Natural amenities and rural employment growth: a sector analysis JASON R . HENDERSON AND kENDALL McDANIEL

Natural­amenities­impact­rural­economies­in­multiple­ways.­Initial­research­identified­ the­ impact­ of­ natural­ amenities­ on­ property­ values­ (Milon­ et al.­ 1984;­ Bartik­1988;­Blomquist­et al.­1988;­Cheshire­and­Sheppard­1995;­Lansford­and­ Jones­1995;­Ready­et al.­1997;­Benson­et al.­1998).­In­general­these­studies­find­ that­the­presence­of­natural­amenities­is­associated­with­higher­property­values,­ as people prefer to live in scenic areas. ­ More­ recently,­ the­ impact­ of­ natural­ amenities­ on­ economic­growth­ in­ rural­ areas­ has­ been­ investigated.­ Deller­ et al.­ (2001)­ show­ that­ rural­ areas­ with­ a­ higher­concentration­of­natural­amenities­have­a­higher­level­of­economic­growth,­ measured­by­employment,­population,­and­income.­In­addition,­McDaniel­(2000)­ finds­that­rural­counties­with­higher­levels­of­amenities­experienced­faster­population­growth­during­the­1990s.­And,­employment­growth­was­also­higher­in­rural­ counties­with­higher­levels­of­natural­amenities.­In­fact,­rural­counties­possessing­ the­ highest­ level­ of­ natural­ amenities,­ according­ to­ the­ USDA­ amenity­ index,­ experienced­ 2.7­ percent­ annual­ average­ growth­ in­ nonfarm­ employment­ from­ 1990­to­2000­compared­to­1.4­percent­in­rural­counties­with­the­lowest­level­of­ natural­amenities­(Table­6.1). Natural amenities support rural economies in many ways. Clearly natural amenities­can­support­recreation­and­tourism­growth.­English­et al.­(2000)­show­ that “recreational” nonmetro counties grew faster in terms of employment than other­ nonmetro­ counties­ in­ the­1980s.­Henderson­ and­McDaniel­ (1998)­ illustrate­that­rural­areas­with­private­establishments­operating­an­outdoor­sports­or­ recreation­camp,­ recreational­vehicle­parks,­and­campsites­experienced­higher­ levels­of­employment­growth­between­1990­and­1995­than­rural­areas­without­ these­establishments.