Estimating the economic benefits of regional ocean observing systems

Abstract

We develop a methodology to estimate the potential economic benefits from new investments in regional coastal ocean observing systems in US waters, and apply this methodology to generate preliminary estimates of such benefits. The approach focuses on potential economic benefits from coastal ocean observing information within ten geographic regions encompassing all coastal waters of the United States, and within a wide range of industrial and recreational activities including recreational fishing and boating, beach recreation, maritime transportation, search and rescue operations, spill response, marine hazards prediction, offshore energy, power generation, and commercial fishing.Our findings suggest that annual benefits to users from the deployment of ocean observing systems are likely to run in the multiple $100s of millions of dollars per year.The project results should be considered first-order estimates that are subject to considerable refinement as the parameters of regional observing systems are better defined, and as our understanding of user sectors improves.Key Words: economic benefits, ocean observing systems, benefit estimation 3 Executive SummaryThis report summarizes the findings of a preliminary investigation of the magnitude of potential economic benefits that can be realized by deploying a network of ocean observing systems throughout the coastal waters of the United States. Such a network is currently being developed through collaborative efforts of federal, state, and local governments, universities, and organizations in both the non-profit and for-profit sectors.Estimating the economic benefits from ocean observing systems is inherently difficult. Not only are the systems themselves only partially deployed around the country at present; the technology and information products comprising the inputs and outputs of such systems are undergoing such rapid evolution that any estimates can only represent a partial snapshot. Moreover, the economic information needed to compile estimates of both the users of the information generated by such systems and the value they place on such information is only sporadically available and usually incomplete.Therefore this report provides what may be considered "order of magnitude" estimates only, along with recommendations on developing more accurate and useful estimates of economic benefits. Furthermore, there are many possible uses of improved ocean observing systems that have no readily quantifiable economic value but may lead to significant benefits in the future. Prominent among these are the uses of better ocean observing data in a wide range of basic and applied scientific research endeavors and in education programs.The economic benefits of ocean observing systems derive from the value of the information generated by such systems and the effects that information has on the behavior of individuals and organizations. The ideal measure of these economic benefits is the value that users of the information place on it, based on their willingness to p...

One System, Many Societal Benefits

“…The study, currently in its second year, is being led by Dr Rex Caffey, LSU Professor of Agricultural Economics and Agribusiness, and Resource Economics specialist, and it is anticipated to cost approximately $750,000. Compared to earlier studies that did not quantify actual benefits, but rather made estimates of what could be achieved if the quality and quantity of information could be increased, 15,17,18 the current study is assessing the value of GCOOS both during catastrophic events (e.g., hurricanes Ike, Isaac, and Katrina; Superstorm Sandy; the Deepwater Horizon oil spill) and for routine operations of US Gulf of Mexico activities. Caffey stated, "Having fully aggregated, integrated, and searchable ocean and atmospheric information available prior to, during, and following catastrophic events has significant implications for the forecasts directed at saving lives, property, and ecosystems.…”

Economic Considerations in the Design of Ocean Observing Systems

“…into observing system design, and sketches the beginning of an application of this process to the northeast region of the United States. Kite-Powell et al, 2005 Table 1). (1) improve predictions of climate change and weather and their effects on coastal communities and the nation, Table 2).…”

“…A project is currently underway, with funding from NOAA, to refine these esti- -Powell et al (2008), except as follows: harmful algal bloom forecast (Jin and Hoagland, 2008); coastal flooding forecast: preliminary estimate from work by the author.…”

NOAA Satellite Weather Stations: State of the Art, Perspective and Future Projection

“…The benefits of obtaining meteorological information are: 1) Quantification and estimation of services, that is, when companies, people and / or government entities control to reduce costs based on the availability of the information, 2) Natural phenomena preparation and 3) Commercial decisions [9][10].…”