Determining an Estuary's Economic Values, Indian River Lagoon

DETERMINING AN ESTUARY’S ECONOMIC VALUE

Placing an economic value on the Indian River Lagoon system is one of the important steps the Indian River National Estuary Program (IRLNEP) has taken to increase support and justify spending for its many restoration and protection projects. With three main water bodies—the Mosquito Lagoon, Banana River Lagoon, and the Indian River Lagoon—as well as their associated tributaries, the Indian River Lagoon system is considered the most diverse estuarine ecosystem in North America, with over 4,000 species of plants and animals inventoried and more discovered every year. Showing Federal, state, and local partners that the Lagoon is worthy of protection and continued restoration because of its ecological and economic importance is critical.

In 1996, the IRLNEP conducted an economic assessment and analysis of the five-county study area—and those values have served them well—but the figures no longer reflect today’s economy. The IRLNEP and its hosting agencies, St. Johns and South Florida Water Management Districts, realized they needed to collect current numbers that would. When they updated the economic study, the results were substantial, with overall economic benefits of the Indian River Lagoon totaling more than $3.7 billion in 2007. The report at- tracted immediate attention from the local media as well as the state’s Department of Environmental Protection. The best news is that IRLNEP and its partners expect the update to help bolster their leveraging efforts and generate the support required to accomplish future restoration and protection work around the Lagoon.

THE NATIONAL ESTUARY PROGRAM IN ACTION Indian River Lagoon National Estuary Program

To produce the most accurate erty located in the five-county million in state and local tax rev- update possible, the economists study area. Therefore, the coast- enues, and 15,000 full-and part- used advanced technology tools al values totaling $824 million time jobs. In addition, the recre- such as the Geographical Infor- (1995 dollars) in the last report ational and non-use value of the mation System (GIS) to perform showed a remarkable jump in Lagoon would increase by about a more comprehensive assess- the new study, which was based $80 million per year if there ment of properties adjacent to or on 2007 figures. The new and were a significant increase in near the Lagoon compared to more accurate capitalized value the amount and diversity of wild- properties that are further away. of the Indian River Lagoon is es- life on the Lagoon and increased Unlike the last assessment, in timated at $3.7 billion today, water quality throughout the La- which researchers only counted with activities dependent on the goon system resulting from res- developed properties, new tools Lagoon generating $630 million toration and water quality im- enabled them to include all prop- in income to residents, $112 provement projects. The update

EFFECTIVE • EFFICIENT • ADAPTIVE • COLLABORATIVE also included a brief focus on the a focus of the current study, the • Brevard County Board of additional information in their submitting in the spring of 2009. economic value of the Lagoon’s researchers also pointed out the Commissioners grant applications, and Michael Clearly, the $112,000 spent to 72,400 acres of seagrass as likelihood that seagrass provides Sole, secretary of the Florida’s update the Indian River Lagoon they support recreational and additional economic values re- • Indian River Lagoon Advisory Department of Environmental Economic Assessment was a commercial fisheries. Resource lated to water quality and aes- Board Protection, frequently touted the sound investment that pays big managers and the economists thetics. The St. Johns and South study and its findings during a dividends. assessed seagrass value at Florida Water Management Dis- • Martin County Business Devel- recent speech he gave to com- $329 million per year or $4,600 tricts provided $100,000 to fund opment Committee memorate the Marine Resources Visit www.sjrwmd.com/its per year per acre of seagrass. the study and the IRLNEP con- Council’s 25th anniversary. The yourlagoon to learn more about Furthermore, if the seagrass tributed $12,000 to produce out- • South Florida Water Manage- Council, a longtime IRLNEP part- this and other IRLNEP efforts. value were to remain unchanged, reach materials and to support ment District’s Water Resources ner, is a local nonprofit environ- the study showed that over the one of the study’s economists in Advisory Commission mental organization that orga- EPA’s National Estuary Program next 100 years, at a two percent her efforts to present the new nizes a lagoon-wide citizens’ (NEP) is a unique and successful annual discount rate (the rate at information to the public, various • St. John’s River Water Man- volunteer water quality monitor- coastal watershed-based program which future benefits are re- advisory boards, and commit- agement District’s Projects and ing network. To enhance its out- established in 1987 under the duced each year), the Lagoon’s tees throughout the community, Lands Committee reach activities, the IRLNEP de- Clean Water Act Amendments. seagrass value would be including: The new report has captured the veloped new traveling displays The NEP involves the public and $227,000 per acre. Although not attention of local media, includ- featuring the new economic collaborates with partners to pro- ing a newspaper that featured study results and information for tect, restore, and maintain the wa- details of the assessment on the its own public education events ter quality and ecological integrity front page of its business sec- and meetings. Furthermore, the of 28 estuaries of national signifi- tion—an appealing placement updated figures will play a criti- cance located in 18 coastal states that could help enlarge the pool cal role in justifying legislative and Puerto Rico. of local businesses interested in expenditures for restoration and lending support for restoration protection dollars in the future. For more information about the and protection activities. Some The IRLNEP plans to feature the NEP go to www.epa.gov/owow/ of the IRLNEP’s partners are also economic values in its state leg- estuaries. using the updated figures and islative request, which they are

The NEP: Implementing the Clean Water Act in ways that are Effective, Efficient, Adaptive, and Collaborative. EPA-842F09001