• State Planning Office
  

This report measures the losses of the public sector relative to the losses of the private sector that would be incurred if the spruce budworm epidemic is not controlled in the 1976 proposed project area. The loss to the private sector as calculated in the "Benefit /Cost Evaluation For Proposed 1976 Maine Spruce Budworm Suppression Project" study is based on the loss of stumpage values (the residual value remaining from the milt delivered price after deducting all costs of harvesting and delivery to the mill). To insure comparability between public and private losses, it is necessary to measure the public losses on the same conceptual footing. Therefore, the State's losses are measured in terms of potential net revenues lost and net incremental costs incurred because of the spruce budworm epidemic. Only by measuring the losses to the state in the same terms as the private losses can the relative benefits of the budworm control project be derived.

Losses to the public sector fnom not managing the epidemic can be expected because of declines in recreational activity, public lands stumpage values lost, tree growth taxes lost, and incremental fire protection costs incurred.