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Economic Value of the Barnegat Bay Watershed

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Economic Value of the Barnegat Bay Watershed Economic Value of the Barnegat Bay Watershed October 2012 prepared for the prepared by Gerald J. Kauffman and Catherine Cruz-Ortíz of IPA’s Water Resources Agency Institute for Public Administration School of Public Policy & Administration College of Arts & Sciences University of Delaware www.ipa.udel.edu serving the public good, shaping tomorrow’s leaders Economic Value of the Barnegat Bay Watershed October 2012 prepared for the Barnegat Bay Partnership Toms River, N.J. prepared by Gerald J. Kauffman and Catherine Cruz-Ortíz of IPA’s Water Resources Agency Institute for Public Administration School of Public Policy & Administration College of Arts & Sciences University of Delaware www.ipa.udel.edu serving the public good, shaping tomorrow’s leaders cover credits cover images of Barnegat Bay watershed courtesy of the Barnegat Bay Partnership aerial cover image of Barnegat Bay by Doc Searles, courtesy of the New Jersey Sea Grant Consortium cover image of Barnegat Light courtesy of Friends of Barnegat Lighthouse State Park ECONOMIC VALUE OF THE BARNEGAT BAY WATERSHED October 2012 Table of Contents Section Page List of Tables ................................................................................................................................. ii List of Figures ............................................................................................................................... iii Executive Summary .......................................................................................................................1 1. Introduction ............................................................................................................................... 2 Objectives ................................................................................................................................... 2 An Economic Engine .................................................................................................................. 3 History......................................................................................................................................... 4 The Watershed ............................................................................................................................ 5 Land Use ..................................................................................................................................... 6 Population ................................................................................................................................... 7 Employment .............................................................................................................................. 10 2. Methods .................................................................................................................................... 11 Valuation Techniques ............................................................................................................... 11 Scope of Work .......................................................................................................................... 11 3. Economic Value ....................................................................................................................... 13 Water Quality ............................................................................................................................ 16 Water Supply ............................................................................................................................ 19 Fish/Wildlife ............................................................................................................................. 21 Recreation ................................................................................................................................. 27 Agriculture ................................................................................................................................ 31 Forests ....................................................................................................................................... 32 4. Ecosystem Services .................................................................................................................. 34 Related Research ....................................................................................................................... 34 Watershed Ecosystem Services ................................................................................................. 36 5. Jobs and Wages ....................................................................................................................... 40 National Coastal Economy ....................................................................................................... 43 Farm Jobs .................................................................................................................................. 44 Fishing/Hunting/Bird and Wildlife Recreation Jobs ................................................................. 44 Wetland Jobs ............................................................................................................................. 45 Boating Jobs .............................................................................................................................. 45 Outdoor Recreation ................................................................................................................... 46 State Parks ................................................................................................................................. 46 Watershed Organization Jobs ................................................................................................... 46 Water Supply Jobs .................................................................................................................... 47 Wastewater Utility Jobs ............................................................................................................ 47 Appendix - Employment Codes by Industry, 2009 .................................................................. 49 References .................................................................................................................................... 53 i ECONOMIC VALUE OF THE BARNEGAT BAY WATERSHED October 2012 List of Tables Table Page 1. Tourism economy in Ocean County, New Jersey in 1988 ......................................................... 3 2. Ocean County assessed property tax valuation of ratables ........................................................ 4 3. Land use in Ocean County, N.J., in the Barnegat Bay watershed ............................................. 6 4. Population of New Jersey counties ............................................................................................ 8 5. Employment by municipality in Ocean County, N.J., in 2010 ................................................ 10 6. Ocean County employment by industry, 2008 ........................................................................ 10 7. Annual economic value of the Barnegat Bay watershed ......................................................... 15 8. Annual willingness to pay for water quality benefits in New England ................................... 16 9. Annual willingness to pay for water quality benefits in the Barnegat Bay watershed ............ 16 10. Increased property value resulting from improved water quality .......................................... 17 11. Added property value due to improved water quality in Barnegat Bay watershed ............... 18 12. Drinking water–treatment costs based on percent of forested watershed .............................. 18 13. Freshwater-use values in the United States ........................................................................... 20 14. Value of agriculture irrigation in the Barnegat Bay watershed ............................................. 20 15. Contributions to local economy from Forsythe National Wildlife Refuge ............................ 21 16. Top commercial fishing ports in the United States in 2010 (NOEP 2010) ........................... 22 17. Value of fishing, hunting, wildlife/birding recreation in Barnegat Bay watershed ............... 27 18. Coastal recreation by state ..................................................................................................... 28 19. Water-based recreation activity in New Jersey ...................................................................... 28 20. Literature review of coastal recreational fishing studies in the Mid-Atlantic U.S. ............... 29 21. Annual value of recreation benefits in the Barnegat Bay watershed ..................................... 29 22. Economic value of recreation in the Barnegat Bay watershed .............................................. 30 23. Outdoor recreation activity in the Barnegat Bay watershed .................................................. 30 24. Literature review of coastal beach visitor studies in the Mid-Atlantic .................................. 31 25. Agricultural sales in Ocean County, New Jersey, 2007 ......................................................... 32 26. Economic and environmental benefits of forests in the Barnegat Bay watershed ................. 32 27. Federal, state, county parks and protected open space in Ocean County .............................. 33 28. Value of public parks in the Barnegat Bay watershed ........................................................... 33 29. Ecosystem services
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