Revenue Effects on Nevada's
Economy
A 1988 survey of 400 members of the National
Association of Corporate Real Estate Executives found that, in making decisions
about business location, the existence of a repository within 100 miles of a
community would detract substantially from its suitability as a location for
administrative offices, business and professional services, and businesses to
serve the hospitality industry. Fifty-two percent (52%) rated "a site adjacent
to a highway leading to an underground facility for disposing of radioactive
waste" as a "very influential" negative factor in making a location
decision.
These stigma effects are potentially of significant magnitude. In the event
of a radioactive waste accident or incident that caused Las Vegas to become
commonly and negatively associated with radioactive imagery, behavioral responses
in terms of the visitor economy, in-migration, and economic development could
result in substantial negative impacts. Estimates of 5, 10, and 20 percent or
larger reductions in key economic sectors are not inconsistent with the empirical
evidence gathered.
A one percent drop in visitors in the year 2010 (endnote 13) would result in
a decline of about $155 million in spending in the Las Vegas area; a five percent
decline would mean a decline of more than $775 million; a ten percent decline
would mean a decline of over $1.5 billion. (For comparison, the recession of
1980 and 1981 resulted in Las Vegas visitor declines of about 1% for 1980 and
1.5% for 1981.)
The research suggests that for each one percent drop in tourism, State revenues
would be reduced by approximately $7 million and employment in Clark County
would drop by approximately 7,000 jobs
Under current State tax laws, repository-related increases in population cost
the State and local governments more for providing public services than they
provide in revenues, and that difference is between $670 and $1,000 per person,
per year (endnote 15). This is a consequence of the "standard effects"
of the project and is separate from any stigma-induced economic effects that
may occur during the life of the program.
(source: www.state.nv.us/nucwaste/yucca/ymsum01.htm)