Economic Values Generated by the New Jersey Shore for Climate Change and Coastal Hazards Conference
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1 Economic Values Generated by the New Jersey Shore for Climate Change and Coastal Hazards Conference Professor Joseph J. Seneca Bloustein School of Planning and Public Policy, Rutgers University 25 May
2 New Jersey Shore Counties 127 miles of shoreline 7,837 acres of beach 456,000 acres of estuary & tidal bay 300,000 acres of coastal shelf 191,000 acres of saltwater wetlands Source: Valuing New Jersey s Natural Capital, NJ Dept. of Environmental Protection, April
3 NJ Shore Counties Population Change: Geography 2000 (Census) 2010 (Census) Change Monmouth 615, , % Ocean 510, , % Atlantic 252, , % Cape May 102,326 97, % Shore County Total New Jersey (Balance) Source: US Census Bureau. 1,481,095 1,578, % 6,933,255 7,213, % 3
4 Economic Development & Demographic Pressures on the Jersey Shore Economic Development & Population Growth Natural Damages Natural Capital 4
5 Economic Flows from Natural Capital (examples) GOODS- Commercially harvested fish & shellfish Minerals Plants SERVICES- Outdoor recreation (beach visits, fishing, bird watching, etc.) Nutrient recycling Water filtration Buffering from floods & storms Aesthetic amenities Maintenance of biodiversity 5
6 Capitalization of Annual Benefit Flow Asset Yields $5,000 per year Interest rate = 5% (alternative yield) Value of Asset = $100,000 ($5,000/.05) (Present Value of flow of $5,000 in perpetuity) 6
7 Surf Fishing on Long Beach Island Source: 1&mode=article&objectID=32616
8 Bird Watching 8
9 The Jersey Shore 9 Source:
10 Barnegat Bay Tidal Marshes Source: 10
11 11 Source:
12 Methods to Infer Annual Economic Value of Natural Capital Flows Travel Cost Method Contingent Valuation Hedonic Price Method Avoided Cost Method 12
13 Annual Beach Visitations (2000) Selected States # of Participants (millions) # of Days (millions) New Jersey Florida California North Carolina Only Florida, California and Hawaii have more beach days than New Jersey! Source: Leeworthy, Vernon and Peter Wiley, Current Participation Patterns in Marine Recreation, National Survey on Recreation and the Environment 2000, National Oceanic and Atmospheric Administration, U.S. Dept. of Commerce, November
14 Beach Day Source: 14
15 Annual Value of New Jersey Beach Visits Method $ Value per Day # of Days (millions) Annual Value ($Mln, 2007) Travel Cost $ $1,286 Contingent Valuation $ $ New Jersey estimate : Leeworthy and Wiley, Recreational Use Value for Island Beach State Park, Technical Report, National Oceanic and Atmospheric Administration, Strategic Environmental Assessments Division, Office of Ocean Resources and Conservation, Massachusetts estimate: Kline and Swallow, The Demand for Local Access to Coastal Recreation in Southern New England, Coastal Management, Vol. 26, Issue 3, July-September
16 Asset Value of New Jersey Beaches Method Annual Value ($Mln, 2007) Discount Rate Asset Value ($Mln, 2007) Travel Cost $1,286 5% $25,720 Contingent Valuation $219 5% $4,380 16
17 References The National Ocean Economics Program at the Monterey Institute of International Studies offers a wide range of resources on measuring non-market values of natural resources, including: Valuation Estimates Descriptions of Valuation Methodologies References and Links to Academic Analyses and Technical Reports 17
18 References The National Survey on Recreation and the Environment (2000) provides comprehensive data and projections on marine recreation participation patterns /nsre2000.html 18
19 References Valuing New Jersey s Natural Capital: An Assessment of the Economic Value of the State s Natural Resources This study provides a comprehensive assessment of the value of all of New Jersey s natural resources. lcap/ 19
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