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Abstract
This paper studies the impact of the National Park System (NPS) on local economic variables and externalities. This topic is important because the NPS is the largest conservation entity in the world, responsible for protecting millions of acres of land both in and outside of the continental United States. As a highly visible and well-funded agency, the NPS plays a crucial role not only in preserving natural resources but also in benefiting the economies of the surrounding communities. The economic benefits of the NPS have often been underappreciated and overlooked. In recent years, there has been growing government interest in rolling back protected land areas and reducing staffing of the NPS. Understanding how much the NPS contributes to local economies through job generation, visitor spending, and associated economic activity is especially relevant in today’s political climate. This paper uses an event-study analysis on various NPS designation types to examine the economic effects on counties containing and surrounding an NPS area. To do this, a detailed dataset was constructed that combined park-level data with county-level data. A key finding is that when an NPS area is established, both containing and surrounding counties experience increases in income and employment. Secondary results show that NPS establishment introduces both positive and negative externalities. Together, these findings offer important evidence for policymakers, suggesting that the NPS generates not only environmental value but also significant economic benefits.