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...

Cost and value of multidisciplinary fixed-point ocean observatories

“…Operators of regional observing systems should incorporate in their operational plans strategies and activities to measure the economic benefits of their products and services. (Kite-Powell et al, 2005 andKite-Powell et al, 2008).…”

“…The information needed to develop detailed estimates of the economic benefits of ocean observing systems is, for the most part, unavailable at this time. Both the development of the observing systems themselves and the economic information needed to estimate benefits are presently incomplete (Kite-Powell et al, 2008).…”

“…The benefits of a well-coordinated programme of ocean observations are widely accepted, but the ability to quantify these benefits remains a challenge (Ozdemiroglu & Townend, 2005). Estimates of economic benefits from ocean observing activities to date have largely been based on simple assumptions about the improvement that better information may be able to generate in the aggregate level of economic value produced by commercial and recreational marine activities (Kite-Powell et al, 2005& KitePowell et al, 2008.…”

Remotely Sensed Winds and Wind Stresses for Marine Forecasting and Ocean Modeling

“…Maritime commerce results in a contribution of $78.6 billion annually and generates nearly 16 million jobs; one out of six jobs in the U.S. is marine-related (NOAA, 1998). As a result of QuikSCAT winds, marine warning and forecast services out to 48 h (for hurricane force cyclones) saves an estimated $135 million annually in the North Pacific and North Atlantic dry bulk and container shipping industry alone by minimizing storm exposure (Kite-Powell et al, 2008;Kite-Powell, 2009, 2011.…”

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“…With the patchiness of these Florida red tides, this may mean informing visitors that although current conditions at the closest beach may not be optimal, conditions on beaches to the north or south by just a few miles may be acceptable. A National Oceanographic Partnership Program (NOPP) study estimated that a regional IOOS could result in increased revenues from beach recreation (due to fewer lost days and improved safety) by $50 million in Florida alone (Kite-Powell et al, 2005). Reporting real-time beach conditions, including indications of the presence of toxic aerosols, can improve the quality of life for the local community as well as visitors, and, in particular, for asthmatics and their families.…”