1. Sherry Larkin Chuck Adams University of Florida John Whitehead Appalachian State University O Background Surveys Methodology Results Caveats

2. Background: User Values  Artificial reefs provide a suite of ecosystem services  Primary anthropogenic uses are for “active use” in study region  Apply stated preference techniques (e.g., Morgan et al. 2009)

3. Study Area  Six coastal counties in SW Florida with artificial reef programs

4. User Groups (1) For-Hire Providers: Charter (Six-pack) A vessel licensed to take no more than six paying passengers usually for offshore trolling or deepwater bottom-fishing. Party (head) A vessel licensed to take more than 11 persons usually offshore for bottom-fishing. Guide A vessel licensed to take no more than 4 persons usually near shore for flats-fishing and casting Dive A licensed vessel designed to accommodate multiple persons on a chartered dive/snorkel trip. RentalA vessel you would rent from a local marina or boat rental business, and operate yourself. (2) Clients (3) Private boat owners

5. Surveys  For-hire Providers: Mail survey to all 963 in six-county study region  For-hire Clients: Internet survey to 6,841,151 individuals in SE region via Expedite  Private Boat Owners: Mail survey to 19,428 in study region and service area Variables: user activity, familiarity with the programs, vessel/business or demographics, WTP with follow-up

6. Stakeholder Group Mechanism and Frequency Proposed Fee Levels For-hire Providers Annual license $8, $16, $24, $32 For-hire Clients Trip fee5%, 10%, 15%, 20% Private Boat Owners Annual license $3, $6, $12, $24 Stated preference questions: Would you support the establishment of a mandatory Artificial Reef Trust Fund “add on” fee for the maintenance and deployment of new reefs? Y/N If “yes”, how sure are you of this decision? Not at all (uncertain) Not at all (uncertain) Somewhat sure Somewhat sure Very sure (certain) Very sure (certain)

7. Methodology  Ordered model: N persons (i = 1, 2, … N) each have one of M preferences (j = 1, 2, … M) The M alternatives are ordered  Each person’s degree of support, D i : D i =  k  k ·X ik +  i  Use respondents’ stated level of support: Y i = 0 if D i   1 Y i = 1 if  1 < D i   2 Y i = 2 if  2 < D i   3 Y i = 3 if D i >  3 Where  j  0 and  1 <  3 <  3 Pr(Y i = M j )  i std. normal

8. Stated Preference Results: WTP? Providers (N=213) Clients (N=604) Boat owners (N=2,702) If “Yes”: Not sure: 4%24% 7% Somewhat sure:40%51%39% Very sure:56%25%54%

9. Providers WTP Mean Est.  sign. at 10% or less Constant 1.206 LnFee (Natural log of proposed fee)2.91 - 0.249 Reef days in last year30.8 days 0.007 Very familiar with program? (1 if yes)46% 0.352 Mu(1) 0.071 Mu(2) 0.652 Ordered Probit: Ordered Probit: N/S: Business type, vessel length, annual permit fees, declining use Notes: N=191 (24%);  2 = 18.2***; LnL = -123.1; 60% correct

10. Clients WTP Mean Est.  sign. at 10% or less Constant 1.740 LnFee (Natural log of proposed fee)2.40 - 0.298 Age50.8 yrs - 0.009 Caucasian? (1 if yes)85% 0.233 Male? (1 if yes)70% 0.200 Mu(1) 0.392 Mu(2) 1.373 Ordered Probit: Ordered Probit: N/S: Florida resident, education, or income Notes: N=493;  2 = 23.7***; LnL = -637.0; 65% correct

11. Boat Owners WTP Mean Est.  sign. at 10% or less Constant 1.206 LnFee (Natural log of proposed fee)2.16 - 0.249 Reef days in last year5.4 days 0.010 Very familiar with program? (1 if yes)12% 0.156 Income ($1,000)$88.8/yr 0.004 Caucasian? (1 if yes)93% - 0.207 Mu(1) 0.080 Mu(2) 0.623 Ordered Probit: Ordered Probit: N/S: Vessel length, resident of coastal county, age, no. kids in household Notes: N=1,981 (11%);  2 = 257.8***; LnL = -2,041.0; 64% correct

12. What is the WTP? Group Providers Clients Boat owner WTP Delta Method $25.86*** 39.1%*** $7.02*** Median WTP Grand Constant $24.56 69.7% $7.08

13. How does reef use affect the WTP? Group Providers Boat owner No reef trips $16.01 (0 trips) $6.25 Grand Constant $24.56 $7.08 Mean + 1stddev $133.62 (75 trips) $9.64 (19 trips)

14. How does familiarity with the reef program affect the WTP? Group Providers Boat owner Not familiar $24.31 $6.79 Grand Constant $24.56 $7.08 Very Familiar $99.82 $9.56

15. Summary  WTP ranged from 45% to 64% by user group  WTP amounts would be sufficient to fund existing program and new reefs  Although heavy users are WTP more, non-users have WTP > 0; those ‘very familiar’ with the current program are WTP more (role for education)  Caveats: Client model needs work Additional WTP measures need to be derived

16. Sherry Larkin Chuck Adams John Whitehead