Valuing the Ottawa River: Recreational Value & Direct Economic & Fiscal Impacts of Dredgins
Project Number: R/ME-021-PD, Completion Report
Start Date: 6/1/1998
Completion Date: 12/31/1999
Revision Date: 3/7/2001
| Principal Investigator(s) | 1. | Leroy J. Hushak, Agricultural Economics and Rural Sciences The Ohio State University* |
| Co-Principal Investigator(s) | 2. | Mary Bielen, OH Sea Grant Extension* |
| This shows the current affiliation and may not match affiliation at time of participation. * | ||
Funding Record
| Source: Ohio Sea Grant College Program | |||
| Source Fund | State Match | Pass Through | |
| First Year | $ 1,500.00 | $ 2,500.00 | $ 0.00 |
| Total | $ 1,500.00 | $ 2,500.00 | $ 0.00 |
Objectives
The general objective is to evaluate the economic rationale for the development and financial participation of a local partner in the dredging and cleaning up of the Ottawa River by specific three objectives:
Estimate the effects of dredging on the recreational value of boating on the Ottawa River,
Estimate the effects of changes in water quality on the recreational value of boating on the Ottawa River, and
Estimate the direct economic (sales, income and employment) and fiscal (tax revenue) impacts on the local economy of dredging the Ottawa River for recreational purposes and of water quality changes.
Estimate the effects of dredging on the recreational value of boating on the Ottawa River,
Estimate the effects of changes in water quality on the recreational value of boating on the Ottawa River, and
Estimate the direct economic (sales, income and employment) and fiscal (tax revenue) impacts on the local economy of dredging the Ottawa River for recreational purposes and of water quality changes.
Rationale
Ottawa River residents, businesses and direct users face two critical problems. 1) During periods of low Lake Erie water levels and resulting shallow depths in the Ottawa River, passage by all but small boats of the shallowest draft is prohibited. 2) Water quality of the Ottawa River is classified as highly polluted with swimming, fishing and related water activity considered as unsafe. As part of the Maumee River RAP, federal assistance may be available for dredging and water quality improvement. However, a local partner and local revenues must be generated to obtain federal assistance. This research will help local people evaluate whether a local partnership is economically viable.
Methodology
Travel cost and contingent valuation models will be used to estimate economic values from survey data of boaters who use Ottawa River marinas and launch ramps. Direct economic and fiscal impacts will be estimated from the same boater survey. Two additional surveys, if funded by the Lake Erie Protection Fund, will be conducted from which to develop more complete estimates of economic values and direct impacts.
Benefits & Accomplishments
Economic impact and economic value estimates were generated. The estimated economic impact from current boaters is $14 million in sales by local businesses of which $8 million is value added. If dredged, it is estimated that an additional economic impact of $5 million in sales would be generated, of which $3 million is value added from new or higher paying jobs. The estimated economic value of dredging the Ottawa River is over $400,000 at the median and nearly $750,000 at the mean willingness to pay for a 10-year period.
These estimated impacts and values are being used by the Ottawa River Action Group to support proposals to dredge the Ottawa River. A final report with the title of this project and presenting the results of the study has been published by the Ottawa River Action Group.
Publications & Media
| Peer-reviewed Publications | |
| Hushak, Leroy J. and Mary Bielen. 1999, Valuing the Ottawa River: The Economic Values and Impacts of Recreational Boating OHSU-TB-042, Ohio Sea Grant College Program. | |
| Presentations | |
| Hushak, Leroy J. 2000, Valuing the Ottawa River: How Important is it to our Community? At the Informational Brunch, Toledo, OH, December 8, 2000 and at the Profiling the Ottawa River IV, Toledo, OH, September 27, 2000. | |
Supported Students
| Jaemin Park (Graduate) The Ohio State University | |
| Tamer Isgin (Graduate) The Ohio State University |
