1 Pew Oceans Commission Geoffrey Heal Columbia Business School

2 Ocean economics Commercial fishing Commercial fishing Sport fishing Sport fishing Recreational & amenity value Recreational & amenity value

3 Fishery economics Commercial fishing contributes about $29 billion to US GNP Commercial fishing contributes about $29 billion to US GNP Sport fishing contributes more – perhaps twice as much Sport fishing contributes more – perhaps twice as much

4 Economics of ocean tourism No consistent estimates but probably contributes about $500 billion to economies of U.S. coastal states No consistent estimates but probably contributes about $500 billion to economies of U.S. coastal states Whale watching, bird watching, scuba diving are major factors in the local economies in several states, contributing $100s of millions Whale watching, bird watching, scuba diving are major factors in the local economies in several states, contributing $100s of millions

5 Economics of ocean tourism CA: ocean tourism contributed $12 bn of $1300 bn GSP in 2000 CA: ocean tourism contributed $12 bn of $1300 bn GSP in 2000 Fla: $8 bn of $470 bn GSP in 2000 Fla: $8 bn of $470 bn GSP in 2000

6 Economics of ocean access People place vast economic value on the oceans. People place vast economic value on the oceans. Imagine a nice suburban house 10 miles inland, selling for about $400,000. Imagine a nice suburban house 10 miles inland, selling for about $400,000. Place it on the coast, on the waterfront: now it will sell for many time more. Place it on the coast, on the waterfront: now it will sell for many time more. Why? Why?

7 Value of the oceans Because people value the oceans and having a connection with them. Oceans matter to us, so much that one of our most basic decisions – where to live – is strongly influenced by this. Because people value the oceans and having a connection with them. Oceans matter to us, so much that one of our most basic decisions – where to live – is strongly influenced by this.

8 Value of the oceans When people decide it really matters to them to live by the oceans, they are thinking of clean, productive oceans. When people decide it really matters to them to live by the oceans, they are thinking of clean, productive oceans. Not oceans with algal blooms & dead zones Not oceans with algal blooms & dead zones Studies show property prices, tax base affected by cleanliness Studies show property prices, tax base affected by cleanliness

9 Recap on ocean economics Commercial fishing Commercial fishing Recreational fishing Recreational fishing Recreational & amenity values * Recreational & amenity values * * denotes most important * denotes most important

10 Ocean policy All these sources of value are being threatened by two factors – All these sources of value are being threatened by two factors – Overfishing Overfishing Pollution Pollution Coastal development Coastal development

11 Fisheries policy Two goals are critical – Two goals are critical – Kill fewer fish, at least in the short run Kill fewer fish, at least in the short run Damage ocean habitats less Damage ocean habitats less Requires managing take better and Requires managing take better and Managing mobile gear use better, e.g. by zoning Managing mobile gear use better, e.g. by zoning Use of MPAs Use of MPAs Managing pollution Managing pollution

12 Fisheries policy – by-catch Fish are killed as Fish are killed as Catch and Catch and By-catch By-catch The by-catch ratio is insane – sometimes by- catch and high-grading together lead to as many deaths as catching The by-catch ratio is insane – sometimes by- catch and high-grading together lead to as many deaths as catching We can eat more fish and kill fewer if we address this issue We can eat more fish and kill fewer if we address this issue

13 Fisheries policy – quotas How do we reduce catch? How do we reduce catch? By establishing quotas for each fishery, on the basis of a scientifically-valid plan By establishing quotas for each fishery, on the basis of a scientifically-valid plan Ecosystem-wide and based on a sustainable plan for the industry Ecosystem-wide and based on a sustainable plan for the industry Then ensuring that catch is within the quotas Then ensuring that catch is within the quotas

14 Fisheries policy Clear evidence from Clear evidence from Alaska and Alaska and Maine Maine That these policies work and can restore a viable and sustainable fish population and fishing community That these policies work and can restore a viable and sustainable fish population and fishing community

15 Pollution Also critically important to control pollution of the oceans – mainly land- generated Also critically important to control pollution of the oceans – mainly land- generated Non point source pollution from farms – Gulf dead zone Non point source pollution from farms – Gulf dead zone Vehicle emissions Vehicle emissions Oil runoff in U.S. = Exxon Valdez every 8 months Oil runoff in U.S. = Exxon Valdez every 8 months

16 Development CZMA is inadequate CZMA is inadequate Poorly managed coastal development leads to pollution and Poorly managed coastal development leads to pollution and Damages tourism, property values & tax base Damages tourism, property values & tax base

Quantity of development Property values Tax base