Putting a Price on California s Beaches
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1 Putting a Price on California s Beaches Linwood Pendleton Associate Professor, UCLA School of Public Health Institute of the Environment Lead Non-market Economist National Ocean Economics Program
2 Outline What kinds of values associated with beaches in California? How big are these values? Why do we need this information? Where can you find this kind of information?
3 Goods and Services Understanding Values
4 Understanding The Value of Beaches: Beach Resources Uses and Users Economic Value
5 Understanding Values RESOURCES/GOODS Sandy beaches (Clean) Water Waves Tide Pools Open Space Bike Paths SERVICES Shoreline protection Habitat Copyright 2004 Kenneth & Gabrielle Adelman. All rights reserved.
6 Understanding Values RESOURCES/GOODS Sandy beaches (Clean) Water Waves Tide Pools Open Space Bike Paths SERVICES Shoreline protection Habitat
7 Understanding Values RESOURCES/GOODS Sandy beaches (Clean) Water Waves Tide Pools Open Space Bike Paths SERVICES Shoreline protection Habitat
8 Understanding Values RESOURCES/GOODS Sandy beaches (Clean) Water Waves Tide Pools Open Space Bike Paths SERVICES Shoreline protection Habitat
9 RESOURCES/GOODS Sandy beaches (Clean) Water Waves Tide Pools Open Space Bike Paths Understanding Values SERVICES Shoreline protection Habitat Copyright 2004 Kenneth & Gabrielle Adelman. All rights reserved.
10 Understanding Values RESOURCES/GOODS Sandy beaches (Clean) Water Waves Tide Pools Open Space Bike Paths SERVICES Shoreline protection Habitat
11 Understanding Values RESOURCES/GOODS Sandy beaches (Clean) Water Waves Open Space Bike Paths Tide Pools Fishing Access USES and USERS Swimmers Surfers, body boarders, etc. Non-water contact uses runners, kite flyers, Cyclists Tidepoolers Fishermen SERVICES Shoreline protection Habitat INDIRECT USERS Home owners
12 Economic Impacts Economic Value and Value (Economics) Value (English)
13 Economic Impacts Use gross receipts to calculate: Jobs Wages Taxes King 1999 Total Direct Expenditures for CA Beaches = $14 billion (includes gas and travel) Pendleton and Kildow Total Direct Expenditures on Day Trips = $4 billion
14 Economic Value Contribution of Activity to Society Value Beyond Costs (which represent how inputs could be used elsewhere) Commercial ~ Profits (Net Revenues) Non-market ~ Value Beyond Price Paid (Consumer Surplus)
15 Non-Market Values of Beach Going: Day Trips Consumer Surplus/Trip US$(1990) US$ (2000) Cabrillo-Long Beach 1 $8.16 $10.98 Santa Monica 1 $18.36 $24.71 Pismo State Beach 2 $26.20 $35.26 Leo Carillo State Beach 1 $51.94 $69.91 San Onofre State Beach 2 $57.31 $77.14 San Diego 2 $60.79 $81.82 Source: 1) Leeworthy and Wiley (1993) and 2) Leeworthy (1995).
16 Non-Market Values of Beach Going: Day Trips Consumer Surplus/Day US$ (2001) Individual Surplus/Day Carpinteria Encinitas San Clemente Solana Beach Method 1 $20.48 $18.84 $25.70 $14.58 Method 2 $24.43 $22.17 $30.58 $17.35 Source: Phil King (2001)
17 Non-Market Values of Beach Going: Day Trips The American Trader Oil Spill Case $13.5/trip based on testimony and review of Michael Hanemann (UC Berkeley, 2001) Review of Literature Elsewhere NC Beaches $11/trip
18 $15 = Consumer Surplus/Person/Day $13.50 adjusted for 2005
19 Attendance (person days) King (2002) million Day Use Only Estimates Leeworthy (2001) million (NSRE) Kildow and Shivendu (2001) million (modified EPA Beach estimates) Southern California estimates USLA (2002) 146 million Morton and Pendleton (2001) 79 million (Lifeguard records)
20 Total Non-market Value of California Beaches Attendance (person days)*$(cs)/person day Conservative Estimate of Beach Going Only 150 million person days* $15/person day = $2.25 billion Does not include other beach uses!
21 Why We Need This Information: A Few Examples Value of Beach Nourishment Costs of Poorly Designed Armoring Beach Loss Due to Sea Walls Setting Fines for Ocean Pollution What are the costs to society? Helping Cities Understand the Benefits of Diverting and Cleaning Up Run-off How much to invest? Estimating the Value of Secondary and Tertiary Sewage Treatment is it worth it?
22 Finding Data On Beach Values and Tourism Expenditures
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