The economic contribution of whalewatching to regional economies: Perspectives from two National Marine Sanctuaries

Whenever human beings have looked out on the sea, they have seen whales. First from the shore and later from ships when humanity entered the ocean realm as seafarers, we have responded to seeing these creatures with awe and wonder. Even when we hunted whales, a period well chronicled both in history and in literature, the sight of a whale brought an adrenaline rush that was not totally linked to potential economic gain. The first trips on boats specifically to watch, rather than hunt, whales began around 45 years ago in Southern California where the migrating gray whales, seen in the distance from land, drew vessels out for a closer look. Since that time whalewatching has boomed, currently conducted in over 40 countries around the world, including Antarctica, and estimated by economists at the Whale and Dolphin Conservation Society to have a 1999 worldwide economic value of around $800 million USD. The economic contribution to local coastal communities is particularly significant in developing countries and those where declining fish populations (and in some cases like the Japanese, international bans on whaling) have driven harvesters to look for viable alternatives. Clearly, whalewatching is now, in many places around the world, a small but thriving part of the regional economy. Like in the days of whaling, we still get the rush, but for some, money is back contributing to the physiological response. (PDF contains 90 pages.)

The economic importance of marine angler expenditures in the United States.

In 1998, the National Marine Fisheries Service (NMFS) began a series of marine angler expenditure surveys in the coastal regions of the United States (U.S.) to evaluate marine recreational fishing expenditures and the financial impacts of these expenditures in each region and the U.S. as a whole. In this report, we use the previously estimated expenditure estimates to assess the total financial impact of anglers’ saltwater expenditures. Estimates are provided for sales, income, employment, and tax impacts for each coastal state in the U.S. Aggregate estimates are also provided for the entire U.S., excluding Alaska, Hawaii, and Texas. Direct, indirect, and induced effects associated with resident and non-resident angler expenditures were estimated using a regional input-output modeling system called IMPLAN Pro. Nationwide, recreational saltwater fishing generated over $30.5 billion in sales in 2000, nearly $12.0 billion in income, and supported nearly 350,000 jobs. Approximately 89 cents of every dollar spent by saltwater anglers was estimated to remain within the U.S. economy. At the state level, many of the goods anglers purchased were imports, and, as such, as little as 44 cents of every dollar stayed in Rhode Island and as much as 80 cents of every dollar stayed in Georgia. In the Northeast, the highest impacts were generated in New Jersey, even though recreational fishing expenditures in Massachusetts and Maryland were considerably higher. In the Southeast, the highest impacts were generated in Florida, and on the Pacific Coast, the highest impacts were generated in California. Expenditures on boat maintenance/expenses generated more impacts than any other expenditure category in the U.S. Expenditures on rods and reels was the single most important expense category in terms of generating impacts in most of the Northeast states. Expenditures on boat expenses generated the highest in most Southeast states, and expenditures for boat accessories produced the highest impacts in most Pacific Coast states.(PDF file contains 184 pages.)

Adapting to climate change: Combining economics and geomorphology in coastal policy

How is climate change affecting our coastal environment? How can coastal communities adapt to sea level rise and increased storm risk? These questions have garnered tremendous interest from scientists and policy makers alike, as the dynamic coastal environment is particularly vulnerable to the impacts of climate change. Over half the world population lives and works in a coastal zone less than 120 miles wide, thereby being continuously affected by the changes in the coastal environment [6]. Housing markets are directly influenced by the physical processes that govern coastal systems. Beach towns like Oak Island in North Carolina (NC) face severe erosion, and the tax assesed value of one coastal property fell by 93% in 2007 [9]. With almost ninety percent of the sandy beaches in the US facing moderate to severe erosion [8], coastal communities often intervene to stabilize the shoreline and hold back the sea in order to protect coastal property and infrastructure. Beach nourishment, which is the process of rebuilding a beach by periodically replacing an eroding section of the beach with sand dredged from another location, is a policy for erosion control in many parts of the US Atlantic and Pacific coasts [3]. Beach nourishment projects in the United States are primarily federally funded and implemented by the Army Corps of Engineers (ACE) after a benefit-cost analysis. Benefits from beach nourishment include reduction in storm damage and recreational benefits from a wider beach. Costs would include the expected cost of construction, present value of periodic maintenance, and any external cost such as the environmental cost associated with a nourishment project (NOAA). Federal appropriations for nourishment totaled $787 million from 1995 to 2002 [10]. Human interventions to stabilize shorelines and physical coastal dynamics are strongly coupled. The value of the beach, in the form of storm protection and recreation amenities, is at least partly capitalized into property values. These beach values ultimately influence the benefit-cost analysis in support of shoreline stabilization policy, which, in turn, affects the shoreline dynamics. This paper explores the policy implications of this circularity. With a better understanding of the physical-economic feedbacks, policy makers can more effectively design climate change adaptation strategies. (PDF contains 4 pages)

Sensitivity of angler benefit estimates from a model of recreational demand to the definition of the substitute sites considered by the angler

Fishery managers are mandated to understand the effects that environmental damage, fishery regulations, and habitat improvement projects have on the net benefits that recreational anglers derive from their sport. Since 1994, the National Marine Fisheries Service (NMFS) has worked to develop a consistent method for estimating net benefits through site choice models of recreational trip demand. In estimating net benefits with these models, there is a tradeoff between computational efficiency and angler behavior in reality. This article examines this tradeoff by considering the sensitivity of angler-welfare estimates for an increase in striped bass (Morone saxatalis) angling quality across choice sets with five travel distance cutoffs and compares those estimates to a model with an unrestricted choice set. This article shows that 95% confidence intervals for welfare estimates of an increase in the striped bass catch and keep rate overlap for all distance-based choice sets specified here.