The Value of Wyoming’s Forests

Wyoming’s forests are essential ecosystems that regulate and supply water, provide wildlife habitat for valued species, store carbon, and provide recreational opportunities, among many other important benefits. Throughout the state’s history, forests have shaped communities and industries. They also support a deep cultural heritage, livelihoods such as ranching and timber, and key aspects of public health. And beyond Wyoming, the state’s forests store and provide water to four major river basins in North America.

Investing in forest conservation and restoration will be critical for retaining the benefits provided by our forests well into the future. But first, can we quantify their economic worth?   

To accelerate investments in forest health we must start with better understanding of the economic value of “ecosystem services” provided by forests – benefits that are foundational to our traditional industries and essential to our quality of life, but which we generally take for granted. Better awareness of our forests’ full value is especially important because conservation investments are often seen to compete with other economic development priorities.   

To enable more clear economic comparison, The Nature Conservancy in Wyoming and Wyoming State Forestry Division conducted a study to estimate the monetary value of the benefits provided by Wyoming’s forest ecosystems. When costs and benefits from different land use options are evaluated with the same metrics (i.e., dollars or dollar equivalents), the comparative value of conservation can become more evident. Ultimately, this information can be used to help our natural resource management agencies, the private sector, communities, and other stakeholder groups make more informed decisions about investments in forest health. 

This study valued 15 ecosystem services provided by 9.2 million acres of forests on public and private land in Wyoming that have not traditionally been monetized:   

1. Aesthetic information 
2. Air quality 
3. Biological control 
4. Cultural value 
5. Energy and raw materials 
6. Flood risk reduction 
7. Food 
8. Global climate stability 
9. Local climate regulation 
10. Recreation and tourism 
11. Science and education 
12. Soil retention 
13. Water supply and storage 
14. Water quality 
15. Wildlife habitat  

Some of these ecosystem services were studied more in-depth because of their particular relevance and importance in Wyoming. These included water supply and storage, recreation and tourism, climate regulation, and wildlife habitat. 

While Wyoming’s forests have long-supported important industries like ranching agriculture and timber harvesting, this analysis was used to highlight ecosystem services that have not been traditionally monetized. Nevertheless, these industries are inextricably linked to the benefits provided by Wyoming’s forest ecosystems and play significant roles in their management.  

Agriculture   

Agriculture plays an important role in the Wyoming economy, generating $2.1 billion of gross revenue in 2014. This production generates total economic activity of $4.2 billion in the state’s economy, which supports more than 33,000 total jobs and nearly $950 million of total labor earnings ( Taylor et al., 2017 ). Forested rangeland plays a critical role for many Wyoming ranching operations, supplying a main source of forage during certain seasons of the year. Wyoming ranches hold approximately 1,982 federal grazing permits, representing 2.4 million Animal Unit Month (AUMs) of grazing, many of which are associated with forested lands ( Taylor et al., 2022 ).  This study required defining forests as areas with tree cover, which resulted in the omission of most grazable "rangelands" located adjacent to forested lands.

Timber   

Wyoming’s forest product industry is also a significant component of Wyoming’s economic and employment picture. A 2018 analysis reported that primary and secondary wood products manufacturers, and forestry, logging, and forestry support firms directly contributed approximately 952 jobs and $41.4 million in labor income to the State. In total, 30 primary wood-processing facilities were in operation across 15 Wyoming counties in 2018. These facilities included a wide variety of wood-processing capabilities – 12 sawmills, 12 post and pole producers, 2 log home manufacturers, 1 log furniture manufacturer, and 3 other wood products facilities ( Marcille et al., 2021 ). Noteworthy, also, is the economic commerce that takes place between Wyoming and its neighboring states, driven by the wood products provided by forest ecosystems. 

Using the National Land Cover Database and LANDFIRE's Existing Vegetation Type (EVT) Database, we determined that forests comprise over 9.2 million acres in Wyoming, making up 15% of the total land cover of the state.

Clean air, clean water, healthy food, flood risk reduction, waste treatment, timber, and a stable climate are all examples of ecosystem services. These are defined as the benefits people derive from nature. There are many different types of ecosystem services produced by nature. These are often aggregated into four broad categories according to how they benefit humans. These categories are as follows:

• Provisioning services provide physical materials and energy for society from natural systems.
• Regulating services are benefits obtained from the natural control of ecosystem processes.
• Supporting services are the basis of the vast majority of food webs and life on the planet.
• Information services are functions that allow humans to interact meaningfully with nature.

There are many ecological and socio-economic factors that determine the ability of a forest to provide ecosystem services. For example, forests adjacent to rivers are important for improving water quality and preventing erosion. Recreational activities depend on access to the forests and permitted uses. The size and density of a forest are important for wildlife habitat. To study the ecosystem services provided by forests, we looked at their proximity to water bodies, their size and configuration, their management regimes, and even the species of trees present.

Forests in Wyoming catch and store water, regulate water cycles and flows, and provide clean water to consumers. It has been shown that forests process about two-thirds of the nation's freshwater supply, serving around 40 percent of the nation's communities and 180 million people nationwide (National Research Council, 2008).

Wyoming’s watersheds are characterized by their forest cover that serve as natural reservoirs for vital snowpack. Trees provide shade to slow melting. Snowmelt is also naturally filtered as it moves through roots and soil which captures sediment and nutrients that would pollute the streams. As a headwaters state, Wyoming’s forests supply water to four of the country's main river basins, including the Missouri-Mississippi basin, the Green-Colorado River Basin, the Snake-Columbia Basin, and the Great Salt Lake Basin.

Forests near water bodies (riparian forests) are important to regulate precipitation patterns, catch and convey water. These functions translate into the service of water supply, which was valued at $177 to $192 per acre per year and applied exclusively to riparian forests. The value for water storage was captured through their effect on retaining snowpack and was estimated to be about $0.59 to $8.07 per forest acre per year and was applied to all forest acres. Finally, forests retain nutrients and sediment, improving water quality in water bodies. Riparian forests are particularly important for this service, with a water quality value ranging from $630.48 to $748.03 per acre per year. Non-riparian forests also perform this function for groundwater, which was estimated to range from $12.67 to $51.42 per acre per year.  These values may be additive, depending on the forest type, and result in a range of values for all water related services from $13.26 to $948 per acre per year. The overall value for all water-related services provided by the 9.2 million acres of forests in Wyoming amount to about $1.4 billion to $2.1 billion in benefits provided every year. 

One of the critical ways that forests provide value to individuals, communities and economies is through recreation opportunities. Outdoor recreation is an important part of Wyoming’s economy, driving 3.4% of the state’s GDP in 2020 (Bureau of Economic Analysis). Wyoming contains Yellowstone National Park, the world’s first national park, Grand Teton National Park, and many Wyoming State Parks, making Wyoming a significant recreation landmark for local residents and visitors alike. 

The highest rates of recreation usually occur in protected lands, often managed by government entities. In Wyoming, most recreational opportunities in forests are provided by four federal agencies: the US Forest Service, the National Park Service, the Bureau of Land Management, Fish and Wildlife Service. Recreation is also a popular activity in Wyoming State Parks and Historic Sites.

Recreation in Wyoming’s forests creates economic value in two ways. First, recreational activities such as hiking, fishing, camping, hunting and wildlife viewing provide individual benefits to participants. In addition, individuals participating in recreation activities pay for travel expenses such as hotels, restaurants and gas, purchase recreation-related items such as fishing gear, and pay fees for entrance and licenses. This part of the analysis estimates the value of recreational activities in Wyoming’s forests. We found that annually, recreation in forests in Wyoming generates almost $1.5 billion in expenditures and over $770 million in quality of life improvements (consumer surplus).

Recreation in Wyoming results in both boosts to local economies and benefits to visitors - on average, recreation participants spend between $99 (for hiking visits) and $157 (for camping visits) per day, depending on the recreation activities. These include expenditures in transportation, lodging, and entrance fees, among others. Consumer surplus benefits range from $42.42 (camping) to $102.34 (fishing) per day. On a per acre basis, the average recreation value of Wyoming forests is approximately $213 per year, adding up hiking, fishing, camping, hunting and wildlife viewing activities. These are approximations to the value received freely by having recreational activities in these forests.

Wyoming is among the most valuable places for wildlife habitat in North America, with more than 62.7 million acres in size and an average of one person per every 111 acres. The region’s forests and grasslands are home to more than 100 mammal species and 400 species of birds, as well as other migratory species. Wyoming’s iconic wildlife include bison, mountain lions, wolves, bald eagles, grizzly bears, black bears, elk, moose, mule deer, bighorn sheep, pronghorn antelope and wild horses, among many others. The region’s habitat also provides value to scientists, educators, and people all over world, many of whom have never and may never visit the region to experience it in person.

Wildlife habitat values range from a low of $1.09 per acre per year (for a base forest acre with no special attributes) to $2,828 per acre for critical habitat forests (for riparian forests within continuous landscapes). Overall, a total of between $813 million to $5.2 billion are provided every year in economic benefits associated with the maintenance of wildlife habitat. This value is conservative as it only considers a small subset of the species supported by Wyoming’s forests.      

Each year, forests in Wyoming remove carbon dioxide from the atmosphere and “sequester” it. This captured carbon, along with the carbon biomass already stored within existing trees and vegetation, provide economic value by contributing to global climate stability.

Overview of Carbon Model

Our estimates demonstrate that between 2010 and 2050, Wyoming forests will sequester 999,998 metric tons of carbon, or an average 0.12 metric tons of carbon sequestered per acre per year. This sequestration generates between $6.3 to $23 per acre, while existing carbon stocks can be valued at $2,114 to $7,702 per acre of forest for their carbon storage service. In total, Wyoming forests provide an annual carbon sequestration value of $58 to $211.3 million per year and a carbon storage value between $19.5 billion to $70.9 billion.

While this model exemplifies a valuable service provided by Wyoming’s forest ecosystems, it made a simplified assumption that no disturbances will occur − no harvest, fire, conversion, etc. This assumption may inflate actual sequestration and storage rates. It is worth noting that scientific evidence suggests sequestration values may become negative if larger, more severe fires become frequent. It is also worth acknowledging that different forest types have different carbon sequestration rates. 

• As a system, Wyoming’s 9.2 million acres of forests provide between $22.3 billion to $28.8 billion of benefits every year. These values represent both market revenues and non-market benefits provided to both Wyoming residents and businesses as well as benefits provided beyond state lines.   
• If their benefits are protected and harnessed, the asset value of Wyoming forests, over the next 100 years, is between $983 billion and $1.3 trillion.  
• The ecosystem service valuation analysts that conducted this study believe these overall values to be conservative and under-estimates. 
• The beneficiaries of Wyoming’s forest ecosystems are many and diverse, and a coordinated effort is needed to protect and grow this vast wealth encapsulated in Wyoming’s rich natural lands.  
• Conserving healthy forests as a critical asset should be a clear priority for stakeholders and forest land managers in Wyoming.  
• A warmer, drier climate and decades of under-funded forest management have made forests susceptible to increased wildfire and vulnerable to disease and insect damage. 
• Increased and more targeted investments in forest restoration and conservation give us our best chance to reduce the worst risks of climate change, and create healthier air, lands, and waters.  
• Livestock grazing and timber harvesting activities play an important role in forest management in Wyoming and will be integral to future investments in restoration.
• Reducing risk and restoring resilience will require a whole-of-society approach with input and efforts from all levels of government, the private sector, communities, and other stakeholders.

This high-level valuation study offers new awareness of monetarily significant ecosystem services that are often excluded from economic discussions. It is not comprehensive of all services provided by Wyoming forests and is best suited for communication purposes, raising awareness, identifying stakeholders, and prioritizing further research. The results and recommendations should be used to highlight the potential economic impact of investments in forest health in Wyoming.    

Our natural resource management agencies, the private sector, communities, and other stakeholder groups should use this information to make more informed decisions about proactive investments in Wyoming’s forest assets.  

Stakeholders should work collaboratively to develop new sources of private and public capital for forest management. For example, at the state level, economic data can be used by the Wyoming State Legislature and Governor’s Office to support their work in enhancing and protecting local communities.  At the federal level, these findings can assist Congressional representatives in making the case for federal investments in Wyoming’s forests due to the high economic value they provide to the larger region and country. Additionally, agencies such as the US Forest Service can use the results of this report as an example of the economic impact of investments into national forests and to inform upcoming Forest Plan revisions.  

For more information contact Carli Kierstead, TNC Wyoming Forest Program Director, at  Carli.Kierstead@tnc.org  or Trevor Bloom, Applied Ecologist, at  Trevor.Bloom@tnc.org