Economic Value of the Red Clay Creek Watershed June 2013 Prepared for The Christina Basin Clean Water Partnership Prepared by: Catherine Cruz-Ortiz, Post-Graduate Research Fellow Kate Miller, Graduate Research Assistant University of Delaware Water Resources Agency Institute for Public Administration School of Public Policy and Administration Newark, Del. Table of Contents Section Page List of Tables .................................................................................................................................. ii List of Figures ................................................................................................................................. ii Executive Summary ....................................................................................................................... iv 1. Introduction ................................................................................................................................. 1 Objectives ................................................................................................................................... 1 History...................................................................................................................................... 1 The Watershed ......................................................................................................................... 2 Land Use .................................................................................................................................. 5 Population ................................................................................................................................ 7 Employment ............................................................................................................................. 7 2. Methods....................................................................................................................................... 8 Valuation Techniques ................................................................................................................. 8 Scope of Work ............................................................................................................................ 8 3. Economic Value ........................................................................................................................ 10 Water Quality ............................................................................................................................ 13 Water Supply ............................................................................................................................ 15 Fish/Wildlife ............................................................................................................................. 17 Recreation ................................................................................................................................. 18 Agriculture ................................................................................................................................ 19 Forests ....................................................................................................................................... 19 Public Parks .............................................................................................................................. 20 4. Ecosystem Services ................................................................................................................... 21 Related Research ....................................................................................................................... 21 Watershed Ecosystem Services ................................................................................................. 22 5. Jobs and Wages ......................................................................................................................... 26 National Coastal Economy ....................................................................................................... 29 Farm Jobs .................................................................................................................................. 29 Fishing/Hunting/Bird and Wildlife Recreation Jobs................................................................. 29 Outdoor Recreation ................................................................................................................... 30 Watershed Organization Jobs ................................................................................................... 31 Water Supply Jobs .................................................................................................................... 31 Wastewater Utility Jobs ............................................................................................................ 31 References ..................................................................................................................................... 37 i List of Tables Table Page 1. Land use in the Red Clay Creek watershed ............................................................................... 5 2. Population change in the Red Clay Creek watershed, 2000-2010 ............................................. 7 3. Population of Red Clay Creek watershed by state ..................................................................... 7 4. Employment in the Red Clay Creek watershed in 2010 ............................................................ 7 5. Annual economic value of the Brandywine Creek watershed ................................................. 12 6. Annual WTP for water quality benefits in the Red Clay Creek watershed ............................. 13 7. Increased property value resulting from improved water quality ............................................ 14 8. Added property value due to improved water quality in Red Clay Creek watershed .............. 14 9. Drinking water treatment costs based on percent of forested watershed ................................. 15 10. Value of Sewage-Treatment Plants’ Discharge in the Red Clay Creek Watershed .............. 15 11. Community Public Water Supply Wells in the Red Clay Creek watershed .......................... 16 12. Freshwater-use values in the United States ........................................................................... 16 13. Value of agriculture irrigation in the Red Clay Creek watershed .......................................... 17 14. Value of wildlife recreation in Red Clay Creek watershed ................................................... 17 15. Outdoor recreation activity in the Red Clay Creek watershed .............................................. 18 16. Value of Cropland and Agriculture in the Red Clay Creek watershed .................................. 19 17. Forest benefits in the Red Clay Creek watershed .................................................................. 20 18. Value of public parks in the Red Clay Creek watershed ....................................................... 20 19. Comparison of ecosystem goods and services values from various studies .......................... 22 20. Value of Ecosystem Goods and Services in the Red Clay Creek watershed ......................... 23 21. Low range of ecosystem services in the Red Clay Creek watershed ..................................... 23 22. High range of ecosystem services in the Red Clay Creek watershed .................................... 23 23. Jobs and wages directly and indirectly related to the Red Clay Creek watershed ................. 26 24. Employment in the Red Clay Creek Watershed in 2010 ....................................................... 26 25. Direct and indirect watershed-related jobs in the Red Clay Creek watershed, 2009 ............. 28 26. Coastal employment in the Red Clay Creek watershed ......................................................... 29 27. Jobs from farms in the Red Clay Creek Watershed ............................................................... 29 28. Jobs from wildlife recreation in the Red Clay Creek watershed ........................................... 30 29. Outdoor recreation jobs in the Red Clay Creek watershed .................................................... 30 30. Watershed organization jobs in the Red Clay Creek watershed ............................................ 31 31. Wastewater treatment jobs in the Red Clay Creek watershed ............................................... 32 List of Figures Figure Page 1. The Red Clay Creek watershed .................................................................................................. 4 2. Land use in the Red Clay Creek watershed ............................................................................... 5 3. Land cover in the Red Clay Creek watershed ............................................................................ 6 4. Economic value of water resources ......................................................................................... 10 5. Annual economic value of the Red Clay Creek watershed by sector ...................................... 11 ii 6. Ecosystem Service Areas in the Red Clay Creek Watershed .................................................. 24 7. Value of Natural Goods and Services by Ecosystem in the Red Clay ..................................... 25 8. Ecosystem Service Value (2010 dollars) in the Red Clay Creek watershed ........................... 25 iii Executive Summary The water, natural resources, and ecosystems in the Red Clay