Conducted by PricewaterhouseCoopers on behalf of green groups, the study found that protecting the red gum forests, wetlands and flood plains along the Murray River would be worth $152 million over the next decade.

But $126 million of this sum was an estimation, using a technique known as choice modelling, of the value Victorians place on having healthy red gum forests, rather than new income generation.

The other $26 million would come from expanded tourism.

Comparatively, the costs were found to be $42.9 million.

Much of this would be borne by communities along the river, which would lose access to timber harvests and cattle-grazing areas.

The new analysis comes after the tabling in Victoria's Parliament last week of expert advice that estimates up to 75pc of red gum forest is dead or dying along some stretches of the Murray.

The advice — the result of a $2 million investigation by the Government-appointed Victorian Environment Assessment Council — recommends protecting 103,000 hectares of forest, including creating a national park in the internationally recognised Barmah Forest wetlands.

This would close down most local forestry, costing an estimated 80 jobs.

A panel has been appointed to collect community feedback before the Government decides whether to act on the advice.

The Victorian National Parks Association called on the Government to accept the council's recommendations, and dedicate funding to help local communities adjust.

Association spokesman Nick Roberts said protecting the red gum forests was likely to be the most significant nature conservation proposal the Brumby Government would face before the next election.

"When you've got a river system that is as buggered as the Murray is, and a timber industry that is staring down the barrel of massive cuts even without the creation of national parks, business as usual isn't an option," Mr Roberts said.