Center for the Blue Economy Digital Commons @ Center for the Blue Economy Publications National Ocean Economics Program Summer 7-1-2005 CALIFORNIA’S OCEAN ECONOMY Judith T. Kildow Dr National Ocean Economic Program, [email protected] Charles S. Colgan University of Southern Maine Follow this and additional works at: https://cbe.miis.edu/noep_publications Part of the Agricultural and Resource Economics Commons, Growth and Development Commons, and the International Economics Commons Recommended Citation Kildow, Judith T. Dr and Colgan, Charles S., "CALIFORNIA’S OCEAN ECONOMY" (2005). Publications. 8. https://cbe.miis.edu/noep_publications/8 This Article is brought to you for free and open access by the National Ocean Economics Program at Digital Commons @ Center for the Blue Economy. It has been accepted for inclusion in Publications by an authorized administrator of Digital Commons @ Center for the Blue Economy. For more information, please contact [email protected]. CALIFORNIA’S OCEAN ECONOMY Abstract California’s Ocean Economy is the most expansive study of its kind in the nation and provides an update to the 1994 economic study conducted by the California Research Bureau and later released as part of the Resources Agency ocean strategy titled, California’s Ocean Resources: An Agenda for the Future. This report from the National Ocean Economics Program (NOEP) provides a more comprehensive understanding of the economic role of California’s ocean resources than has been available to date. It also provides California with strong evidence that its unique ocean and coastal resources are important to sustaining California’s economy. This information highlights the economic importance of the ocean and coast to California and the nation and underscores the need for continued leadership in balancing resource protection and economic development. This article is available at Digital Commons @ Center for the Blue Economy: https://cbe.miis.edu/noep_publications/8 NOEP CALIFORNIA’S OCEAN ECONOMY Report to the Resources Agency, State of California Prepared by The National Ocean Economics Program Professor Judith Kildow Principal Investigator California State Uni versity Monterey Bay Professor C harles S. Colgan Chief Economist University of Southern Maine July 2005 NOEP NOEP Table of Contents Executive Summary...............................................................................................................1 Acknowledgements ...............................................................................................................3 PART I BACKGROUND AND SUMMARY OF FINDINGS....................................5 Chapter 1 Introduction................................................................................................5 1.1 California and the Sea......................................................................................................5 1.2 About this Study..............................................................................................................6 1.3 Definitions and Terminology..........................................................................................7 1.4 Limitations and Omissions..............................................................................................9 Chapter 2 Summary of Findings ................................................................................11 2.1 Introduction ....................................................................................................................11 2.2 California’s Coastal Economy.........................................................................................11 2.3 California’s Ocean Economy: Comparisons with the Nation ....................................... 15 2.4 California’s Ocean Economy: Comparisons with Other States..................................... 17 2.5 California’s Ocean Economy: Regional Comparisons .................................................. 19 2.6 California’s Ocean Economy: Statewide Summaries by Sector..................................... 24 2.7 Indirect and Induced Estimates of California’s Ocean Economy ............................... 27 2.8 Changes in the California Ocean Economy 1990-2000 ................................................. 28 2.9 References..................................................................................................................... 30 PART II THE SECTORS OF THE CALIFORNIA OCEAN ECONOMY........... 31 Chapter 3 California Living Resources.................................................................. 31 3.1 Overview of Activities: Fisheries Landings and Values................................................. 34 3.1.1 Influences on California’s Fishing Industry................................................................ 38 3.1.2 Landings and Values by Species ................................................................................................................ 38 3.1.3 Landings and Values by Region and County 1990 to 2002 ................................................................... 39 3.3 Kelp and Sea Vegetable Harvesting.............................................................................. 42 3.4 Recreational and Sport fishing...................................................................................... 44 3.4 Conclusion .................................................................................................................... 45 3.5 References..................................................................................................................... 45 Chapter 4 California Ocean Minerals.................................................................... 47 4.1 Marine Minerals ............................................................................................................47 4.1.1 Production and Revenue from Offshore Oil and Gas Production ..................................................... 48 4.1.2 Geographic Location of Offshore Production......................................................................................... 50 4.2 Offshore Natural Gas Production in California............................................................ 52 4.3 Estimate of the Economic Contribution of Ocean Minerals........................................ 52 i NOEP 4.4 References..................................................................................................................... 54 Chapter 5 California Marine Transportation ......................................................... 55 5.1 Marine Transportation .................................................................................................. 56 5.1.1 Overview of Activities ................................................................................................................................. 56 5.1.2 Composition of Cargo for all California Ports by Commodity............................................................. 59 5.1.3 Estimated Value of Imports and Exports for Major California Ports ................................................. 62 5.2 CA Water Transportation: Regional and State Employment and Income................... 65 5.2.1 Regional and State Indirect Employment and Income from IMPLAN Model.......... 67 5.2 References...................................................................................................................... 73 Chapter 6 California Marine Construction ............................................................ 75 6.1 Marine Construction (maintenance, repair and restoration) ........................................ 75 6.2 Port Development ......................................................................................................... 76 6.2.1 Historical Capital Expenditures for California Public Port Development ........................................... 77 6.2.2 Proposed Capital Expenditure for California Public Port Development: Total US vs. CA 2002- 2006.......................................................................................................................................................................... 85 6.2.3 Funding Resources for Port Development.............................................................................................. 88 6.2.4 Economic Impact........................................................................................................................................ 91 6.3 Beach Nourishment...................................................................................................... 93 6.3.1 Funding Sources ........................................................................................................................................... 94 6.4 References..................................................................................................................... 95 Chapter 7: California Ship & Boat Building................................................................ 97 7.1 Ship & Boat Building and Repair: Description of the Sector ....................................... 98 7.2 Ship & Boat Building in California............................................................................... 98 7.3 References....................................................................................................................101 Chapter 8 Coastal Tourism & Recreation ............................................................103 8.0 Estimated Economic Summaries of the California Coastal Tourism & Recreation Sector ..................................................................................................................................103