666 41.328 67.01 1981 0.202 6.727 41.418 69.105 1982 O.191 6.787 41.508 70.484 1983 0.23 6.848 41.599 73.227 1984 0.255 6.909 41.69 75.6 1985 0.28 6.969 41.782 83.439 1986 0.305 6.999 41.874 90.195 1987 0.329 7.029 41.967 84.994 1988 0.387 7.06 42.06 82.187 1989 0.444 7.09 42.154 80.462 1990 0.502 7.12 42.248 82.13 1991 0.56 7.151 42.343 86.446 1992 0.617 7.181 42.438 84.231 1993 0.675 7.212 42.534 83.721 1994 0.734 7.242 42.63 84.766 1995 0.791 7.272 42.726 85.22 1996 0.849 7.302 42.823 85.859 1997 0.907 7.332 42.921 86.815 1998 0.964 7.363 43.019 86.661 1999 1.023 7.393 43.117 87.143 2000 1.081 7.423 43.216 87.779 A-lOS ---------------------------h-- Table R-24.Regional Distribution of Employment Industrialization Case - EPlNO ROt R02 R04 R05 R06 R08 1980 5.187 24.3 :3.913 0.714 :2.269 0.99 198'5.395 24 ..42 '.541 0.128 :2.365 1.026 1982 5.4'9 24 529 5.243 0.733 2.381 1.031 1963 5.558 24.623 6 156 0.738 2.398 ,.047 1984 5.68 ~2".721 5 476 O.'42 :2."'"t .056 1985 5.96 2".813 '7 498 0.747 :2 431 ,.069 1986 5.835 2".895 8.988 O.7S :2.439 t 076 1987 5.843 24.98 '7.623 0.754 :2 .....8 t OS4 1988 5.812 2S 055 '7.'06 0.757 :2.451 ,.092 1989 6.457 25.172 6.384 o 761 :2.466 ... 1990 6.575 25.301 7 '9 0.764 2.475 •107 '99'6.881 25 478 8,238 0.768 :2.483 1.116 1992 6.692 25 6 '7 638 ,0.771 :2.492 1 12" 1993 6.365 25.702 '7.668 0.775 :2.SOt 1 132 199"6.377 25.793 8 309 0.778 :2.51 1.'4' 1~95 6.4'8 25 897 8,285 o 782 :2 519 1.'49 1996 6.415 26.016 8.516 0.786 :2.527 1.158 1991 6.4 t 1 26.128 9 06"0.789 2.536 1 167 1998 6 ...08 26.1"2 8."95 0.793 2.5"5 •.76 1999 6 .....9 26.363 8 "6'0.796 2.55"1.185 2000 6."9 26.451 8 586 0.8 2.563 1.195 R09 Rtt Rt2 RU R,5 R'6 1980 8.196 9.171 2.52 0.311 ..."'2 0.1" 1981 8.189 9 661 2.575 0.313 ...615 O.,.. 1982 8.'99 9.781 2.922 0.315 ".651 0.14. 1983 8.379 9.852 3.37 0.316 ..732 0.1'" '98"8.985 9 8 ..7 4.3 0.318 4 64 0.142 1985 10.'58 9.93$..7t6 0.32 5 039 0.142 '986 11.099 '0.05 ".719 0.36 ..88"0.14 \ 1987 '0.396 10.'6"..623 a 409 ..8"8 0.143 1988 9.t74 '0.282 ".392 0.372 ...825 a ,.... 1989 8.699 10."02 4.516 0.326 ...8"8 0.144 '990 8.5"9 10.525 4 .076 0.327 ".871 0.145 '991 8.829 10.651 ...'02 0.329 ..895 0.145 '992 8.62 '0.781 4."5 0.33 ...9'8 0.146 '993 8."55 10.913 ".128 0.332 ".942 0.146 '99"8.486 ,1.0"9 4-.142 0.333 ".961 0.1"6 1995 8.511 ,1.189 4.'55 0.335 ".99'0.147 1996 8.5"8 11.331 ...169 0.337 5.016 0.147 1997 8.579 11...77 ...'83 0.338 5.0'"0.148 1998 8.61 t,.626 ...'98 0.34 5.066 0.148 1999 8.6"1 ,t.18 ".2'2 0.3'"5.092 0.1"9 2000 8.6"73 ,1.952 4.228 0.3"3 5.119 0.149 R,7 Rt8 R21 R24 R25 R28 1980 0.361 0.315 a 658 1.265 0.072 0."63 1981 0.361 0.377 a 675 '.303 O.'38 0."65 1982 0.353 0.38 0.692 1.305 0.138 0.556 1983 0.381 0.42 0.1 ,1.317 0.155 1.219 '98"0.399 0."71 0.728 1.612 0.65 1."86 1985 0.417 a "35 0.7"6 2 52 2 "'8 2.499 J 0.435 0.369 0.766 3.528 3 6~...'61 0.452 0.391 0.785 2.555 2 . 1~3.352 1988 a 494 0.394 0.805 1.59"0.26 ...92~ 1989 0.535 0.396 0.826 1.372 0.1'5 J.263 1990 0.991 0.398 0.8"7 '.395 0.1'5 J.673 '991 1 827 o 4 O.B69 1."62 O.1'5 4.711 1992 1 691 0."03 0.892 1.376 0.116 3.837 1993 1.SO,0."05 0.9'5 1.375 0.116 3.802 199"1.5"3 o "07 0.9"1.377 O."6 3.802 1995 1.58"0.'"0.96"'.379 0.117 3.803 1996 1.626 O.",2 0.99 1.381 0.117 3.803 1997 1 667 0."'"1.016 f •382 O.117 3.804 1998 t.708 o 417 1.0....1.38"0.118 3 .804 1999 '.75 0.419 1.072 1.386 0.118 3.80S 2000 '.792 0.422 1.'04 1.388 0.118 3.806 R27 R29 MTOTR '980 o 3.,313 67.01 '981 o 391 1.405 69.'as '982 0.393 1.317 70.48" 1983 0.396 1 319 73 227 '984 0.399 1.33 75.6 '9B5 0.477 1.366 83 ...39 ~9a6 0.529 1 452 90.'95 'C;87 0.633 1.387 B4 993 '988 0.684 ,46 82.187 '989 1.316 ,366 80 "62 1990 1.422 1 383 81.13 '991 1.716 1.43 86 .....6 1992 1.514 1.373 84 231 1993 1.l74 1 373 83 721 1994 ..74 1.375 84.765 1995 1.203 ,977 85.22 1996 1.186 1.38 85.859 ,'397 1.17 ,382 86 8'5 '998 1.155 '.385 86 661 1999 ,'83 1.387 87 "'3 '000 1 2 t2 '.39 87.779 A-109 Table S-25.Statewide Employment By Sector -Low Case - EPLOW EMP9 ECONX1 ECONX2 EMT9X EMMX1 EMMX2 1980 6.377 0.09 O.1.533 O.10.445 1981 7.115 0.307 0.097 1.599 O.10.549 1982 7.358 0.335 0.679 1.6 O.10,657 1983 7.441 0.563 1.2 1.588 O.10,768 1984 6.461 2.435 0.734 1.55 O.10,882 1985 6.677 7.103 0.262 1.54 O.11 . 1986 6.949 10.589 0.47 1.546 O.11.122 1987 7.078 6.074 0.479 1.665 O.1 1.247 1988 7.34 0.468 0.833 1.658 O.11 ,376 1989 7.272 O.0.68 1.627 O.11.5 1 1990 7.307 O.0.664 1 ..619 O.11.647 1991 7.243 O.0.564 1.619 O.11.789 1992 7.269 O.0.611 1.619 O.i 1 .936 1993 7.32 O.0.527 1.6 19 O.12.087 1994 7.34 0,0.264 1.619 O.12.242 1995 7.388 O.0,191 1.619 O.12.403 1996 7.341 O.0.084 1.619 O.12.569 1997 7.307 O.0.132 1.619 O.12.74 1998 7.283 O.0.132 1.619 O.12.916 1999 7.281 O.0.059 1.619 O.13,097 2000 7.278 O.0.018 1.619 O.13.307 EMA9 EMPROF EMGF MTOT 1980 0.202 6.363 41 .328 66.338 1981 0.202 6.363 41.418 67,65 1982 0.191 6.363 41.508 68.691 1983 0.182 6.363 41.599 69,704 1984 0,183 6.363 41.69 70.298 1985 0.156 6.363 41.782 74.883 1986 0.155 6.363 41.874 79.068 1987 0,125 6.363 41.967 74.998 1988 0.106 6.363 42.06 70.204 1989 0.089 6.363 42.154 69.695 1990 0.078 6.363 42.248 69.926 1991 0.065 6.363 42.343 69.986 1992 0.034 6.363 42.438 70.27 1993 0.035 6.363 42.534 70.484 1994 0.037 6.363 42.63 70.495 1995 0.038 6.363 42.726 70.728 1996 0.039 6.363 42.823 70.838 1997 0.04 6.363 42.921 71 .122 1998 0.041 6.363 43.019 71 .373 1999 0.043 6.363 43.117 71.579 2000 0.044 6.363 43.216 71.845 A-110 ______________________________liliiii:'111 1 -- EFLO'" Table R-25.Regional Distribution of Employment -Low Case - 1980 1981 1982 1983 1984 1985 1986 '987 1988 '989 1990 199' '992 '993 1994 1995 '996 1997 1998 1999 2000 1980 '9Bl 1982 ''383 '984 1985 1986 1987 1981!! 1989 1990 '991 1992 1993 1994 1995 1996 1997 1998 1999 2000 1980 1981 1982 '983 1984 1985, I 1988 1989 1990 1991 199'2 1993 19904 1995 1996 1997 1998 1999 2000 1980 1981 1982 1983 1984 1985 1986 1987 1988 1989 '990 1991 '992 1993 1994 1995 1996 ~997 ~998 1999 '000 001 002 00'005 ooe 008 5 083 2~.25&3 90S 0.101 2.191 0.955 5 067 24 33'4.646 0.703 2.192 0.958 5 089 24.398 5 459 0.705 2.193 0.961 5 092 2~04~9 6.255 0.70T 2.'9~0.965 5 096 24.498 5.471 0.709 2.195 0.968 5 131 24.545 6 632 0.71'2.19.0_971 5 148 24 611 7.753 07U 2.'97 0.975 5.'58 24 675 6 536 0.716 2.198 0.978 5 '54 24.758 5 801 o 718 2.199 0.982 5.131 2~.807 5 50~0.72 2.2 0.986 5.',~4 868 S 561 o 722 2 20.0.99 5."3 24 918 5 404 0.724 2.202 0.99" 5.114 24 979 5.476 o 7'6 2.203 0.998 5 118 25 042 5 0439 0.729 2.2004 ,.002 5.122 25.'03 5.196 o 731 2 205 1.007 5.'26 25.166 5 161 0.733 2.206 1.011 5.'29 25.22 ,5 0'9 0.735 2.207 1.016 5.133 25.278 5 038 0.737 2.208 1.021 5.137 25.336 5 018 0.74 2.21 1.026 5 141 25 397 4 944 Q.742 2 211 1.031 5.145 25 "59 4.902 0.7404 2.2'2 1.037 009 ."0"0,.015 016 8.19fi 8 998 :2 .46 0.309 4 274 0.14 8 t88 9.296 2.436 0.311 4.28 t O.I. 8.199 9.381 2.471 0.312 4.289 0.14 8.365 9 417 2.462 0.313 4.296 0.141 8.895 9 378 2 048 f 0.3104 '"304 0.141 9.797 9.434 2.456 0.316 4.31::2 0.142 10.235 9.529 :2.421 0.3.7 4 321 0.142 9.671 9 625 2.382 0.318 4.329 0.142 8.333 9'725 :2 388 0.319 4.338 o."3 8.206 9'828 :2.393 0.321 4.347 O.'43 8 217 9 933 2.399 0.322 4.357 O.,44 8.228 '0.041 2 '06 a 323 4.366 0.144 8 234 to.'53 :2 4'1 0.325 •376 0.144 8.248 10 268 2.419 0.326 4.386 O.,45 8.263 10.386 2.4'26 0.327 4.397 0.145 8.277 '0.508 2.434 0.329 4."'07 0.146 8.292 10.633 :2.442 0.33 4.4'8 0.146 8.307 '0.76'2."'5 0.331 4.43 0.146 8.322 to.893 2.458 0.333 4 44'0.147 8.337 11.029 :2.467 0.334 4.453 O.u7 8.353 "'.'S04 2 477 0.335 4.466 o.us 017 .'8 0"0,.025 .26 0.362 0.371 0.655 1.265 O.072 0.046 0.362 0.372 0.671 1.303 o t37 0.46 0.355 0.373 0.687 1.305 0.138 0.55 0.3049 0.3704 0.70.1.3t7 0.155 0.461 0.349 0.375 0.722 1.60'0.65 0.46. 0.332 0.376 0.74 2.458 2.'47 0.461 0.331 0.377 0.758 3.344 3.6'"0.46' 0.312 0.378 0.777 2.468 2.1-0.462 0.3 0.379 0.797 1.404 O.'59 0.0462 0.289 0.38 0.8t7 1.323 0.1'4 0.462 0.282 0.38 0.838 t.325 0.114 a 462 O.'273 0.38t 0.86 ,.327 0.114 0.463 0.'253 o 382 0.882 1.328 0.114 o 463 O.'254 0.383 0.905 1.33 0.115 0.463 0.'254 O.~84 0.929 1.332 0.115 0.463 0.255 0.385 0.953 t 334 0.'15 0.464 0.255 0.386 0.978 1.336 O.t 15 O .•604 0.256 0.387 1.004 1.337 0."5 0.464 O.'256 o 388 1.03'1.339 0.''5 0.464 O.'257 o 389 1.058 1.341 0.110 0.465 0.257 0.39 I O.t.343 0.116 0.465 027 029 acTonl 0.369 1 312 66 337 0.37 ,403 67.649 0.37 ,t.3'S 68 69' 0.371 1.316 69.704 o 372 1 317 70.298 0.407 ,319 74 88:' a 421 1.32 79,068 0.43 1 32 I 74 998 o 424 1.323 70 204 a 399 1 324 69 695 0.376 1.3'5 69 9'6 o 377 1 327 69.986 o 378 1.3'8 70.27 a 379 1 329 70 484 0.379 1.331 70.494 o 3.1 332 70.728 O.J81 1 334 70.836 O.J81 1 335 71 121 o 382 I 336 7,37'2 a 383 I J38 71 579 a 384 1 3J9 71.845 A-Ill III.The Fiscal Policy Assumptions Virtually all past work done using the MAP forecasting model as well as work by other forecasters confirms the central role that state government fiscal policy will play in shaping the pattern of future economic development in Alaska.State expenditures not only determine direct government employment but also affect all endogenous sectors of the economy through expenditures on goods and services and capital improvements.The state fiscal scenarios described in this section attempt to cover the range of plausible state fiscal behavior. Two factors affect our ability to project the course of future state fiscal policy.First,since the onset of petroleum production from Prudhoe Bay,state royalty and severance taxes and other resource-based revenues have overtaken expenditures and are expected to continue to increase over a substantial portion of the forecast period.Secondly,the establishment of the Permanent Fund and recent tax repeals and grant programs constrain the use of certain petroleum revenues.These recent changes limit the usefulness of past fiscal behavior as a guide to forecasting the future. In this study,three separate scenarios describe state fiscal behavior.The assumptions determining the growth of state expendi- tures are similar to those used in the May 1980 Electric Power Consump- tion for the Railbelt Study.Growth is defined in terms of real per capita government expenditures. Between 1970 and 1972,real per capita expenditures grew at almost 24 percent annually in response to the $900 million bonus payment received for leases at Prudhoe Bay in 1969.After 1972,the rate of growth dropped to .5 percent annually.In these three sce- narios,the growth of real per capita state expenditures is determined by its relationship to real per capita income.In the low response case,it is assumed that the level of real per capita expenditures stays constant throughout the forecast period,implying that real per A-1l2 capita expenditures decline as a fraction of real per capita income. The moderate response case assumes that real per capita expenditures grow at the same rate as real per capita income so that real per capita expenditures maintain a constant share of real per capita income.In the high response scenario,real per capita expenditures grow at 1.5 times the rate of real per capita income,thus increasing as a proportion of real per capita income. Real per capita income is defined to exclude the income and population directly associated with premium-wage,enclave-type con- struction projects which can drive up average real per capita income in the short run quite dramatically,although only temporarily. These growth rates apply to both operating and capital expendi- tures beginning with the approximate base levels established by the 1982 budget.There are four uses of state funds which are not covered by the normal operating and capital programs.Debt service is a function of the level of past capital budgets and interest rates.It is a growing but small increment to expenditures. The three other components are independent of the choice of scenario.They have the same value in the low,moderate,and high case.First,beginning with the 1981 fiscal year,a large expansion of government subsidies for such things as housing and businesses was initiated through subsidized loan programs.These programs are assumed to remain constant in real per capita terms.Second,begin- ning in 1982,a special capital projects account is funded at $250 million annually for a period of ten years.This account is in addition to the regular capital budget,and it terminates in 1992. Third,permanent fund contributions of two types occur.Twenty- five percent of royal ties and lease bonuses from state lands auto- matically go into the permanent fund.In addition,we assume that, following the example set by the 1980 and 1981 legislatures,supple- mentary contributions are made into the fund for several years in the early 1980s.These supplementary contributions terminate in 1987. A-l13 The values assumed for these variables in all three fiscal behavior scenarios are shown in Table 26. Permanent fund earnings are all deposited in the state general fund.A transfer program is instituted in 1981 along the lines,but not modeled after,the permanent fund distribution program currently under consideration by the U.S.Supreme Court.Initially funded at $130 million,it grows to maintain a constant per capita level.This program,shown in Table 27,is a part of the state operating budget and not in addition to it. Government revenues will vary between the projections because of different levels of tax collections generated by different levels of economic activity.The petroleum-revenue projections used in this study and summarized in Table 28 are derived from the June 1981 Petroleum Production Revenue Forecast of the Alaska Department of Revenue and estimates made by the authors for revenues,reservoirs, and years not covered in that document. There has been no attempt to restrain the growth of expenditures in these three fiscal behavior scenarios in response to revenue limi- tations.The situation is summarized by the two major funds of state government--the general fund and the permanent fund.Table 29 shows the annual balance in each fund in the moderate-moderate projection. Both funds show substantial balances at the end of the proj ection period.It is noteworthy,however,that the general fund balance in nominal dollars has peaked in 1999,and in real dollars,both the general fund and permanent fund balances peaked in the mid-1990s. A-1l4 ...-...l __ Table 26.State Government Disbursements Common to All Three Fiscal Behavior Scenarios (million $) EXSUBS EXSPCAP PFCONX PFCON "':';.~)t.)"," I.) ":...:..'~.1..........' .J....;.:.j .....~'::;'.l. .:;:.':,:'().1.:.':::I. J ~::.~~;:~':).;.();:::: L)l ()1 .;.:5 '::} i.~504.;.B';;;' .:;:,::.:.::,).;.:.~ J <)()·4 .'.:....;:.'::: .I.:':),3(,. :L:l.~5:t.1J7:2 .1.·;·3':.:'":,.~?::::: .I.'):1.;:',7? .f.::~i ():.-s .>:?.;? :I.::.:.~:.:=.i ~~~i ~:5 ':? 1330.71 1410.12 L47??1 1496.11 ::?.1.:":~3 T 33 ;.:.:::":~:i.:.5 (.7 '7' 1366.:L .1.287.16 1173,16 ()" ().;. I••..'.:. ,.).. I•..' ()./ 1••/ \) 1•./.;• 1••1. :...i .,. ()~. (, ':.:}I.:>().~ ':::I;'~""0 + 3()()~ ':.;.:'~)0.;. J ::iC"), .i.d,)()~ :J.::.?(::.()~ ....i I••).. f.•:.' I,,).,. I.......: J../.;. c· (),\ ~.}.. :~) \).. ".).;. ().;. :·..l ().:. ;.:.::~.:.~;~) :~~::~'.:;(),. ./,)U ,. ....::..~.;~).;. ;',,::~=5 ':..1 .;. .~?......;().;. .~:.::......;() ..::,,.)".).'",..';, .:.'..:.':.. ::~;~:.~;d .~6 ::::;::::; ':~'.~'.:~:}~.:.:::.::;,':.:' ~..'..' /(16.;:.~~;.L '.:,:.''::):.:'...~)';.;.:,) ~::.;I.)~:.:.:.\'E:..~.:.,{] ;::::(,,:,:,::.:..i,d·{;· (:,.i.:,~.;'\.)'':.:.:'~.:5 I,I,.)',.:.,.)..... i.',-.::::.".:'.L :.:5 .I.;. .1.r.:....I J ,..i..:;.~ .f.::?'::':.L ',':.:~;".:';.' .L C I,}.....'.....1 /.;. .1.'.•.•':::''7 ./~::;S •••d ••·::~..:~::.i. .,::,r'.,!..;..:.:''..;.•~.:. .i.'~)i:)7 'I ::~c:'....,.1 .."••••,..,' ~!,.:;.:r C~::~ :i.':?::::~:::; J ';?E() :i.L:?C J :i.:::':::;';? J '~;.;'d (:') :l.':,;:-f::~.:5 :1.':.:.:'":;:':i. .!.',:."";:.~. :i.':.::U? .i.:.:.:':,;:-:~:: ::::':::',::,I...'..'.... .1.~.;)(.;.:'() :I.~:.;'I,.:.::":.; .i .;,):;.1 :::) .i.':.::"::'.) :l.':.:.:.':;:;:;:: :"~;:(.f ',,)() :L ':.:;'))' EXSUBS = EXSPCAP = PFCONX = PFCON = subsidies special capital account supplementary permanent fund deposits total permanent fund deposits A-llS Table 27.The State Transfer Program Initiated in 1981 Common to All Three Fiscal Behavior Scenarios (million $) :.:::"'~'.i.'~::::(,". ...:;.....,....;",;).f i'"..,••,·...Ie,·:::•.;...::.....1 ..... ...','....".':,:::;r.:>.... A-1l6 t Table 28.Total Petroleum Revenues for the Three Economic Activity Scenarios (million $) RP9S -DEFINITION E·;•i..I...J:3 .,j"i j"j b.HH :I.':?:::;:() :l.~:.;.);:::~:i. :L .:?:::;:.:.:.~ 1.(:,:'H:':\; \.':.:':'i::;·4 J ,:.~.:.;::::~.:.:.i J ';,:,:';::~/:' .i.'..~.'t)./ :L ':?Hf:: J ()r:·:.';· .r i··,.···.,".1.'.~'"'.:,'I..••i ;.9'~.i. 1~92 :1.993 1.994 1995 :I.':;;'';)(, :i.C,:'.::.:.~:,:' 1.'~.:',:.:;.::::; :I.',7:.:,:::1..0::.:: ~::::():.':~;(:'),.(;·::·4 ..:'{.:i.:::):~.::~~.:.:~0:::. S()29~~4 55(~7.2:i. 66:!.9~()7 :::'·'t(:,':?-:-/:-:i. ;3 :.:.~;f:;::::;,",~.~:.;:::':; ~.;):,:.:.;('1 (.,.:L':' "I.(:';3·~:!·'7 ,.:.:.:; .1.J .i.',.:.:";.:',.,.;', .1.J ;::;,.::')(:').:.,:) '::'',:.:'::".;":"; :..::.:.::·:,:.·.·.i::::;·4 :1.2:.~·.;d:L .:.":1 .!..i.':;.:',.;:;.0:::'.:..:":' .I..i.:.::;:.:.:,::.::;.:.6 :1 ()..;".;.::.:.:~':,;}(. ::.;:..~'.:.;-:.;.::(::',",():: :I.'72.o;:~:1./'):1..i~:.:: _~I~MY"-'A "Y"~"Y"",-.; ~\)\jb+/~~~)~/+;~1 4:l32+72 4:L34i72 5030+42 5033~2} 5598.61 5603~~;; 6623.78 663:ly~~,;, 7427.63 ;'473+69 f3 .::.).:;,~,~::~;,4 ;::).::')':.;.:''~'f \':I. s;~,~:~,..l9 ~:.:=j 1 :I.0 r::J .r.~.•>'.}.:'.; :I.<>':?()~?"-..~I:~;':L ;?:..:::;::.:.::..:::..;..::':, ,i.:i,456~4 j.j309~.i . :i.246~3~2 :1.j()53tS .l3()32.;.7 .i,5~2~?~; .i.:,3 '.:.:\.:::.~:).;.::,:~:L {;')',:?::.:.:::i..;. :i.:.:;.:::':1.:L ':.:I.:i.(,').;,':,~.~'.i:l." .;.34~6~9 :I,~762~4 :i.2~~;.;S4t:i.:1,469:1,+9 1 :::,::i ~".:,;::.:.;.;.J :L :.":':::.·...i :.....;(':.:....). .!.:i.:.?:'t ...',?:1..:,:,::.;':;.;::~;::.?~. B.LL = B.rIM = B.HH = :1.':.:.,".:';'';.;; :~:.::()()(.' Low Case Moderate Case High Case E:'.:·:',,:::·..:·::"!•.J / ,.';..,'~,:.';,()'..;,:' A-1l7 :L <)::::::':;.::(,.:.:;;;' ':,;.:r ~...,;:.:.:,;\,:)':.::,:.:::.3 J .;::::;:':,;}".:' :l.():.:::;;~:::,::'::~,..<;. --_._---- .....'"1 •~."••~.;.'••.J .'::.~::;.:. .1."'.'..',."/.;.'.... .',.....;.'x..::,":: •••J .:• ","'..'".le;· .::i <.:;..,'../ ...:.1 : '..f ,'.•."~..i. I.'...':::::~.)',::. .L :..;::~\I) 31.~,,:.:.:·.,-I J.,.;. ","','.'..;.....(').i.... I·'" .".:.,').1....."."":. 1 :.:.;:,•.::.••:1. .....:.." ....,,'.';:;r'r:'Hi... Annual State Fund Balances in the Moderate-Moderate Projection A-US .1. .L .i.·"'...•. .1.....", ;:t." .1. ,"- J.":""::":::' .l .:;:::::-.. i.,::::., •1.:y.::; ........ .i.'?(:',.i. Table 29. state general fund halancc permanent fund balance GfBAL PFBAL > The expenditure rules in these three fiscal behavior scenarios do not reflect the spending limit initiative passed during the special session of the 1981 legislature.This spending limit has not yet been approved by the voters,and it is not clear how it would affect expen- diture patterns.In all three cases,however,the above expenditure rules imply a considerable degree of fiscal restraint in state spend- ing,resulting in the accumulation of substantial permanent and general fund balances by the end of the forecast period. However,should the legislature fail to exhibit such restraint,a quite different sceqario could develop in which all "surplus"revenues ar~spent as accrued,thus reinforcing the expected mid-1980s boom, only to be followed by a fiscal crisis throughout the 1990s as petro- leum revenues drop in the face of rising expenditures.Consequently, an alternative scenario,termed the fiscal crisis scenario,was developed to be contrasted with the previous three cases. In the fiscal crisis scenario,all of the economic scenario assumptions of the moderate case are maintained,but several varia- tions on the policy scenarios are introduced.First,on the revenue side,the Petroleum Production Revenue Forecast of the October 1981 Alaska Department of Revenue was introduced.However,any additional revenues from developments not included in the Revenue Department forecast which had been included in the moderate case are omitted from the fiscal crisis case.This represents a somewhat more pessimistic assumption as to the location of other North Slope development activity (namely placing it outside of state jurisdiction on federal properties offshore).These revenue assumptions are presented in Table 30 in comparison with similar assumptions from the moderate case.Second,on the expenditure side,operating expenditures are initially assumed to follow the same rule as in the moderate case, with real per capita operating expenditures rising (or falling)at the same rate as real per capita income.Capital expenditures,on the other hand,are determined entirely by revenue availability.Specifi- cally,such expenditures are assumed to equal 90 percent of any A-1l9 Table 30.Total Petroleum Revenues Fiscal Crisis and Moderate Scenarios PP9S -DEFINITION E:.t'1t'1 E:.CC ,.., 19::::0 19::::1 19::::2 19:::::~: 19::::4 19::::5 1'3::::6 1'3::::7 1 9 ~:::::: 19:::9 19'jO 1991 1992 19'3::: 1994 1'3'35 19'j6 1'3'37 1'39:::: 1'~'~9 2(1)0 B.MM =Moderate Case B.CC =Fiscal Crisis Case 1721.02 3036.74 41:~:2.72 5030.42 5':,9::::.61 74E?63 --1--4::~tl ~.:'::' 9549.51 10907.4 11456.4 1246;:::.;:.' 1:::(132.7 13766.2 1 :::'j 11 • 1 13456.9 1 c::::t,4.1 12155.1 11::11.7 1 0~:'36.9 A-120 1661.::2 354::::• 4::::19.76 4::::42.:::7 5E,'~5.05 6647.27 9400.3 10549.::: 1 0::20.f, 9919.:::7 10,:-::7. 1 005f,.5 9316.::::'3 '3'30::::.27 9932.04 , t I I accumulated general fund balance in the previous .year.Such behavior prompts a surge in capital expenditures throughout the late 1980s,as shown in Table 31.By 1990,such expenditures have peaked at nearly 5 billion dollars and begin to fall with the exhaustion of petroleum revenues.By 1997,such expenditures are curtailed as the general fund balance is exhausted,and capital expenditures thereafter are limited to 200 million dollars annually,financed by bond issues.The exhaustion of the general fund,however,prohibits expansion of oper- ating expenditures,which are thereafter limited to those expenditures which may be financed out of available current revenues,as shown in Table 31. A-121 ro~~~~~~~~~~~~~~~~~~~~ '~~'·D~I·D~Dl·D~~D~i~~D~D~D~~D~DI·D~~D~D C,~D~I'~ID~D'~~D~D'~I·DOOI»rooooooolnoo~IOO '=,'·DOO~~~~I~ro~OI·DOO~~~~W~~O ...;) tl> 0' I-' (1) W..... M ~ '0 (1) '"r:IP 1-"0.. til 1-" n 1"1' III l= 1-'t1 (1)ntll t1 1-"tl> til P 1-"0.. til '"r:IUll=n ~ (1)0.. ~ tl>to t1 tl> 1-"I-'o III ~n (1) til ~ I~)(-:- m m ):: (--:1 I' ~ ..:.:~ o ~ (/1 (71 "~ I'r UI rl)Ul -'.J Ul PJ UI UI P-,-.,J P-,UI rt'-'.J -..J -'.J P)U1 -..J ~~ru~~~roa~~-~-~~-ru~~ ~OOl·DI~cr~I~OO"""'~""'"OO~ .......~www..J:..~..J:..~wro ............................ .......WC,~~JIXIWI~~IJ~~..J:..~O~~ ~~~OO~OOaaOO~~~OO~OO~~ OOOO'~~~':0roC,'~~roru'~~~'OOQO~D •••II ~,=,~I~WOO~IXI~~OOrocr~~~D ;~,~I~'0cr··~'~I~I~~·~W~W ro ~D W rororororororo--------~~JIJ~..J:..I~lru .......CI~OO~~~wroo~~~w.......~ W-~OO~~~roaOO~~ru-~~oo~~~~~ .........J:..'~.......~~'~'~~Jl~DWro~D'.DoW .......~~~~1 ~ ~~JWln'~'~'~OO(Il~~,·D~~~OO..J:..OO~ow r. I-l-............................ 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II II II II '"OC")MM '"r:I'"r:I:><:><b:ltoon :t>:t>'"O:t>t-<t-<Ul'"O '"OC")on (1)(1)'0 tl> t1 P (1)'0 3 (1)t1 1-" tl>t1 tl>1"1' P tl>rT tl> (1)I-'1-"I-' P P rT '"r:IOQ M l=~ '"r:I P M'O l=0..~(1) P '0 P 0..to (1)0.. tl>P 1-'. to 1-'0..1"1' tl>tl>1-"l= I-'P rT t1 tl>n l=(1) P (1)t1 tiln(1) (1)til :r I-' N N 1NawX01dH3 SJO 31Y1GJ1VJ 01 G3SG SNOI1dHnSSY II x1puaddy I.Introduction This appendix describes in fuller detail the assumptions underlying the direct DeS employment estimates presented in the text.In Part II, the major determinants of direct DeS employment in Alaska are examined. Part III then presents the detailed development assumptions for each of the ten DeS areas scheduled for leasing. II.Determinants of Direct DeS Employment in Alaska The direct employment generated by Federal DeS development in Alaska will depend on three factors: •the technology of exploration and production used to find and develop Des resources •the rate at which DeS properties are offered for lease by the Federal government •the rate and size of resource discoveries on such properties This section examines the relationship of each of these factors to the employment estimates presented in Part III. A.Technology of DeS Development The development of DeS oil and gas resources occurs in a series of stages:the exploration phase,the development phase,and the production phase.While these phases will typically overlap,each consists of a distinctive set of activities which generate direct employment. B-1 1.Exploration Exploration activity typically will begin prior to the sale,as potential bidders (and the government)attempt to identify potential oil and gas leasing structures.These activities,which may consist of seismic surveys,bottom sampling,core drilling,or off-structure deep stratigraphic drilling,are typically conducted by specialized crews on various types of vessels,which move on to other areas upon completion of short-term assignments,resulting in little,if any,onshore direct employment.In the estimates presented below,such activity is not included explicitly in any of the direct employment estimates. While the geophysical techniques described are capable of locating prospective oil-and gas-bearing structures,no technique short of drilling into such structures is currently capable of establishing the existence of recoverable oil and/or gas or of delineating the extent of such resources. Thus,the next stage of exploration consists of actual drilling into the prospective structures by winning bidders after the lease sale.The onset of exploratory drilling marks the beginning of significant direct employment generation in Alaska. The technology used in exploratory drilling may involve one of several possible alternatives.Three methods are commonly in use:drill ships,semisubmersible drilling rigs,and jackup rigs. Drill ships are self-propelled vessels with one or more drilling rigs located directly on the deck of the vessel.Drilling is accomplished B-2 ________________________IIIIIIi~-- Lng ~ces . ed by positioning the vehicle over the drill site,while the vessel is held in position by either a system of anchors and chains or a dynamic posi- tioning system consisting of a series of propellers and thrusters activated by sensors defecting any vessel movement.While drill ships may be used in deep waters (over 400 feet),they are subject to the greatest degree of platform movement due to wave action and are thus subject to the great- est risk of breaking the drill string during periods of rough weather. The semisubmersible drilling rig is also a floating platform,but it is designed specifically for rough weather.Movements due to wave forces are reduced by locating the major buoyant members of the structure beneath the surface of the water.The platform is supported by steel columns attached to these large underwater hulls.It is positioned either by a mooring system or a dynamic positioning system and may be used in water depths from 150 to over 2,000 feet. Jackup rigs consist of floating platforms attached to vertically moveable legs which can be extended to the ocean floor,thus lifting the platform out of the water and making it a bottom-standing rig.While this eliminates the problems of motion and positioning characteristic of floating rigs,it imposes a rather severe limitation on the depth of water in which the jackup may be used.Current designs are limited to water depths of 350 feet. B-3 Such techniques as drill ships,semisubmersibles,and jackups are of limited usefulness in ice-infested waters such as those which may be 1encounteredinNorthernAlaskaandsomeWesternAlaskawaters.In such waters,drilling may be limited to the ice-free period,using drill ships or semis.Alternatively,other techniques pioneered in areas such as the Canadian Beaufort may extend the drilling season.Five such techniques have been developed. First,in some limited applications,directional drilling from on- shore to reach offshore targets may be possible,although this is not expected to have much application in Alaska. A technique currently in common use in the southern Canadian Beau- fort Sea involves drilling from artificial islands.Such islands are generally limited to shallow waters (less than 50 feet)and are con- structed from locally available materials such as gravel,sand,or silt. Alternatively,an island may be constructed of ice by thickening the existing ice sheet to produce a grounded ice island.Such an island was constructed in the Alaskan Beaufort Sea by Union Oil in 8 feet of water in 1976. Third,ballasted barges may be used to construct a drilling plat- form under such conditions by floating a barge to the drill site and lMuch of the discussion on ice technologies is based on Dames and Moore,"Alaska OCS Studies Program Norton Basin OCS Lease Sale No.57 Petroleum Development Scenarios,"Appendix C,"Petroleum Technology and Production." B-4 sinking it to the ocean floor.Again,the technique is limited to very shallow water (5 to 17 feet). Fourth,in areas of land-fast ice,drilling has been done from the ice itself.This has been done in deep waters in the Canadian Arctic islands but is not expected to be feasible in Alaska. Finally,ice-strengthened drill ships have been used successfully in the Canadian Beaufort.Such drill ships permit drilling in deeper waters than can be accomplished using artificial islands,but they are limited to minimum depths of over 66 feet. Employment generated during the exploratory drilling phase will consist of drilling personnel as well as support personnel to construct and/or operate onshore supply bases and to supply boats and helicopters to shuttle supplies and personnel to the drill site. The onshore economic and social effects of the exploratory drilling phase of OCS operations will depend largely on the number and type of offshore rigs being utilized.Because of the specialized and transitory nature of exploration activity,much of the personnel employed in such drilling will be experienced personnel from outside Alaska rather than local residents.Some local residents,however,will be hired for such operations,and other migrants to the area may take up residence in Alaska, with the extent of this impact dependent upon the technology employed. Drill ships are likely to have permanent crews and are likely to require B-5 £ relatively little local labor,while jackups and semis will require relatively more.Any of the rigs,however,will require substantial amounts of support activity,performed by largely resident labor. 2.Field Development and Production Once oil and gas deposits have been demonstrated and delineated by exploratory drilling,a series of activities are begun to bring the field into production.The specific activities involved in this phase and their sequence depend on the production technology utilized.The technologies currently available include both fixed platform systems and subsea pro- duction systems. Fixed platforms include both drilling and production equipment on a platform mounted on a structure which rests on the ocean floor.While most conventional fixed platforms consists of steel truss structures attached to the ocean floor by pilings,the rought seas commonly encountered in the North Sea have led to the development of new platforms constructed primarily of concrete and held in place by their own weight,which may range up to a quarter of a million tons.Because of the dynamic response of fixed platforms to turbulent wave motion,it is generally felt that such systems will be limited to waters well under 1,000 feet in depth. Subsea completions,currently in limited use,involve technologies which permit production in much deeper waters by drilling the production well from a mobile rig,then placing the wellhead and production equipment on the ocean floor.While this eliminates the vulnerability of the system B-6 r red t m to turbulent seas,it obviously limits accessibility to the system to divers,diving bells,and remote-controlled robots. The sequence of activities for fixed platforms begins with the fabrication of the permanent platform onshore.For steel platforms, large numbers of skilled personnel are required for fabrication,pri- marily welders.The fabrication of concrete platforms is also highly labor intensive,though requiring relatively fewer skilled workers. Once the platform is completed,it must be transported to the production site and installed at a permanent location.Inasmuch as decks and producing equipment must be installed on steel platforms after placement at the site,while concrete platforms are completed onshore,the instal- lation crews for steel platforms will be relatively larger.In the scenarios presented below,all fabrication of platforms is assumed to be done outside of Alaska.Only installation employment is generated in Alaska. Once permanent platforms are installed,production drilling begins. After reaching the maximum number of production wells supportable by a single platform,the drilling personnel will move on,leaving a small contingent for workover operations.As production commences on the plat- form,crews will be required for monitoring the performance of each well and controlling and maintaining the production equipment.These crews will remain throughout the productive life of the field.In addition, supply bases and boats will be required for both the drilling and pro- duction activities offshore. B-7 For subsea completions,the sequence of activities is somewhat dif- ferent in that drilling precedes the installation of production equipment. Drilling occurs from mobile rigs such as those used for exploratory dril- ling.The production equipment is installed on the well by a highly specialized and mobile crew and requires relatively little manpower for either maintenance or monitoring after installation. 3.Treatment,Storage,and Transportation After production,oil and gas resources must be treated and trans- ported to storage areas,then finally transported to market.The nature of facilities required in this stage of development will depend on a large number of site-specific features such as distance to land,ocean depth,port availability,and rates of resource production.Treatment facilities could range from facilities simply to separate produced oil, gas,and water to oil refineries and/or LNG plants.Storage and/or trans- fer facilities may be located either onshore or offshore,connected to producing wells by systems of gathering lines and offshore pipelines. Direct employment requirements during this phase involve both the construction and operation of facilities required at each particular site. The proportion of this labor who are or become Alaskan residents will depend on the type of facility required.Offshore terminals and/or pipelines will require specialized construction crews largely composed of nonresident labor.Operations personnel,inasmuch as they will be employed for long periods extending throughout the production life of the field,will represent a largely resident workforce. B-8 B.Resource Occurrence A major determinant of the level of OCS employment in Alaska,and the most significant determinant of long-term OCS employment,is the quantity of recoverable resources eventually discovered on the OCS. Ten areas surrounding Alaska,shown in Figure B-1,are under con- sideration for OCS leasing (see below).USGS has estimated undiscovered recoverable resources l in each of these areas as follows: Oil Gas Location (Billion Barrels)(Trillion Cubic Feet) 95%2 Mean 5%3 95%2 Mean 5%3 Gulf of Alaska 0 0.1 0.7 0 0.4 1.9 Cook Inlet 0.1 0.5 1.5 0.4 1.5 3.3 Beaufort Sea 0 4.3 10.4 4.1 16.5 32.0 Norton Basin 0 0.3 1.3 0 1.2 3.8 St.George Basin 0 1.6 5.8 0 6.2 15.7 Kodiak 0 0.23 1.1 0 0.69 3.5 N.Aleutian Shelf 0 0.2 1.0 0 0.8 3.2 Navarin Basin 0 3.8 11.8 0 14.2 38.3 Chukchi Sea 0 6.4 14.5 0 19.8 38.8 Hope Basin 0 0.13 0.6 0 0.86 3.3 Total of 10 Areas4 7 17.56 32 30 62.15 97 lSee Oil and Gas Journal,3/17/80,p.85. 2There is a 95 percent probability that at least this amount of recoverable resources will be discovered. 3There is a 5 percent probability that at least this amount of recoverable resources will be discovered. 4 0nly the means of the individual areas are additive,not the 5 percent and 95 percent levels,so that column does not sum to total. B-9 i \ \ QI."l '1 GULF OF ALASKA \ KODIAK "~", /~//"'~-, Sj -f,--....~ GtoRe /'. /E:84.)tt\! /-~I /r_ ~ 150 '\156 162 """168 l14 ""180 174 162 156 150 1'44 138'1'32 1'26 1'20 7/)</N /"I I..-l--~\"/\ //AREAS UNDER CONSIDERATION',SEA'I ~<FOR ~EASING;(,/ /---."11'1,-.v- '~//--"// ~/ ~~// /~-""-I-~<...\,.\Q'.>' So 1"", ~. Ss!I '~ o NORTH /ALEUTIAN/ I SHELF I 's~,_"l ,/,/...,j,L.';'\'\..;OJ JII"'~;r~j;""'~A-'"f -",."",,,~,,,,,;,,,~,""~""'f:.'~~~~-'-"~"""'''''''''~,.,""'i%ZSZL ,M';\ii!Jf'J',~"""'~".'",<"'C'".4,"'"'~~,,,~,,~-"~,~,~.~-~-,~,~,-~,-~~-"•~~.~."c~,~-~.~~,.~"-,,!,,,!,,,"'" Q. as :E.. ~J.2 The actual amount of resources recovered from these areas,however, ~ ~ <:> .r> <.0 .r> '"<.0 '""" "" :> o / ... CD-C- Q) ~--o-C Q) E-... as Q. Q) C !I (I) :::> .-\1~l ~'g Hr:. is likely to be substantially lower than this for several reasons.First, for environmental or technical reasons,not all of the acreage in each area will be leased.Second,even if these resources are discovered, unless they occur in sufficiently close proximity to each other or to transport facilities,they may not be produced.Third,in some of the areas in northern and western coastal waters,the estimates are contingent on the availability of technology as yet unproved. In the high scenario,it is assumed that discoveries of recoverable resources eventually reach 18.8 billion barrels of oil and 47.4 trillion cubic feet of natural gas.These discoveries are reasonably consistent with USGS mean estimates,as shown above . In the moderate scenario,only 6.7 billion barrels of oil and 16.4 trillion cubic feet of natural gas are discovered.This may be interpreted as due to a low level of actual resource occurrence and/or to some combination of wide dispersion of discoveries,environmental constraints,or technical problems. In the low scenario,these factors combine in an even more serious limitation of discoveries to 1 billion barrels of oil and 1.75 trillion cubic feet of natural gas. B-ll C.The OCS Leasing Schedule A major determinant of OCS-related employment in Alaska will be the rate at which the federal government chooses to open the Outer Continental Shelf to development.In the development scenarios used in this report, the proposed five-year schedule of leasing prepared by the Secretary of Interior in 1980 provides the point of reference for assumptions regarding the rate of OCS leasing.The schedule,shown in Figure B-2,describes the pattern of proposed OCS lease sales through 1985.Most likely, future sales will be held after 1985,with the schedule at least partially dependent on the results of pre-1985 leasing. In the high case,it is assumed that all of the planned sales before 1985 are in fact held on schedule and that three additional sales in the areas of greatest resource potential (Beaufort Sea,Navarin,and Chukchi) are held between 1985 and 1990. In the moderate and industrialization scenarios,it is assumed that all planned pre-1985 sales are held on schedule,but that less encourag- ing rates of discovery of recoverable resources result in fewer post-1985 sales.Two such sales are held after 1985 in the Navarin Basin and the Chukchi Sea. In the low scenario,only the areas of greatest resource potential (Beaufort Sea,Navarin,and Chukchi)are leased between now and 1985, and no sales are held thereafter. B-12 ______________________________________________l _ '<()Q t-' PROPOSED FINAL OCS OIL &GAS LEASING SCHEDULE MARCH 1980 ...~..._- 198519801981,1982 1983.__,_1~4 .',''.,. PROPOSEO SALE AR.EA PR~:~:ED J F MIA M J JIA S °NIO JTfclM A MTJJA'SO"NIU j r M A M jl AS ON O¥,A M J J A S GiN D ~MijiJ1Ai~o:OIN ul''1M"M ,'.,"', A62 Guif of MeXICO 9/80 F p Sc RN S,! 'I 'r-+-+-++.+-----J ._. ~~Gulf oiAiiSka "10180 F P SC'R NS I ...:~t-HTt +1-r'..•r _r 62 Guif of Mexico 11/80 F P Sc R N S "I;••.r : 53 Central N.Calif.5/81 E H F P Sc R N,'S 1 ,l-lt-iT 0,t----.--L~G~...~._ 1 R .I ,...',.\'!If.r,y I RS-l ........s"_6J!1t-'"1+-n-n-i J',",-;..c~'"H d . A66 Guif of Mexico 7/81 E H F P,Sc RNS T'++t-+~0 ~.--'..::.-;.__+!. 56 South Allantic ._~sr-,,8!_-,E H Fdp ,\:N S,,':t +-.",':"1,,'H-~:_'.2)1 +.:_" .~o Co~~~!L .E H~+--P1--~~NS -f----f--t .-rt-'i t-j +l-f~-.•~....,-t ' 66 Gun 01 MeXICO 10/81 I E H F I P Sc R ~S -+f-+-.'I',,,-fl-'_'--f-'--~',h 1 ""_ •I rt-f--~-E"F P SeRN'S''i,I.'~i+~•... 67 Gun of Mexico 3/82 c1 D T 'E H F P ~c R NS ..I I;r-t ~__t:f •• RS~Reoffering Sale 5/82 1 I i RN S I --:-1 +'f-tr'1 -+-+-~+.-+--t-+iT ....+--"1 'S I '68SouthernCal~~_6/82D_iT".E H F P CRsNS I -t--t-I t-t-I.+--t o - t •+.•1 ••__ -69 Gun of Mexico 8/82 eDT , E H ,F I P CRN S.f-'I _-+.I Ii!,._••_~7 N~r10n~_.9/82 T +,I -t !--E.~F P SC:NS !,I --l-++'~1 ~,i !I ,~_~_ 52 North Atlantic ._)~_!_T_1 _---l:r E1-l H L -:-:.F PeR:S f--I ,",-t.tfH-l~c-it--~+,I I ...r • 70 SI.George Basin 12/82 T ,'T 'E H FPc R NS ,...f--ill .tWit'+,~ttL +.-!-+..t-•_.•~__ 71 Beaufort Sea 2/83 T .E H F P ~c RNS I,!",+-t-'-+.+~+-+-+-.;._ __7~~u~of Mexico 3/83 C DJT E H f P Sc RNS i I +~-t-_I h-++~_.':'--t---l-+-++.~~_, 61 Kodiak 4/83 I e -l-~_TIE H F P Sc RN ~~-l-t j-I--+---+----t---J---i--+h j ~.•~.• , 73Calif0riii3 5/83 H-,'J~r D1,_-+I r !---t---t-E H F ,P scR N ~tC'--t 4-~-;1ft;t .,.I 1 ri r r •••__ RS·3 Reoffering Sale 6/83 'H J!'I c-l-i·+t J!~~~+t-+-.-++-J ..L,-_t -t --I J.T --.,- 74 Gun of Mexico __~/83 t"i e l~T:E H F l~L~~!S11 ---l--_.L~:~~-;---,-,~~1 _ -is No:A~Utii,"Sheif_~83 e 0 I IT :"I ~I I EI H 1F 1pi I\RN SI I ++-t 4 +l 'I. 76 Mid-Atlantic 11/83 i 'eI D,:'T I E H 'F'p!I'c R N,SI i L ILL ,l-----i-I r-'-.'~i."..__ 78 So.Atlantic 1/84 c-+-'ie ,D I.'-+1--+-,i E.,H1-+-~IP ~c R,N S _+-Ti--~~-+r--'• 79 Gun of Mexico -318L ~Ll t+r _p ;L~-4t+:"i _+-~+-p l.-ri-+-T +_I ,E,~H~.J+tP ;Sc R~~~_.,:ljH ,!.,. RS-4 Reoffering Sale 4/84 -~t ~-l-t+-t-HH-t-d t 'l',i ~I LJJ r I !1-rT t ~l-m-t f+-I ;RtsNl~+:~+-'"-j-~'•t •~-~--++-.. 80Calilornia 6/84 L,!,:_,t'+-','"t1 lei ID ~IT J i 4t-l'4 +[Itt;'~+4 ~t-f+-Pi ICjR1Nt,St_+-.f---t--.----.t-!.4.·,-.-----------I :r 'I t-t r I li-~,-TTl"I I'I E H F P''S'RNS1 :' 81 Gu"of Mexico 7~L r-.l+-r+-..:r t-+-t-LL -'1 ~-:-~t--'L+tJ~t---+-+-tl:-T+--J t--l-:CI 'II SI '!-,-.t +t 82 North Atlantic 10184 'I'I I " : '1...L 1 I ,II I e I DI I i TTl f'I t+I -+-E'I HI ,",-f~PI "ClR~N ~.0 _..i-"t;;rt!r I t 1 +'I E'HI'F+--PP'S RNS83NavarinBaSin12/84 I I 1 :I ,,e,D !T I !, ':·c ..~_~I • 8_4GUlfOI,M,~XiCO ,-,-,1I8~l,-+",_~".l,ITf,,+I-t,'_I-+-t,,;,'-+,i t,'~,,'1+",,-+,':)I,Lr-+,I;HJfI,,""-r·FffiI~-+t-+="e+,~,.!l,Hllllii"i\,~-,I,EE~.,~--+"'-~F,,Pt,PT,s~'~R·~:·,S~,t,','14 85 ChUkCh~~-~!~~---i--.~:--;1-+t l+--+..L+_+--+l~j ~+~1-l--jJ '-t-+--t-mr -n-t+:-+-~"-+-!-+.f'"S-~---rR+N-S'".... 1iS-5 Reoffenne_.~4-Jt .t.-f-i-I I+-'''T-~,.i ~-L.-i--l.'-+!.fl'j _~LL I ',-LL-+-L:;ljr+-;-'~~is;;j :.." 86 Hope Basin !i /85 !1 I :I :I IIi I.'.i .C I ID 1 Til i I I Til i .:E',,i HI I ,,F I PiC RNS to I t-' W C·CaU for Nominations o.Nominations Due T.Tentative Tract Selection E·Oralt Environmental Statement H.Pubic Hearing f .final Environmenlal Statement P.Proposed Notice ot Sale Sc .State Comments Oue R ,Energy Review N-Notice of Sale S.Sale l4The holding 01 Ihe Chukchi Sale at thIS lime IS con''"genl upon a reasonable assumptIOn that lechnology Will be available lor exploratIOn and development 01 lhe Itacts ,"cluded '"lhe sale. FIGURE B-2 III.oes Development Scenarios A.Gulf of Alaska In the high scenario.it is assumed that 0.45 billion barrels of oil and 1.25 trillion cubic feet of gas are discovered on acreage leased in 1980.Employment peaks at 440 in 1989.falling to a long-term level of about 350 by 1993.as shown in Table B-1. In the moderate and low cases.exploration of tracts leased in 1980 results in no commercial discoveries.and the tracts are abandoned by 1985,as shown in Table B-2. B-14 TABLE B-1.DIRECT EMPLOYMENT REQUIREMENTS:GULF OF ALASKA 1 HIGH CASE (thousands of persons) EMF'9 ECDNX EMT9X EMMX TOTAL 1980 o.o.o.o.o. 1981 0.045 o.0.017 o.0.062 19:=:2 0.09 o.0.035 o.0.125 19:=:3 0.09 o.o.0:~:5 o.0.125 1984 0.083 0.038 0.026 O.0.147 1 13':::5 0.038 0.012 0.009 o.0.05'3 1986 o.0.0'33 O.O.0.093 1987 0.09 0.0'38 0.086 o.0.274 1988 0.179 0.037 O.0:=:6 o.0.302 1989 0.34 o.O.1 o.0.44 1990 O.~:33 o.0.107 o.0.44 1 '391 0.343 O.0.107 o.0.45 19'312 0.2'32 o.0.042 o.0.334 1993 0.305 o.0.042 o.O.34? 1994 0.307 o.0.042 O.0.349 1 1:;'95 0.31 O.0.042 o.0.352 1 '396 0.31 o.0.04E:O.0.352 1 qc~'7 ..0.31 o.0.042 O.0.352 _'....I 1998 0.31 O.0.042 o.o.::::52 1999 0.31 O.0.042 O.0.352 2000 0.31 O.0.042 O.0.352 KEY:EMP9 =Petroleum ECONX =Construction EMT9X =Transportation EMMX =Manufacturing 1Assumes two lease sales,in 1976 and 1980.Activity associated with the 1976 sale has ended with no commercial discoveries.The 1980 sale is assumed to result in commercial discoveries of 0.45 BBO and 1.25 TCFG.Employment estimates taken from moderate case scenario described in Eastern Gulf of Alaska Sale 55 Final ElS. B-15 TABLE B-2.DIRECT EMPLOYMENT REQUIREMENTS,GULF OF ALASKA l MODERATE CASE LOW CASE (thousands of persons) EMP9 ECDNX EMT9X EMMX TOTAL 1980 O.O.O.O.O. 19E:1 0.149 O.0.082 O.0.231 1982 0.149 O.0.082 O.0.231 1983 0.114 O.O.OE.2 O.0.176 1-:a84 0.021 O.0.017 O.o.lns 1985 o.O.o.o.O. 19E:6 O.O.o.o.o. 1987 O.O.o.o.O. 19::::8 O.O.o.o.o. ~qoq o.o.o.o.o."-"'-I -' 1990 o.O.o.o.o. 1991 O.O.o.o.O. 1 qq'-'O.o.o.o.o...,0 ..c 1993 O.O.o.o.O. 1994 O.O.o.o.O. 1995 O.O.o.o.o. 1996 o.O.o.o.o. l qq7 O.O.o.o.o.."...I 1998 O.o.o.o.O. 1999 O.o.o.o.o. 2000 O.O.o.o.o. See Table B-1 for key to variables. lAssumes two lease sales,in 1976 and 1980.Activity associated with the 1976 sale has terminated with no co~~ercial discoveries.No commercial discoveries result from the 1980 sale.Employment consists solely of exploration activity,estimated as described in the "explora- tion only"scenario presented in Huskey and Nebesky,Northern Gulf of Alaska Petroleum Development Scenarios:Economic and Demographic Impacts, OCS Technical Report 34,Table 58,p.187. B-16 -------------------------------------------_...,.'-- B.Cook Inlet In the high case,it is assumed that 0.67 billion barrels of oil and 1.173 trillion cubic feet of gas are discovered on tracts leased this year (1981).Direct employment peaks at over 900 in 1987,before falling to a long-term level of about 800 in 1991,as shown in Table B-3. In the moderate case,acreage leased in 1981 yields .332 billion barrels of recoverable oil and 0.581 trillion cubic feet of recoverable gas.Employment peaks at about 500 in 1987,falling to a long-term level of 428 in 1991,as shown in Table B-4. In the low case,no commercial discoveries result from exploration of tracts leased in 1981,and tracts are abandoned in 1987,as shown in Table B-5. B-17 - TABLE B-3.DIRECT EMPLOYMENT REQUIREMENTS,COOK INLET 1 HIGH CASE (thousands of persons) EMP9 ECON~<EMT9X EMMX TOTAL 0.09 O.0.033 O.0.123 1'380 0.017 o.O.0'32 19:=:1 0.075 O.0.286 0.121 0.13i O.034 o. 1982 O.0.036 O.O.126 1983 0.0'3 0.036 o.0.126 1984 0.0'3 O.0.1590.027 O. 1985 0.084 0.048 0.7870.208 n .::oqq 0.28 O. 1986 _•L.......0.9160.425 O. 19:37 O.:358 0.133 0.7940.369 O.0.425 O. 1988 O.0.425 O.0.81 t '389 (1.3:::5 0.8540.411 O.0.443 o. 1990 O.0.366 o.0.798 1991 0.432 Om798o.0.366 O. 19'32 0.432 0.7'38 0.432 o.0.366 O. 19'33 O.0.366 O.0.798 19'34 O.4~:2 0.7980.432 O.0.366 O. 1995 0.366 o.0.798 191;&':_0.432 O.0.798O.O.~:E,6 O. 1997 O.4~:2 0.366 O.0.798 19138 0.432 o.0.7980.366 O. 191~13 0.432 O.0.7980.432 o.0.366 O. 2000 See Table B-1 for key to variables. 1Assumes two lease sales,in 1977 and 1981.The 1977 sale results in no commercial discoveries,but the 1981 sale results in discovery of 0.67 BBO and 1.173 TCFG.Employment estimates for the 1977 sale consist of exploration only.Employment estimates for the 1981 sale are taken from a development scenario described in ISER,Lower Cook Inlet Statewide and Regional Population and Economic Systems Impact Analysis,Table 3,p.7. B-18 't 7. TABLE B-4.DIRECT EMPLOYMENT REQUIREMENTS,COOK INLET 1 MODERATE CASE (thousands of persons) EMF'9 ECON:X:EMT9X EMMX TOTAL 19:=:0 0.09 O.0.033 o.0.123 19:=:1 0.075 o.0.017 o.0.092 1982 0.07E.0.028 0.018 O.0.122 1'3183 0.083 O.0.025 O.0.108 1984 0.09 O.(I.03~:O.0.123 1 '3::::5 0.076 0.048 0.017 O.0.141 1986 0.143 O.15 0.166 O.0.459 1987 0.218 0.061 0.217 O.0.496 19::::8 0.238 O.0.217 O.0.455 19::::13 0.25 O.0.217 O.0.467 1990 0.182 O.0.22':.O.0.408 1991 0.25 O.0.178 O.0.428 1 q,~.;:.0.25 O.0.178 O.0.428_••'L.. 1993 0.25 O.0.178 O.0.428 1994 0.25 O.0.178 O.0.428 1995 0.25 O.0.178 O.0.428 1996 0.25 O.0.178 O.0.428 l,~q7 0 ..25 O.0.178 O.0.428."."f 11~9c:0.25 O.0.178 O.0.428 1999 0.25 O.0.178 O.0.428 2000 0.25 O.0.178 O.0.428 See Table B-1 for key to variables. lAssumes two lease sales,in 1977 and 1981.The 1977 sale results in no commercial discoveries,but the 1981 sale results in discovery of 0.332 BBO and 0.581 TCFG.Employment estimates for the 1977 sale consist of exploration only.Employment estimates for the 1~8l sale are taken from a developsent scenario described in ISER,Lower Cook Inlet Statewide and Regional Population and Economic Systems Impact Analysis,Table 2, p.6. B-19 TABLE B-5.DIRECT EMPLOYMENT REQUIREMENTS,COOK INLET 1 LOW CASE (thousands of persons) EMF'9 ECON>c:EMT9~<EMM>c:TOTAL 1'~80 O.09 o.o.03~:o.o.123 19:=:1 o.075 o.O.017 O.o.092 1982 o.07E,o.028 o.018 o.o.122 1983 O.08:3 O.O.026 o.o.10'3 19:=:4 o.09 o.o.033 o.O.123 1985 o.075 O.O.017 o.o.0'~2 1986 o.1):]8 O.o.009 O.o.047 1 '3:::7 o.o.O.O.O. 19:=:8 O.O.o.o.O. 1 S.:::9 o.o.O.O.O. 1990 o.O.o.O.o. 19'~1 o.O.o.O.o. 1 Cl'~·-'O.o.O.o.o. ." ."c. 199:3 o.o.O.o.o. 1994 O.O.o.O.O. 1995 O.O.O.o.O. 19'3E.o.o.o.O.o. 1997 o.O.O.O.O. 1998 o.o.O.o.o. 1999 O.o.o.O.o. 2000 o.O.O.O.o. See Table B-1 for key to variables. lAssumes two lease sales,in 1977 and 1981,each followed by explora- tion activity but no commercial discoveries.Exploration employment estimated by Alaska oes Office for study of Lower Cook Inlet oes Sale 60. B-20---------.t c.Beaufort Se& In the high scenario,it is assumed that two additional lease sales are held in the Beaufort Sea in 1983 and 1986.Acreage leased in the 1979 sale yields discoveries of 1.9 billion barrels of oil and 4.74 trillion cubic feet of gas.Discoveries from 1983 leased acreage total 1.3 bil- lion barrels of oil and 3.25 trillion cubic feet of gas.The 1986 sale results in discoveries of 0.8 billion barrles of oil and 1.6 trillion cubic feet of gas.Total discoveries amount to 4 billion barrels of oil and 9.6 trillion cubic feet of gas.Employment peaks at over 3,300 in 1994,falling to about 2,640 by the end of the forecast period,as shown in Table B-6. In the moderate case,acreage leased in 1979 yields discoveries of 1.3 billion barrels of oil and 3.25 trillion cubic feet of gas.A second sale in 1983 adds 0.8 billion barrels of oil and 1.6 trillion cubic feet of gas,bringing total discoveries to 2.1 billion barrels of oil and 4.85 trillion cubic feet of gas.Employment peaks at over 2,200 in 1991 but falls to under 1,500 by the year 2000,as shown in Table B-7. In the low case,1 billion barrels of oil and 1.75 trillion cubic feet of gas are assumed,half discovered on acreage leased in 1979 and half on acreage leased in 1983.Employment peaks at over 1,200 in 1993, falling to less than 700 by the year 2000,as shown in Table B-8. B-2l HIGH CASE (thousands of persons) )' ,;:.. ! 0.179 0.13 0.121 1.955 1.941 0.13 0.143 0.267 1.549 1.462 1.E.34 2.:::02 2.059 2.515 2.402 3.045 3.02 2.7E.3 2.853 2.641 TOTALEMP9ECON>:;EMT9:X:EMM:X: 19:=:0 o.119 o.06 o.O. 19:31 O.liB O.018 O.O. 19:::2 O.044 O.086 o.O. 19:::::3 o.044 O.086 o.O. 1984 o.044 o.099 o.O. 19::::5 o.027 0.24 o.O. 1986 0.275 1.68 o.O. 1'3:::7 0.467 1.474 o.o. 19::::8 1.453 o.096 O.o. 19:=:9 1 •:~:78 o.084 o.O. 1'~9 [I 1.319 0.315 O.Q,~. 1991 1.:319 0.74 O.O. 1992 1.243 1.272 o.O. 19'::-3 1.396 1.006 O.O. 1994 1.887 1.441 O.O. 1995 2.145 O.I~O.O. 1996 2.668 0.352 O.O. 1 t~':.a7 =-'-..,C'o.0:=:8 o.o.L...b I "_I 19':":=:2.E,:=:2 o.171 o.o. 1'~99 2.654 o.14:::o.o. 2000 -.C'C'.-.o.0:3:::o.O.Co II ,,-I_I~. TABLE B-6.DIRECT EMPLOYMENT REQUIREMENTS,BEAUFORT SEAl See Table B-1 for key to variables. lAssumes three lease sales--in 1979,1983,and 1986--resulting in total commercial discoveries of 4.0 BBO and 9.6 TCFG.Discoveries asso- ciated with the first sale total 1.9 BBO and 4.75 TCFG;those associated with the second are 1.3 BBO and 3.25 TCFG;and those with the third are 0.8 BBO and 1.6 TCFG.Employment estimates associated with the 1979, 1983,and 1986 sales correspond to the High Find Scenario,the Moderate Find Scenario,and the Low Find Scenario,respectively,as presented in Alaska oes Studies Technical Report 18,Beaufort Sea.Petroleum Develop- ment Scenarios:Economic and Demographic Impacts,Tables 3.2,3.8,and 3.6,respectively. B-22 ---------------------------,+...- TABLE B-7.DIRECT EMPLOYMENT REQUIREMEN~S,BEAUFORT SEA l MODERATE CASE (thousands of persons) EMF'?ECON>o:EMT9X EMM:X:TOTAL 19::::0 O.O.o.O.O. 19:31 O.O.O.O.O. 19:32 O.0::::4 0.012 O.O.0.096 19::::3 o.101 0.052 O.O.0.153 19::::4 0.185 0.03 O.O.0.215 1 '51:::5 0.179 0.122 O.O.0.:301 19::::6 0.163 0.242 O.O.0.405 1987 0.104 0.735 O.O.(I.8~:';a 1988 0.165 1.286 O.O.1.451 1 13:=:9 0.341 0.821 O.O.1.162 1990 0.792 0.828 O.O.1.62 1 ':;'91 1.082 1.158 O.O.2.24 l Qq =-1.41 0.675 O.O.2.0:=:5..'.."J.- 199::::1.74 0.264 O.O.2.004 1994 1.74 0.166 O.O.1.906 1 '395 1.713 O.19E,O.O.1.909 199E,1.E.ll 0.03 O.O.1.641 1 '::.'::."?1.564 O.1 t,E,O.O.1.7~:...." I 1998 1.513:=:O.01 O.O.1.t,08 1'399 1.5:38 O.01 O.O.1.548 2000 1.478 O.01 O.O.1.4:'::8 See Table B-1 for key to variables. 1Assumes two lease sales,in 1979 and 1983,resulting in total com- mercial discoveries of 2.1 BBO and 4.85 TCFG.The 1979 sale results in discoveries of 1.3 BBO and 3.25 TCFG.Employment estimates for this sale are take~from Alaska OCS Studies Technical Report 18,Beaufort Sea Petro- leum Development Scenarios:Economic and Demographic Impacts,Moderate Find Scenario,Table 3.8,p.89.The 1983 sale results in discoveries of 0.8 BBO and 1.6 TCFG.Emp 1 0yment estimates are also from Alaska OCS Studies Technical Report 18,Low Find Scenario,Table 3.6,p.86. B-23 -- TABLE B-3.DIRECT EMPLOYMENT REQUIREMENTS,BEAUFORT SEAl LOW CASE (thousands of persons) 19:::0 19:::1 19:=:2 19:=:3 19:::4 1985 1986 1 1387 1'3:=:8 1989 19'31 (I 19'31 1 13&92 1993 1994 1995 1996 1997 1999 2000 ~.. [ •t f~. EMF'9 ECDN~<EMT9><EMMX TOTAL o. o.o.o.o. o.066 o.062 o.o. o.128 o.1 '=."?O.1:=:8 o.O.O.~:B5JI O.197 O.135 O.O.O.3~:2 I0.23 0.25 o.o.0.48 ~. o.132 0.212 o.o.0.344 !.0.267 0.47 o.O.O.7~:7 0.32 0.417 o.o.0.737 I.0.458 0.645 o.o.1.103 0.411 0.545 O.o.0.956 f 0.457 0.414 o.o.O~871 0.557 0.414 o.O.OE971 0.616 0.461 o.o.1-on 0.7 0.527 o.O.1 -:'-:'7IIIL....,I-I 0.72 0.264 o. o.0.9:::4 O.7E.8 o.191 O.o.0.959 0.721 O.0:::4 o. o.0.805 I).E,:::7 O.1 :~:2 o.O.0.81'3 0.663 o.1 ~.~.(I.O•0.795..;..c. 0.661 O.059 O.O.01172 I).E.5:=:O.018 o.o.O.E·76 See Table B-1 for key to variables. lAssumes two lease sales,in 1979 and 1983,resulting in total dis- coveries of 1.0 BBO and 1.75 TCFG,half on acreage leased in the first sale,half in the second.Employment estimates for each sale taken from scenario described in Beaufort Sea Draft EIS,Table III.C.2.3,p.238. B-24 t, ----------------------~-- :: :' :' :l- 7' ", :0-' ~ :0 1 1 7'-( 4 31 =--' '3 5 6 D.Norton Basin In the high case,it is assumed that 0.38 billion barrels of oil and 1.2 trillion cubic feet of gas are discovered on acreage leased in the scheduled 1982 sale.Employment peaks at about 1,300 in 1990 before falling to a long-term level of about 850 by 1995,as shown in Table B-9. In the moderate case,acreage leased in the scheduled 1982 sale results in no commercial discoveries.Employment in exploration peaks at 92 in 1984,before the tracts are abandoned in 1986,as shown in Table B-10. In the low scenario,no sale occurs in the Norton Basin. B-25 TABLE B-9.DIRECT EMPLOYMENT REQUIREMENTS,NORTON BASIN 1 HIGH CASE (thousands of persons) EMP9 ECONX EMT9X EMM;:'<TOTAL 1980 o.o.O.O.O.1981 o.o.O.o.O.1982 o.o.O.O.o. 1983 o.053 O.O.031 O.o.0:::4 1984 o.083 o.005 O.04E,o.o.134 1985 O.116 o.011 o.09'3 o.0.22E. 19:::6 O.168 o.011 O.149 o.0.328 1 1387 o.OE.3 O.052 O.05 O.O.165 1"~:=:8 o.08 o.124 O.1~:8 o.0.342 1'3::::9 o.195 o.lCi~O.131 O.0.518JI.- 1990 1.116 o.01 O.113 O.08 1.319 1991 1.136 O.o.0:::2 O.08 1.298 1992 0.8:36 O.o.0:::2 O.08 0.998 199:3 0.625 o.o.0:::2 o.08 0.787 1994 0.595 o.o.0:::2 O.08 O~757 1995 0.685 O.o.O::~2 o.08 0.847 19'36 0.685 o.o.0:::2 o.08 O.:=:47 1997'0.6:::5 o.o.0:::2 o.08 0.847 1998 O.E.:35 o.O.082 o.08 0.847 1999 O.E.:::5 o.o.0:::2 O.08 0.847 2000 0.6:::5 o.O.082 o.08 0.847 See Table B-1 for key to variables. 1Assumes a single lease sale held in 1982,resulting in commercial discoveries totaling 0.38 BBO and 1.2 TCFG.Employment estimates from .3cenario described in Porter,"Bering-Norton Petroleum Development Scenarios:Economic and Demographic Analysis,Table 24,p.140. ;:a B-26 I ----------_....~- TABLE B-10.DIRECT EMPLOYMENT REQUIREMENTS,NORTON BASIN 1 MODERATE CASE (thousands of persons) EMF'9 ECON~:EMT9~:EMM~:TOTAL 1980 o.o.o.o.o. 1981 O.o.o.o.o. 1982 o.O.o..O.o. :4 19:::3 0.026 o.0.015 o.0.041 :4 1'=-':=:4 0.056 0.005 0.031 O.0.O'=-'2 :6 1985 0.03 0.005 0.016 o.0.051 :8 1986 o.O.O.O.O. c-198?o.o.o.o.O.•...J ·2 19:38 O.o.O.O.o. 8 1989 O.O.O.O.O. .~19'30 O.o.o.o.O. 18 1991 O.O.O.o.O. 18 l,~q'-'o.o.O.O.O..._,C. )7 1993 O.o.O.O.o....--1994 O.o.O.O.O.'.,,- ~?1995 o.O.O.O.O. ~7'1996 o.o.O.O.O. ~7 1997'o.o.o.O.O. ~7 1'::-9:::O.O.O.O.O. ~7 1 1:;&1:;&':;-o.O.O.O.o. ~7 2000 O.O.O.O.o. See Table B-1 for key to variables. 1Assumes a single lease sale held in 1982,followed by exploration but no commercial discoveries.Employment estimates from "exploration only"scenario described in Porter,"Bering-Norton Petroleum Development Scenarios:Economic and Demographic Analysis,"Table 23,p.139. B-27 -,._- E.St.George Basin In the high case.it is assumed that 2.16 billion barrels of oil and 6.12 trillion cubic feet of gas are discovered on tracts leased in the scheduled 1982 sale.Employment peaks at nearly 2.600 in 1989. eventually falling to a long-term level of about 1.600.as shown in Table B-ll. In the moderate case.it is assumed that exploration following the planned 1982 sale results in no commercial discoveries.Exploration employment peaks at over 100 before the tracts are abandoned in 1988. as shown in Table B-12. In the low case.no sale is held in the St.George Basin. I B-28 i ______________________________l.,__ TABLE B-11.DIRECT EMPLOYMENT REQUIREMENTS,ST.GEORGE BASIN 1 HIGH CASE (thousands of persons) EMP9 ECOt~:=c:EMT9>C:EMM:=C:TOTAL 19:30 o.O.o.O.o. 19S1 O.O.O.o.o. 1982 O.O.o. o.O. 19:3~:0.084 O.OlS 0.057 o.0.159 19:=:4 0.118 0.055 0.091 O.0.264 1985 0.136 0.172 0.lEio2 O.0.47 1986 0.122 0.19 0.254 O.0.566 19:37 0.244 1.165 o.~:E,3 o.1.772 1'3:=:8 0.263 1.075 0.616 o.1.954 19:=:13 0.826 0.873 0.88 o.2.579 1990 0.859 0.619 0.711 o.2.189 1991 0.843 o.0.711 o.1.554 1 t=t.=.':.0.891 O.0.711 O.1.E,02.."_"L.... 1993 0.951 o.0.711 o.1.662 1994 0.911 o.0.711 o.1.t,22 1995 0.871 O.0.711 o.1.5:=:2 1996 O.:=:3:3 o.0.711 o.1.544 1997 0.891 o.0.711 O.1.E,02 1998 o.'3'51 O.0.711 O.1.662 1999 0.'3'11 o.0.711 o.1.622 2000 0.871 o.0.711 O.1.5:=:2 See Table B-1 for key to variables. 1Assumes a single lease sale held in 1982,resulting in discovery of 2.16 BBO and 6.12 TCFG.Employment estimates from "Moderate Find" scenario developed by Alaska OCS Office for study of St.George OCS Sale 70. B-29 TABLE B-12.DIRECT EMPLOYMENT REQUIREMENTS,ST.GEORGE BASIN l MODERATE CASE (thousands of persons) EMP9 ECONX EMT9X EMMX TOTAL 19:=:0 O.O.O.o.O. 19:=:1 O.O.O.O.o. 19:::2 O.O.O.O.o. 19:::~:O.05 O.O.023 O.O.073 1984 O.064 O.O.037 O.O.101 1 1;':=:5 O.072 O.O.046 O.O.118 1986 O.065 O.O.O~:13 O.o.104 ]9:::7 O.044 O.O.008 O.O.052 19:::8 O.O.O.O.O. 19:39 O."J.O.O.O. 1990 O.O.O.O. 1991 o.O.O.O. 1 CICIo:.o.O.o.O._0 _'L.. 1 ,;..;,~:O.O.O.O. 1994 O.O.O.O. 1995 O.O.O.O. 199E.O.O.O.O. 1997 o.O.O.O. 199:::O.O.O.O. 1999 O.O.O.O. 2000 O.O.o.o.o. See Table B-1 for key to variables. lAssurnes a single lease sale held in 1982,resulting in no commercial discoveries.Employment estimates associated with exploration activity only,as estimated by Alaska OCS Office for study of St.George OCS Sale 70,Low Scenario. B-30 --------------------------\t--- :W3 )l .c·,.... :14 52 F.·Kodiak In the high case,it is assumed that 0.332 billion barrels of oil and 0.581 trillion cubic feet of gas are discovered on acreage leased in the scheduled 1983 sale.Employment peaks at nearly 500 in 1989 before falling to a long-term level of about 430,as shown in Table B-13. In the moderate case,exploration following the scheduled 1983 sale results in no commercial discoveries.Exploration employment peaks at nearly 300 in 1985 (see Table B-14),before the tracts are abandoned in 1988. In the low case,no Kodiak sale is held. B-3l ---------~--------_._~._-----------_.._--- G.North Aleutian Shelf In the high case,it is assumed that 0.332 billion barrels of oil and 0.581 trillion cubic feet of gas are discovered on acreage leased in the scheduled 1983 sale.Employment peaks at nearly 500 in 1989 before falling to a long-term level of about 430,as shown in Table B-15. In the moderate case,exploration following the scheduled 1983 sale results in no commercial discoveries.Exploration employment peaks at nearly 300 in 1985,before the tracts are abandoned in 1988,as shown in Table B-16. In the low case,no North Aleutian Shelf sale is held. B-32 TABLE B-13.DIRECT EMPLOYMENT REQUIREMENTS,KODIAK 1 HIGH CASE (thousands of persons) EMP9 ECON:X:EMT9:X:EMM>C:TOTAL 1980 o.o.O.O.o. 1981 o.O.O.O.o. 1982 o.o.O.O.O. 1983 o.o.O.o.O. 1984 0.038 0.028 0.009 o.0.075 1985 1).083 O.0.025 o.0.108 1986 0.09 o.o.O~:3 o.0.123 1987 0.076 0.048 0.017 o.O.141 1988 0.143 0.15 0.166 O.0.459 t989 0.218 0.061 0.217 O.0.496 1990 O.2~:~=:o.0.217 o.0.455 1991 0.25 O.0.217 O.0.467 1992 0.182 o.0.226 o.(1.40:3 199:3 0.25 O.0.178 O.0.428 1994 0.25 O.0.178 O.0.428 1995 0.25 o.0.178 O.0.428 199E.0.25 O.0.178 o.0.428 1 Ci'~7 0.25 o.0.178 o.0.428JJI 1 1;'1:--8 0.25 o.0.178 O.0.428 1999 0.25 o.0.178 O.0.428 2000 0.25 o.0.178 O.0.428 See Table B-1 for key to variables. 1Assu~es a single lease sale held in 1983,resulting in commercial discovery of 0.332 BBO and 0.581 TCFG.Environmental conditions assumed to be similar to Lower Cook Inlet.Employment estimates adapted from Low Find Scenario used in Lower Cook Inlet Statewide and Regional Popu- lation and ECOr.0~ic Systems Impact Analysis. B-33 TABLE B-14.DIRECT EMPLOYMENT REQUIREMENTS,KODIAK l MODERATE CASE (thousands of persons) EMF'9 ECOWC:EMT9X EMM~:TOTAL 19:::0 o.o.o.o.o. 19:=:1 o.o.o.o.o. 19:=:2 o.o.o.o.o. 1 -3:=:3 o.042 o.o.OOt:o.o.05 19:::4 O.09 o.O.037 o.O.127 19:=:5 O.117 O.o.176 o.0.293 19:::6 O.0:::4 O.O.029 o.O.113 11?~:7 O.042 O.O.OO:=:O.o.05 t 9::::8 o.O.o.O.O. .l ':'!:39 o.o.o.O.O. 1990 O.O.O.o.O. 1991 o.O.O.O.O. 1 qq-=,o.o.O.O.O._"_.l.- t ql~:i O.O.O.O.O. 1994 o.O.O.O.O. 1qg~O.O.o.O.O. 1996 O.o. o. o.o. 1 ,~q7 o•O.o.O.o.•"..' I 1 139:3 o.O.O.O.o. 1999 O.O.o.o.o. 2000 o.O.o.o.O. See Table B-1 for key to variables. lAssumes a single lease sale held in 1983,resulting in no commer- cial discoveries.Employment estimates are exploration employment esti- mates used by Alaska OCS Office in study of Kodiak Sale 46. B-34 _____________________________t.'_ TABLE B-15.DIRECT EMPLOYMENT REQUIREMENTS,NORTH ALEUTIAN SHELF 1 HIGH CASE (thousands of persons) EMP9 ECON><EMT9:X:EMMX TOTAL 19:30 o.o. o.o.o. 19:31 o.o.o.o.o. 11~:=:2 O.o.o.o.o. 19:3:3 o.O.O.O.O. 19:::4 0.038 0.0;::8 O.(10'3'o.0.075 19:=:5 0.08:3 O.0.025 O.0.108 19:::::6 O.0';'O.I).O~:3 O.0.123 1'::"=1"7 0.076 0.048 0.017 (I.o.141..'_L I 19:::::::::0.143 0.15 0.166 o.0.459 1 '~89 0.218 I).OE.l 0.217 o.0.496 1990 0.238 O.0.217 O.0.455 1991 0.25 o.0.217 O.0.467 14'~"-'0.182 o.O.22E.o.0.408_"0"Co l qq"-:-0.25 O.0.178 O.0.428-"-'._' 1994-0.25 O.O.17<::o.0.428 1995 0.25 o.0.178 O.0.428 19'3'6 0.25 O.O.178 O.0.42::: 11~'~'7 0.25 O.0.178 O.0.428JJI 19'3':3 0.25 O.0.178 O.0.428 1 ,~,~,~0.25 O.0.178 O.0.428-'-'.. 2000 0.25 O.0.178 O.0.428 See Table B-1 for key to variables. 1Assumes a single lease sale held in 1983,resulting in commercial discoveries of 0.332 BBO and 0.581 TCFG.Employment estimates adapted from scenario used in study of Lower Cook Inlet Sale 60,presented in Lower Cook Inlet Statewide and Regional Population and Economic Systems Impact Analysis. B-35 .--,...'", TABLE B-16.DIRECT EMPLOY}lliNT REQUIREMENTS,NORTH ALEUTIAN SHELF 1 MODERATE CASE (thousands of persons) EMP9 ECON>c:EMT9:X:EMM>c:TOTAL 19E:O o.O.o.O.O. 19:31 o. o.O.O.O. 19:=:2 O.O.O.O.O. 19:::3 o.042 o.O.OOE:o.0.05 19::::4 0.09 O.O.037 O.0.127 19:~:5 o.117 O.0.176 o.11 .-,q.j...c-,,-, 19E:6 0.0::::4 O.0.029 O.0.113 19:=:7 o.042 o.o.008 O.0.05 19::::8 o.O.O.o.O. 19::::9 o.O.O.o.O. 1990 o.o.O.O.O. 1991 O.O.O.O.O. 1992 O.O.o.o.O. 1993 O.(I.O.O.O. 1994 O.O.O.O.O. 1995 O.O.O.O.O. 1996 O.O.O.O.o. 1 q'~7 o.O.o.O.O._' _'I 1qq:~O.O.O.o.O. 1·~·~·~O.o.O.o.o. 2000 O.o.O.O.O. See Table B-1 for key to variables. 1 Assumes a single lease sale held in 1983,resulting in no commercial discoveries.Employment consists of exploration activity only,on a scale similar to that estimated by Alaska OCS Office for study of Kodiak Sale 46. B-36 ;, H.Navarin Basin In the high scenario,it is assumed that three sales--in 1984, 1987, and 1989--result in discoveries totaling 4.32 billion barrels of oil and 12.24 trillion cubic feet of gas,half on acreage leased in 1984 and half on acreage leased in 1987.The 1989 sale results in no commercial discoveries.Employment peaks at over 4,200 in 1994,before falling to a long-term level of about 3,200,as shown in Table B-17. In the moderate scenario,2.16 billion barrels of oil and 6.12.tril- lion cubic feet of gas are discovered on acreage leased in the scheduled 1984 sale.A second sale is held in 1988,followed by exploration but no further commercial discoveries.Employment peaks at nearly 2,700 in 1991,before falling to a long-term level of about 1,600,as shown in Table B-18. In the low case,the scheduled 1984 sale is held,but the subsequent exploration effort yields no commercial discoveries.Exploration employ- ment reaches over 100 persons until the tracts are abandoned in 1990,as shown in Table B-19. B-37 TABLE B-17.DIRECT EMPLOYMENT REQUIREMENTS,NAVARIN BASIN l HIGH CASE (thousands of persons) EMF'9 ECON:><:EMT9X EMMX TOTAL 1980 o.O.o.O.O. 1981 o.O.O.o.o. 19:::2 o.O.O.O.O. 1983 O.O.O.o.O. 1984 o.O.o.O.O. 19:=:5 O.084 O.018 O.057 O.o.159 198E,o.118 o.055 O.091 O.0.264 11~:37 o.1:36 O.172 o.162 O.0.47 19:=:8 0.206 0.208 0.311 O.OD725 1989 O.:=:62 1.22 0.454 O.~.1}~:6c.. 1990 0.449 1.247 0.801 O.2~497 1991 1.012 1.063 1.171 O.311246 1 Q"=I"='1-175 1.7:::4 1.12 o.4.079-".."~ 1993 1.171 1.075 1.3E.tS O.~:.E.12 1'3194 1.761 O.:=:73 1.599 o.4.233 1995 1.:=:1 0.E,19 1.422 O.~:.:::51 1 '~·3E.1.754 O.1.422 O..:.176~,. 1 '~q"1.?E.2 O.1.422 o.-:.If:4_'~.I ,_I. 1998 1.784 o.1.422 o.:;:s20E. 1999 1.:=:02 o.1.422 o.~:.224 2000 1 .-,.-,~,O.1.422 o.~:.244..c·c.c. See Table B-1 for key to variables. lAssumes three lease sales--in 1984,1987,and 1989--resulting in co:ercial discoveries totaling 4.32 BBO and 12.24 TCFG.Environmental conditions are assumed to be similar to those in the St.George Basin. The first and second sale each results in discovery of 2.16 BBO and 6.12 TCFG.Employment estimates for these sales are adapted from estimates used by the Alaska OCS Office in the study of OCS Sale 70, St.George Basin,Moderate Find Scenario.Estimates of employment for the third sale,which results in no commercial discoveries,include exploration employment from the Low Find Scenario used in the Sale 70 study. B-38 TABLE B-18.DIRECT EMPLOYMENT REQUIREMENTS,NAVARIN BASIN 1 MODERATE CASE (thousands of persons) EMP9 ECON><EMT9X EMM}<:TOTAL 1980 o.o.o.o.o. 1981 o.O.o.o.o. 19:=:2 o.O.o.o.O. 1983 O.O.o.O.o. 19::::4 O.O.o.o.o. 1985 0.084 0.018 0.057 o.0.159 1986 0.118 0.055 0.091 o.0.264 1987 0.136 0.172 0.162 o.0.47 198:::0.122 O.19 0.254 O.0.5E.6 19::::9 0.294 1.165 o.~::::E,o.1.845 1990 ()"':'.:.'7 1.075 0.653 o.2.055-•,-I~' 1991 0.898 0.873 0.926 o.2.E.97 1992 0.924 0.619 0.75 o.2.293 1993 0.S:=:7 o.0.719 O.1.E.OE. 1994 O.:::91 O.0.711 o.1.602 1995 0.951 O.0.711 O.1.6E.2 1996 0.911 O.0.711 O.1.':·22 1997 0.:=:71 o.0.711 o.1.582 1998 I)II 8:;::=:O.0.711 o.1.544 1999 0.891 o.0.711 o.1.602 2000 0.951 o.0.711 o.1.662 See Table B-1 for key to variables. lAssumes two lease sales,one in 1984 and the second in 1988.The first results in discovery of 2.16 BBO and 6.12 TCFG,while the second results in no commercial discoveries.Environmental conditions are assumed to be similar to the St.George Basin.Emplo)~.ent estimates for the first sale are adapted from estimates used by the Alaska OCS Office for analysis of Moderate Find Scenario for the study of OCS Sale 70,St. George Basin.Estimates for the second sale include exploration employ- ment from the Low Find Scenario used in the same study. B-39 .,.., TABLE B-19.DIRECT EMPLO'{MENT REQUIREHENTS,NAVARIN BASIN 1 LOW CASE (thousands of persons) EMF'9 ECDN::':EMT9X EMM::';TOTAL 1 '31:::0 O.O.O.o.o.19:'::1 o.O.o.O.o. 11;'~:2 O.O.O.o.O.1'3:'::3 O.o.O.o.o. 1984 O.o.o.O.O.19:'::5 o.05 o.o.023 o.O.073198E.o.OE.4 O.o.0:37 o.o.1 I)1 19:::::7 o.072 o.o.046 o.o.118 1 ';':=:8 o.065 O.O.039 o.o.104 11~~:::9 O.044 o.o.008 o.O.052 1990 O.O.o.O.o. 1991 O.o.o.O.00 19'32 00 ".O.o.O.1 qa:::O.o.O.O.o. 1'3194 o.O.o.O.O. 1995 o.O.O.o.O. 1996 O.O.O.O.O.1 qC."7 o.o.o.O.o.wi'..'I 1998 o.o.O.o.O. 1999 O.O.o.O.o. 2000 O.O.O.O.O. See Table B-1 for key to variables. 1Assumes a single lease sale held in 1984,followed by exploration but no commercial discoveries.Exploration employment estimates based on scenario developed by Alaska OCS Office for OCS Sale 70 in the St. George Basin. B-40 ---------------------------------'.'--- I.Chukchi Sea In the high scenario,it is assumed that 5.7 billion barrels of oil and 14.25 trillion cubic feet of gas are discovered,divided equally between acreage leased in 1985,1988,and 1990.Employment peaks at nearly 4,300 in 1997,falling to about 3,400 by the year 2000,as shown in Table B-20. In the moderate scenario,2.1 billion barrels of oil and 4.85 trillion cubic feet of gas are discovered.Of this,1.3 billion barrels of oil and 3.25 trillion cubic feet of gas are discovered on acreage leased in the scheduled 1985 sale,the remainder is discovered on acreage leased in a 1989 sale.Employment peaks at over 2,200 in 1997,falling to less than 2,000 by the end of the forecast period,as shown in Table B-2l. In the low case,the 1985 sale is followed by an unsuccessful explora- tion program.Exploration employment peaks at nearly 400 by 1988,but all tracts are abandoned by 1993,as shown in Table B-22. B-4l TABLE B-20.DIRECT EMPLOYMENT REQUIRffi1ENTS,CHUKCHI SEAl HIGH CASE (thousands of persons) EMP9 ECON><EMT9X EMMX TOTAL 1'3180 o.o.o.o.O. 1981 O.o.o.o.o. 19:=:2 O.o.o.O.O. 19:=:3 o.O.O.O.O. 1984 o.O.O.o.o. 19:=:5 0.OE.6 O.o.O.0.066 19:::6 O.119 0.06 o.O.0.179 1'387 0.103 0.018 O.o.0.121 19::::=:O.11 0.086 O.o.0.196 11~:=;9 o.163 o.146 O.o.0.309 1990 0.213 0.117 O.O.0.33 1991 0.19 O.~:86 O.o.0.576 l QQ -:>(I.~::38 1.772 O.O.2.11J_""- 1993 0.,~::=:8 1.607 O.O.1.995 1994 1.2:=:6 o.~:~:1 o.o.1.617 113"~5 1.45 1.772 o.o.3 .:.....oj ...II ....c'- 1996 1.542 1.E.67 O.o.3.209 1 Q'::'''2.E.21 1.678 O.O.4.299.."..I 1998 2.61 1.432 O.O.4.042 1999 ~:.4:=:5 0.015 O.o.3.5 2000 3.~::=:o.015 O.O.3.:;:95 See Table B-1 for key to variables. lAssumes three lease sales--in 1985,1988,and 1990--resulting in total discoveries of 5.7 BBO and 14.25 TCFG.Environmental factors assumed similar to the Bedufort Sea.Each sale results in equal dis- coveries of 1.9 BBO and 4.75 TCFG.Employment associated with each sale is taken from Alaska OCS Studies Technical Report 18,Beaufort Sea Petro- leum Development Scenarios:Economic and Demographic Impacts,High Find Scenario,Table 3.2,p.80. B-42 TABLE B-21.DIRECT EMPLOYMENT REQUIREMENTS,CHUKCHI SEAl MODERATE CASE (thousands of persons) EMP9 ECDNX EMT9:X:EMMX TOTAL 19:=:0 O.O.O.O.O.1981 O.O.O.O.O.1982 O.O.O.O.O.1983 O.O.O.O.O.19:;::4 O.O.O.O.O.1985 O.O.O.O.O.1986 O.O.O.O.O.1 ;;':::7 O.O.O.O.O.19:=::::O.0:=:4 0.012 O.O.0.0961';":::"3 O.101 0.052 O.O.0.15319';'I)0.185 0.03 O.O.0.21519910.179 0.122 O.O.0.30119920.163 0.242 O.O.0.40519930.104 O.7~:5 O.O.(I.:=:~:'~1994 0.165 1.28':.O.O.1.45119950.341 0.821 O.O.1.16219960.792 0.828 O.O.1.62199?1.0c:2 1.158 O.O.2.2419981.41 0.675 O.O.2.0:=:519991.74 0.264 O.O.2.00420001.74 O.lE,E.O.O.1.90E, See Table B-1 for key to variables. lAssmnes two lease sales,in 1985 and 1989,resulting in discovery of 2.1 BBO and 4.85 TCFG.Of this,1.3 BBO and 3.25 TCFG are discovered on acreage leased in 1985.Environmental conditions are assumed similar to the Beaufort Sea,and employment estimates for the 1985 sale are taken from Alaska OCS Stucies Technical Report 18,Beaufort Sea Petroleum Development Scenarios,Economic and Demographic Impacts,Moderate Find Scenario,Table 3.8,p.89.The 1989 sale results in discovery of an additional 0.8 BBO and 1.6 TCFG.Employment estimates adapted from Low Find Scenario in Alaska OCS Studies Technical Report 18,Table 3.6,p.86. B-43 TABLE B-22.DIRECT EMPLOYMENT REQUIREMENTS,CHUKCHI SEAl LOW CASE (thousands of persons) EMP9 ECON>c:EMT9X EMM>c:TOTAL 19:=:0 o.o.o.o.o. 1981 o.o.o.o.o. 19:=:2 o.O.o.o.o. 1 '3Ic::=:o.o.o.o.o. 1984 o.o.o.o.O. 1985 o.o.O.o.o. 19:::6 O.o.o.o.O. 1987 o.066 o.062 O.O.o.128 19:=:8 o.1 '317 o.1 :=:8 o.O.0.385 t '3:=:9 O.197 O.135 o.o.o.3~:2 1990 0.23 0.25 o.O.0.48 1991 O.066 o.15 o.O.0.216 1992 o.0:3::::O.15 o. o.o.183 1993 o.O.o.o. o. 1994 O.o.O.o.o. 1995 o.o. o.o.o. 1 'j9E,o.o.O.O.o. 1997 o.o.o.o.o. l'3I l j8 o. o. o. o.O. 19'j'j o.o.o. o.O. 2000 O.o.O.o.o. See Table B-1 for key to variables. 1Assu~es a single lease sale in 1985,followed by exploration with no commercial discoveries.Environmental conditions likely to be similar to those in the Beaufort Sea.Employment estimates adapted from explora- tion phase emp1o~ent in Beaufort Sea Draft EIS,Table III.C.2-3. B-44 ________________________..L.t _iii J.Hope Basin In the high case,it is assumed that 0.5 billion barrels of oil and 0.37 trillion cubic feet of gas are discovered on acreage leased in the proposed 1985 sale.Employment peaks at nearly 460 in 1996 before falling to about 400 in the year 2000,as shown in Table B-23. In the moderate case,exploration following the proposed 1985 sale results in no commercial discoveries.Exploration employment reaches over 90 persons in 1987 (see Table B-24),but tracts are abandoned by 1989. In the low case,no sale occurs in the Hope Basin. B-45 TABLE B-23.DIRECT EMPLOYMENT REQUIREMENTS,HOPE BASIN 1 HIGH CASE (thousands of persons) EMP9 ECON>c:EMT9::-:EMM::-;TOTAL 19:::0 o.o.o.o.o. 19::;:1 o.o.o.o.O. 19::;:2 o.o.o.o.O. 19:=:3 o.o.O.o.O. 19:=:4 o.o.o.o.o. 1985 O.o.o.o.o. 19:=:6 o.0.037 o.O.0.0:'::71Q'='7 0.032 o.O.007 o.0.039-"I_II t 9:=::=:0.035 o.O.011 o.O.046 19:::9 O.0:'::5 O.O.011 o.0.046 1990 O.017 o.o.011 o.0.028 1991 O.O.0.006 o.0.006 1992 o.0.064 o.o.o.064 1913~:0.349 0.064 O.O.0.413 1994 011 :354 O.0.058 O.0.412 11~135 0.33 o.o.116 O.0.446 1996 0.2 '35 o.0.162 o.0.457 lqq~0.231 O.o.162 O.O.:39:3J_"( 199:::0.239 o.0.162 o.0.401 1999 o.2~:9 o.o.162 o.0.401 2000 O.2:~:6 o.O.162 O.O.~:'~8 See Table B-1 for key to variables. 1Assumes discovery of 0.5 BBO and 0.37 TCFG from acreage leased in 1985.Employment estimates taken from scenario used in examining effects of Beaufort Sea Sale 71,Low Case,as estimated by the Alaska oes Office. Environmental conditions in the Hope Basin are likely to be similar to Lhose in the western portion of the Beaufort Sea. B-46 ----------------------------b..-- TABLE B-24.DIRECT EMPLOYMENT REQUIREMENTS,HOPE BASIN l MODERATE CASE (thousands of persons) EMP9 ECON;<:EMT9;X:EMM>c:TOTAL 19:::::0 o.o.o.o.O.19:=::1 o.o.o.o.o. 1"3:32 O.O.O.O.O. 19::::3 O.O.O.O.o.19:::::4 O.o.O.o.O. 19:=:5 O.O.o.O.O.19::::6 0.026 O.0.015 O.0.041 19:::7 0.056 0.005 0.031 O.0.092 19::::=:0.03 0.005 0.016 o.0.05119:=:1;'O.o.O.O.o. 19'30 O.O.o.o.O.1 ';'91 o.O.O.O.O.1 Q'~-'o.O.o.O.o._"_"c. 1993 O.O.O.o.O.1994 o.o.O.O.O. 1995 O.O.O.O.O.1 '396 O.O.O.O.O.1 C/':'''O.O.O.O.O••"_"t 1998 O.o.O.O.O.1999 O.O.O.O.O. 2000 O.O.O.O.O. See Table B-1 for key to variables. lAssumes a single lease sale in 1985,resulting in no commercial discoveries of oil or gas.Exploration technology assumed similar to that used in the Norton Basin.Employment estimates adapted from "E:-:ploration Only"Scenario in Porter,Bering-Norton Petroleum Develop- ffient Scenarios:Economic and Demographic Analysis,Table 23,p.139. B-47 IV.Summary The levels of resource development assumed in each of the three OCS development scenarios may be summarized as follows: Oil (BBO)Gas (TCFG) Area Low Moderate High Low Moderate High Gulf of Alaska 0 0 .45 0 0 1.25 Cook Inlet 0 .332 .67 0 .581 1.173 Beaufort Sea 1.0 2.1 4.0 1.75 4.85 9.6 Norton Basin 0 0 .38 0 0 1.2 St.George Basin 0 0 2.16 0 0 6.12 Kodiak 0 0 .332 0 0 .581 N.Aleutian Shelf 0 0 .332 0 0 .581 Navarin Basin 0 2.16 4.32 0 6.12 12.24 Chukchi Sea 0 2.1 5.7 0 4.85 14.25 Hope Basin 0 0 .5 0 0 .37 Total 1.0 6.692 18.844 1.75 16.401 47.365 In the high case,employment reaches nearly 15,100 persons at its peak in 1997,falling to 14,100 by the end of the forecast period,as shown in Table B-25.By the year 2000,over 77 percent of the employment is occurring in four of the ten areas:the Beaufort Sea (19 percent),the St.George Basin (11 percent),the Navarin Basin (23 percent),and the Chukchi Sea (24 percent). In the moderate case,direct employment reaches nearly 6,000 at its peak in 1997,falling only to about 5,500 by the end of the period,as shown in Table B-26.This employment is even more concentrated,with over 92 percent of the activity by the year 2000 occurring in three areas:the B-48 TABLE B-25.DIRECT OCS EMPLOYMENT,ALL AREAS HIGH CASE Year Construction Minin&Transportation Manufacturing 1980 60 209 33 1981 18 223 34 1982 217 255 69 •1983 104 361 159~1984 253 494 217 1985 501 717 404,I13 1986 2,425 1,190 840 1987 3,208 1,645 1,127 1988 1,926 2,981 1,919 1989 2,637 4,120 2,435 11 •1990 2,308 5,193 2,620 80 \1 -1991 2,189 5,775 2,877 80 1992 4,892 5,571 2,773 80 1993 3,752 6,117 2,923 80 1994 2,645 8,033 3,214 )5 I 1995 3,291 8,533 3,095 1996 2,019 9,019 3,141 1997 1,766 10,107 3,141 1998 1,603 10,193 3,141 1999 163 11,018 3,141 2000 103 10,789 3,141 80 IIt Ie rer le B-49 -_........_-----------------------~ TABLE B-26.DIRECT OCS EMPLOYMENT.ALL AREAS MODERATE CASE Year Construction Mining Transportation 1980 0 90 33 1981 0 224 99 1982 40 309 100 1983 52 458 141 1984 35 596 192 1985 193 675 488 1986 447 683 369 1987 973 642 434 1988 1.493 639 487 1989 2.038 986 603 1990 1.933 1.486 879 1991 2.153 2.409 1.104 1992 1.536 2.747 928 1993 999 2.981 897 1994 1.452 3.046 889 1995 1.017 3.255 889 1996 858 3.564 889 1997 1.324 3.767 889 1998 685 4.091 889 1999 274 4.419 889 2000 176 4.419 889 B-50 f tII i r, Beaufort Sea (27 percent),the Navarin Basin (30 percent),and the Chuk- chi Sea (35 percent). In the low case,total direct employment peaks at nearly 1,600 in 1988,as shown in Table B-27.By 1993,all of this activity is limited to the Beaufort Sea. B-5l TABLE B-27.DIRECT OCS EMPLOYMENT,ALL AREAS LOW CASE t [ Year Construction Mining Transportation i~ 1980 0 90 33 j::, 1981 62 290 99 1982 216 422 100 1983 135 394 88 1984 250 341 50 1985 212 257 40 .~ t ~ 1986 470 369 46 ~~ 1987 479 458 46 i!o t 1988 833 720 39 I19896806528 1990 664 687 a E~f; 1i:r, 1991 564 623 0 ., tf 1992 611 649 i 1993 527 700 Ii 1994 264 720 i 1995 191 768 ¥ t 1996 84 721 1997 132 687 1998 132 663 1999 59 661 2000 18 658 0 B-52 ___________________________....A_. ~3aow NOIIVWROd O~OH3SnOH 3HI dO NOlIdIHJS30 J xwuaddV I.Model Description The primary unit on which projections of residential energy con- sumption are based is the household.A household is a living unit of one of two types:a family or an individual or group of individuals. not related.who are living as a unit. The population projections determine the number of households in the state.The number of households is a function of both the level of population and its age-sex distribution.The age-sex distribution of the population is important because the rate at which people form households differs across age-sex cohorts.The model described below accounts for both of these influences of population on household formation. The household formation model is an accounting model which depends on a set of assumptions about the age-sex cohort-specific rates of house- hold formation and changes in those rates.The model is based on the assumption that the social.economic.and life-cycle factors which determine the formation of households can be described by a set of house- hold formation rates.Household formation rates describe the probability that a person in a particular cohort is a household head. The model requires input from the MAP population model in the form of the projected size and age-sex distribution of the population.The C-l ---------------------- total number of households in the state (HH)is equal to the number of households summed across age and sex cohorts. (1)HH H HH .. ij lJ The total number of households in sex cohort i and age cohort j (HH ..)describes the number of households with household head or primarylJ individual in the ith sex and jth age cohort.This total is,in turn, composed of three components:th~number of civilian non-Native house- holds in cohort ij (CHH ..),the number of Native households in cohort ijlJ (NHH ..),and the number of military households in cohort ij (MHH ..). lJ lJ (2)HH ..lJ CHH ..+NHH ..+MHH ..lJ lJ lJ The number of civilian and Native households in each cohort is a function of the population and household formation rate for the cohort. The number of households in any cohort equals the cohort-specific house- hold formation rate (HHR ..for civilian non-Natives and NHHR ..for lJ lJ Natives)multiplied by the cohort population (CNNP ..for civilian non-lJ Natives and NATP ..for Natives)net of the proportion of the populationlJ in group quarters (CPGQ ..for civilian non-Natives and NPGQ ..for Natives). lJ lJ (3) (4) CHH .. lJ NHH ..lJ (CNNP .,*(1 -CPGQ ..)*HHR ..lJ lJ lJ (NATP ..*(1 -NPGQ ..)*NHHR ..lJ lJ lJ C-2______________________________l _ The cohort distribution of military households is assumed to remain constant throughout the projection period.The number of military house- holds (MHH ..)equals the number in1J of 1970 military population in the 1970 .1970 (MHH..)t1mes1J state (MILPCT). the percentage (5)MHH ..1J MHH 1970 *MILPCTij The household formation rates have changed historically and are expected to continue to vary.The household formation rates are assumed to change at a constant yearly rate (CHHR ..for civilian non-Natives1J and NCHHR ..for Natives).Thus,the household formation rate in any1J year equals the rate in the previous year times the rate of change. (6) (7) HHR ..=HHR ..(-1)*CHHR ..1J 1J 1J NHHR ..=NHHR ..(-1)*NCHHR ..1J 1J 1J The model also calculates Native and civilian non-Native and total population in group quarters,as well as average household size for Natives,civilian non-Natives,military population,and total population. ij (8) (9) NPGQ CPGQ Zl:(NPGQ ..*NATP ..). .1J 1J1J L:L:(CNNP..*CPGQ ..)1J 1J C-3 --------------------- (10)POPGQ = =NPGQ +CPGQ +MILPCT *MPGQ (11)HHSIZEN =(NATTOT -NPGQ)ILL NHH ... .1J1J ij (12) (13) (14) HHSIZEC = HHSIZEM = HHSIZE = (CNNTOT -CPGQ)/LL CHH .. 1J (MILPCT *[AFTOT +MDTOT -MPGQ])/LL MHH ... .1J1J (POP -POPGQ)/HH C-4 1 I i____________________________L.__ II.Model Parameter Assumptions The model was initially calibrated using the 1970 Census as a benchmark.The civilian non-Native and Native household formation rates were calculated from the statewide census data after netting out popula- tion in group quarters.These parameter values are shown in Table C.l. The civilian non-Native and Native population proportions in group quarters,also derived from the census,are assumed to remain a constant proportion of each cohort over the projection period.These are shown in Table C.2. Military households are taken directly from the 1970 Census and are shown in Table C.3.The age-sex distribution of military households is assumed to remain constant over time and to increase or decrease propor- tionately as total military population changes.The proportion in group quarters also remains the same constant proportion of total military as it was in 1970. The parameters determining the rates of change of household formation rates are discussed in the next section. The appearance of the 1980 Census provided an opportunity to recali- brate the model.At the time of this writing,this has not been possible because only the population count is available.On the assumption that C-s "_..-~... TABLE C.1.1970 ALASKA CIVILIAN POPULATION HOUSEHOLD FORMATION RATES (HHR ..) 1J NON-NATIVE NATIVE Male Female Male Female 0 - 1 0 0 0 0 1 -5 0 0 0 0 5 -9 0 0 0 0 LE 10 -14 .001 .001 .003 0 15 -19 .040 .018 .017 .006 20 -24 .583 .107 .238 .069 25 -29 .900 .109 .576 .082 30 -34 .933 .117 .746 .095 35 -39 .955 .126 .881 .119 40 -44 .962 .133 .894 .120 45 -49 .963 .148 .907 .139 50 -54 .964 .164 .922 .149 55 -59 .956 .207 .947 .296 60 -64 .956 .245 .926 .313 65 +.885 .320 .816 .385 Average .537 .079 .326 .064 .197 .315 Statewide Average .288 Item: U.S.Average .322 SOURCE:Bureau of the Census.1970 Census of Population Detailed Characteristics:Alaska.1972.Table 153. C-6 SOl ________________________v...~._ TABLE C.2.ALASKA CIVILIAN POPULATION IN GROUP QUARTERS.1970 Non-Native Native Male Female Male Female Age Number Percenta Number Percent Number Percent Number Percent Less than 1 0 0 0 0 0 0 0 0 1-4 98 .0082 52 .0045 58 .0171 37 .01l0 5-9 73 .0058 45 .0037 101 .0253 105 .0273 10-14 73 .0064 45 .0041 101 .0257 105 .0283 15-19 325 .0291 244 .0026 157 .0419 99 .0275 20-24 655 .0488 214 .0182 329 .1013 69 .02ll 25-29 290 .0159 39 .0026 130 .0503 8 .0030 30-34 174 .01ll 20 .0014 67 .0333 24 .01l4 35-39 210 .0186 7 .0007 68 .0413 53 .0318 40-44 218 .0247 19 .0023 69 .0492 19 .0137 45-49 194 .0262 40 .0059 62 .0513 15 .0129 50-54 ll5 .0177 19 .0033 36 .0353 16 .0229 55-59 84 .0150 10 .0020 34 .0400 21 .0258 60-64 93 .02ll 22 .0026 28 .0412 19 .0279 65 +184 .0278 123 .0196 31 .0177 42 .0269 Total 2.786 -899 -1.271 -632 aEquals percent of total population in corresponding age group. Item:Total 1970 military population in barracks was 16.711.of which 16.257 were male and 454 were female. SOURCE:U.S.Department of Commerce.Bureau of the Census."Census of the Population.1970.Detailed Characteristics.Alaska."Series PC(l)-03. June 1972. C-7 TABLE C.3.MILITARY HOUSEHOLDS IN 1970 Age of Head Male Female 0 -14 0 0 15 -19 202 8 20 -24 4,132 48 25 -29 3,059 29 30 -34 2,430 33 35 -39 2,558 31 40 -44 1,090 17 45 -49 408 5 50 -54 237 6 55 -59 36 2 60 -64 5 3 65 +13 0 Total 14,170 182 SOURCE:U.S.Department of Commerce,Bureau of the Census,Census of Population,1970. C-8 the percent change in the average household size has been the same in Alaska as in the United States,however,a 1980 estimate of aggregate average household size for Alaska of approximately 3.06 can be calculated.l This downward adjustment of average household size for 1980 can be converted into an aggregate household formation rate for the popula- tion and the individual household formation rates adjusted upward pro- portionately to provide a calibration based upon an estimate of 1980 average household size.The household formation rates after this adjust- ment are shown in Table C.4.These values result in an estimate of 1980 households which does not differ greatly from that obtained using the 1970 values adjusted by the assumed 1970-to-1980 growth rates in the original model.The adjusted household formation rates differ very little from those used previously.Thus,most of the change in the aggregate household formation rate in Alaska between 1970 and 1980 is attributed to a shift in the age-sex-race composition of the population toward groups with relatively higher individual household formation rates. 1(2.78/3.14)*3.50 =3.10 for 1979 and by extrapolation 3.06 for 1980.See Tables C.5 and C.8 of text.Since average household size is the reciprocal of household formation rate,the 1980 average house- hold formation rate is 1/3.06 =.327. C-9 ---_.-_..-~IIIIIlII ~~"' TABLE C.4.ESTIMATED 1980 ALASKA CIVILIAN POPULATION HOUSEHOLD FORMATION RATES (HHR ..)a 1J Non-Native Native Male Female Male Female 0 -14 .001 .009 .003 0 15 -19 .040 .026 .017 .018 20 -24 .583 .117 .238 .081 25 -29 .900 .121 .576 .092 30 -34 .933 .129 .746 .103 35 -39 .955 .135 .881 .126 40 -44 .962 .140 .894 .126 45 -49 .963 .154 .907 .144 50 -54 .964 .169 .922 .153 55 -59 .956 .213 .947 .302 60 -64 .956 .250 .926 .318 65 +.855 .328 .816 .393 Average .586 .105 .351 .081 .354 .216 .327 a For calibration purposes,the upward adjustment of house- hold formation rates was applied to female Native and non-Native households only.The household formation rates for Native and non-Native males are identical to those obtained from the 1970 Census.The male household formation rates were not recalibrated because their 1970 levels were relatively high and because national and statewide data suggest that during the 1970s,a large portion of the upward shift in the overall rate of house- hold formation occurred in households with female heads. C-10 III.Projecting Alaskan Households in the Future III.A.National Trends The relationship between population and the number of households does not remain constant over time.Table C.S shows historical trends in the size and composition of households in the United States since 1940.Average household size has declined steadily since World War II, primarily as a result of the increase in the proportion of "primary individual"households.The average size of families actually increased after the war until the mid-1960s because of the "baby boom,"but this was more than compensated for by the fact that the average household size of "primary individual"households has fallen dramatically from, 1.94 to 1.19 in 1979. Somewhat more detail on recent historical trends is provided by Table C.6 which focuses on the composition of households in the last ten years.Total households increased by 22 percent over that period in contrast to an increase in population of 7.6 percent.Family households increased by 11.7 percent while nonfamily households grew 66 percent. Part of the decline in average household size for families can be attributed to the relative growth of one-parent households and families with no children less than 18 years of age.All categories of nonfamily households grew rapidly,but those with more than one member grew most rapidly at 140 percent.This category includes both couples living to- gether and groups of unrelated individuals sharing households. C-ll TABLE C.5.HISTORICAL ANALYSIS OF HOUSEHOLDS IN THE UNITED STATES Primary Families Primary Individuals Average Household Average Percent of Average Percent of Households Size Number Family Size Households Number Family Size Households -- 1940 3.67 3.76 50 43,554 3.37 38,838 3.54 89.2 4,716 1.94 10.8 55 47,874 3.33 41,732 3.59 87.2 6,142 1.61 12.8 60 52,799 3.33 44,905 3.67 85.0 7,895 1.40 15.0 0 I 65 57,436 3.29 47,838 3.70 83.3 9,598 1.28 16.7I-' N 70 63,401 3.14 51,456 3.58 81.2 11,945 1.25 18.8 75 71,120 2.94 55,563 3.42 78.1 15,557 1.23 21.9 79 77,330 2.78 57,498 3.34 74.4 19,831 1.19 25.6 Note:"Households,"Primary Families "Number,"and Primary Individuals "Number"are in thousands. SOURCES:U.S.Department of Commerce,Bureau of the Census,Statistical Abstract,1979. U.S.Department of Commerce,Bureau of the Census,Current Population Reports, Population Estimates and Projections,Series P-25,No.805,May 1979. U.s.Department of Commerce,Bureau of the Census,Current Population Reports, Household and Family Characteristics:March 1979,Series P-20,No.352,July 1980. "";'+",}~'rf:'f~~~~~:~;;t9o¥t1Wk'0';{<"~;"'''r''.~,j~'~:"t'~I'!f:~~:""4'~M';1f~~m,~~,.f.~/Wli~""'.'_!"'_' TABLE C.6.U.S.HOUSEHOLD COMPOSITION IN THE MOST RECENT DECADE 1979 1970 Percent Growth Millions Percent Millions Percent 1970 to 1979 Total 77.33 100 63.401 100 22.0 Family Households 57.498 74.4 51.456 81.2 11.7 Married Couple 47.662 61.6 44.728 70.5 6.6 No children <18 23.157 29.9 19.196 30.3 20.6 Children <18 24.505 31.7 25.532 40.3 -4.0 (") I One-Parent Household 5.631 7.3 3.199 5.0 76.0I-' W Lone Mother with Children 5.075 6.6 2.858 4.5 77 .6 Lone Father with Children .556 0.7 .341 0.5 63.0 Other Family Households 4.205 5.4 3.529 5.6 19.2 Nonfami1y Households 19.831 25.6 11.945 18.8 66.0 Persons Living Alone 17.201 22.2 10.851 17.1 58.5 Men 6.464 8.4 3.532 5.6 83.0 Women 10.738 13.9 7.319 11.5 46.7 Other Nonfamily Households 2.630 3.4 1.094 1.7 140.4 SOURCE:U.S.Department of Commerce,Bureau of the Census,Current Population Reports,Household and Family Characteristics:March 1979,Series P-20,No.352,July 1980. The dominant factors which underlie these trends are the increased life expectancy of people,which has increased the proportion of older- couple family households,and more importantly the aging of the post- war baby boom population which is now entering the primary household formation years both in and out of families. These trends can be projected forward nationally to predict the number of households in the future under different sets of assumptions of population (I,II,III)and household formation rates (A,B,C,D). Table C.7 shows the most recent Department of Commerce projections using a detailed model which tracks present households into the future. These projections all assume a continued reduction of average house- hold size during the next fifteen years.A control projection,K,is presented to show the impact of declining household formation rates. The K projection assumes no change in household formation rates so that the increase in the number of households is entirely attributable to an increase in population. For high rates of population growth (primarily due to natural increase),the average household size in 1995 would vary between 2.46 and 2.72.For low rates of population increase (fewer births and more deaths),average household size is projected to decline to between 2.21 and 2.44.Conversion of these trends in household size into annual rates of change yields a range of from -01.5 percent annually for the high population growth case to -.1 percent for the low population growth case. C-14 ___________________________Vtr __ TABLE C.7.PROJECTIONS OF HOUSEHOLDS AND HOUSEHOLD COMPOSITION IN 1995 Dept.of a Commerce Average Projection Household Family Nonfamily Series Households Size Households Percent Households Percent 77,330 2.78 57,498 74.4 19,831 25.6 A I 107,528 2.46 72,709 67.6 34,819 32.4 II 2.31 III 2.21 n B I 103,856 2.55 72,234 69.4 31,622 30.6I f-'II 2.39 U1 III 2.28 C I 104,194 2.54 70,715 67.8 33,479 32.2 II 2.38 III 2.28 D I 97,180 2.72 71,590 73.5 25,590 26.5 II 2.55 III 2.44 K 94,192 71,424 75.8 22,768 a For definition of terms,see text. SOURCE:U.S.Department of Commerce,Bureau of the Census,Current Population Reports, Projection of the Number of Households and Families,1979 to 1995,Series P-25, No.805,May 1979. r III.B.Alaskan Trends Turning to Alaska,the data is not so complete,but some trends can be identified.Table C.8 shows the growth in the number of households since 1950 and their composition.Several similarities and contrasts with the national trends are in evidence.Unfortunately,the 1976 data is based on a sample taken in an unrepresentative year.Briefly,they are as follows: Similarities •Average household size has fallen since 1970. •Average family size has fallen. •The importance of female family heads has increased dramatically. Contrasts •The proportion of family households has not declined. (The statistics for 1976 are from an unusual year and may not signify a trend.) •The average household size for nonfamily households has not declined.(The statistics for 1976 are from an unusual year and may not signify a trend.) •In 1950 the average household size was below the national average,but since 1960 it has exceeded the national average by a substantial amount. Table C.9 further indicates that the post-war "baby boom"was felt in Alaska.The ratio of children to mothers grew from 1950 to 1960 and subsequently has fallen. Average household size estimates from surveys conducted in Anchorage and Fairbanks in the mid-1970s confirm the declining trend in average household size.Estimates of 3.27 to 3.32 for Anchorage for 1975 and C-16 I----------------------------~-- TABLE C.8.ALASKA HISTORICAL HOUSEHOLD STATISTICS All Householdsa Primary Family Households a Primary Individual Households a Average Average Aver;lge Persons HH Size*Husbandl Male Female All HH Size'"Male Female All BH Size'" Households in HH (2)1 (1)Households Wife Head Head Persons (9)1 (5)Households Head Head Persons (15)/(12)--- (%)(%) 1950b 31,047 100,779 3.25 NA 21,788 NA NA NA NA NA •NA NA NA NA n I 1960 b I-'57,250 199,982 3.49 46,261 (80.8)42,750 NA NA 184,385 3.99 10,989 (19.2)NA NA 15,597 1.42 --..J 1960 c 57,250 200,418 3.50 46,613 (81.4)43,172 1,235 2,706 185,655 3.98 10,637 (18.6)7,804 2,833 14,763 1.39 1970 d r-"----. 79,054 278,039 3.52 66,034 (83.5)61,697 4,067 258,469 3.91 13,025 (16.5)8,674 4,351 19,570 1.5 1970 c , 74,739 278,145 3.49 66,670 (83.6)60,380 2,233 4,057 258,640 3.88 13,069 (16.4)8,654 4,415 19,505 1.49 1976 e 104,000 339,000 3.26 82,000 (78.8)70,000 2,000 8,000 298,000 3.71 22,000 (21.2)14,000 9,000 41.000 1977 f 118,000 1978 g 119,000 79,000 *Person per household See following page for table notes. C-18 ,..~.. Notes:Table C.8. a.By definition,Primary Families (PF)and Primary Individuals (PI)sum to total households. b.u.S.Census of Population,1960,General Population Characteristics PC(l)3B,Table 19,p.3-26,May 1961. c.u.s.Census of Population,Detailed Characteristics PC(l)D3,Alaska,Table 153,p.3-246,June 1972. d.U.S.Census of Population,General Characteristics PC(l)B3,Table 22,p.3-43,September 1971. e.Current Population Reports,Population Characteristics, Series P-20,No.334,January 1979,Table 4,p.24. f.U.S.Department of Commerce,Current Population Reports, Population Estimates and Projections,P-25,No.725. g.U.S.Department of Commerce,Statistical Abstract, Table 65,p.48,1980. ~ fi,,, i---------------------------------,. TABLE C.9.HISTORICAL COMPOSITION OF ALASKAN FAMILIES 1950 1960 1970 1976 Household Heads --46,261 66,670 82,000 Wife of Head 21,788 42,750 60,084 70,000 *Own Ch ild <18 34,095 82,256 112,821 122,000 Other Relative 9,303 13,118 19,065 24,000 *Own child <20 SOURCE:1950,1960,1970 from U.S.Census. 1976 from U.S.Department of Commerce,Bureau of the Census, Demographic,Social,and Economic Profile of the States: Spring 1976,Series P-20,No.334,January 1979. C-19 --------------------------------------- 3.18 for 1977 have been published by the Anchorage Urban Observatory. An estimate of 2.9 for 1976 for Fairbanks has been published by ISER. Further comparison of Alaska with other states reveals that in 1976 the average household size in Alaska of 3.26 was third highest in the nation after Hawaii (3.45)and Utah (3.27).Fourteen states had average household sizes in excess of 3.00.Those states with the smallest size were Washington,D.C.(2.55)and Florida (2.69).2 Finally,it is possible to compare the age-sex-specific household formation rates in Alaska with those in the United States as a whole. Table C.10 compares the civilian household formation rates in Alaska with those of the United States as a whole by age,sex,and race.As expected,the average household formation rate for Alaskan Natives is considerably less than that of the population as a whole.The average household formation rate for civilian non-Native males exceeded the national average while that for females was less than the national average. Converting these to average household size yields Table C.ll,which shows that in 1970 the average household size for civilian non-Native Alaskans was marginally above the U.S.average and that the large average household size for Natives brought the statewide average up to its high level. 2 U.S.Department of Commerce,BoC Demographic,Social and Economic Profile of the States:Spring 1976 Series P-20,No.334,January 1979, p.24. C-20 -------------------------_.....~-- TABLE C.10.COMPARISON OF 1970 ALASKA AND U.S.HOUSEHOLD FORMATION RATES Alaska United States Natives Civilian/Non-Natives Total Male <5 0 0 0 5 - 9 0 0 0 10 -14 .003 .001 .002 15 -19 .017 .040 .038 20 -24 .238 .583 .520 25 -29 .576 .900 .828 30 -34 .746 .933 .904 35 -39 .881 .955 .926 40 -44 .827 .962 .935 45 -49 .879 .960 .944 50 -54 .922 .964 .948 55 -59 .947 .956 .951 60 -64 .926 .956 .948 65 +.816 .885 .908 Average .326 .537 .527 :>na1 I Female <5 0 0 0 5 - 9 0 0 0 10 -14 0 .001 .001 15 -19 .006 .018 .014 20 -24 .069 .107 .098 25 -29 .056 .109 .114 30 -34 .095 .097 .118 35 -39 .119 .093 .124 e •40 -44 .120 .133 .136 45 -49 .139 .148 .152 50 -54 .149 .164 .184 55 -59 .296 .207 .233 60 -64 .313 .245 .302 65 +.386 .320 .452 Average .064 .079 .131 SOURCE:U.S.Department of Commerce,Bureau of the Census, 1970 Census of Po£u1ation. C-21 TABLE C.ll.1970 AVERAGE HOUSEHOLD SIZE Alaska Native Civilian Non-Native Total Civilian U.S.Average 5.08 3.18 3.47 3.14 C-22 SOURCE:Calculated from United States Department of Commerce, Bureau of the Census,1970 Census of Population. I I________________________________IIIIl\.t _ III.C.Projections Although there are some apparent differences between the patterns of household formation in the United States overall and for civilian non-Native Alaskans in the aggregate,the rates are quite similar. There was,in 1970,a smaller proportion of nonfamily households in Alaska,but average household size exceeded the national average.The probability of being a household head was less for a civilian non- Native Alaska female than in the United States,but in contrast,some- what higher for males.Alaska should differ from future national trends due to a smaller-than-average population of retired people,which should reduce the rate of household formation,and a growth in population because of in-migration (rather than births),which should increase the rate of household formation.(This does not necessarily imply,however, a reduction in average household size.) We project that the differences in the levels of household formation rates in the United States and Alaska will remain but that both will trend upward.Consequently,the annual rates of change of the household formation rates for civilian non-Natives have been calculated to be consistent with the most recent projections compiled by the Bureau of the Census in Projection of the Number of Households and Families 1979 to 1995,published in 1979.The B series was chosen as the middle case. Trends in the Native household formation rates are more difficult to project because of the rapid social and economic changes occurring in the Native community.We assume that urbanization of the Native C-23 ,..f'i community will continue and,with it,a trend in household formation rates similar to that in the nation as a whole.Thus,the same rate of change in household formation rates is applied to the Native population. The rates of change are shown in Table C.12. C-24 "i______________________....u,__ TABLE C.12.YEARLY PERCENT CHANGE IN HOUSEHOLD FORMATION RATE (CHHR ..) ~J NON-NATIVE NATIVE Male Fema1e a Male Fema1e a 0-1 0 0 0 0 1 - 5 0 0 0 0 5 - 9 0 0 0 0 10 -14 1.002 1.045 1.002 1.045 15 -19 1.002 1.045 1.002 1.045 20 -24 1.002 1.045 1.002 1.045 25 -29 1.000 1.055 1.000 1.055 30 -34 1.001 1.050 1.001 1.050 35 -39 1.000 1.037 1.000 1.037 40 -44 1.000 1.037 1.000 1.037 45 -49 1.001 1.022 1.001 1.022 50 -54 1.001 1.022 1.001 1.022 55 -59 1.001 1.000 1.001 1.000 60 -64 1.001 1.000 1.001 1.000 65 +1.001 1.000 1.001 1.000 ~e have increased the estimates for females in age groups 25-29 through 50-54 by one percentage point from the previous analysis in Electric Power Reguirements for the Rai1be1t to reflect the more rapid growth in female household formation in Alaska. SOURCE:Bureau of the Census,Current Population Reports Series P-25, No.805,Projections of the Number of Households and Families, 1979 to 1995,May 1979. C-25 IV.Regionalization Procedure The regionalization model produces a projection of total regional population since lack of data precludes generating an age-sex population distribution by region.The regional projection of households is based upon the regional share of population.It is adjusted,however,by the ratio of household size statewide to household size in the region of interest. This ratio is derived from the data on average household sizes shown in Table C.13 and taken from the 1970 Census.For example,in 1970 average household sizes for railbelt and nonrailbelt divisions of the state were 3.39 and 3.80,respectively,while the statewide average was 3.50.Thus,the estimate of railbelt households is determined by the following equation: HH (railbelt)POP (railbelt)* [3.50HH(state)*POP (state)3.39 C-26 f,t ¥> ~" ~ -------------------------------~-- TABLE C.13.ALASKA REGIONAL HOUSEHOLD SIZE DATA FOR 1970 Average Household Population Households Size In-Group Census Total Quarters In Households Total Family Non-Family Division Number Percent Number Percent Number Percent Number Percent Aleutian Islands 8,057 3,339 41 4,718 59 1,225 1,099 90 126 10 3.85 Anchorage 124,542 5,897 5 118,645 95 34,988 29,688 85 5,300 15 3.39 Angoon 503 8 2 495 98 134 89 66 45 34 3.69 Barrow 2,663 95 4 2,568 96 463 418 90 45 10 5.55 n Bethel 7,579 108 1 7,471 99 1,435 1,258 88 177 12 5.21I N -....J Bristol Bay Br.1,147 411 36 736 64 192 153 80 39 20 3.83 Bristol Bay Div.3,485 50 1 3,435 99 724 616 85 108 15 4.74 Cordova-McCarthy 1,857 83 4 1,774 96 591 421 71 170 29 3.00 Fairbanks 45,864 6,761 15 39,103 85 11,590 9,877 85 1,713 15 3.37 Haines 1,504 35 2 1,469 98 424 366 86 58 14 3.46 Juneau 13,556 212 2 13,344 98 4,223 3,261 77 962 23 3.16 Kenai-Cook Inlet 14,250 396 3 13,854 97 3,889 3,298 85 591 15 3.56 Ketchikan 10,041 239 2 9,802 98 3,006 2,405 80 601 20 3.26 Kobuk 4,434 172 4 4,262 96 814 718 88 96 12 5.24 Kodiak 9,409 978 10 8,431 90 2,384 2,019 85 365 15 3.54 Kuskokwim 2,306 255 11 2,051 89 463 362 78 101 22 4.43 Matanuska-Susitna 6,509 255 4 6,254 96 1,841 1,469 80 372 20 3.40 Nome 5,749 215 4 5,534 96 1,209 999 83 210 17 4.58 Outer Ketchikan 1,676 53 3 1,623 97 391 339 87 52 13 4.15 Prince of Wales 2,106 159 8 1,947 92 560 423 76 137 24 3.48 TABLE C.13.ALASKA REGIONAL HOUSEHOLD SIZE DATA FOR 1970 (continued) Average Household Population Households Size In-Group Census Total Quarters In Households Total Family Non-Family Division Number Percent Number Percent Number Percent Number Percent Seward 2,336 141 6 2,195 94 722 563 78 159 22 3.04 Sitka 6,109 266 4 5,843 96 1,767 1,349 76 418 24 3.31 Skagway-Yakutat 2,157 33 2 2,124 98 607 481 79 126 21 3.50 S.E.Fairbanks 4,179 621 15 3,558 85 1,027 908 88 119 12 3.46 (")Upper Yukon 1,684 384 23 1,300 77 338 244 72 94 28 3.85I Nco Va1dez-Chitina- Whittier 3,098 172 6 2,926 94 921 684 74 237 26 3.18 Wade Hampton 3,917 255 7 3,662 93 643 570 89 73 11 5.70 Wrange11- Petersburg 4,913 42 1 4,871 99 1,473 1,168 79 305 21 3.31 Yukon-Koyukuk 4,752 708 15 4,044 85 1,015 789 78 226 22 3.98 SOURCE:U.S.Department of Commerce,Bureau of the Census,1970 Population PC(1)-B3. -....,t.l..$_,1\*v·.....,.",.~''''·",.,..,.''''."'''''..·"..·,,...·..''''..·.·,''~'''''7."..,'' v.Sensitivity Analysis The most important set of parameters within the household model is the vector of rates of change of the household formation rates.For a given population distribution by age and sex,the household formation rates at any point in time determine the number of households.Thus, in the simplest sense,the number of households is very sensitive to how these rates of change vary,and a different vector of rates of change which increases the household formation rates by 10 percent would obviously increase the number of households by 10 percent also. The historical trend and national projections all indicate that a continued reduction in average household size is the most reasonable assumption to adopt for the future.The question then becomes what are the practical limits of the range of household size.On the one hand,if the Native and non-Native proportion of the population remained unchanged,the average household size might not fall appreciably.At the other extreme,the average household size could not logically be expected to be less than the size required for there to be at least one employed person per household.In other words,the number of households must always be less than employment. In reality,the number of households will likely always remain considerably below the level of employment if we assume that marriage is a viable institution,that the trend toward two working spouses in a family is not reversed,and that families continue to have children. C-29 --------------- A hypothetical smallest average household size in 2005 might be as shown in Table C.14 if it is further assumed that Alaskan Native household formation rates were to become equivalent to civilian non-Natives. Table C.14 is not a projection,but rather a display of the implications, in terms of types of households,of a very low average household size. It also displays the implication of various average work force partici- pants per household. On the basis of Table C.14,reasonableness suggests that a lower bound on average household size would be no less than 2.25 and that for a given level of employment,the number of households could be no greater than 1/1.25 times employment. Table C.15 shows the result of applying these upper and lower bounds 3totheprojectionsdoneforthe1979railbeltstudy.There are two principal conclusions that can be drawn from Table C.15. 1.The possible variation in the number of households for a given population is considerable for a twenty-year projection.For the moderate case,the range of house- holds in 2000 within the arbitrarily defined upper and lower bounds is from 228.9 thousand to 311.2 thousand. Assuming 137.8 thousand households in 1980,this implies an increase in the number of households of from 91.1 to 173.4 thousand or an annual growth rate between 2.6 and 4.2 percent. 2.The projected values are well within the range bracketed by the smallest possible household size and the continua- tion of the current household size. 3Results using the revised model are not significantly different. C-30 ________________________It__ TABLE C.14.COMPOSITION OF THE SMALLEST FEASIBLE AVERAGE ALASKAN HOUSEHOLD SIZE IN 2005 Proportion Minimum Likely Average of Total Average Employees Household TYEe (%)Household Size Per Household Family 60 2.758 1.5 Married Couples 40 3 1.75 with children 20 4 1.75 no children 20 2 1.75 One-Parent &Other 20 2.275 1 mother &children 9 2.5 1 father &children 2 2.5 1 other families 9 2 1 Non-Family 40 1.25 1.25 persons alone 30 1 1 other 10 2 2 s I Total 100 2.155 1.4 C-3l -- TABLE C.15.IMPLICATIONS'FOR NUMBER OF HOUSEHOLDS IN 2000 OF APPLYING LOWER AND UPPER REASONABLE BOUNDS Additional Annual Households Growth Rate Population Employment Households 1980-2000 in Households LOW PROJECTION 635.6 332.3 Upper Bound 1 282.5 144.7 3.7 Upper Bound 2 265.8 128 3.3 Projected Value 234.7 96.9 2.7 Lower Bound 207.8 70 2.1 MODERATE PROJECTION 700.1 371.5 (J I VJ Upper Bound 1 311.2 173.4 4.2N Upper Bound 2 297.2 159.4 3.9 Projected Value 260.5 122.7 3.2 Lower Bound 228.9 91.1 2.6 HIGH PROJECTION 831.0 454.6 Upper Bound 1 369.3 231.5 5.1 Upper Bound 2 363.7 225.9 5.0 Projected Value 312.5 174.7 4.2 Lower Bound 271.7 133.9 3.5 Upper Bound 1 -based on household formation rate of 1/2.25 Upper Bound 2 -based on househo1d-to-emp1oyment ratio of 1/1.25 Lower Bound -based on household formation rate in 1980 of 1/3.06 =.327 ~""f-"'''''~>",,~:'''''--_'','~i''~J''''':!~-l!'''''f""'''''~~''';'''W''lt'!''I'~~~""~,;~il-~,.~:iliX:filiJI"'·_',lt;•.A,tI!i4 ,-.c;;Ifii§4l,-¢il'lN4it".;.8#!i'ii*_!J1I%f£il'A4llJi¥!F~h8,**,Hkt.#';jij¥iji#¥!@!I&\i!'-.ill',~~~~j VI.Potential Further Development of the Household Formation Model An ideal model for projecting households would involve the use of large amounts of microdata which is not available on a statewide or regional basis in Alaska.If it were available,a Markow model would be the appropriate form for the model. The known number of households at the beginning of the projection period would be divided by important characteristics into separate categories.These characteristics would include both the type of house- hold (family,nonfamily),composition of household (number of adults, number of children,etc.),social characteristics of head (age,sex), and economic characteristics of household (income,employment). The probability of a household's changing size in any category or dissolving will differ for each category because of these different characteristics.Some of these changes will result in additions to the number of households.The Markow model would trace these changes over time,and total population would be the number of households multiplied by average household size in each category. The probabilities of various events for a household which would change its size or affect its existence would be related to economic variables such as income and employment as well as to social trends. Migration will change the number of households in the different categories. C-33 It is easy to see that such a model,although elegant and internally consistent,is not,in most cases,practical to implement on a regional b . 4aS1S. A second-best solution to the problem of incorporating economic variables in the determination of household formation rates would be to make the household formation rates for each age-sex-race cohort variables in the model rather than parameters.The household formation rates would be a function of a set of income and employment variables generated by the model.Because of the lack of any time series on household formation rates in Alaska,such an approach would require use of a national cross-sectional analysis to estimate the functional relation- ship between economic variables and household formation rates.Because it would be difficult to adequately control for the specific character- istics of Alaskan household formation,such as the impact of migration and the particular employment mix within Alaskan industries,such an approach would have limited value.5 Note that the household formation model is indirectly a function of economic characteristics because it is related to the age-sex structure of the population which is partially migration determined and which,in turn,is a function of economic variables. 4For example,the ELFOR model developed by Battelle Columbus Labs for ERDA in April 1980 for electricity load forecasting employs the same technique as is used in the MAP model. 5 For an attempt to do this,see S.Caldwell,W.Greene,T.Mount, and S.Saltzman,"Forecasting Regional Energy Demand with Linked Macro- Micro Models,"Papers of the Regional Science Association 1145. C-34 ~t ----------------------------------'-'--- NOILVJI~IJ~dS ~LVM ~9VM 1~aOH dVH a x1=P u ;JddV I.Introduction One critical element of any economic model of the Alaskan economy is the determination of the level and growth rate of personal income. Personal income is a major determinant of aggregate economic activity because it determines the demand for locally consumed goods and services. Wages and salaries is the largest component of personal income and,thus,the most important in its determination.In Alaska,the proportion of personal income which is wages and salaries is much higher than the national average,l~rgely because of the young average age of the population.Younger people tend to have fewer income- earning assets than older people. II.Wages and Salaries Determination in MAP Model For each of the twelve industries in the MAP model,total wages and salaries is the product of the wage rate and the level of employ- ment,both measured in average annual terms.For a given level of employment,the wage rate determines total wages and salaries. The specification of the wage rate equations reflects the fact that wage rate levels are jointly determined by conditions in national labor markets and local labor markets.National labor markets are important because the labor supply is mobile and will migrate to where job opportunities are best.This has the tendency of equilibrating wage levels in different geographic regions (after taking account of cost of living differentials).This equilibrating process is not instantaneous,however;and,thus,excess labor demand in the short run can drive up wage rates in regions that are growing rapidly.The opposi~e can happen in regions with excess labor supply although a number of institutional constraints prevent wage rates from being as flexible on the down side. D-I The typical equation has the following specification: LOG (WR**/RPI)=a + b *LOG (WEUS/USCPI)+ c *LOG (l+EXEMRAT) + d *LOG (l+EXEMRAT(-l))+ e *LOG (1+EXEMRAT(-2)) where WR";-;':=average annual wage rate for industry ;"..,': RPI =Alaskan relative price index WEUS =average weekly earnings of nonagricultural wage and salary employees in the United States USCPI =U.S.consumer price index EXEMRAT =the ratio of extraordinary employment to total employment in Alaska (extraordinary employment is large-project construction employment which significantly increases labor demand in the short run) This equation says that the real wage rate in each industry in Alaska is a function of the real wage rate in the United States in all industries and of the tightness of the local labor market in the current year as well as in past years. The coefficients have the following interpretations: a is the basic level of the real wage in Alaska in industry ,b': independent of any significant variation in the real wage level in the United States or tightness in the local labor market.(The value of the national labor market term WEUS/USCPI is approximately one,which results in a logged value close to zero.) b is the elasticity of the response of the local real wage in industry ,';-;':to a change in the average real wage (produc- tivity level)in the United States.As such,it is a com- posite of three types of change as follows: D-2 ~real Alaskan annual wage in industry ** ~real US average weekly wage across all industries = 2))~real Alaskan annual wage in industry ~real US annual wage in industry ** ,';-:.':: x ~real US annual wage in industry ** ~real US annual wage across all industries x .n 1 .e ...r~ e r n j ~real US annual wage across all industries ~real US average weekly wage across all industries The coefficient b would equal one only if all three components of change over time equaled one.This would imply that any changes in the average real wage in the United States would be represented by identical percentage increases in the real wage rates in all Alaskan industries. c is the elasticity of the real wage rate to local labor market conditions reflected by the proportion of special skilled labor component of labor.The upward pressure on wages this reflects may operate with a lag and enter some of the equa- tions with the current and two previous years'values. During periods when there is no unusual labor demand pres- sure,these terms become zero.A negative coefficient on a lagged value suggests that tight markets in successive years are rapidly self-correcting in some industries. The wage rate in special projects construction is treated dif- ferently than that of regular construction employment.The regular construction wage is augmented by a fixed proportion to reflect the longer hours and higher proportion of overtime pay associated with such employment.This adjustment is less to take account of a labor market supply constraint than to adjust to the particular conditions associated with those types of construction jobs. D-3 III.Historical Pattern of Wage Rate Growth in Alaska and the United States Figure D-1 shows the historical relationship between the average annual Alaskan wage and the U.S.wage.The ratio is relatively con- stant throughout the 1960s and early 1970s.In the mid-1970s,there is a significant increase in the ratio,corresponding to the oil pipe- line construction years.After pipeline construction,the ratio falls although it is still above the prepipeline construction level. Figure D-1 also shows the ratio after adjusting for differential growth in the cost of living in Alaska and in the United States.An upward trend in the ratio is attributable to the fact that the cost of living in Alaska relative to the rest of the United States was increasing more slowly in the early 1970s,and this more than compen- sates for the decline in nominal relative wage rates. If the change over time in the ratio of Alaskan-to-U.S.wage rate is estimated using regression analysis over this historical period, the average growth rate is 1.27 percent annually for the nominal ratio and 1.65 percent for the cost-of-living-adjusted ratio.This confirms that the annual wage rate in Alaska is growing more rapidly than in the United States although the positive effects of the pipeline con- struction period may be causing some upward bias in the calculated growth rates. Figure D-2 confirms that the aggregate pattern also is reflected in individual industries.Some wage rates are more sensitive than others to local labor market conditions,and the pattern of response also varies by industry. Table D-1 compares the growth in wage rates by industry with the growth in the wage rate in the aggregate.In the first column,the growth in the ratio of particular Alaskan industries to the U.S. average is calculated;and in the second column,the ratio of the D-4 ----------------------~_. FIGURE D-l.RATIO OF ALASKAN TO U.S.AVERAGE ANNUAL WAGE RATE 2.6 2.4 2.2 2.0 Ratio I.E 1.4 1.2 a T I , I I I 1 I I I I I I I I f I I I (,/41.(.~(.'1 ~"""U'''1 70 71 71.7!>7't 75 7(,77 7(/7'7 Note:Ratio of Alaska average annual wage to U.S.average weekly wage x 50 D-5 Ratio 3.4 3.2 i 3.0 2.8 2.6 2.4 2.2 2.0 1.8 1.6 1.4 1.2 FIGURE D-2.RATIO OF ALASKAN TO U.S.AVERAGE ANNUAL WAGE RATE (Nominal Wages) D-6 !~_____________________i.it_ '(; cade 19 'V TABLE D-1.INDUSTRY GROWTH RATES RELATIVE TO THE AVERAGE FOR THE UNITED STATES Alaskaa United Statesb Total 1.27 0 Mining 1.39 1.43 Construction 1.94 .32 Transportation 1.67 1.13Communications/Public Utilities -.29 Services 1.68 .40 Finance/Insurance/Real Estate .90 -.41 Retail Trade -.07 -.70 Wholesale Trade -.06 .04 Manufacturing -.17 .43 a The growth rate of the ratio of average annual earnings in Alaska in industry **to average weekly U.S.earnings in total (WR**/WEUS). b The growth rate of the ratio of average weekly U.S.earnings in industry **to average weekly U.S.earnings in total. particular U.S.industries to the U.S.average is calculated.Thus, for example,the differential between the Alaskan wage in mining and the average U.S.wage grew at the rate of 1.39 percent per year.In the United States as a whole,it grew slightly more rapidly at 1.43 percent annually. Table D-1 suggests that a large part of the differential growth rates among industries in Alaska can be attributed to differential growth rates nationally.Since the second column represents the rela- tive growth rates of wage rates nationally,any differences between the two columns for an industry represent the differential Alaskan growth.This differential is the change in Alaskan industry wage D-7. --------------------------------- D-8 ------------,...--~ f f I rates independent of national trends in the industry.Factors which could account for this differential would include relative differences in the hours or weeks worked in Alaska,relative cost of living dif- ferences,changes in the mix of industry,or changes in average skill levels. In all industries except finance/insurance/real estate,which in Alaska has grown more rapidly than its national counterpart,and manu- facturing,which has grown more slowly than its national counterpart, a portion of the differential growth rate in the Alaskan wage appears to be the result of national trends in relative wage rates. Construction and services are the two industries where growth in average wage rates has substantially exceeded the national average. The difference in construction can be largely attributed to the high wages paid to oil pipeline construction employees.Netting them out would reduce the observed growth rate.A similar phenomenon can be attributed to the service sector which,after construction,showed the most substantial increase in average wage rates relative to the U.S. average during the oil pipeline construction years.Like construc- tion,the post-pipeline ratios (WR;h'<'/WEUS)have remained above the long-term trend,but the differential for services is less. In finance/insurance/real estate,there has been a moderate post- pipeline bulge in wage rates which mayor may not represent a real structural change in the industry.Manufacturing in Alaska is a relatively small group of activities not representative of the U.S. manufacturing as a whole,and thus it is not reasonable to compare wage rate growth of the two. In conclusion,wage rates in different industries have grown at different rates historically.This is true both for Alaska and the United States.These growth rates can be related to the average for all industries and,thus,justify the use of the all-industry average ~ t ! --------------------------_.~._. for projection pur;-poses.In general,Alaskan wage rate growth by industry follows the national pattern with exceptions that can be readily explained. IV.Evaluation of Alaskan Wage Rate Equations Details on the statistical properties of the wage rate equations appear in Appendix G.In general,the statistical properties of the equations are quite good.The corrected R2 value ranges between .8 and .96;the F tests are all significant (F(4/14)=5.04 for a 99 per- cent confidence interval);the standard errors of the regressions are small;and the T-tests are,with few exceptions,significant.For nineteen observations and three explanatory variables,the 95 percent confidence test of positive autocorrelation is a Durban-Watson value of .97 or less.The test is inconclusive if it is between .97 and 1.68.The COND(X)variable tests for multicollinearity which does not appear to be present in these equations. The stability of the wage rate equations has been investigated by varying the time period over which the regression parameters were cal- culated.Table D-2 reports the results of this exercise.The inter- cept term (a)is generally unaffected by the historical period chosen for the regressions.The elasticity of local wage rates to changes in national rates (b)does exhibit some variation with the time frame chosen for the regressions.The elasticities appear to be declining as new data points become available.These elasticities should be stabilizing now that the majority of the effects of the oil pipeline on the economy have worked themselves out.The sensitivity of projec- tions with respect to these elasticities,however,should be investigated. D-9 TABLE D-2.SENSITIVITY OF WAGE RATE PARAMETER VALUES TO REGRESSION TIME PERIOD Parameter Elasticity to Intercept National Wage Rates Industry 62-77 61-78 61-79 62-77 61-78 61-79 Construction 4.63 4.63 4.63 1.90 1.85 1.80 Mining 4.51 4.51 4.51 2.97 2.82 2.70 Trade 3.95 3.95 3.94 .52 .51 .45 Finance/Insurance/ Real Estate 3.95 3.95 3.96 1.72 1.74 1.63 Transportation 4.11 4.11 4.11 1.66 1.57 1.47 Services 3.83 3.83 3.84 .98 1.01 .81 State and Local Government 4.03 4.03 4.04 2.40 2.29 2.20 To test the overall stability of the set of equations specifying the Alaskan wage rates,we first examined the simulated relationship between the Alaskan real wage and the U.S.real wage in a preliminary version of the model.The real wage in Alaska grows in the twenty- year period from 1980 to 2000 from $5,728 (1967 U.S.dollars is the base)to $7,661.This is an average annual growth rate of 1.4 percent. Over the same period,the u.S.average real wage is exogenously set at an average annual growth rate of .7 percent.Thus,the Alaska real wage grows at twice the rate for the United States in this scenario. This is attributable to the increasing proportion of employment in relatively fast wage rate growth industries.This differential growth rate does not destabilize the projections.Whereas,in 1980,the ratio of the Alaska-U.S.average real wage is 1.133,in 2000 it is 1.350.This is because,although the growth rates are appreciably different,they are both relatively small. D-10 --------------------_.......- To test the sensitivity of projection results to changes in the coefficients measuring the elasticity of wage rates to changes in the U.S.average wage rate (b),a special simulation was done in which these coefficient values were reduced by one standard error.The result was a surprisingly small difference in the real wage rate and population after a twenty-year period.Table D-3 shows the results of this test in comparison to a base case.In 2000,population is 5.8 thousand lower in the test,and the real wage is 1.3 percent lower.The robustness of the model to this sensitivity test is reassuring,given the uncertainty about whether all the effects of oil pipeline construction on wage rates have shown up in the data. A second sensitivity test was performed and is also reported in Table D-3.This test investigated the sensitivity of the model simu- lation results to the growth rate in the real wage in the United States.To test this,the proj ection growth rate for this variable was reduced from .7 to .5 percent annually (WEUSjUSCPI).The resul- tant change in the 2000 population from the base case was 32 thousand, while the reduction in the real Alaskan wage rate was 5.2 percent. This test suggests that the projection value for the growth of the real wage rate in the United States should be chosen with care. Historically,the growth of this variable,which is a measure of the productivity growth of the U.S.labor force,has not been smooth. The average annual growth rate over the past twenty years has been .5 percent,approximately equal to the value chosen for the sensi- tivity test.Within that twenty-year time frame,however,there was a decade of rapid growth in the 1960s when the average weekly wage adjusted for cost of living increases grew from $92 to $107.This was followed by a decade of stagnation during the 1970s,when the real wage fell.In 1979,it was $101.Thus,it is difficult to project wi th confidence a growth rate for the real wage rate in the United States based upon the historical data.This must remain as one of the components of the simulation process which is subject to irreducible uncertainty. D-ll TABLE D-3.SENSITIVITY TESTS OF MAP WAGE RATE EQUATIONS Test of Test of u.S.Wage Elasticity Rate Growth POPULATION Base Case Sensitivity Sensitivity 1 '?'BO 399.456 399.456 399.456 1981 408.131 408.613 408.131 1982 420.961 422.099 420.961 1983 448.902 450.425 448.902 1984 484.3;22 486.224 484.322 1985 485.173 487.214 485.08~'i 1986 494.811 496.948 'l94.473 1 iT'S 7 50:'.'.;.152 507.159 504.172 :1.988 ~"'j16.149 5:1.7.972 514.309 1989 52::'~.(">'9 52·4.551 520.041 1990 529.522 530.784 52~5.28~~1 (»91 542.48 543.367 536.6291qc,..,557t24 557.68'7 549 •55~:5•,I ')'A- 1.993 574.0,-:'5 574.771 564.955 1994 590 +:3~;2 ~"'j8'7.667 5"78.073 199~5 60~i +:396 604.03 590.4521OC'L 620.069 617.99 602.344I1"-I 1.'1 <7'I'(;;34.:~;()1 631.632 61.3.702 19'1'8 649.378 645.631 6~:.?~:)+1 9 :l '7'9 'i'66~5.;283 660.563 6~5·7 +:~65 20()O ,S82.49 676.689 (;'50.444 REAL WAGE RATE r :I.';'::1 () 1 (;'81 1 ';'82 19D4 :I.(?S:'.'.i 1 ')lab 1.':iE17 19f.1B 1 ...)..···c'.?C)7 1.'lo:"JO 1991 :I.7'92 197'3 19'7'4 :I.?·?"):.~:i :I.(;:'96 J.~i9? ...,.1 '-)i.) :::i7213.4 572:1..)' 6:lEl4.1.~) 7438.:l.B 6'Y'i39.;'9 6/'15.71 6~;O?~02 66:1.8.)'8 6tJ24.7 6·76:7.~55 7L~7.7 7132.::>3 7:1.72.,'i6 7300 .,~3:5 741~:~(-9~:' D-12 5758.87 5761.74 6223.34 6863.~j7 7470.91 7009.69 672~5.09 6::-;08.79 6444.04 6541.49 6~:;98 ~\~ C)796 ~5~) 6931.27 l'08:;~.'"7'8 7079.94 71:1.3.04 "7 J.~"'i,~).07 7336.0::: 5"7:28.4 5721.7 6:l84.1~'i 6B::.~6 <-""/2 ·74:38.:1.8 (;.6(S4 +:3:2 6433.('":08 .L ";<"1:;''''1''1'"\r::''::l ":l ,.J,~•(:l ,J ,:)434.0tl 6474.;'54 66::.)4.01 6"7"70.38 6'7'04.83 6 17}0 ::~.::~<:)1 6927.[13 ..?:I.,S:.:.::.::::9 V.Conclusion In general,the wage rate equations are well-specified and robust.They must continue to be monitored as new observations become available to see how the elasticities with respect to the U.S.wage rate change.This may also require fine tuning of the lag structure on the variable for tightness in the local labor market. The growth rate of the real wage rate in the United States is an important variable in the determination of the growth of the Alaskan economy.This variable must be constantly monitored,and projections of its future value must continue to be critically evaluated. D-13 ---~~~~--~~~~~~~---~~~------------------- NOIIVJldIJadS NOIIVHDIW laaow dVW a xwuaddV I.Introduction Population change is the sum of two components--natural increase and net migration.Natural increase is a relatively stable component of population change since it is a stable function of age-sex-race- specific fertility and mortality rates which may change over time,but only gradually. Net migration is,in contrast,quite volatile and can change from a large,positive value to a large,negative value from year to year. For purposes of long-run projections,these year-to-year fluctuations are not as important -as the overall trends in migratory flows. Between one-third and one-half of the population increase in the 1970s was the result of net positive migration. Population is important because it is a factor in the demand for many goods and services such as state and local government and housing independent of the other major determinant of demand--personal income. II.Specification of Net Migration in the MAP Model Net migration is determined by the following equation: MIGNET =a +b *[~CNN -~CONX1]+c *ECONX1 +d * YDNNRPC(-l)/DIRPU(-l) where MIGNET =net migration ~CNN =annual change in level of civilian non-Native employment ~CONX1 =annual change in level of remote special project construction employment YDNNRPC(-l)=Alaska non-Native real disposable personal income per capita lagged one year DIRPU(-l)=real disposable personal income per capita in United States lagged one year E-l This specification of the net migration equation reflects the fact that the primary determinates of net migration are changing employment opportunities and regional variations in relative income.! Net migration is the sum of gross in-migration and gross out-migration. The composition of net migration is determined by allocating the total into the various age and sex cohorts of the population. The coefficients in the net migration equation have the following interpretations: a is the level of net migration which would occur in a year if there were no change in the number of jobs in the economy and if real per capita income in Alaska relative to the rest of the United States were not a variable in the determina- tion of migration.This coefficient is negative,reflecting the fact that if there are no new jobs generated in the economy in a year,then because the labor force is increas- ing because of the effects of natural increase,some people in the labor force will migrate elsewhere to look for employment. b is the marginal increase in the level of net migration from an increase in the number of jobs in the economy.This coef- ficient is positive and may have a value less than or greater than unity. c is interpreted in the same way as b,except that it applies to jobs created on special large construction projects. !For a more detailed discussion of this,see Scott Goldsmith, "Important Economic Relationships in the Alaskan Macroeconomy," unpublished paper,1978. E-2___________________________Ih__ d is the increment to net migration which is the result of real per capita income differentials between Alaska and the rest of the U.S.regions.If there is no differential,then a + d can be interpreted as the level of net migration which would occur in a year when no new jobs were created in the economy.This coefficient is positive. This specification is best understood by reference to Figure E-1 which depicts the form of the net migration equation currently in use in the MAP model.Net migration is represented along the vertical axis;and employment growth,along the horizontal axis.A different relationship exists between these variables for each level of real per capita disposable income in Alaska relative to the United States. Line A represents the relationship if the real per capita disposable personal income of Alaskan non-Natives is the same as in the rest of the United States.Line B represents the case where the Alaskan real disposable per capita non-Native income is 20 percent above the United States.Line A is representative of equilibrium conditions between Alaskan and U.S.labor markets,while line B is representative of boom conditions when wages and salaries in Alaska have been temporarily driven up by supply constraints in the labor market or because of high wages paid on certain construction projects. The various lines represent the positive relationship between the growth of employment and net migration as well as the positive rela- tionship between Alaskan real income and net in-migration.They also allow us to see the relationship between the marginal migration response and the average migration response. Point X represents a situation in a year of income parity. Employment growth is 3 thousand;and net in-migration,about 1 thou- sand.The slope of the line is about one,indicating that the marginal net in-migration for each new job is one.On average,how- ever,each job created has generated net in-migration of .33 persons. The migration effect of job creation could be decomposed into two E-3 (000) EMPLOYMENT GROWTH -, NET OUT-In GRAT I ON (000) +B. 9 I /Alaska Real Per Capita Income 20%Above U.s."<j H Alaska-U.S.Real Per Capita () c::: Income Pari tv ~ ~,// ~ INET~ ~. IN-MIGRATION H () (000)~~ H o~ 31 / / Z 0' t::l ~tr1 ,or:-'c::: :,J>Z 1-3~ 1-11-3 0 Z trJ ,J //3 (;q n.I ~ -'f *'*"'",4 1P'I46iI •.....,1 ·'''''..,__""~~r~~_.~_•..~_...,,_.._",~~~.,,,,_._...,.....,,~",._...••_•...~... separate parts.To the left of Y,new jobs are filled by current residents who,in the absence of the new employment opportunities, would have out-migrated to look elsewhere for jobs.Those new jobs to the right of Yare filled by new migrants. If in a given year no new jobs are created,there would be net out-migration of about 2 thousand people (point Z).If Y new jobs were created,there would be neither in-migration nor out-migration. Growth in the resident labor force would take all the new jobs.Each new job in excess of Y generates in-migration of one person on aver- age,including those who get jobs,their dependents,and those who are unemployed. Another way to see the relationship between employment growth and migration in this equation is by means of Table E-1.It shows that at higher rates of job creation,the average net migration is higher. Also at low positive levels of job creation,there is out-migration. TABLE E-1.THE RELATIONSHIP BETWEEN JOB CREATION AND NET MIGRATION IN THE MAP MODEL (Hypothetical Example) Job Creation in One Year Net Migration Net Migrants for (thousand)(thousand)Each Job Created 12 10 .83 9 7 .78 6 4 .67 3 1 .33 2 0 0 1 - 1 - 1 0 - 2 - 1 - 3 - 3 - 3 - 5 -1.67 - 6 - 8 -1.33 E-5 III.Evaluation of Migration Equation The model currently uses the following equation: 1:MIG T - A+B*( Er~GR0- ( ECON X( 1) - ECON X( - 1) ) ) +C'*RELINC+D*O.EQ+E*(ECONX(1 )-ECONX(-1)) CRSQ =0.98167 SSR =89.050 NOB =17 RANGE = RSQ = SER = COEF A B C o E NOVAR =5 1961 TO 1977 0.98625 2.7241 VALUE -7.83466 0.96122 5.24092 3.53277 1.86136 ST ER 6.13773 0.17220 8.67252 1.92752 0.25082 F(4/12)=215.191 DW(O)=2.08 COND(X)=25.95 T-STAT -1.27648 5.58211 0.60431 1.83280 7.42118 For simulation,the parameter values on the income and employment terms are adjusted to account for the fact that the historical data includes the Alaska Natives;whereas,the simulation data does not. In addition,the intercept is adjusted to improve its performance in simulation.The statistical tests for this equation are generally good except for the relative income term.This coefficient has the correct sign but is not statistically significant.The variables have been two period averaged in order to reduce the possibility of posi- tive autocorrelation.The variable EQ is a dummy to account for the earthquake years. E-6 rI I i, III.Evaluation of Migration Equation The model currently uses the following equation: 1:MIG T - A+B*(Er~GR0- (ECON X(1)- ECON X(- 1) ) ) +C'*RELINC+D*O.EQ+E*(ECONX(1 )-ECONX(-l)) NOB =17 RANGE = RSQ = SER = COEF NOVAR =5 1961 TO 1977 0.98625 2.7241 VALUE CRSQ =0.98167 SSR =89.050 ST ER F(4/12)=215.191 OH(O)=2.08 CONO(X)=25.95 T-STAT A B C o E -7.83466 0.96122 5.24092 3.53277 1.86136 6.13773 0.17220 8.67252 1.92752 0.25082 -1.27648 5.58211 0.60431 1 .83280 7.42118 For simulation,the parameter values on the income and employment terms are adjusted to account for the fact that the historical data includes the Alaska Natives;whereas,the simulation data does not. In addition,the intercept is adjusted to improve its performance in simulation.The statistical tests for this equation are generally good except for the relative income term.This coefficient has the correct sign but is not statistically significant.The variables have been two period averaged in order to reduce the possibility of posi- tive autocorrelation.The variable EQ is a dummy to account for the earthquake years. E-6 1 Recent analysis of this equation has concentrated on the incor- poration of new data points into parameter estimation and upon improvement of the specification.The current formulation of the net migration equation differs from the formulation reported in the MAP documentation prepared in 1979 in both the intercept and slope coef- ficient values as well as the fact that it separates employment change into two components. The data &eries used in the equation is the subject of an ongoing analysis because of data revisions in the natural increase,personal income,and net migration series.No changes have been incorporated into the model yet based upon the revised data.At the same time, additional data points are being considered for addition to the para- meter estimation.The preliminary results of this analysis show that with the addition of new data points,the positive significant rela- tionship between employment and net migration does not change. The historical series on migration between the 1970 and 1980 census years has come into question since the publication of the 1980 census population figure.Since this figure is lower than had pre- viously been estimated,net migration figures for some years after 1970 were overestimated.It is likely that the majority of the error in the migration series occurred in 1978 and 1979,the years of slack economic activity after construction of the oil pipeline,although 1977 net migration may also be overestimated.Rather than utilizing obviously incorrect data in an updated migration equation,the current version of the model uses data only through 1977.When a corrected version of net migration becomes available,this equation will be updated. It is interesting to note that the coefficient values on regular employment growth and project construction employment growth,although significant,change their relative sizes as more data points are added. As more of the post-pipeline data enters into the estimation of the equation,the net migration impact of a regular employee increases, E-7 TII t and the impact of a special project construction employee decreases. The coefficient on regular employees approaches the value calculated before the inclusion of the pipeline years.However,because of the high correlation between changes in the level of regular and special construction project employment,the variation in the sizes of these coefficients largely cancel one another out in simulation and impact analysis. The most important test for the net migration equation specifica- tion is how it performs in simulation.In a base case simulation similar to the moderate case in the electric power study,the perfor- mance of the net migration equation was monitored by tracking the relationship between employment and population.Table E-2 shows that as the population grows from 399 thousand in 1980 to 682 thousand in 2000,the employment rate rises from 51.6 percent of the population to 53.5 percent,an increase of almost 4 percent (the ratio of civilian employment to civilian population).This increase reflects either that the labor force participation rate is increasing over time or that the unemployment rate is declining,or both.This is the result of changes both within the economy and different characteristics of new migrants who are more likely to be employed than the resident population. We can also calculate a variable similar to the labor force par- ticipation rate.The labor force participation rate is defined as civilian employed plus unemployed divided by the civilian population aged 16 and over.We have no proj ections of the unemployed,but a variable which should move similar to labor force participation is defined as total civilian jobs divided by the civilian population between the ages of 15 and 64 (EC/(ADULTS-POPM)).In this simulation, the 1980 work force proportion is 79.7 percent,and it grows to 81.7 percent in 2000. Another important variable for monitoring the migration equation is the ratio between the average real per capita disposable personal E-8 TABLE E-2.TRACKING TEST FOR NET MIGRATION I I~ ! I I 1~1 I 1tJ - 1980 :L'/81 1.982 1983 1 'i84 1 '7'83 l'1:::l6 1 'i87 19:38 1 'i89 1990 1991 j oq'?. I 1_ 1993 1 'i94 19?5 1 <7'96 1 ';;'9;' "I C:'C)'::i.L i ,.\..} 1 S;'7''7' ::000 Population 399.4;36 408.131 420.961 448.902 ·484 +:?;~.~2 4,35.1.73 494.811. ~;'J5 +152 51.6.:l4'7' r:".-,"'j 0 r-,....J.~......I 7 5::9 t ~:i:2:~ 5·42.48 557.24 5'7-4 t 865 59C1 +3~S2 6(J5 e-3':?6 h:20.069 c'.i34.~S()1 649.3?i3 6.~)5.~.~83 ,:')S ~2 •·4 7' Employment/ Population 0.516 0.512 0.509 0.519 0.~534 0.529 o +~~32 O.:529 0.528 0.523 0.52 o•:'521 0.523 o.~)27 0.529 0.531. 0.531 O.5~52 ()+332 O.~~33 0.535 £-9 Non-Native Real Per Capita Disposal Personal Income Alaska/ United States 1..075 1.031 1.145 1.209 1.302 1.218 1.161 1.095 1 •0~38 1..042 1.024 1.031 1.032 1.035 1.0:!.5 1.001 0.985 0.974 0.966 0.96 0.954 income in Alaska and in the United States.This variable is also shown in Table E-2.This ratio remains relatively stable.It rises in the mid-1980s 1n response to gas pipeline construction employment and subsequently declines back toward one.In the latter years,it drops below one as it had been historically until 1975.This has a slight negative effect on the level of net migration.A lower popula- tion or higher employment-to-population ratio would bring this income ratio back to one through feedback effects in the model. The results 1n Table E-2 indicate that the migration equation does not generate an unstable situation either in the labor market or with respect to relative income in Alaska.It is necessary,however, to compare the trends in the values for these indicators (employment rate and relative real income)generated by model simulation with historical trends and independently projected trends to ascertain whether the simulation results are,in fact,plausible as well as stable. Nationally,the labor force participation rate has been increas- ing since World War II.Table E-3 shows that the participation rate has increased from 59.2 percent in 1960 to 62.7 percent in 1978.This is the combined result of a number of trends of which the most sig- nificant is an increase in the labor force participation rate for white females from 36 percent in 1960 to 48.8 percent in 1978. Counterbalancing this trend has been a decline in the rates for both white and nonwhite males.Some of the change in the aggregate parti- cipation rate is also due to the change in the demographic mix of the population over time. This trend can be observed in the historical data on employment and population for Alaska.Civilian employment as a proportion of civilian population increased from 37.4 percent in 1970 to 47.2 per- cent in 1979.Part of the increase can be attributed to a demographic shift in the population,but it is primarily the result of an increase in labor force participation. E-10 TABLE E-3.COMPOSITION OF THE NATIONAL LABOR FORCE No.645.LABOR FORCE AND PARTICIPATION RATES,BY RACE,SEX,AND AGE:1960 TO 1978 (persona 16 years old and over.Labor force data are annual averages of monthly figures.Includes Armed Forces. Rates are based on total population of each specified group as of July and represent proportion of each speci· fied group In labor force.See also Hillloriral Slati3tiCl,Colonial Tim..to 1970,series D 29-41) TOTAL LABOR FORCE (millions)PARTICIPATION RUES (percent) BACE,SEX,AND IAOE1960 1965 1970 1915 1976 1977 1978 1960 1965 1970 1975 197&1977 l!I18 ------------I-------------- TotaL ______72.1 77.2 85.9 94.8 96.9 99.5 102.5 59.2 1Ill.8 60.3 60.9 61.2 &1.8 62.7--------------'-----------------Whlte._.__________64.2 68.6 76.4 83.9 lIS.7 87.9 90.2 58.8 58.5 60.2 61.1 61.5 6Z.1 62.9Male____________44.1 45.9 48.8 51.6 52.2 53.1 53.9 82.6 80.4 79.7 78.1 77.9 78.0 78.0Female__________20.1 22.8 27.5 32.3 33.5 34.8 36.3 36.0 37.7 42.0 45.4 46.3 47.4 48.8 Black and other___7.9 8.6 9.5 10.9 11.3 11.7 12.4 63.0 62.1 61.1 58.8 59.1 59.5 6UMale.__•_______•4.8 5.1 5.5 6.1 6.2 6.4 6.7 SO.1 77.4 74.7 70.4 69.7 69.8 70.SFemale__•_______3.1 3.5 4.0 4.8 5.1 5.3 5.7 47.2 48.1 48.9 48.7 49.7 SO.5 52.8 Male..___•___•___•48.9 SO.9 64.3 57.7 58.4 59.5 60.5 82.4 80.1 79.2 77.3 76.9 77.0 7T.~ UH9 years __•___3.2 3.8 4.4 5.1 5.2 5.3 5.4 58.6 55.7 57.5 60.2 60.3 61.8 62.7 llH7 years.___1.3 1.6 1.8 2.1 2.1 2.1 2.2 45.9 44.1 46.7 48.5 48.4 SO.O 5U •18-19 years.___1.8 2.3 2.6 3.1 3.1 3.2 3.2 73.1 68.3 68.8 n.l 72.1 73.5 74.0 20-24 yean_.___•4.9 5.9 7.4 8.2 8.4 8.6 8.8 88.9 86.2 85.1 84.6 85.2 85.3 85.125--34 years ______10.9 10.7 12.0 14.5 15.0 15.5 15.9 96.4 96.0 95.0 114.2 94.2 94.2 90 35--44 years_.__._11.5 11.5 10.8 10.6 10.7 10.9 11.3 96.4 96.2 95.7 94.8 94.6 94.9 ~.6 45--64 years ______9.6 10.1 10.5 10.5 10.4 10.2 10.2 94.3 94.3 9Z.9 91.1 90.6 90.3 00.4 55--64 years _____•6.4 6.8 7.1 7.0 7.0 7.0 7.1 lIS.2 83.2 81.5 74.8 73.5 73.0 7U 65 yr.and over__2.4 2.1 2.2 1.9 1.8 1.8 1.9 32.2 26.9 25.8 20.8 19.4 19.3 19.1 Female.___________23.2 26.2 31.6 37.1 38.5 40.1 42.0 37.1 3d.8 42.8 43.7 46.8 47.8 4U llH9 years._.___2.1 2.5 3.3 4.1 4.2 4.3 4.5 39.1 37.7 43.7 49.0 49.8 51.3 53.8 16-17 years_.__.8 1.0 1.3 1.7 1.7 1.7 1.9 28.6 27.5 34.6 40.0 40.6 41.9 45.% 18-19 years.___1.3 1.6 1.9 2.4 2.5 2.6 2.6 51.0 48.6 53.4 58.1 58.9 60.4 62.2 20-24 years._____2.6 3.4 4.9 6.1 6.3 6.6 6.9 46.1 49.7 57.5 63.9 65.0 66.4 611.2 25--34,·ears._____4.2 4.3 5.7 8.5 9.2 9.9 10.6 35.8 38.5 44.8 54.3 56.9 5ll.2 62.0 35--44 years.__•••5.3 5.7 6.0 6.5 6.8 7.2 7.6 43.1 45.9 SO.9 55.6 57.6 59.4 61.3 45--54 years ______5.2 5.7 6.5 6.7 6.7 6.7 6.8 49.3 50.5 54.0 54.3 64.6 55.5 56.~ M-64 years._____3.0 3.6 4.2 4.2 4.3 4.4 4.5 36.7 40.6 42.5 40.6 40.7 40.6 41.1 65 yr.and over..1.0 1.0 1.1 1.0 1.1 1.1 1.1 10.5 9.5 9.2 7.8 7.8 7.6 7.8 Source:U.S.Bureau of Labor Statistics,Special Labor Force Report•. SOURCE:Statistical Abstract E-ll un c4.._ The labor force participation rate in Alaska appears to be sub- stantially above the national average.In 1978,for example,the aggregate labor force participation rate was 63.2 percent for the United States.The rate for males was 77.9 percent and 50.0 percent for females.The comparable figures for Alaska were 71.4,81.1,and 62.4 percent.2 The relatively high labor force participation rates in Alaska,in spite of low participation rates for Native Alaskans,is attributable partially to the age structure of the population and partially to the mix of employment opportunities in the state.As Table E-4 shows,40 percent of total employees in 1977 were women,and they were heavily concentrated in government,services,finance/ insurance/real estate,and in retail trade.These are large indus- tries in Alaska;thus,the opportunity exists in Alaska for a large labor force participation rate for females. Because the Alaskan labor force participation rate is above the national average and has been rapidly increasing in recent years,it is unlikely that it will continue to increase substantially above what it is presently.Recall that in 1980 the ratio of civilian jobs to civilian popoulation between 15 and 64 years was 79.7 percent. Increasing integration of the Native community into the market economy will increase the Native labor force participation rate over time,but since the Native population is only a small component of total popu- lation,a large increase in the Native labor participation rate will have a relatively small impact on the aggregate participation rate. On the other hand,it is not likely that the participation rate will fall.An important factor operating to maintain a high participation rate is the age-sex structure of the population which will continue to be heavily weighted toward those cohorts with the highest participa- tion rates. E-12 2S tat istical Abstract,1979,Table 646,Civilian Labor Force and Participation Rates. I I f I..;..-----------------------------~-- ,~. TABLE E-4.WOMEN EMPLOYEES IN NON-AGRICULTURAL INDUSTRIES No.660.WO:'dEN EMPLOYEES IN NONAGRICULTURAL INDUSTRIES:1970 TO 1977 [Annual avprages of monthly f1gurtlS] 1910 1916 1977 ~ Percent of-Percent of-Pereent of- I~DUSTRY GROUP I Num-l Num-Num-ber Indus-Total ber Indus-Total ber IndWl'Total (1,000)try employ·(1,000)try employ'(1,000)try employ- group ment group ment group ment ------------------------- TOlaL ________________________126.060 37 37 31.498 40 49 32.!194 40 40------------ Manufacturing______________________5,436 28 8 5,590 29 7 5,816 30 7 Dun\ble goods ______________•____._2.278 20 3 2,446 22 3 2.612 23 3 N~ndurable goods_________________3,158 39 4 3.144 40 4 3,204 40 4 MlDlng __________•_____--------------37 6 (Z)58 7 (Z)65 8 (Z) Contract construction_--------------177 5 (Z)245 7 (Z)268 7 (Z) Transportation and public utllities__953 21 1 986 22 1 1,036 23 1 Wholesale trade_______•_______------877 23 1 1,039 24 1 1,079 25 1 Retall trade __________•____----------5,120 46 7 6,365 47 8.6,5'tJ7 47 8 Finance.Insurance,and real estate.__1,907 52 3 2,377 55 3 2,523 56 3 Services __________...______------------6,222 54 9 8,184 56 10 8,&18 56 11 Government_________.-__-------••--5,331 42 8 6,656 45 8 6,961 4il 8 Z Less than .5 percent. Source:U.S.Bureau of Labor Statistics,E",plOVMenl and Earning.,monthly. SOURCE:Statistical Abstract,1979,Table 660. The ratio of Alaskan to U.S.real disposable personal income per capita has been rising historically.Part of the explanation for this is the relatively rapid growth of the civilian non-Native population, and part is attributable to growth of the employment rate of the popu- lation.The high incomes during the pipeline construction years caused a temporary distortion of the ratio.It seems reasonable to project that the ratio of real incomes will remain in the vicinity of one in future years. The sensitivity of the net migration equation has been analyzed in two ways.First,the coefficient values for both regular employ- ment and special project employment were reduced by 25 percent (con- siderably more than one standard error).This is a worst-case sen- sitivity analysis because although different model specifications yield different values for these coefficients,there is generally an E-13 inverse relationship between them.The results of this sensitivity analysis are shown in Table E-5 where a base-case value,sensitivity- case value,and difference are displayed for population and the ratio of employment-to-population.(The base case here is a relatively slow growth scenario.) Reduction in the response of migration to population by 25 per- cent results in a change in the simulation value for population which is cumulative over time.The migration response is damped,and popu- lation growth slows.The difference by 1990 is only 11 thousand,but by 2000 it is 47 thousand. Analysis of the employment-to-population ratio shows that the lower rate of population growth associated with the dampened-migration- response case may be inconsistent with the employment growth simul- taneously occurring in the simulation.The employment-to-population ratio climbs to 56 percent from its value in 1980 of 50.9 percent. Given the already high ratio of employment to population in the state, it is not likely to grow another 10 percent in the next twenty years. Thus,although the simulation results are sensitive to the coef- ficient values for the net migration equation,the plausibility of the results can be tested by observing the movement of the employment-to- population ratio over the simulation range. A second sensitivity test was conducted to examine the effect on the simulation results of variation in the growth rate of real dispos- able per capita personal income in the United States.The exogenously projected growth rate was increased by 25 percent to 2.5 percent annually,which is the historical rate over the last twenty years. The results are shown in Table E-6.Increasing the rate of growth of income in the United States reduces the relative attractive- ness of Alaska and,thus,net in-migration,but the change is modest. The model proved to be insensitive to variation in this exogenous variable. E-14 TABLE E-5.WORSE CASE SENSITIVITY ANALYSIS OF NET MIGRATION EQUATION TO PARAMETER VALUE CHANGES I POPULATION 1980 1.913:L 1 ~f:3':;'~ J'i'E:3 .L '~':3·1 :L '~}~3 ~~.=.i 1.913 ,oS :I.~)tl7 19F::8 1989 1990 1.991 1992 1993 1994 1995 1996 1.997 19~E: 1.999 20()() EHPLOYMENTjPOPULATION Base Case 399.4~56 412.679 4:':,)2.16 431. 430.(;.'74 ·i ::>/'•::OJ 13 445.297 4~H .1'58 4~i8.341 466.727 47~5.979 4r:l6.1.42 4';>"7.179 ~)OB.874 ~5~~:i..31~~ ~'j34.~'j7:1. ~:=j48+61"7 ~~j63.i)('J 1. ~)l9 v 036 ~::;I)~5 •5 ~:.;2 r.':o12.ti34 Sensitivity Case 3''J9.456 411.258 419.804 427.413 427.833 43~5.661 440.12 445.\~32 451.1.67 457.922 465.211. 41'3.087 4t!1.512 490.334 499.618 509.41.1 519.688 530.473 541.648 5~i3.4:22 ~565.6:34 Difference O. -1.4~:~1. ~~I~~-~.~~o -3.587 -3.141 -3.918 -5.1.77 -,!).126 -7.1.74 -8.805 -1.0.768 -1.3.055 -l5+6t.:'~7 -J 8 •~"i3'7 --.21.6'7'4 -25.16 -,,28.929 -:n.01.8 -2>7 ~3B8 --4:~.:l.3 -,47.::.::01 £-15 ~ote:Coefficients on change in employment variables reduced 25 percent . "j j t I ......L :l.(?DO :L ''7'Ci .I. :L 9G;2 :L ':1'::;::3 :I.')'(,:l4 :I.9t~5 :I.(,;:'[:6 .L '?t:::/ 1988 :1.989 1990 1991 1992 :1.993 :1.994 :1.995 1996 J 9(.;·:'7 I.s·:',~)::::: :I.9':,;'(,;:' ::?<><:J 0 0.509 O.~;O9 O. 0.50'7 0.509 O.()O~2 i).i)';>;:]0.:301 0.003 0;,4'7'7 ().~:j02 Ov()()~.'5 0.495 0.499 0.004 0.494 0.499 ()C'()O~:5 o y l}~;·'·4 o •~5 ~~r.I',, \).:-1...J~jl~ ()->....~.(?:.3 O.~5 ~,.........' t),~\)I,)~,,::• 0.4'7'3 .....r:".-.~'."._,u •~.J U·;.I\.)~,I / 0+4(})4 o +~:'=';O2 o ~()()~'3 O ..4?6 ".I';~'..'O.OJI,)•,:J \}(:> ()+•.f:}'';'S}0.5J O(o()l::~: ()i'~;02.O.:::;1~5 0.0:1.3 o (0 ~:;O~)....r::····)O.O:l.~:)\}....!..:.. ()(r~508 ()+:~;::.::~.3 ",,...,-..\,t y ',.•'••/ ,~""1 '"O.~:j31.O.~0 J (.r'\}•,'.'!,.:: 0.'516 ,...r:--.......()•0 ::::::1.U.,~),:ll O;,~::j19 ()~54:':)O.~()~?3 (),.~5 ;.~.~:3 (I .:-~.~:j -4 ::~o ~O::.:~6 o '"~:.~i ;.~~?O.~~j~:54 o ~O?t~ ()..~.:.:j 3 "r.,"'-.)."l)..:)C .,)....I~j TABLE E-6.SENSITIVITY OF NET MIGRATION EQUATION TO INCREASE IN GROWTH RATE OF REAL INCOMES OUTSIDE ALASKA POPULATION 1""! I 1 S·;)'9 1 '?\~13 :I.':?H4 19;::::7 .I.'7'::;l (1 .1.990 .I.)':.'}.I. 1 (?92 .I.c;':;':3 I.()?4 .I.':)')'.? :I.(';:-'::;':3 .I.')':;.;":) .:~()()() Base Case 40?')31 -4 1 .:?"6 .)'';' 42.~2.J6 43.1.. ·430,.974 43)',~':ie "'~~4 ~5 <-::.~(?~:.:' -4 ~~)1 ~'.:,:.'~.:5 ~3 4 ::):3 .,:.3 .il·1 46.:':,.,")'::!.)' ~.'52.1.•:3.1.::.:,: ~'.'.i 3 4 .,:.:'.;'.?:I. E-16 Sensitivity Case .~:~::~.~,~:t ,;.2 1 ~:) 4 ~.~~j:l..:.~~:;',7 B <:}::::::.'J •1 ~?ci' .::~':,~'~:'.i .,')1 .;:) Difference I..}.~ "-0.0.1.7 ....()v O~:i2 "-0,:I.I::: ....0.,.:3:1.)' ....0 ,.·4(:·:':1. ",. ._.•.).~/l~j ~'.) .....L .,::.:~(;.'l .....I.,.,-';.1. ..-.'".......:.- roo.;'() ;::~OC'1 ,.(, 2:()()\.0 100'0 TOO ....O T ()O \~0 TOO"0 TOO"O .:.() +() CI;)Ud.1C1JJ1=U .\:::~:.~!':'::(0 0 (,.:::~:~~(0 0 ~;';~(::~;~;.:.0 !Ti;';;'(" t.'T(;';;,;,() T';;;'0 s:·o~~;'0 /.t;.t.,·(0 0 ~~~6t'·O f6t'·O t",~,t,•.) t",~,t:-'0 ~;';;(:,t;,,0 i:',,S to'•0 ~3 ,:';.t.~.<.() {.~'.0 !:~(.0 ,'::l I;;;"0 S:':/,l:.r •0 ClseJ Al 1=lI.n 1=SUdS Ll-a .E~~(0 0 l?~!~~;f 0 E:0 ~~':~<.0 ~~;:0 ~~~;(0 0 7,'(',f"•(') ~...~....:1 ," /:.6V'O b6t,,·0 ft.lt:"O f:t.:,V "() t>(;')t,.;,0 ~~~{1 \:.1 ~.0 l.,6 l"•() ~:~6t ..+O 6 ()~':;:(0 () 2:T~~~~() :'i,:/t"•0 ~.;~/.t.=--,.0 ()OO? 6(':·(,T 9(,6 T ~~~~(;':,(~:'T f:6(':-T (~l f::T Tci(:iT 066T 6~:l6 T ~3t:6 T Sl El f.;,T ~;;;e,::.\T t"::3,~:-T (:::::l,:;",T T ~3,~:-T OB6T (:,/,6 T ~:l!(;,1" l.l.6 T NOIIV1GdOd/lNlRX01dW3 IV.Conclusion Net migration is difficult to model accurately because the time series is calculated as a residual,and population itself is only an estimate in non-Census years.The approach taken in the ~~p model is to try to use that portion of the historical data which is relatively accurate to econometrically specify a relationship between net migra- tion,the growth of employment opportunities,and relative income. The current specification works reasonably well.Work continues on refining the model equation.This work centers on two areas.The first is analysis of the underlying data for accuracy.The second is equation respecification to explicit~y treat the unemployment rate and the change in the size of the Alaskan potential labor force,and to define more accurately the relationship between large construction f projects and net migration.I i f f E-18 13GOW NOI!VZI1VNOI~~ ! t ___________________________.~III!__ ",~ "w I.Introduction This appendix presents in general outline form the structure of a new regional model being developed to replace the Man-in-the-Arctic Program (MAP)r~gional model in the Susitna Electric Power Study application. In developing this model,several major objectives have been addressed.These objectives are the following: •that the structure be simple and generalizable •that the parameters be specified in terms with clear, intuitive meaning •that the regions be disaggregated to census division levels •that the model be sufficiently flexible to be tied easily to the MAP statewide model. This appendix is organized as follows:Part II examines in ~ detail the structure of the model.Part III presents estimates of the model parameters. II.Structure of the Model A.Overview The model consists of two components as shown in Figure F-l. Given an exogenous estimate of statewide employment,by sector (pro- vided from a corresponding state model run),and vectors of basic and government employment in each of the twenty regions shown in Figure F-2,the employment component of the model generates estimates of support and total employment in each of the twenty regions.The population component accepts these estimates along with exogenous F-l • REG I ONAL IZATIO~ MODEL POPULATION COMPONENT BETA(t) GAM~1A (t) MAP STATEWIDE ~10 DE L l ----t <I I I I I I I I I I I I 1 I I I I[p;]I I I I I I\-.J---_ Figure F-l.SCHEMATIC REPRESENTATION OF REGIONAL MODEL CDMOD 1-------1---- I llr I I 01PLOYMENT I CO~1PONENT- I -.. I 1 F-2 I________________________'.t __ .P-l>-taz Q\) Sitka ~Standard Mctropolitan Statistical ArC;JS (SMSA's) Figure F-2 Census Divisions Cer.tral cities of SMSA's with fewer thano50,000 inhabitan:s I I g F~irbanks (09) Aleutian 1~land5 (part)(')0 (GH)~e=> ~,.ttl ~0 0 '''i)./}C::=' ~; \ c---'---_ ~ Kodiak (IS) t4. ~ Bri~:ol Say J'Y/,ob.'\r\.~_,~d~7~~ •Bd"o'.~v '£0""'2 I)'-~ /1:c'J:;"n 151 and~(partl (tS I) -;"->,<)tl.., C.~..t?~t'> '"rj Iw estimates of statewide population (also from the statewide model)to generate regional population estimates. B.The Employment Component Each of the twenty regions is disaggregated into three types of employment:basic,government,and support.Basic employment consists of all sectors or portions of sectors treated as exogenous in the state model:agriculture,forestry,fisheries,manufacturing,mining, construction,and a portion of transportation.Government consists of federal civilian and military employees as well as state and local employees.Support includes all other employment. The structure of the employment model is as follows: Define:S ..=Support sector employment in region i serving 1.J region j B.=Basic sector employment in region i. 1. G.=Government sector employment in region 1.. 1. M.=Total employment in region i. 1. Ci .•=Proportion of region j support requirements 1.J supplied by region i. b.=Support employment required per unit of total J employment in region j. Total employment in each of n regions is written: S11 +S12 ++S +Bl +Gl =MlIn (1)S21 +S22 ++S2n +B2 +G2 =M2 =Mn F-4 Total support sector requirements within each region may be written: 5 n + 5 21 ++ 5 nl =blM l (2)5 12 + 5 22 ++ 5 n2 =b 2 M2 51 +52 +.. . + 5n n nn =b Mn n But 5 ..=a ..b.M.,so that system (1)may be rewritten: 1J 1J J J (1') allblM l + a 12b 2M2 + a 21b l Ml + a 22b 2 M2 + +alnbnMn + Bl + Gl = Ml + a 2nb n Mn + B2 + G2 = M2 a lblM l +a 2b2M2 + . . . +a b M + B + G =n n nn n n n n Mn or,in matrix notation, A =[a ..b.) 1J J M =[M.)1 AM+B+G=M where B =[B.]1 G =[G.)1 If the A matrix were known,then total employment is calculated as a linear function of basic and government employment,or By incorporating known regional F-5 M =[I -A)-1 [B +G) Of course,we do not know A. (3) data with a single simplifying assumption and a behavioral hypothesis describing the allocation of interregional support demands,however, it is possible to estimate A for a point in time,say 1979. .~ ij %\.~ Ii '4, 1 ...J._------- ------------------------------------- Known Regional Data.Regional employment for 1979 was available from the Alaska Department of Labor publications,specifically Statis- tical Quarterly and Alaska Economic Trends.The breakdown of such employment by basic,government,and support sectors is shown in Table F-l for 1979. A Simplifying Assumption.Since the major concern of the regional model is to capture the effect of support sector demands which are supplied in regions other than the one giving rise to such demands, rather than to examine the effects of differential support demands across regions,it seems plausible,or at least not overly restric- tive,to impose the condition that (4)b l - b --2-=b n B +G=b=(l-)M That is,a unit of total employment,wherever it occurs in the state, is assumed to give rise to the same support sector requirements.The difference between regions,then,is solely the difference in the locations from which these demands will be supplied. This assumption has the obvious disadvantage that it neglects real interregional differences in demand for support sector services. However,it also has several advantages which may more than compensate for this shortcoming.Most obviously,it reduces our estimation problem by n-l parameters.More importantly,it is extremely valuable as a tool for maintaining consistency with the statewide MAP model, both in a static and a dynamic sense.Currently,a unit of basic sector employment in the state model has the same static employment impact regardless of its location in the state.Regionally varying b.'s would produce differing total statewide static impacts by loca- J tion,thus being inconsistent with the state model.Furthermore,the introduction of b exogenously provides a valuable tool for maintaining dynamic consistency between the models.By letting b vary with time so as to reflect the corresponding state run,we both force the F-6 ,~ TABLE F-l.EMPLOYMENT COMPOSITION,1979 Support Basic l Government 2 Total Region (S.)(B.)(G.)(M. 1.1.1.1. ~-- ~l Aleutian Islands 377 2,463 3,264 6,104 ~2 Anchorage 45,404 13 ,828 34,009 93,241 04 Barrow/North Slope 594 3,467 1,514 5,575 05 Bethel 1,917 420 1,360 3,697 ~6 Bris tol Bay;~839 1,778 1,197 3,814 ~8 Cordova/McCarthy 403 1,005 344 1,752 09 Fairbanks 11,191 3,584 12,801 27,576 11 Southeast Alaska**9,475 9,284 11,081 29,840 12 Kenai/Cook Inlet 2,819 3,564 1,481 7,864 14 Kobuk 402 114 935 1,451 15 Kodiak 1,644 3,631 2,051 7,326 16 Kuskokwim 123 13 435 571 17 Matanuska/Susitna 1,505 560 1,345 3,410 18 Nome 1,083 298 980 2,361 21 Seward 433 709 390 1,532 24 Southeast Fairbanks 240 149 1,636 2,025 25 Upper Yukon 99 25 302 426 26 Valdez/Chitina/Whittier 715 678 927 2,320 27 Wade Hampton 208 236 595 1,039 29 Yukon/Koyukuk 506 807 1,208 2,521 ST Statewide 79,977 46,613 77 ,855 204,445 *Includes Bristol Bay and Bristol Bay Borough Census Divisions. **Includes the following Census Divisions:Angoon,Haines,Juneau, Ketchikan,Outer Ketchikan,Prince of Wales,Sitka,Skagway-Yakutat, and Wrangell-Petersburg. lMining,manufacturing,construction,agriculture-forestry-fisheries, and miscellaneous. 2Federal,state,and local government. F-7 "..4 _ A matrix to vary over time to reflect the same degree of structural change represented by the state model and force the employment totals to replicate the statewide results. A Behavioral Hypothesis.The major reason that not all support sector requirements are supplied internally from that region is that it would be more costly to do so than to secure those services from a different region.It is only natural,then,that the cost of supply should be the maj or determining factor in deciding on which other regions to supply the requirements.Such costs as transportation, communication,etc.are generally expected to increase with distance and to decrease with the size of the support sector source of the region.Specifically,we will assume that such costs are: (5)c .. 1J R .. =k ~M. 1 where c .. 1J R ..1J M. 1 k =cost of supplying a unit of support service to region j from region i =distance*between regions i and j =total employment of region i an arbitrary constant and are as presented in Table F-2 for k =1000. The total costs of interregional service provision are then: (6) n n eLL j=l i=l C ..S ..1J 1J We hypothesize that the S ..'s actually chosen in any given time period 1J are chosen in such a way as to minimize the costs of providing the required services observed in region j from each of the sources of such supply i. *Air fares were used as a proxy for distance since straight line distances fail to capture the structure of statewide transportation and communications networks. F-8 ~TABLE F-2.ASSUMED COSTS OF INTERREGIONAL SERVICE PROVISION ~and Region jl2 114 jl5 jl6 ~8 ~9 11 12 14 15 16 17 18 21 24 25 26 27 29SupplyReg~jll III Aleutian Islands 0 33 52 45 23 57 42 47 36 48 41 40 37 48 37 48 47 40 47 44 112 Anchorage 2 0 1 1 1 *I 1 *1 1 **1 ..'(1 1 *1 I 114 Barrow/North Slope 57 20 0 33 30 26 15 36 22 29 29 22 24 29 24 25 20 28 38 24 115 Bethel 75 20 50 0 35 29 28 43 25 36 33 32 25 25 26 44 37 32 8 38 116 Bri stol Bay 37 15 45 34 0 23 28 37 19 39 13 26 20 39 20 38 37 26 36 33 116 Cordova/l1cCarthy 199 16 83 61 50 0 47 38 29 70 46 43 30 70 31 68 66 13 64 57 119 Fairbanks 9 2 3 4 4 3 0 4 3 3 3 2 3 3 3 2 1 3 5 2 11 Southeast Alaska 10 3 7 5 5 2 3 0 3 6 4 4 4 6 4 5 4 3 6 5 12 Kenai/Cook Inlet 28 2 16 12 9 6 9 13 0 14 8 6 5 14 5 13 13 6 IJ II ~14 Kobuk 203 63 112 92 101 65 57 122 75 0 96 76 76 26 78 97 79 93 72 34 I 15 Kodiak 34 7 22 17 7 11 11 18 9 19 0 13 9 19 10 19 16 13 20 16 '"16 Kuskokwim 433 77 215 207 175 133 74 228 109 194 161 0 112 123 116 177 131 154 256 49 17 l1atanuska/Susitna 65 6 39 26 22 15 21 31 11 33 20 19 0 33 12 32 30 19 30 26 16 Nome 125 39 69 39 62 52 35 75 46 17 59 30 47 0 48 60 49 57 27 21 21 Seward 147 14 89 63 51 35 48 70 26 74 46 43 27 74 0 72 69 43 67 59 24 S.E.Fairbanks 144 43 69 60 71 59 29 79 52 70 67 50 53 70 54 0 45 65 63 54 25 Upper Yukon 674 197 268 319 329 272 77 315 239 270 310 176 244 270 249 216 0 300 385 197 26 Valdez/Chitina/ Whittier 106 19 68 51 43 10 41 38 27 58 40 38 28 58 28 57 55 0 54 48 27 Wade Hampton 273 78 204 27 132 109 126 161 95 101 144 141 97 62 99 163 158 120 0 110 29 Yukon Koyukuk 107 27 52 56 49 40 20 61 34 20 46 11 35 20 36 44 33 44 45 0 ,.Indicates C..<0.5. 1J Estimating the Interregional Interaction Matrix.The hypothesis of (c)and the condition of (b)imply that our observed 1979 data represented the solution to a constrained minimization problem of the form: n n Min L L C ..S .. j=l i=l 1J 1J ST S11 +S12 ++S2n =M79 -B79 -G79 1 1 1 S21 +S22 + +S2n =M79 -B79 -G79 2 2 2 S +Sn2 ++S =M79 _ B 79 -G79 nl nn n n n (7) b 79 M79 S11 +S21 + +S =nl 1 S12 +S22 + +Sn2 =b 79 M79 2 S ..>0 1J "If!i ,j F-IO 79 79 .Note that 5 ..=CJ.••b M.,so that problem (7)may be reformulated 1n 1J 1J J terms of decision variables with a far more intuitive meaning than the 5 ..'s,namely the CJ.••'s.The reformulated problem is then:1J 1J Min b 79 n l j=l n l i=l 79C..CJ.••M. 1J 1J J 79 5T 79 79 •CJ.M79 /M 79 =N1 I b 79CJ.ll +CJ.12 M2 IM l +. ln n 1 ~9 M1 79 79 79 •CJ.M79 /M 79 =N2 I b 79CJ.21 Ml 1M2 +CJ.22 + . 2n n 2 ~9 M2 79 (7')CJ.M79 /M79 +CJ.M79 /M79 +..CJ.=Nn I b 79 nl 1 n n2 2 n nn ~9 Mn CJ.ll +CJ.21 +.. +CJ.nl =1 CJ.12 +CJ.22 +.. +CJ.n2 =1 CJ.l +CJ.2 +.. . +CJ.n n nn =1 where CJ.••>01J N?9 =M?9 1 1 V i,j B79 i G79 i which,assuming that a feasible solution exists,can be solved using a standard linear programming routine. F-ll --~ a rna trix which we Each entry,a ..,repre- 1.J in region j supplied fromrequirementssupportshareofthe The solution,a set of nxn a ..'s,comprises 1.J will call the regional interaction matrix. sents region 1..Each of the columns,therefore,must sum to unity.Thus,a quick glance down each column provides a subjective test of the plausibility of the matrix.~priori,one would expect nonzero entries in all of the diagonal elements and along the rows of the regional support centers (Bethel,Fairbanks,Nome,)and probably along the entire row corresponding to Anchorage,which is a statewide sup- port center. Swnmary.Once the regional interaction matrix has been deter- mined for a single year,say 1979,then this together with b 79 deter- mines fully the A matrix which existed in 1979.For projections to a future period t,we will assume that the interregional interaction matrix remains stable,but that b changes in the regional model as it does in a corresponding run of the statewide model. employment is estimated in year t as Therefore, (8)M(t)=[I -A(t)]-l [B(t)+G(t)] where A(t)79=bet)[a ..] 1.J 3.The Population Component Currently,the population model is specified as independent of the employment model.We can define: R ..=Residents from region i working in region j 1.J ~..=Proportion of employees working in region j residing 1.J in region i R.=Resident employment in region i 1 P.=Population in region i 1. d.=Dependents per employee in region i 1. F-12 . Total resident employment in the regions may be written as: (9) R 11 +R12 + R21 + R22 + +Rln =RI + R2n =R2 Rnl + Rn2 + .. + R =Rnnn or,since R ..=~..M.,as 1J 1J J ~IIMl +~12M2 +. +~lnMn =RI (9 ')~2IMI +~22M2 ++~2nMn =R2 ~nIMI +~n2M2 +. +~M =Rnnn n ... Total resident population may then be written: (l+dl)~IIMl +(l+dl)~12M2 +...+(l+dl)~lnMn =PI (10)(l+d2)~21Ml +(l+d2)~22M2 +...+(l+d2)~2nMn =P2 (1+d )~IMI +(l+d )~2M2 +...+(l+d)~M =Pn n n n n nn n n or in matrix notation (11)QM =P where Q =[(l +d . )~..] 1 1J M =[M.] 1 P =[P.] 1 Now,the interregional structure of nonresident employment is captured in the Q matrix,called the location matrix,which is unknown and must be estimated. F-13 Generally,there are three properties which this matrix should ideally satisfy.First,it would be desirable that such a structure reflect differential dependency rates across regions (d.~d.). ~J Second,it should reflect independence of extra-regional employment changes.That is,if employment does not change in region i,popula- tion should not change in region i.Third,it should be cons istent with the state model.Unfortunately,it is impossible to satisfy all three properties simultaneously. The first and second property may be satisfied by assuming that employees reside in the region of their employment.If such is the case,then the interregional location matrix,composed of the t3 ..'s, ~J is the identity matrix,and system (9)implies that (12)d.P.I=~- ~M. ~ (i =1,...,n) so that Q is a diagonal matrix which can be estimated using 1979 data. Unfortunately,this procedure cannot be made consistent with the statewide model since total population impacts of changes in the scenarios will be dependent on the location of employment as well as its magnitude,while it is currently independent of location in the statewide model. By adjusting the d.'s over time,so that ~ (13) L M~ ~a (t) where aCt)=statewide population-to-employment ratio,we can force consistency with the state model,but at a cost of giving up the independence of extra-regional employment change property.Now,a change in employment in region j 1 i will change the adjustment factor in (13),thus changing total population in region i even if employment does not change in region i. F-14 Consistency with the state model and independence of extra- regional employment changes may be achieved by requiring that all d.'s 1 are equal to the statewide average,but this fails to satisfy the first property and is inconsistent with an identity location matrix. If we are willing to abandon the first property,the problem may be solved in much the same way as was the problem posed in estimating the parameters of the employment component,by solving the following linear programming problem: n n Min L L j=l i=l C ..R ..1J 1J 798TRll+ R12 + . . . + Rln = R 1 R21 + R22 + . . . + Rnn =R79 2 (14)R 1 + R +.· + R = R 79 n n2 nn n Rll + R21 + .· + Rnl =(1+d 79 )M~9 R12 + R22 + .· + Rn2 =(1+d 79 )M;9 .....oill R l + R2 +.. . + Rn n nn =(l+d 79 ) M 79 n F-15 or alternately,since R ..=(l+d 79 )~..M~9 1.J 1.J 1. n n Min (l+d 79 )l l 79C..~..M. 1.J 1.J J j=l i=l A M +A M + +A M =P2 /(1+d 79 )~21 1 ~22 2 ...~2n n (14 t ) ~ll +~21 + . . . +~nl = 1 ~12 +~22 + . . . +~n2 = 1 ~ln +~2n + . . . +~nn = 1 The current version of the model adopts the second of these three alternate procedures,using an identity location matrix and adjusting the d.'s over time as described by equation (13).1. F-16 , ......... While such a procedure has the obvious advantage of simplicity, it has several serious drawbacks.First,as mentioned earlier,such a specifica tion necessarily will produce population impacts in regions where no employment changes have occurred,as a consequence of the adjustment factor in equation (13).The operation of this factor gives the model the property that growing regions will attract popula- tion from (relatively)stagnant regions.However,within the con- straints of the limited scope of this project,it was felt that such a drawback was less serious than those associated with the available alternatives.Furthermore,there are several reasons to believe that this effect is likely to not be a serious shortcoming of the model. First,the population drawn from stagnant regions is quite small and is generally offset by induced increases in government employment which are always more widely dispersed than initial changes in basic employment.More importantly,however,the direction of the effect will always be the same as a real effect--interregional migration, which has been neglected entirely.Thus,the drain may actually offset,at least in a small way,a known estimation error.Nonethe- less,the population estimation procedure must be regarded as gener- ally much weaker than the employment component described earlier,and it needs to be improved with further research. III.Parameters of the Model A.The Regional Employment Interaction Matrix The 1979 [a ..J matrix estimated by the linear programming routine 1J for the problem described in Part II is presented in Table F-3.Note that the pattern is as would have been expected.All diagonal terms are nonzero,with the larger support centers being self-sufficient (having diagonal entries of 1).Anchorage and Fairbanks appear to be the only significant support centers,with Anchorage supplying most regions and Fairbanks supplying Kuskokwim,Upper Yukon,and Yukon- Koyukuk.Two local support centers emerge,with Bethel supporting Wade Hampton and Nome supporting Kobuk. F-17 TABLE F-3.EMPLOYMENT INTERACTION MATRIX,1979 Demand Region Supply Region ~l ~2 ~4 ~5 ~6 ~8 ~9 11 12 14 15 16 17 18 21 24 25 26 27 29 ~l Aleutian Islands .16 ~2 Anchorage .84 1..73 .44 .41 .19 .08 .01 .43 .28 .7 .21 .25 ~4 Barrow .27 ~5 Bethel l..49 ~6 Bristol Bay .56 ~8 Cordova/McCarthy .59 ~9 Fairbanks l..45 .41 .24 11 Southeast Alaska .81 12 Kenai/Cook Inlet .92 ~14 Kobuk .71 I......15 Kodiak .57co 16 Kuskokwim .55 17 Matanuska/Susitna l. 18 Nome .28 1. 21 Seward .72 24 S.E.Fairbanks .3 25 Upper Yukon .59 26 Valdez/Chitina/Whittier .79 27 Wade Hampton .51 29 Yukon Koyukuk .51 ,, 1 J l~-~,~ _.~ B.Employment Location Matrix As discussed above in Part II,the regional employment location matrix will,in this application,be assumed to be the identity matrix. C.Population/Employment Ratio Vector The vector of population-to-employment ratios for 1979 is pre- sented in Table F-4. TABLE F-4.POPULATION/EMPLOYMENT RATIOS,1979 Population/ Region Population Employment Employment - ~l Aleutian Islands 7,030 6,104 1.15 ~2 Anchorage 177 ,981 93,241 1.91 ~4 Barrow/North Slope 4,771 5,575 0.86 ~5 Bethel 9,739 3,697 2.63 ~6 Bristol Bay 5,204 3,814 1.36 ~8 Cordova/McCarthy 2,475 1,752 1.41 ~9 Fairbanks 54,000 27,576 1.96 11 Southeast Alaska 51,319 29,840 1.72 12 Kenai/Cook Inlet 23,244 7,864 2.96 14 Kobuk 4,695 1,451 3.24 15 Kodiak 9,956 7,326 1.36 16 Kuskokwim 2,941 571 5.15 17 Matanuska/Susitna 18,910 3,410 5.55 18 Nome 6,755 2,361 2.06 21 Seward 3,152 1,532 2.06 24 S.E.Fairbanks 5,507 2,025 2.72 25 Upper Yukon 1,482 426 3.48 26 Valdez/Chitina/Whittier 7,013 2,320 3.02 27 Wade Hampton 4,853 1,039 4.67 29 Yukon Koyukuk 5,325 2,521 2.11 ST Statewide 406,352 204,445 1.99 F-19 IV.Railbelt/Nonrailbelt Interactions By rearranging the rows and columns of the regional employment interaction matrix,it is possible to isolate the seven census divi- sions of the railbelt and examine its linkages to the rest of the state.The seven rows corresponding to the railbelt are presented in Table F-S. Note from the table that the railbelt,taken as a whole,is self-sufficient (i.e.,the column sums within the railbelt partition all equal 1).Therefore,the railbelt itself exerts no support sector demands on the rest of the state. TABLE F-S.RAILBELT PARTITION OF THE [a .. ]MATRIX 1.J Demand Region Supply Region ~2 ~9 12 17 21 24 26 ~2 Anchorage l..08 .28 .7 .21 ~9 Fairbanks l. 12 Kenai/Cook Inlet .92 17 Matanuska/Susitna l. 21 Seward .72 24 S.E.Fairbanks .3 26 Valdez/Chitina/Whittier .79 Thus,we might rewrite the regional employment interaction matrix,treating the railbelt partition as a single region,supplying all of its support sector demands but having demands put on it from the rest of the state as shown in Table F-6. F-20 ....,,«,,«<<""<""""C<",""<,.,.,'"'~""~"_"";""~-'I._""'.i2~"'~~""~#~~~~~Ht<aHirl N&itrl'*¥-lJt!rAA~~fi";ii9.1U*iRirt@®ffjhirtftiJf.Kneer t ad TABLE F-6.RAILBELT/NON-RAILBELT INTERACTIONS Demand Region Supply Region RB ~l ~4 ~5 ~6 ~8 11 14 15 16 18 25 27 29 RB Railbelt l..86 .23 .44 .41 .19 .29 .43 .45 .41 .49 .49 ~l Aleutian Islands .14 ~4 Barrow .27 ~5 Bethel l. ~6 Bristol Bay .56 ~8 Cordova/McCarthy .59 11 Southeast Alaska .81 14 Kobuk .71 "':I 15 Kodiak .57I N I-' 16 Kuskokwim .55 18 Nome 1. 25 Upper Yukon .59 27 Wade Hampton .51 29 Yukon Koyukuk .51 The structure can then be summarized as follows:The railbelt is itself self-sufficient,imposing no support demands on the rest of the state and,furthermore,is the exclusive source of external supply to all nonrailbelt regions,except Bethel and Nome which appear self- sufficient. 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