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Pew Oceans Pew Oceans CommissionCommission

Geoffrey HealGeoffrey Heal

Columbia Business Columbia Business SchoolSchool

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Ocean economicsOcean economics

Commercial fishingCommercial fishing Sport fishingSport fishing Recreational & amenity valueRecreational & amenity value

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Fishery economicsFishery economics

Commercial fishing contributes Commercial fishing contributes about $29 billion to US GNPabout $29 billion to US GNP

Sport fishing contributes more – Sport fishing contributes more – perhaps twice as muchperhaps twice as much

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Economics of ocean Economics of ocean tourismtourism

No consistent estimates but probably No consistent estimates but probably contributes about $500 billion to contributes about $500 billion to economies of U.S. coastal stateseconomies of U.S. coastal states

Whale watching, bird watching, Whale watching, bird watching, scuba diving are major factors in the scuba diving are major factors in the local economies in several states, local economies in several states, contributing $100s of millionscontributing $100s of millions

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Economics of ocean Economics of ocean tourismtourism

CA: ocean tourism contributed $12 CA: ocean tourism contributed $12 bn of $1300 bn GSP in 2000bn of $1300 bn GSP in 2000

Fla: $8 bn of $470 bn GSP in 2000Fla: $8 bn of $470 bn GSP in 2000

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Economics of ocean Economics of ocean accessaccess

People place vast economic value on People place vast economic value on the oceans. the oceans.

Imagine a nice suburban house 10 Imagine a nice suburban house 10 miles inland, selling for about miles inland, selling for about $400,000. $400,000.

Place it on the coast, on the waterfront: Place it on the coast, on the waterfront: now it will sell for many time more. now it will sell for many time more.

Why? Why?

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Value of the oceansValue of the oceans

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

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Value of the oceansValue of the oceans

When people decide it really When people decide it really matters to them to live by the matters to them to live by the oceans, they are thinking of clean, oceans, they are thinking of clean, productive oceans. productive oceans.

Not oceans with algal blooms & Not oceans with algal blooms & dead zonesdead zones

Studies show property prices, tax Studies show property prices, tax base affected by cleanlinessbase affected by cleanliness

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Recap on ocean Recap on ocean economics economics

Commercial fishingCommercial fishing Recreational fishingRecreational fishing Recreational & amenity values * Recreational & amenity values *

* denotes most important* denotes most important

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Ocean policyOcean policy

All these sources of value are All these sources of value are being threatened by two factors – being threatened by two factors – OverfishingOverfishing PollutionPollution Coastal developmentCoastal development

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Fisheries policyFisheries policy

Two goals are critical –Two goals are critical – Kill fewer fishKill fewer fish, at least in the short run, at least in the short run Damage ocean habitats lessDamage ocean habitats less

Requires managing take better and Requires managing take better and Managing mobile gear use better, Managing mobile gear use better,

e.g. by zoninge.g. by zoning Use of MPAsUse of MPAs Managing pollutionManaging pollution

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Fisheries policy – by-catchFisheries policy – by-catch

Fish are killed as Fish are killed as Catch and Catch and By-catchBy-catch

The by-catch ratio is insane – The by-catch ratio is insane – sometimes by-catch and high-grading sometimes by-catch and high-grading together lead to as many deaths as together lead to as many deaths as catchingcatching

We can eat more fish and kill fewer if We can eat more fish and kill fewer if we address this issuewe address this issue

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Fisheries policy – quotasFisheries policy – quotas

How do we reduce catch?How do we reduce catch? By establishing quotas for each By establishing quotas for each

fishery, on the basis of a fishery, on the basis of a scientifically-valid planscientifically-valid plan Ecosystem-wide and based on a Ecosystem-wide and based on a

sustainable plan for the industrysustainable plan for the industry Then ensuring that catch is within Then ensuring that catch is within

the quotasthe quotas

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Fisheries policyFisheries policy

Clear evidence from Clear evidence from Alaska and Alaska and Maine Maine

That these policies work and can That these policies work and can restore a viable and sustainable restore a viable and sustainable fish population and fishing fish population and fishing communitycommunity

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PollutionPollution

Also critically important to control Also critically important to control pollution of the oceans – mainly pollution of the oceans – mainly land-generatedland-generated Non point source pollution from farms Non point source pollution from farms

– Gulf dead zone– Gulf dead zone Vehicle emissionsVehicle emissions Oil runoff in U.S. = Exxon Valdez Oil runoff in U.S. = Exxon Valdez

every 8 monthsevery 8 months

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DevelopmentDevelopment

CZMA is inadequateCZMA is inadequate Poorly managed coastal Poorly managed coastal

development leads to pollution anddevelopment leads to pollution and Damages tourism, property values Damages tourism, property values

& tax base& tax base

Quantity of development

Property values

Tax base