Socio-Economic Impact of the Presence of Asian carp in the Great Lakes Basin

Prepared by
Salim Hayder, Ph.D.

Edited by
Debra Beauchamp

Fisheries and Oceans Canada, Policy and Economics
501 University Crescent, Winnipeg, Manitoba R3T 2N6

Table of Contents

• Executive Summary
• Introduction
  • Objectives of the Study
  • Organization of the Study
• Chapter 1: A Brief Overview of the Study Area
  • Socio-Demographic Profile
  • A Brief Overview of the Great Lakes
  • AIS Threats to the Great Lakes
• Chapter 2: Literature Review
• Chapter 3: Methodology Adopted
  • Data Sources
  • Scope of the Study
• Chapter 4 - Baseline Values of Activities around the Great Lakes
  • Water Use
  • Raw Water Use
  • Industrial Water
  • Agricultural Water
  • Commercial Fishing
  • Recreational Fishing
  • Recreational Hunting
  • Recreational Boating
  • Beaches and Lakefront Use
  • Wildlife Viewing
  • Commercial Navigation
  • Oil and Gas
  • Ecosystem Services
  • Option Value
  • Non-Use Value
  • Aggregated Economic Contribution
  • Limitations/Gaps Identified in the Study
• Chapter 5: Social and Cultural Values of the Great Lakes
• Chapter 6: Scenario Based on Biological Risk Assessment
• Chapter 7: Socio-Economic Impact Assessment
  • Commercial Fishing
  • Recreational Fishing
  • Recreational Boating
  • Wildlife Viewing
  • Beaches and Lakefront Use
  • Other Sectors
  • Ecosystem Services
  • Social and Cultural Impact
• Chapter 8: Conclusion
• Bibliography
• Matrix 1: Total Economic Valuation Flowchart
• Definitions
• Matrix 2: The Great Lakes - Total Economic Valuation Flowchart
• Matrix 3: Summary of Empirical Studies Used for Valuation of Economic Activities in the Great Lakes basin
• Annex 1: Selected Socio-Economic Indicators for Ontario
• Annex 2: Aboriginal identity population by Sexes, Age Groups, Median Age for Ontario and Canada
• Annex 3: Estimated Water Consumption and Values by Sector, Lake and Province for the Year 2008
• Annex 4: Landings and Landed Values of Commercial fisheries in the Great Lakes by Species and Lake in 2011
• Annex 5: Number of Fish Harvested All Anglers Who Fished on the Great Lakes, by Species and Lake, 2005
• Annex 6: Heat-Map - Commercial and Recreational Fishing for 20 and 50 Years

Bibliography

Ashcroft, P., Duffy, M., Dunn, C., Johnston, T., Koob, M., Merkowshy, J., Murphy, K., Scott, K., and Senik, B. (2006). The Saskatchewan Fishery – History and Current Status. Saskatchewan Environment. Technical Report No. 2006-2.

Austin, J. C., Anderson, S., Courant, P. N., and Litan, R. E. (2007a) America’s North Coast: A Benefit-Cost Analysis of a Program to Protect and Restore the Great Lakes. Washington: Brookings Institution.

_________ (2007b) Healthy Waters, Strong Economy: The Benefits of Restoring the Great Lakes Ecosystem. Metropolitan Policy Program. Washington: Brookings Institution.

Bailey, S. A. Deneau, M. G., Jean, J., Wiley, C. J., Leung, B., and MacIsaac, H. J. (2011). Evaluating Efficacy of an Environmental Policy to Prevent Biological Invasions. Environmental Science & Technology, 45(7), 2554-2561.

Barnhart, Gerald A. (2005). The Threat Posed To The Great Lakes Basin By Asian carp. Statement of Gerald A. Barnhart to House Subcommittee on Fisheries and Oceans. Michigan: Great Lakes Fisheries Commission, November.

Braden, J. B., Won, D., Taylor, L. O., Mays, N., Cangelosi, A., and Patunru, A. A. (2008). Economic Benefits of Remediating the Sheboygan River, Wisconsin Area of Concern. Journal of Great Lakes Research 34, 649–660.

Brox, J.A., Kumar, R.C., and Stollery, K.R. (2003). Estimating Willingness to Pay for Improved Water Quality in the Presence of Item Nonresponse Bias.American Journal of Agricultural Economics, 2003, 85(2), 414-428.

Bruneau, J. (2007). Economic Value of Water in the South Saskatchewan River Basin. In Martz, L., Bruneau, J., and Rolfe, J. T. (eds.), Climate Change and Water (pp. 111-192). South Saskatchewan River Basin Final Technical Report 2007.

Canada. Department of Fisheries and Oceans. (2012). Binational ecological risk assessment of the bigheaded carps (Hypophthalmichthys spp.) for the Great Lakes basin. DFO Can. Sci. Advis. Sec. Sci. Advis. Rep. 2011/071.

Canada. Department of Fisheries and Oceans. (2008). Survey of Recreational Fishing in Canada 2005. Selected Results for the Great Lakes Fishery. Ottawa: Department of Fisheries and Oceans.

Canada. Treasury Board of Canada Secretariat. (2007). Canadian Cost-Benefit Analysis Guide - Regulatory Proposals (PDF 250,79 KB). Catalogue No. BT58-5/2007. Ottawa: Treasury Board of Canada Secretariat.

Canada. Department of Fisheries and Oceans. (2004). A Canadian Action Plan to Address the Threat of Aquatic Invasive Species. Canadian Council of Fisheries and Aquaculture Ministers Aquatic Invasive Species Task Group, September.

Canada. Environment Canada (2011, April 14). The Canada-Ontario Agreement Respecting the Great Lakes Basin Ecosystem (COA) has been extended to March 2011. Retrieved April 14, 2011.

Canada. Environment Canada (2010, April 20). Great Lakes Quickfacts. Retrieved April 14, 2011.

Canada. Environment Canada. (2010). Lake Superior Aquatic Invasive Species Complete Prevention Plan. Lake Superior Lakewide Management Plan Committee.

Canada. Environment Canada. (2004). An Invasive Alien Species Strategy for Canada. September.

Canada. Environment Canada. (1990). Great Lakes – St. Lawrence River Regulation. Water Planning and Management Branch. Ontario: Environment Canada.

Canada. Statistics Canada. (2005). Industrial Water Use. Retrieved on December 13, 2011.

Canada. Statistics Canada. (2008). Shipping in Canada 2008. Catalogue no. 54-205-X.

Canadian Shipowners Association. (2006). An Industry on the Move. Report 2006. Retrieve on February 1, 2012.

Connelly, N. A., Brown, T. L., & Brown, J. W. (2007). Measuring the Net Economic Value of Recreational Boating as Water Levels Fluctuate. Journal of the American Water Resources Association (JAWRA) 43(4), 1016-1023.

Costanza, R., d'Arge, R., de Groot,R., Farber, s., Grasso, M., Hannon, B., Limburg, K., Naeem, S., O'Neill, R.V., Paruelo, J., Raskin, R.G., Sutton, P. and van den Belt, M. (1997). The Value of the World's Ecosystem Services and Natural Capital. Nature, 387, 253-260.

Crutchfield, S.R, Cooper, J., and Hellerstein, D. (1997). Benefits of Safer Drinking Water: The Value of Nitrate Reduction.U.S. Dept. Agr.. Econ. Res. Serv., AER-752.

Cudmore, B., Mandrak, N.E., Dettmers, J., Chapman, D.C., and Kolar, C.S. (2012).
Binational Ecological Risk Assessment of Bigheaded Carps (Hypophthalmichthys spp.) for the Great Lakes Basin. DFO Can. Sci. Advis. Sec. Res. Doc. 2011/114.

Dachraoui, K., and Harchaoui, T.M., (2004). Water Use, Shadow Prices and the Canadian Business Sector Productivity Performance. Micro-economic Analysis Division. Statistics Canada. Economic Analysis (EA) Research Paper Series. Catalogue no. 11F0027MIE — No. 026.

David Suzuki Foundation. (2008). Ontario’s Wealth, Canada’s Future: Appreciating the Value of the Greenbelt’s Eco-Services. Canada: Vancouver.

Derek Murray Consulting Associates. (2006). Economic Evaluation of Saskatchewan's Commercial and Non-Outfitted Sport Fishing. Prepared for Saskatchewan Environment.

Dibble, E.D. and Kovalenko, K. (2009). Ecological Impact of Grass Carp: A Review of the Available Data. Journal of Aquatic Plant Management 47: 1-15

Drake, John M. and David M. Lodge (2007), "Hull Fouling is A Risk Factor for Intercontinental Species Exchange in Aquatic Ecosystems," Aquatic Invasions, Vol. 2, No. 2,  121-131.

Dupont, D. P. (2003). CVM Embedding Effects When There Are Active, Potentially Active and Passive Users of Environmental Goods. Environmental & Resource Economics, 25(3), 319-341.

Dupont, D.P. (2001). Gender and Willingness-to-pay for Recreational Benefits from Water Quality Improvements. Unpublished Manuscript. Department of Economics, Brock University.

Dutta, N. (1984). The Value of Recreational Boating and Fishing in the Central Basin of Ohio’s Portion of Lake Erie. Technical Bulletin. The Ohio State University Sea Grant.

Environment Canada (2011, April 14). Great Lakes Areas of Concern. Retrieved April 14, 2011.

Environment Canada and United States Environmental Protection Agency. (2009). State of the Great Lakes 2009.

EnviroEconomics. (2011). Literature Review and General Analytical Framework for Benefits Relating to Marine Protected Areas. Prepared For Fisheries and Oceans Canada.

Felts, Johnson, Lalor, Williams, and Winn-Ritzenberg. (2010). Great Lakes Aquatic Invasive Species and Their Impacts on Milwaukee - A Policy Framework. Robert M. La Follette School of Public Affairs. University of Wisconsin–Madison. Prepared for the City of Milwaukee, Department of Administration, Budget and Management Division

Finnoff, D., & Lodge, D. (2008). Invasive Species in the Great Lakes: Costing Us Our Future. (PDF 154 KB) Preliminary Results. Retrieved January 15, 2011.

Freeman, A.M. III. (1979). The Benefits of Environmental Improvement: Theory and Practice. The Johns Hopkins University Press, Md., for Resources for the Future. 1979

Gan, C. & Luzar, E. J. (1993). A Conjoint Analysis of Waterfowl Hunting in Louisiana. Journal of Agricultural and Applied Economics. Vol. 25, No. 2, 36–45.

General Accounting Office. (2002). Invasive Species: Clearer Focus and Greater Commitment Needed to Effectively Manage the Problem, GAG-03-1, 1-101.

GSGislason & Associates Ltd., & Outcrop Ltd. (2003). “The Marine-Related Economy of NWT and Nunavut”. Prepared for - Manitoba: Fisheries and Oceans Canada.

Hansen, Michael J. (2010, February). The Asian carp threat to the Great Lakes. Statement of Gerald A. Barnhart to Michael J. Hansen to House Committee on Transportation and Infrastructure. Michigan: Great Lakes Fisheries Commission. Retrieved April 18, 2010.

Hushak, L. J. (1999). Recreational Boating in Ohio: An Economic Impact Study. Technical Bulletin. The Ohio State University Sea Grant.

Hvenegaard, G.T., Butler, J.R. & Krystofiak, D.K. (1989). Economic Values of Bird Watching at Point Pelee National Park, Canada. Wildlife Society Bulletin, Vol. 17, No. 4, (2): 24-35.

IJC. (2011). 15th Biennial Report on Great Lakes Water Quality. Prepared pursuant to the Great Lakes Water Quality Agreement of 1978 for submission to the Governments of the United states and Canada and the State and Provincial Governments of the Great Lakes Basin.

IJC Study Board. 2006. Valuating Wetland Benefits compared with Economic Benefits and Losses. International Lake Ontario – St. Lawrence River Study.

Kazmierczak, R.F. (2001). Economic Linkages Between Coastal Wetlands and Habitat/Species Protection: A Review of Value Estimates Reported in the Published Literature. Natural Resource and Environment Committee. Agricultural Economics and Agribusiness Staff Paper 2001-04.

Kelly, D. W., Lamberti, G. A., and MacIsaac, H. J. (2009). The Laurentian Great Lakes as a Case Study of Biological Invasion. In Keller, R.P., Lodge, D.M., Lewis, M.A., & Shogren, J.F. (Eds.), Bioeconomics of Invasive Species: Integrating Ecology, Economics, Policy, and Management (pp. 205-225). New York: Oxford University Press.

Kerlinger, P. (Unspecified). Birding Economics and Birder Demographics Studies Conservation Tools. Funded by New Jersey Audubon Society and Cape May Bird Observatory.

Krantzberg, G., and de Boer, C. (2006). A Valuation of Ecological Services in the Great Lakes Basin Ecosystem to Sustain Healthy Communities and a Dynamic Economy. Dafasco Centre for Engineering and Public Policy. McMaster University. Prepared for the Ontario Ministry of Natural Resources. Hamilton: Ontario.

Krantzberg, G., and de Boer, C. (2008). A Valuation of Ecological Services in the Laurentian Great Lakes Basin with an Emphasis in Canada. Climate Change/Environmental Issue. Journal AWWA 100:6.

Kreutzwiser, R.D. (1981). The economic significance of the Long Point marsh, Lake Erie, as a recreational resource. Journal of Great Lakes Research 7(2), 105-110.

Lodge, D. and Finnoff, D. C. (2008). Invasive Species in the Great Lakes: Costing Us Our Future. (PDF 154 KB) Retrieved April 27, 2011.

Leahy, S. (2003). An Erie Decline: Thanks to Invasive Species. the Shallowest Great Lake Is In Big Trouble. Maclean, Vol. 116, Is. 22, June 2, p. 36.

LECG. (2004). Marine Industry Benefits Study – Economic Impact of the Canadian Marine Transportation Industry. LECG Ltd.

Leigh, P. (1998). Benefits and Costs of the Ruffe Control Program for the Great Lakes Fishery. Journal of Great Lakes Research. Volume 24, Issue 2, 351-360.

Lovell, S. J. and Stone, S.F. (2005). The Economic Impacts of Aquatic Invasive Species: A Review of the Literature. U.S. Environmental Protection Agency. National Center for Environmental Economics, Working Paper No. 05-02, 1-61.

Mandrak, N.E., & Cudmore, B. (2004). Risk Assessment for Asian carp. Canadian Science Advisory Secretariat. Research Document: 2004/103. Burlington: Fisheries and Oceans Canada.

Meyers Norris Penny. (1999). Island Lake Pilot Project Evaluation. Prepared For Fisheries and Oceans Canada.

Millennium Ecosystem Assessment, (2005). Ecosystems and Human Well-being: Synthesis. Island Press, Washington, DC.

Marbek. (2010a). Assessing the Economic Value of Protecting the Great Lakes – Invasive Species Prevention and Mitigation. Prepared for Ontario Ministry of the Environment.

Marbek. (2010b). Assessing the Economic Value of Protecting the Great Lakes – Literature Review Report. Prepared for Ontario Ministry of the Environment.

Martin Associates. (2011). The Economic Impact of the Great Lakes – St. Lawrence Seaway System. Marine Delivers, October.

Odawa Natural Resource Department. (2009). 2008/2009, Annual Harvest Report, Little Traverse Bay Bands of Odawa Indians, Odawa Natural Resource Department.

Ontario Ministry of Natural Resources. (2010, March 05). Connected to Our Economy and Our Way of Life. Retrieved April 14, 2011.

Ontario Ministry of Natural Resources. (2011, March 19). Learn About Ontario: The Great Lakes. Retrieved April 14, 2011.

Organization for Economic Co-Operation and Development. (2006). Policy Brief. (PDF 178,7 KB)

Renzetti, S., Dupont, D. P., and Wood, C. (2011). Running Through our Fingers: How Canada fails to capture the full value of its top asset. Blue Water Initiative.

Rixon, Corinne A.M., Duggan Ian C., Bergeron, Nathalie M.N., Ricciardi, A., And Macisaac, Hugh J.. (2005). Invasion risks posed by the aquarium trade and live fish markets on the Laurentian Great Lakes. Biodiversity and Conservation Vol. 14, pp. 1365–1381.

Romanow, Bear & Associates Ltd. (2006). Profile of the Socio-Economic Importance of Inland Fisheries to Manitoba First Nations. Prepared for Indian and Northern Affairs Canada, Manitoba Region.

Rosenberger, R. S. & Loomis, J. B. (2001). Benefit Transfer of Outdoor Recreation Use Values. A Technical Document Supporting the Forest Service Strategic Plan (2000 Revision).Forest Service, Rocky Mountain Research Station. U.S. Department of Agriculture, April.

Rothlisberger, J. D., Finnoff, D. C., Cooke, R. M., and Lodge, D. (2012). Ship-borne Nonindigenous Species Diminish Great Lakes Ecosystem Services. Ecosystems 15, 462 – 476.

Schwieterman, J.P. (2010). An Analysis of the Economic Effects of Terminating Operations at the Chicago River Controlling Works and O’Brien Locks on the Chicago Area Waterway System. Retrieve April 27, 2011.

Samarawickrema, A. and Kulshreshtha, S. (2008). Value of Irrigation Water for Crop Production in the South Saskatchewan River Basin. Canadian Water Resources Journal, 33(3): 257-272.

Taylor, J.C. and Roach, J. L. (2010). “Chicago Waterway System Ecological Separation: The Logistics and Transportation Related Cost Impact of Waterway Barriers” (PDF 1,85 MB). Retrieved January 10, 2011.

Talhelm, D. R. (1988). The International Great Lakes sport fishery of 1980. Great Lakes Fisheries Commission. Special Publication 88-4. MI: Ann Arbor.

Talhelm, D. R.., & Richard C.B. (1980). Benefits and costs of sea lamprey (Petromyzon marinus) control in the Great Lakes: some preliminary results. Canadian Journal of Fisheries Aquatic Science, 37(11), 2169-2174.

Talhelm, D. R., Richard C.B., Kenneth W.C., Norman, W.S., Donald, N.S., & Archi, L. W. T. (1979). Current estimates of Great Lakes fisheries values: 1979 status report. Great Lakes Fisheries Commission. Mimeo. Report. MI: Ann Arbor.

Thomas, C. M. (2010). A Cost-Benefit Analysis of Preventative Management for Zebra and Quagga Mussels in the Colorado-Big Thompson System. Master of Science Thesis. Department of Agricultural and Resource Economics. Colorado State University. Fort Collins: Colorado.

USA. U.S. Fish and Wildlife Service. (2003). Birding in the United States: A Demographic and Economic Analysis; Addendum to the 2001National Survey of Fishing, Hunting and Wildlife-Associated Recreation. Division of Federal Aid. U.S. Fish and Wildlife Service Washington, D.C., August.

USA. Great Lakes Fisheries Commission. (2011). Asian carp-Control Strategy Framework, 2011. Michigan: Great Lakes Fisheries Commission, December.

USA. Great Lakes Fisheries Commission. (2010a). Asian carp-Control Strategy Framework, 2010. Michigan: Great Lakes Fisheries Commission, May.

USA. Great Lakes Fisheries Commission. (2010b). Stopping the Spread of Asian carp: An Action Agenda for Congress. Legislative Priority Fact Sheet. Michigan: Great Lakes Fisheries Commission, February.

USA. Great Lakes Fisheries Commission. (2010c). Great Lakes Annual Water Use Report 2008. Issue No. 17, December.

U.S.Office of Technology Assessment. (1993). Harmful Non-Indigenous Species in the United States. OTA-F-565.

U.S.Geological Survey. (2009). GLSC Fact Sheet 2009-1. Great Lakes Science Center. U.S. Department of the Interior: MI

Walsh, R. G., Loomis, J.B. & Gillman, R.A. (1984). Valuing Option, Existence, and Bequest Demands for Wilderness. Land Economics, Volume 60, No. 1, 14-29.

Wilson, S. J. (2008). Lake Simcoe Basin’s Natural Capital: The Value of the Watershed’s Ecosystem Services. David Suzuki Foundation. Friends of the Greenbelt Foundation Occasional Paper Series, June.

Woodward, R.T. and Wui, Y-S. (2001). The economic value of wetland services: a meta-analysis. Ecological Economics, Volume 37, 257–270

Yap, D., Reid, N., de Brou, G., and Bloxam, R. (2005). Trans-boundary Air Pollution in Ontario (PDF 6,45 MB). Ontario Ministry of Environment.

Zhang, C., & Boyle, K.J. (2010). The effect of an aquatic invasive species (Eurasian watermilfoil) on lakefront property values. Ecological Economics, Volume 70, Issue 2, 394-404.