Nature-based marine tourism in the Gulf of California and Baja California Peninsula: Economic benefits and key species

Ecotourism can incentivize social and environmental benefits through marine conservation, in parallel with efforts to better manage fisheries, coastal development, and other human pressures. In Mexico's Gulf of California and Baja California Peninsula (GCBP), marine ecosystems support tourism activities in many communities, but to date there have been no region-wide studies to estimate their benefits or identify key species. Based on data collected in this study, each year nature-based marine tourism in the GCBP results in 896,000 visits, US$518 million in expenditures and at least 3,575 direct jobs from formal operations. In interviews with operators, over 40 species groups were named as important; sea lions, whale sharks, whales, and marlin were the highest ranked, highlighting the importance of ecosystem-wide health for nature-based tourism sustainability. Local employment and the ability to make economic and conservation goals compatible were noted by operators as significant opportunities provided by nature-based marine tourism; challenges included pollution and declines in ecosystem health, a lack of infrastructure, poor resource management policies, and high operating costs. As nature-based marine tourism expands, a wider transition to true ecotourism, a focus on equitable benefits and collaboration between stakeholders and a cross-scale and ecosystem approach to management will be vital for achieving potential sustainable social, ecological and economic benefits.     

Aquatic Nuisance Species in the New York State Canal and Hudson River Systems and the Great Lakes Basin: An Economic and Environmental Assessment

A total of 154 aquatic alien species have invaded the New York State Canal and Hudson River systems and a total of 162 aquatic species have invaded the Great Lakes Basin. Some of these invasive species are causing significant damage and control costs in both aquatic ecosystems. In the New York State Canal and Hudson River systems, the nonindigenous species are causing an estimated 500 million dollars in economic losses each year. The economic and environmental situation in the Great Lakes Basin is far more serious from nonindigenous species, with losses estimated to be about 5.7 billion dollars per year. Commercial and sport fishing suffer the most from the biological invasions, with about 400 million dollars in losses reported for the New York State Canal and Hudson River systems and 4.5 billion dollars in losses reported for the Great Lakes Basin.     

ECONOMIC ANALYSIS OF WETLAND RESTORATION ALONG THE ILLINOIS RIVER1

Creating and restoring wetland and riparian ecosystems between farms and adjacent streams and rivers in the Upper Mississippi River Basin would reduce nitrogen loads and hypoxia in the Gulf of Mexico and increase local environmental benefits. Economic efficiency and economic impacts of the Hennepin and Hopper Lakes Restoration Project in Illinois were evaluated. The project converted 999 ha of cropland to bottomland forest, backwater lakes, and flood‐plain wetland habitat. Project benefits were estimated by summing the economic values of wetlands estimated in other studies. Project costs were estimated by the loss in the gross value of agricultural production from the conversion of corn and soybean acreage to wetlands. Estimated annual net benefit of wetland restoration in the project area amounted to US$1,827 per ha of restored wetland or US$1.83 million for the project area, indicating that the project is economically efficient. Impacts of the project on the regional economy were estimated (using IMPLAN) in terms of changes in total output, household income, and employment. The project is estimated to increase total output by US$2,028,576, household income by US$1,379,676, and employment by 56 persons, indicating that it has positive net economic impacts on the regional economy.     

Prymnesium parvum: The Texas Experience1

Southard, Gregory M., Loraine T. Fries, and Aaron Barkoh, 2010. Prymnesium parvum: The Texas Experience. Journal of the American Water Resources Association (JAWRA) 46(1):14-23. DOI: 10.1111/j.1752-1688.2009.00387.x Abstract: Golden alga Prymnesium parvum was first identified in Texas during a fish kill investigation on the Pecos River in 1985. Since then golden alga kills occurred sporadically in a variety of waters in the western part of the state until 2001 when the alga became endemic in the Brazos, Canadian, Colorado, Red, and Rio Grande river systems, including the water supplies of two public fish hatcheries, the Possum Kingdom and Dundee state fish hatcheries. The increasing area adversely affected by the alga and frequent massive fish kills heightened public and political awareness and concerns regarding the ecological and economic impacts of P. parvum blooms. The Texas Parks and Wildlife Department (TPWD), the wildlife conservation agency of the state, responded to these concerns with a program to assess the ecological and economic impacts and to develop management options. To date 33 water bodies have been affected and losses are conservatively estimated at 34 million fish valued at US$13 million. Several sport fisheries, including smallmouth bass Micropterus dolomieu, striped bass Morone saxatilis, channel catfish Ictalurus punctatus, and blue catfish Ictalurus furcatus, have been severely affected. Additionally, 26 imperiled fish species occur in the affected water basins and some have been adversely affected. Economic losses associated with reduced fishing and other water-based recreational activities appear considerable. The combined economic losses to three counties (Palo Pinto, Stephens, and Young) surrounding Possum Kingdom reservoir for 2001 and 2003 were estimated at US$2.8 million and US$1.1 million, respectively. This paper describes how the TPWD responded to public and political concerns relative to the emergence of golden alga, its harmful effects to fisheries, and its historic and current statewide distribution.     

Simulating Direct and Indirect Damages to Commercial Fisheries from Marine Sand Mining: A Case Study in Korea

Rapid growth in marine sand mining for construction and other uses poses environmental challenges to coastal nations virtually worldwide. Yet the development of management policies, such as a system of fees imposed on operators for damage caused by mining, has been frustrated by a lack of studies to support such measures. Adapting a Beverton-Holt bioeconomic model, this paper attempts to contribute to the estimation of external costs to commercial fisheries due to marine mining. Using the major mining area of Ongjin in Korea as a case study, we estimate economic losses in use value of commercial fisheries through the time to recovery of the injured resource stocks. Present value of lost catch over a 1-year period from mining to resource recovery is estimated at $38,851 for a single “prototype” mining site. Estimated cumulative damages due to recurring mining for 5 and 10 years are $1.5 million and $2.2 million, respectively, at 20 mining sites. Sensitivity analyses are used to examine the effects of alternative assumptions to assess the many sources of uncertainty. Using a form of meta-analysis, dose-response information is used to assess the excess mortality the mining sediment plume has on eggs and larvae and, ultimately, on the value of lost catch ($841). Also addressed is the importance of specifying the appropriate “premining” conditions against which to assess environmental losses at the mining site. Damages estimated with premining fish populations are $23,066 higher than is the case using postmining conditions. Overall, the illustrative results suggest the variety of complex conditions which influence damage to fisheries from mining and which can benefit from further study to improve management guidelines. An erratum to this article can be found at     

Measuring the Net Economic Value of Recreational Boating as Water Levels Fluctuate1

Abstract: The purpose of this article was to show how the value of recreational boating can be assessed and how that value can be linked to water levels. Data were gathered via a survey of recreational boaters to determine days boated and willingness‐to‐pay (net economic value) for boating on Lake Ontario and on the St. Lawrence River in 2002. Depth measurements were taken at marinas and yacht clubs, boat launch ramps, and private docks. Stage‐damage curves were used to pinpoint at what water levels and to what extent boaters would be impacted. Boaters recreated an estimated 1.3 million days in 2002 and spent an estimated US$178 million in New York counties bordering Lake Ontario and the St. Lawrence River. The mean net economic value per day per boat (above current expenditures) was $69.36, with an estimated total net economic value of US$90 million. Using Lake Ontario as an example, the stage‐damage curves show that the overall negative impact would be small, between 245 and 248 ft. Maintaining water levels within that range for the entire boating season would be ideal for Lake Ontario boaters and associated businesses.     

Projections of highway vehicle population,energy demand,and CO2 emissions in India to 2040

This paper presents projections of motor vehicles, oil demand, and carbon dioxide (CO₂) emissions for India through the year 2040. The populations of highway vehicles and two‐wheelers are projected under three different scenarios on the basis of economic growth and average household size in India. The results show that by 2040, the number of highway vehicles in India would be 206‐309 million. The oil demand projections for the Indian transportation sector are based on a set of nine scenarios arising out of three vehicle‐growth and three fuel‐economy scenarios. The combined effects of vehicle‐growth and fuel‐economy scenarios, together with the change in annual vehicle usage, result in a projected demand in 2040 by the transportation sector in India of 404‐719 million metric tons (8.5‐15.1 million barrels per day). The corresponding annual CO₂ emissions are projected to be 1.2‐2.2 billion metric tons.     

Resident Motivations and Willingness-to-Pay for Urban Biodiversity Conservation in Guangzhou (China)

The monetary assessment of biodiversity measures the welfare damages brought by biodiversity losses and the cost-benefit analysis of conservation projects in a socio-economic context. The contingent valuation method could include motivational factors to strengthen economic analysis of nature conservation. This study analyzed Guangzhou residents’ motivations and willingness-to-pay (WTP) for an urban biodiversity conservation program in the National Baiyun Mountain Scenic Area (BMSA). The peri-urban natural site, offering refuge to some endemic species, is under increasing development pressures for recreational and residential use. A questionnaire survey was conducted in the Guangzhou metropolitan area during June to October 2007. We interviewed face-to-face 720 stratified sampled households to probe residents’ attitudes towards the city’s environmental issues, motivations for urban nature conservation, and WTP for biodiversity conservation. Principal component analysis identified five motivational factors, including environmental benefit, ecological diversity, nature-culture interaction, landscape-recreation function, and intergenerational sustainability, which illustrated the general economic values of urban nature. Logistic regression was applied to predict the probability of people being willing to pay for the urban biodiversity conservation in BMSA. The significant predictors of WTP included household income and the factor nature-culture interaction. The median WTP estimated RMB149/household (about US$19.5/household) per year and an aggregate of RMB291 million (approximately US$19.5/household) per year and an aggregate of RMB291 million (approximately US38.2 million) annually to support the urban conservation project. Including public motivations into contingent valuation presents a promising approach to conduct cost-benefit analysis of public projects in China.     

PROTECTING BEIJLNG'S MUNICIPAL WATER SUPPLY THROUGH WATERSHED MANAGEMEN AN ECONOMIC ASSESSMENT1

ABSTRACT: Watersheds above the Miyun reservoir, a principal source of surface water for Beijing, are designated to be managed for water production, but under the principle of multiple use. Because of the scarcity of arable land, these watersheds cannot be managed only for drinking water. Efforts are under way to reduce sediment delivery, improve the quality of water entering Miyun reservoir, and improve the welfare of watershed inhabitants. An economic appraisal of a watershed management project for the 3,298‐ha Shixia watershed above the Miyun reservoir, indicates a 24 percent economic rate of return on the investment made in the project. The net present value (NPV) of the project, calculated at a discount rate of 10 percent, is approximately US$3.49 million. Sensitivity analyses indicate that a doubling of labor costs lowers the NPV to US$2.07 million and a 10 percent decrease in benefits lowered the NPV to US$2.87. It is concluded that the implementation of conservation practices on the Shixia Demonstration Watershed represent an economically efficient use of resources.     

Building disaster-resilient communities: The road to the second World Conference on Disaster Reduction, January 2005, Kobe, Hyogo, Japan

The statistics paint a shocking picture: Over the past ten years around 7,000 ‘natural’ disasters have occurred, killing more than 300,000 people and resulting in over US$800 billion in economic losses (Munich Re, 2003). Increasing interest in global warming has provoked intense debate on the issue of climate change and its implications for more frequent and intense extreme weather events, placing more people at risk than ever. While all countries may be threatened by natural hazards, experience shows that developing countries are disproportionately affected, with losses sometimes exceeding years of hard‐won and desperately needed economic development. The World Conference on Disaster Reduction,1 to be held in Japan in 2005, aims to address these and other crucial issues that are posing an unprecedented challenge to the international community.     

A COST‐BENEFIT ANALYSIS OF WATER QUALITY PROTECTION IN THE CATAWBA BASIN1

ABSTRACT: The primary objective of this study was to perform a cost‐benefit analysis of maintaining the current level of water quality in the Catawba River basin. Economic benefits were estimated using a stated preference survey method designed to value respondents' willingness to pay for a management plan to protect water quality in the Catawba basin over time. From the surveys conducted with 1,085 area residents, we calculated an annual mean willingness to pay of $139 for the management plan, or more than $75.4 million for all taxpayers in the area. Over the five‐year time horizon in which respondents were asked to pay for the management plan, this resulted in a total economic benefit of $340.1 million. The Watershed Analysis Risk Management Framework model was used to estimate the amount of management activities needed to protect the current level of water quality in the basin over time. Based on the model results, the total cost of the management plan was calculated to be $244.8 million over a ten‐year period. The resulting cost‐benefit analysis indicated that the potential benefits of this management plan would outweigh the costs by more than $95 million.     

Valuing freshwater salmon habitat on the west coast of Canada

Changes in land use can potentially reduce the quality of fish habitat and affect the economic value of commercial and sport fisheries that rely on the affected stocks. Parks and protected areas that restrict land-use activities provide benefits, such as ecosystem services, in addition to recreation and preservation of wildlife. Placing values on these other benefits of protected areas poses a major challenge for land-use planning. In this paper, we present a framework for valuing benefits for fisheries from protecting areas from degradation, using the example of the Strait of Georgia coho salmon fishery in southern British Columbia, Canada. Our study improves upon previous methods used to value fish habitat in two major respects. First, we use a bioeconomic model of the coho fishery to derive estimates of value that are consistent with economic theory. Second, we estimate the value of changing the quality of fish habitat by using empirical analyses to link fish population dynamics with indices of land use in surrounding watersheds. In our example, we estimated that the value of protecting habitat ecosystem services is C$0.93 to C$2.63 per ha of drainage basin or about C$1322 to C$7010 per km of salmon stream length (C$1.00=US$0.71). Sensitivity analyses suggest that these values are relatively robust to different assumptions, and if anything, are likely to be minimum estimates. Thus, when comparing alternative uses of land, managers should consider ecosystem services from maintaining habitat for productive fish populations along with other benefits of protected areas.     

The market and shadow value of informal fish catch: a framework and application to Panama

Fisheries catches are known to be widely underreported, and much of their value flows in informal markets. Goods and services that are not directly sold in a market also have a corresponding economic value, here termed ‘shadow value’, which can apply to discarded fish—or those that are consumed but not sold (e.g., subsistence catches). Here, we estimate the monetary value of fisheries catches in Panama that are landed but not reported, or that are discarded at sea; this includes catches from artisanal and industrial fleets, as well as recreational and subsistence fisheries. Based on available data, we estimate that the market and shadow value of unreported catches in Panama in 2010 was around US$92 million, equal to approximately 43% of the total reported landed value. In the case of discarded fish, the shadow value represents the potential but entirely unrealized economic benefit of landing such fish; in the case of unreported landings, unreported market value represents only the first link in the potentially sophisticated informal seafood economy. One must be careful in considering these results for policy. It is possible that, rather than seeking to capture these ‘lost’ benefits, fish that are discarded or unreported should not have been caught at all, for example, if they are juveniles or of threatened species; conversely, unreported subsistence catches are crucial for food security throughout the world. These results help contextualize the scale of unreported fisheries in economic terms, and can inform subsequent policies and strategies to ensure social, ecological, and economic sustainability.     

Balancing Conservation and Economic Sustainability: The Future of the Amazon Timber Industry

Logging has been a much maligned feature of frontier development in the Amazon. Most discussions ignore the fact that logging can be part of a renewable, environmentally benign, and broadly equitable economic activity in these remote places. We estimate there to be some 4.5 ± 1.35 billion m³ of commercial timber volume in the Brazilian Amazon today, of which 1.2 billion m³ is currently profitable to harvest, with a total potential stumpage value of $15.4 billion. A successful forest sector in the Brazilian Amazon will integrate timber harvesting on private lands and on unprotected and unsettled government lands with timber concessions on public lands. If a legal, productive, timber industry can be established outside of protected areas, it will deliver environmental benefits in synergy with those provided by the region’s network of protected areas, the latter of which we estimate to have an opportunity cost from lost timber revenues of $2.3 billion over 30 years. Indeed, on all land accessible to harvesting, the timber industry could produce an average of more than 16 million m³ per year over a 30-year harvest cycle—entirely outside of current protected areas—providing $4.8 billion in returns to landowners and generating $1.8 billion in sawnwood sales tax revenue. This level of harvest could be profitably complemented with an additional 10% from logging concessions on National Forests. This advance, however, should be realized only through widespread adoption of reduced impact logging techniques.     

Predicting the economic costs and property value losses attributed to sudden oak death damage in California (2010-2020)

Phytophthora ramorum, cause of sudden oak death, is a quarantined, non-native, invasive forest pathogen resulting in substantial mortality in coastal live oak (Quercus agrifolia) and several other related tree species on the Pacific Coast of the United States. We estimate the discounted cost of oak treatment, removal, and replacement on developed land in California communities using simulations of P. ramorum spread and infection risk over the next decade (2010-2020). An estimated 734 thousand oak trees occur on developed land in communities in the analysis area. The simulations predict an expanding sudden oak death (SOD) infestation that will likely encompass most of northwestern California and warrant treatment, removal, and replacement of more than 10 thousand oak trees with discounted cost of $7.5 million. In addition, we estimate the discounted property losses to single family homes of $135 million. Expanding the land base to include developed land outside as well as inside communities doubles the estimates of the number of oak trees killed and the associated costs and losses. The predicted costs and property value losses are substantial, but many of the damages in urban areas (e.g. potential losses from increased fire and safety risks of the dead trees and the loss of ecosystem service values) are not included.     

Potential Economic Impacts of Environmental Flows Following a Possible Listing of Endangered Texas Freshwater Mussels

Texas water resources, already taxed by drought and population growth, could be further stressed by possible listings of endangered aquatic species. This study estimated potential economic impacts of environmental flows (EFs) for five freshwater unionid mussels in three Central Texas basins (Brazos, Colorado, and Guadalupe‐San Antonio Rivers) that encompass 36% of Texas (~246,000 km²). A water availability model projected reductions in water supply to power, commercial and industrial, municipal, and agriculture sectors in response to possible EFs for mussels. Single‐year economic impacts were calculated using publicly available data with and without water transfers. Benefits of EFs should also be assessed, should critical habitat be proposed. Potential economic losses were highest during droughts, but were nominal (<$1 M) in wetter years — even with high EFs. Reduced supplies to San Antonio area power plants caused worst‐case impacts of a single‐year shutdown up to $107 million (M) during drought with high EFs. For other sectors in the study area, water transfers reduced worst‐case losses from $80 to $11 M per year. Implementing innovative water management strategies such as water markets, conjunctive use of surface water and groundwater, aquifer storage and recovery could mitigate economic impacts if mussels — or other widely distributed aquatic species — were listed. However, approaches for defining EFs and strategies for mitigating economic impacts of EFs are needed.     

Efficient management of marine resources in conflict: An empirical study of marine sand mining, Korea

This article develops a dynamic model of efficient use of exhaustible marine sand resources in the context of marine mining externalities. The classical Hotelling extraction model is applied to sand mining in Ongjin, Korea and extended to include the estimated marginal external costs that mining imposes on marine fisheries. The socially efficient sand extraction plan is compared with the extraction paths suggested by scientific research. If marginal environmental costs are correctly estimated, the developed efficient extraction plan considering the resource rent may increase the social welfare and reduce the conflicts among the marine sand resource users. The empirical results are interpreted with an emphasis on guidelines for coastal resource management policy.     

Assessing the economic impact of invasive species: the case of yellow starthistle (Centaurea solsitialis L.) in the rangelands of Idaho, USA

Yellow starthistle (Centaurea solsitialis L.) is an invasive weed that creates problems for the management of Idaho's rangelands. A bioeconomic approach combined with an input-output economic model is used to estimate direct and secondary economic costs of the weed in relation to its interference with agricultural and non-agricultural benefits that rangelands provide. Direct economic costs of the infestations were estimated to be of 8.2 million '05 dollars per year, and secondary costs of 4.5 million '05 dollars per year, for a total of 12.7 million '05 dollars; agricultural related economic impacts accounted for 79% of this total cost, and non-agricultural for 21%.     

Developing a New Operations Plan for the Bow River Basin Using Collaborative Modeling for Decision Support

The Bow River Basin is a cornerstone of Alberta's development. In 2010, stakeholders representing interests from agriculture, municipalities, environment, and more formed the Bow River Project Research Consortium to help determine the potential for improving the operations in the basin. At present, upstream reservoirs are operated primarily for hydropower, whereas downstream reservoirs are operated for irrigation. Through Collaborative Modeling for Decision Support the stakeholders were able to develop a new method for operating the system that would dramatically improve environmental performance. The main components of the new operating strategy called for: purchase or setting aside of a small amount of storage volume in the power reservoirs; a set of rules for releases from that storage; an agreement by the major irrigation districts with the largest water licenses to utilize their ability to shift deliveries to and from their large offstream storage reservoirs to allow for increased instream flows, and to allow junior water license holders (mainly municipal and industrial supplies) an uninterrupted water supply; limitations of reservoir fluctuations to improve inreservoir habitat for fisheries; and increased minimum flows throughout the system leading to improved environmental outcomes. Costs of this strategy were minimal, impacts on power revenue were estimated at <US$2 million/yr on average. Compensatory arrangements should be possible.     

Health benefits valuation of regulatory intervention for air pollution control in thermal power plants in Delhi,India

This study estimates minimum marginal health benefits (morbidity reduction only) of air pollution control and total health benefits arising from regulatory intervention regarding the adoption of the World Bank emission guidelines (WBEG) for thermal power plants (TPPs) in Delhi. The Industrial Source Complex-Short-Term Version–3 (ISCST3) model has been used to estimate the contribution to air pollution from TPPs. The household health production function (avertive behaviour) has been used to value health benefits of air pollution control. The study revealed that the ambient air pollution due to TPPs is reduced by between 62.17% to 83.45% by adopting the WBEG. Annual marginal benefit due to reduction in exposure to air pollution by 1 μg m^?3 is estimated to be US$0.353 per person. Total annual health benefits for adopting the WBEG for TPPs are estimated at US$235.19 million. This study provides a novel methodology to evaluate health benefits of regulatory intervention.