Economics

State of the U.S. Ocean and Coastal Economies: 2016 Update

Kildow JT, Colgan CS, Johnston P, Scorse JD, Farnum MGardiner. State of the U.S. Ocean and Coastal Economies: 2016 Update. Monterey, California: Center for the Blue Economy, Middlebury Institute of International Studies; 2016. Available from: http://oceaneconomics.org/Download/
Freely available?: 
Yes
Summary available?: 
No
Type: Report

This update features the latest data and analysis on the health of the ocean and coastal economies since NOEP's 2014 report, including:

  • New and updated 2005-2013 ocean economy data
  • New and updated coastal economy data through 2014
  • New 2012-2014 coastal demographics
  • New 2012-2014 marine fisheries
  • New and updated 2011-2014 marine shipping volumes and values
  • Just released federal oceans and coasts related expenditures through 2016
  • New 2011-2014 offshore oil and gas production
  • Over 350 new non-market studies added to NOEP'S bibliography
  • New Arctic economies section with 1950-2010 commercial fish landings

Has the value of global marine and coastal ecosystem services changed?

Pendleton LH, Thebaud O, Mongruel RC, Levrel H. Has the value of global marine and coastal ecosystem services changed?. Marine Policy [Internet]. 2016 ;64:156 - 158. Available from: http://www.sciencedirect.com/science/article/pii/S0308597X15003620
Freely available?: 
Yes
Summary available?: 
No
Type: Journal Article

In 1997, Robert Costanza and his colleagues published a groundbreaking study [1] that estimated the monetary value of the contribution of the world's ecosystems to human wellbeing. The methods used were cited as preliminary and received considerable criticism [2] and [3]. In two more recent peer-reviewed studies [4] and [5], the authors update the original estimates of ecosystem service value and find: (1) that original per area ecosystem service values were underestimated and (2) using these revised per area values, the total global value of ecosystem services has declined. Just under ninety-five percent of the estimated loss in ecosystem service value comes from revisions by the authors in the value estimates of marine ecosystem services. These revisions include additional per area value estimates of coral reefs and coastal wetlands that are many times the value of estimates used in the original analysis. The reasons cited by Costanza et al. for the increases in revised value estimates are examined and rejected. The data are found to be insufficient for a rigorous estimate of the global value of marine ecosystems services.

Cost-Effective Marine Protection - A Pragmatic Approach

Oinonen S, Hyytiäinen K, Ahlvik L, Laamanen M, Lehtoranta V, Salojärvi J, Virtanen J. Cost-Effective Marine Protection - A Pragmatic Approach. PLOS ONE [Internet]. 2016 ;11(1):e0147085. Available from: http://journals.plos.org/plosone/article?id=10.1371/journal.pone.0147085
Freely available?: 
Yes
Summary available?: 
No
Type: Journal Article

This paper puts forward a framework for probabilistic and holistic cost-effectiveness analysis to provide support in selecting the least-cost set of measures to reach a multidimensional environmental objective. Following the principles of ecosystem-based management, the framework includes a flexible methodology for deriving and populating criteria for effectiveness and costs and analyzing complex ecological-economic trade-offs under uncertainty. The framework is applied in the development of the Finnish Programme of Measures (PoM) for reaching the targets of the EU Marine Strategy Framework Directive (MSFD). The numerical results demonstrate that substantial cost savings can be realized from careful consideration of the costs and multiple effects of management measures. If adopted, the proposed PoM would yield improvements in the state of the Baltic Sea, but the overall objective of the MSFD would not be reached by the target year of 2020; for various environmental and administrative reasons, it would take longer for most measures to take full effect.

A Socioeconomic Profile of Recreation Users of the California Northern Central Coast Region, Greater Farallones National Marine Sanctuary and the northern portion of Monterey Bay National Marine Sanctuary, 2011

Leeworthy VR, Schwarzmann D, Saade DReyes. A Socioeconomic Profile of Recreation Users of the California Northern Central Coast Region, Greater Farallones National Marine Sanctuary and the northern portion of Monterey Bay National Marine Sanctuary, 2011. Silver Spring, Maryland: NOAA’s Office of National Marine Sanctuaries; 2015 p. 73 pp. Available from: http://sanctuaries.noaa.gov/news/press/2015/recreation-ncc.html
Freely available?: 
Yes
Summary available?: 
No
Type: Report

This report provides a socioeconomic profile of recreation users in California’s Northern Central Coast Region, which includes the Greater Farallones National Marine Sanctuary (GFNMS) and the northern portion of the Monterey Bay National Marine Sanctuary (MBNMS). The Cordell Bank National Marine Sanctuary is also located within the region but there was not enough information obtained to do a profile for this sanctuary.

The information used here was from a study conducted by Ecotrust for the State of California’s Monitoring Enterprise’s North Central Coast (NCC) MPA Baseline Program. Point97 (Ecotrust’s small business unit) provided all the data and documentation so we could estimate how much of the recreation activity in the NCC region was done in national marine sanctuaries. The study was done covering the activity in the year 2011.

A socioeconomic profile includes demographics (e.g. age, race/ethnicity, gender, education level, household income, household size, and place of residence) of the users; the amount of use by type of recreation activity; and the spending in the local economy while doing the recreation activity, and how that spending generates output/sales, value- added, income and employment in the local economy.

The report compares profiles of the users of the entire NCC region with users of the GFNMS and the users of the northern portion of MBNMS, and between the GFNMS and the northern portion of MBNMS. Statistically significant differences are highlighted. 

Optimal multispecies harvesting in the presence of a nuisance species

Kasperski S. Optimal multispecies harvesting in the presence of a nuisance species. Marine Policy [Internet]. 2016 ;64:55 - 63. Available from: http://www.sciencedirect.com/science/article/pii/S0308597X15003280
Freely available?: 
No
Summary available?: 
No
Type: Journal Article

Current knowledge of the complex relationships within ecological and economic systems make operationalizing ecosystem approaches within fisheries management difficult. As these approaches are developed, it is important to include non-target species that affect the productivity (as prey) and availability (as predators) of targeted species. This study develops a multispecies bioeconomic model that incorporates ecological and economic interactions to determine the optimal harvest of each species in the presence of a "nuisance" species, which lowers the value of the fishery by negatively affecting the growth of the other species in the ecosystem, and has little harvest value of its own. The populations of walleye pollock, Pacific cod, and arrowtooth flounder (a nuisance species) in the Bering Sea/Aleutian Islands region of Alaska are used as a case study. Vessel-and gear-specific profit functions with multi-output production technologies are used, along with estimated multispecies stock dynamics equations, to determine the optimal multispecies quotas and subsidy on the harvest of the nuisance species to maximize the value of this fishery. Ignoring the nuisance species results in a substantially less productive and lower value fishery than optimal joint management. This study highlights the importance of incorporating the impact of non-targeted species in ecosystem-based fisheries management.

Can California coastal managers plan for sea-level rise in a cost-effective way?

King PG, McGregor AR, Whittet JD. Can California coastal managers plan for sea-level rise in a cost-effective way?. Journal of Environmental Planning and Management [Internet]. 2016 ;59(1):98 - 119. Available from: http://www.tandfonline.com/doi/full/10.1080/09640568.2014.985291
Freely available?: 
No
Summary available?: 
No
Type: Journal Article

This paper examines five representative sites on the California coast to illustrate a cost-effective methodology using tools and data that local decision makers can apply to analyse the economics of sea level rise (SLR) adaptation. We estimate the costs/benefits of selected responses (e.g. no action, nourishment, seawalls) to future flooding and erosion risks exacerbated by SLR. We estimate the economic value of changes to public/private property, recreational and habitat value, and beach related spending/tax revenues. Our findings indicate that the costs of SLR are significant but uneven across communities, and there is no single best strategy for adaptation. For example, Los Angeles's Venice Beach could lose $450 million in tourism revenue by 2100 with a 1.4 m SLR scenario while San Francisco's Ocean Beach would lose $80 million, but the impacts to structures could total nearly $560 million at Ocean Beach compared to $50 million at Venice Beach.

Integrating methods for ecosystem service assessment and valuation: Mixed methods or mixed messages?

Hattam C, Böhnke-Henrichs A, Börger T, Burdon D, Hadjimichael M, Delaney A, Atkins JP, Garrard S, Austen MC. Integrating methods for ecosystem service assessment and valuation: Mixed methods or mixed messages?. Ecological Economics [Internet]. 2015 ;120:126 - 138. Available from: http://www.sciencedirect.com/science/article/pii/S092180091500419X
Freely available?: 
No
Summary available?: 
No
Type: Journal Article

A mixed-method approach was used to assess and value the ecosystem services derived from the Dogger Bank, an extensive shallow sandbank in the southern North Sea. Three parallel studies were undertaken that 1) identified and quantified, where possible, how indicators for ecosystem service provision may change according to two future scenarios, 2) assessed members of the public's willingness-to-pay for improvements to a small number of ecosystem services as a consequence of a hypothetical management plan, and 3) facilitated a process of deliberation that allowed members of the public to explore the uses of the Dogger Bank and the conflicts and dilemmas involved in its management. Each of these studies was designed to answer different and specific research questions and therefore contributes different insights about the ecosystem services delivered by the Dogger Bank. This paper explores what can be gained by bringing these findings together post hoc and the extent to which the different methods are complementary. Findings suggest that mixed-method research brings more understanding than can be gained from the individual approaches alone. Nevertheless, the choice of methods used and how these methods are implemented strongly affects the results obtained.

Understanding Acceptable Level of Risk: Incorporating the Economic Cost of Under-Managing Invasive Species

Davidson AD, Hewitt CL, Kashian DR. Understanding Acceptable Level of Risk: Incorporating the Economic Cost of Under-Managing Invasive Species. PLOS ONE [Internet]. 2015 ;10(11):e0141958. Available from: http://journals.plos.org/plosone/article?id=10.1371/journal.pone.0141958
Freely available?: 
Yes
Summary available?: 
Yes
Type: Journal Article

Management of nonindigenous species includes prevention, early detection and rapid response and control. Early detection and rapid response depend on prioritizing and monitoring sites at risk for arrival or secondary spread of nonindigenous species. Such monitoring efforts require sufficient biosecurity budgets to be effective and meet management or policy directives for reduced risk of introduction. Such consideration of risk reduction is rarely considered, however. Here, we review the concepts of acceptable level of risk (ALOR) and associated costs with respect to nonindigenous species and present a framework for aligning risk reduction priorities with available biosecurity resources. We conclude that available biosecurity resources may be insufficient to attain stated and desired risk reduction. This outcome highlights the need to consider policy and management directives when beginning a biosecurity program to determine the feasibility of risk reduction goals, given available resources.

Using Habitat Equivalency Analysis to Assess the Cost Effectiveness of Restoration Outcomes in Four Institutional Contexts

Scemama P, Levrel H. Using Habitat Equivalency Analysis to Assess the Cost Effectiveness of Restoration Outcomes in Four Institutional Contexts. Environmental Management [Internet]. 2015 . Available from: http://link.springer.com/article/10.1007%2Fs00267-015-0598-6
Freely available?: 
No
Summary available?: 
Yes
Type: Journal Article

At the national level, with a fixed amount of resources available for public investment in the restoration of biodiversity, it is difficult to prioritize alternative restoration projects. One way to do this is to assess the level of ecosystem services delivered by these projects and to compare them with their costs. The challenge is to derive a common unit of measurement for ecosystem services in order to compare projects which are carried out in different institutional contexts having different goals (application of environmental laws, management of natural reserves, etc.). This paper assesses the use of habitat equivalency analysis (HEA) as a tool to evaluate ecosystem services provided by restoration projects developed in different institutional contexts. This tool was initially developed to quantify the level of ecosystem services required to compensate for non-market impacts coming from accidental pollution in the US. In this paper, HEA is used to assess the cost effectiveness of several restoration projects in relation to different environmental policies, using case studies based in France. Four case studies were used: the creation of a market for wetlands, public acceptance of a port development project, the rehabilitation of marshes to mitigate nitrate loading to the sea, and the restoration of streams in a protected area. Our main conclusion is that HEA can provide a simple tool to clarify the objectives of restoration projects, to compare the cost and effectiveness of these projects, and to carry out trade-offs, without requiring significant amounts of human or technical resources.

Implications of new economic policy instruments for tuna management in the Western and Central Pacific

Yeeting AD, Bush SR, Ram-Bidesi V, Bailey M. Implications of new economic policy instruments for tuna management in the Western and Central Pacific. Marine Policy [Internet]. 2016 ;63:45 - 52. Available from: http://www.sciencedirect.com/science/article/pii/S0308597X15002870
Freely available?: 
No
Summary available?: 
No
Type: Journal Article

Tuna management in the Western and Central Pacific is complicated by the conflicting interests of countries and agents exploiting tuna resources in the region. Historically, regulatory attempts by Pacific Island Countries to control fishing effort within their Exclusive Economic Zones (EEZs) have met with limited success. The introduction of new economic policy instruments by the Parties to the Nauru Agreement (PNA), such as the Vessel Day Scheme (VDS) and Marine Stewardship Council (MSC) certification, has supported and complemented existing conservation and management measures. By bringing in new incentives for the PNA states, greater control over fishing effort and the formulation of perceptibly new sustainable fishing practices have emerged. Using a new institutional economic framework, this paper analyses the shift from regulatory policy to new economic policy instruments through the lens of New Institutional Economics. The results show how the adoption of the VDS and MSC certification program has brought new changes and improvements to tuna negotiations, to agreements, and to outcomes amongst parties. Investing in these new instruments has elucidated ways in which new economic institutions strengthen de jure political control over transboundary fish resources and fishing fleets.

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