Protecting Lives and Property at Our CoastlinesA Disaster Roundtable Workshop

The National Academies

Our

National Marine Sanctuary FoundationCapitol Hill Ocean Week

The Economy of US Coastal Communities

Dr. Judith T. Kildow, Director and PIThe National Ocean Economics Program

The Monterey Bay Aquarium Research Institute June 6, 2007

TopicsTopics

• Contribution

• Trends

• Uniqueness

• Challenges

• What to do

• Summary

Coastal counties Coastal counties contribute 45% to contribute 45% to the US economythe US economy

BUT

They are at risk

Our Coasts Drive the Nation

The Contribution 2005The Contribution 2005

• US Coastal County Economy = $5.6 Trillion

• US Coastal State Economy = $10.3 Trillion

• US Total Economy = $12.4 Trillion

Coastal County Contribution to All Coastal States 2005

50%55% 55%

50% 50%

33%

0%

10%

20%

30%

40%

50%

60%

Employment Wages GSP Population Housing Land

US US Coastal CountiesCoastal Counties 20052005

50% of Jobs55% of Wages 45% of GSP 50% of Population50% of Housing

All on 7.6% of Land

Coastal Leisure and Hospitality$340 Billion to US Economy10 million JobsAverage wage - $10,500

Trade, Transportation, and Utilities$950 Billion

11 million Jobs

Average wage - $37,000

County Sector Contributions 2004County Sector Contributions 2004

Economic TrendsEconomic Trends• Industry shifts

– Manufacturing and production to services– Tourism and Transportation increasing– Fishing, offshore minerals, ship building decreasing

• Demographic shifts– Bifurcated population between rich and poor– Second homes growing and changing communities

• Environmental impacts affecting economy– Climate change: sea level rise - erosion, – warming- toxic blooms, intense storms - floods

TrendsTrends• Declining fishing communities• New industries substituting

o Whale watching o Wildlife viewing

Small communities of cottages turned to mansion strongholds

UniquenessUniquenessExtraordinary natural assets

Dependence on the sea

UniquenessUniqueness

UniquenessUniquenessExposure to increased natural hazards

Intense Storms

FloodsToxic

Blooms

Erosion(Griggs photo)

ChallengesChallenges

How to live with • Natural Hazards

– Erosion– Floods– Sea Level Rise– Natural resource threats

• Toxic blooms• Shifting ecosystems

• Ocean response to climate change

Florida at RiskFlorida at RiskOcean Warming

Sea Level Rise

Vero Beach, Florida

4% of US Economy (.5 trillion $)

0.33% of US Land

68% of state GSP

67% of state Jobs

Florida Shoreline Counties 2004Florida Shoreline Counties 2004

Coastal County ComparisonCoastal County Comparison

11% of US economy1.1% of US land area79% of state jobs83% of state GSP75% of state residents25% of state land area

4% of US economy

.33% of US land area

67% of state jobs

68% of state GSP

77% of state residents

56% of state lands

California Florida

2000-2005 Coastal County Growth Rates

0%

2%

4%

6%

8%

10%

12%

14%

Employment 1.2% 9.6%

Population 4.5% 10.5%

Housing 4.5% 12.4%

California Florida

Gulf Coastal CountiesGulf Coastal Counties

5% of US Economy1.4% of US Land Area

29% of Gulf Economy27% of Gulf jobs29% of Gulf States GSP27.2% Of People11.2%of Gulf state lands

ChallengesChallengesFrom Human Activities• Controlling Population growth• Affordable housing• Seasonal demands and downside of tourism• Expanding transportation and other

infrastructure• Protecting built infrastructure

– Power plants, sewage treatment, communications

• Protecting fresh water supplies from saltwater intrusion

• And more…….

National Security/Economies at RiskNational Security/Economies at Risk

Offshore Minerals

Transportation

Nuclear Power

Pebble Beach18th hole

Fishing

Tourism

Real Estate (griggs photo)

Size of the Coastal EconomySize of the Coastal Economy20052005

Coastal States: $10.3 trillion GSP (83% of US)

~ 106 million jobs

~ $4.5 trillion in wages

Coastal Counties: $5.6 trillion GSP (45% of US)

~ 54 million jobs

~ $2 trillion in wages

US Coastal Tourism: $340 billion GSP

~ 10 million jobs

~ $105 billion in wages

US Coastal Trade, Transportation, and Utilities: $950 billion GSP

~ 11 million jobs

~ $407 billion in wages

What to DoWhat to Do• Divert economic and population growth inland• Control growth at the coast• Diversify coastal economies• Balance coastal economic contributions with

federal government investments• Compensate coastal communities for large

cost burden to sustain natural assets that contribute disproportionately to US economy

• Educate people how to strengthen community economies.

Effective Policies to Decrease Social and Economic

Vulnerability and Increase Strengths

Political Will

Healthy Coastal Communities

Information

Face

Realities

The National Ocean The National Ocean Economics ProgramEconomics Program

• Sponsors – NOAA Coastal Services Center– Monterey Bay Aquarium Research Institute– The David and Lucile Packard Foundation– University of Southern California Wrigley Institute and

USC Sea Grant– California State University at Monterey Bay– EPA Office of Water– Others

www.OceanEconomics.org