Socioeconomic Study of Reefs in Southeast Florida: South Florida

Socioeconomic Study of Reefs in Southeast Florida: South Florida

Primary Country: United States
Ecosystem: coral reef
Sample Value Estimates:
Economic impact of reef recreation by visitors and residents of South Florida (only includes multiplier impacts for visito
  1. : sales / output
  2. $357 million: Palm beach
  3. $1,108 million: Broward
  4. $878 million: Miami-Dade
  5. $363 million: Monroe; Income
  6. $142 million : Palm beach
  7. $547 million: Broward
  8. $419 million: Miami-Dade
  9. $106 million: Monroe; CS per person day
  10. $14.86 / person / day: Palm beach
  11. $15.16 / person / day: Broward
  12. $7.54 / person / day: Miami-Dade
  13. $16.34 / person / day: Monroe (m) in all; Aggregate annual CS (n) Palm beach (o) Broward (p) Miami-Dade (q) Monroe (r) in all; Asset value of reef activities with 3% discount rate (s) Palm beach (t) Broward (u) Miami-Dade (v) Monroe (w) in all.
Methodology: contingent valuation and IMPLAN input-output model
Region: Americas / Atlantic
Data source: NOAA's Coral Reef Valuation Database

Publication information

Johns, G. M. Leeworthy, V. R.Bell, F. W.Bonn, M. A. “Socioeconomic Study of Reefs in Southeast Florida: South Florida ” Florida Fish and Wildlife Conservation Commission, National Oceanic and Atmospheric Administration (NOAA), 2001

Addtional Notes

Person-days (millions): Palm Beach 2.8

Broward 5.5

Miami-Dade 6.2

Monroe 3.6: All counties 18.2Report

Johns, G. M.//Leeworthy, V. R.//Bell, F. W.//Bonn, M. A.

10/19/2001

Socioeconomic Study of Reefs in Southeast Florida

Hollywood, Fl: Hazen and Sawyer, P. C., Silver Spring, MD: National Oceanic and Atmospheric Administration, National Ocean Service, Special Projects, and Tallahassee, Fl: Florida State University, Department of Economics and Department of Business, School of Hospitality Administration.255 pp.

coral reefs/natural reefs/economic user values/sales/income/employment/scuba diving/snorkeling/viewing/fishing

The study covered a four-county area off Southeast Florida (e.g., Palm Beach, Broward, Miami-Dade and Monroe) for year June 2000 - May 2001. Estimates of use (measured in person-days), economic impact/contribution (sales/output, income, employment), and consumer's surplus or economic user value (annual value and per person per day) were made separately by type of reef (artificial vs. natural--primarily coral), type of user (resident of county versus nonresident of county), and type of activity (fishing, scuba diving, snorkeling and glass-bottom boat rides). Consumer's surplus estimates are also used to calculate the asset value of the reefs assuming constant flows of annual value and a real discount rate of 3 percent. Demographic profiles of residents and visitors are also presented. For residents of each county, questions were also asked about the support for "no take areas". The report includes an Executive Summary with summary comparisons across counties. Chapter 1 is an Introduction that briefly explains the various surveys and samples. Chapter 2 provides a more detailed across county comparison. Chapters 3-6 provide details on each County (each County has it's own Chapter). Consumer’s surplus estimates (willingness to pay) were estimated separately for existing artificial reefs, existing natural reefs and for new artificial reefs. The database and annotated bibliography contain multiple entries for this study due to the large amount of estimates. This entry contains summary information from the Executive Summary for Natural Reefs Only. Residents and Visitors - Natural Reefs Person-days (millions): Palm Beach 2.83

Broward 5.46

Miami-Dade 6.22

Monroe 3.64: All counties 18.15. (All reef use in Monroe County is in the Florida Keys National Marine Sanctuary) . Economic Impact Includes Multiplier Impacts for visitors only. Sales/Output (millions 2001 $): Palm Beach $357

Broward $1,108

Miami-Dade $878

Monroe $363. Income (millions 2001 $): Palm Beach $142

Broward $547

Miami-Dade $419

Monroe $106. Employment (# full and part-time): Palm Beach 4,500

Broward 19,000

Miami-Dade 13,000

Monroe 8,000. Consumer’s Surplus Per Person-day ($): Palm Beach $14.86

Broward $15.16

Miami-Dade $7.54

Monroe $16.34

All Counties $12.74. Annual Consumer’s Surplus (Millions 2001 $): Palm Beach $42.12

Broward $83.60

Miami-Dade $46.71

Monroe $55.22

All Counties $227.65. Asset Value (Billions 2001 $: 3 Percent Discount rate): Palm Beach $1.4

Broward $2.8

Miami-Dade $1.6

Monroe $1.8

All Counties $7.6.

User Value. Visitors and Residents of each county were first provided background information about different reef protection programs. They were then asked about their recent use of reefs in Southeast Florida, then asked for their willingness to pay for the natural reef program. If the respondent was not willing to pay, a follow-up questions was asked for their reason to assess protest bids. Local and state government agencies are considering different approaches to maintaining the health and condition of natural and artificial reefs in Southeast Florida. One plan focuses on providing greater protection for Natural reefs by maintaining water quality, limiting damage to natural reefs from anchoring, and preventing overuse of the natural reefs. A second plan focuses on protecting the artificial reefs by maintaining water quality, limiting damage to artificial reefs from anchoring and preventing overuse of the artificial reefs. Both of these plans will involve increased costs to local businesses that will ultimately be passed on to both residents and visitors in Southeast Florida. We are doing this survey because local government agencies want to know whether you support one, both or none of these plans and if you would be willing to incur higher cost to pay for these plans. Please keep in mind that whether you support these plans or not would not have any effect on your ability to participate in any boating activity or other recreation in Southeast Florida. Southeast Florida includes Palm Beach, Broward, Miami-Dade and Monroe Counties. The Florida Keys are in Monroe County. Over the past 12 months, how many boating trips have you made in southeast Florida to use the: Natural reefs? ________ (Number of trips) Artificial reefs? _____ (Number of trips) Suppose there was a plan to maintain the health and condition of natural reefs in Southeast Florida. First, consider your total costs for your last boating trip in Southeast Florida including travel expenses, lodging, and all boating expenses. If your total costs for this trip would have been $ (randomly assigned dollar amount higher, would you have been willing to pay this amount to maintain the natural reefs in their existing condition? YES NO If No, reason for saying no. Randomly asigned dollar amounts for residents were $10, $50, $100, $200 and $500 and for visitors were $10, $50, $100, $500 and $1,000. Data was pooled across counties and logit model was used. For visitor economic impact/contribution (e.g., sales/output, income and employment) estimation, the IMPLAN input-output model was used for Palm Beach, Broward and Miami-Dade counties. For Monroe County visitors, an Excel spreadsheet model was developed using wages to sales ratios and wages to employment ratios by industry and a Keynsian regional multiplier for income and employment. For residents of all counties, only direct impacts were estimated. Wages to sales ratios and wages to employment ratios by industry were used to derive direct income and employment impact. It is recognized in the study that including resident spending impacts is partially double counting, since resident spending is from export or basic industry income and thus part of the multiplier process. A portion of the basic industry income does not entail double counting (I.e., income not related to work in the county such as retirement pensions, social security, dividends and interest on ivestments, etc.). For the portion that is douvle counted, the report argues it is important to local interests of not losing business (if reefs decline in quality) and the import substitution argument is invoked i.e., that people might go elsewhere and the multiplier impacts would be smaller.

four-county area of southeast Florida (e.g., Palm Beach, Broward, Miami-Dade and Monroe (Florida Keys National Marine Sanctuary)

Natural reefs (primarily coral reefs)

recreational fishing, scuba diving, snorkeling and glass-bottom boat rides

On-site survey of visitors to each county and mail survey of registered boaters in each county for residents.

June 2000 - May 2001

Sales/Output (millions 2001 $): Palm Beach $357

Broward $1,108

Miami-Dade $878

Monroe $363. Income (millions 2001 $): Palm Beach $142

Broward $547

Miami-Dade $419

Monroe $106. Employment (# full and part-time): Palm Beach 4,500

Broward 19,000

Miami-Dade 13,000

Monroe 8,000.

Per Person Per Day: Palm Beach $14.86

Broward $15.16

Miami-Dade $7.54

Monroe $16.34: All Counties $12.74

On-site surveys for visitors to each county and mail surveys for residents of each county.

User Value. Contingent Valuation using discrete choice logit model. Randomly assigned dollar amounts for residents were $10, $50, $100, $200 and $500 per trip. All trips for residents were single day trips. Randoml

y assigned dollar amounts for visitors were $10, $50, $100, $500 and $1,000 per trip. Many trips were multiple day trips. Although logit model yielded per trip values for each sampled individual, these were normalized to per person-day values. Sample means by County were run by activity (if model identified significant differences by County and activity). Annual values by county were estimated as total person-days by activity times the value per person-day by activity. Economic Impact/Contribution. The IMPLAN input-output model was used for Palm Beach, Broward and Miami-Dade counties for visitors. For Monroe County visitors a model using wages to sales ratios, wages to employment ratios, along with Keynsian regional multipliers for income and employment. For residents in all counties, only direct sales, income and employment were estimated.

4131

Boating Visitors to each county and registered boats for residents of each county.

Visitor Survey was stratified across various sites using local knowledge to get representative sample of nonresident boaters. Resident survey was stratified by five boat length categories with a minimum boat length of 16 feet. Resident sample size was 1,658 and visitor sample size was 2,473.

Bob Leeworthy

Information provided when available, for more information please visit the original database or PDF.