In Arizona, for example, less than 18 percent of the land is privately owned. Federal land exchanges are being used increasingly as a tool to mitigate negative environmental impacts of development and commercial activities on private lands. Through exchange, federal agencies acquire private lands with important public goods characteristics, such as old growth forests, endangered species habitat, or proximity to national parks. In return, public landholdings are privatized, allowing development and commercial activities in less environmentally sensitive areas. Federal agencies and private land owners exchange about 150,000 acres per year.
Environmental economists can play a key role in analyzing the impacts of proposed land exchanges.
For example, researchers studying a proposed land exchange in Mohave County analyzed the effects the exchange would have on cattle ranching in the area. Economists may also analyze the environmental impacts and benefits for the lands being traded, as well as looking at alternatives to exchanging lands. Faculty Involvement George Frisvold and Trent Teegerstrom recently studied the economic impacts of the Hualapai Mountains Land Exchange, involving 140,000 acres in Mohave County, Arizona. Washington, DC, 1995. Ruyle, G., L. Smith, and P. Ogden.