Gerald KauffmanUniversity of DelawareWater ResourcesAgency

Newark, Del.

Economics Benefits of Source Water Protection in the Delaware

Basin

Delaware River Source Water CollaborativeMay 10, 2012

What do these enterprises have in common?

BoeingCamelback Ski

AreaCampbell’s SoupDuPontWawaKeystone

BrewpubCrayola Crayons

StarbucksDel. Water Gap NRAPhiladelphia EaglesNew York YankeesYards Creek HydroUnited States NavyGuggenheim Museum

They all depend on the Delaware Basin!

1961: JFK signs DRBC Compact.1965: Congress authorizes Delaware Water Gap NRA.1996: Congress adds Del. Estuary to National Estuary Program.2011: Delaware River revival is underway.

Dissolved OxygenLehigh River at Easton, PA

USGS 1454720

0

5

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15

20

J-60 J-70 J-80 J-90 J-00 J-10

DO (mg/l)

Dissolved OxygenSchuylkill River at Linwood, PA

USGS 1472104

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J-80 J-90 J-00 J-10

DO(mg/l)

Bald Eagle Nesting Pairsin the Delaware River Basin

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NestingPairs

Delaware New Jersey New York Pennsylvania

Bald Eagles

American shad

13,000 sq mi8.2 million people11th most populous stateDrinking water: 5% of

U.S.1st, 7th largest metro.

economiesDel. (74% of pop.)NJ (35% of pop.)NY (55% of pop.)Pa. (43% of pop.)

The Delaware River Basin

Population Change by CountyDelaware Basin, 2000-2010

-60,000

-40,000

-20,000

0

20,000

40,000

60,000

Ports – $2.6 billionAgriculture – $3.4

billionWater Supply – $3.8

billionFish/Wildlife – $1.5

billionRecreation - $1.2

billion

Annual Economic Activity

Property Value - $256 million

Water Quality - $2.5 billion

Forests - $5.1 billionParks – $1.8 billion

Annual Economic Activity

Fish Landings

$34 million$0.60/lb58 million lbsource: NMFS

Skiing

$325 million1,753 jobs9 ski areas1,005 acres1 mgd1.9 million ski visits

source: PSAA 2010

Paddling

$362 million4,226 jobsGear: $66 milTrips: $296 mil620,860 paddlers

source: Outdoor Industry Assoc. 2006

Upper Del. & Del. Water Gap NRA

$41.2 million448 jobs367,000 visitors113 miles Natl.

Wild & Scenic River

Over 70,000 acres

source: Cordet et al. USNPS, USFS 1990

Canoe/Kayak/Rafting

$9 million225 jobs37 liveries225,000 visits

source: Canoe Liveries in Del., NJ, NY, Pa.

Powerboating$395 million232,000 registrationsNY, Del., Pa., NJ

ranked 3rd, 7th, 17th, and 23rd in sales

source: National Marine Manufacturers Assoc. 2010

Fishing, Hunting, Bird Watching

Fishing $576 million(18 trips/angler, $53/trip)

• Hunting $340 million(16 trips/hunter, $50/trip)

• Bird Watching $561 million(13/trips/yr, $27 trip)

Source: USFWS 2006

Shad Fishing

$6.5 million63,000 trips$102/trip

Pa. Fish & Boat Commission, 2011

Wild Trout Fishing

$29 million350 jobs

(Maharaj, McGurrin, and Carpenter, 1998)

Delaware Water Gap Natl. Rec. Area

$100 million 7,563 jobs 4,867,272 visits487,727 local trips3,650,455 non-local trips486,727 motel visits243,364 camp overnights

Stynes and Sun (2002)

Public Water SupplyState Supply (mgd) Value ($4.78/1000

gal)Del. 40 $70NJ 284 $495NY 800 $1,396Pa. 679 $1,185

1,803 mgd $3,146 million

Public Water Supply WithdrawalsDelaware River Basin

PA, 679 mgd

NY, 800 mgd

NJ, 284 mgd

DE, 40 mgd

Marcellus Shale (potential) $1.2 billion/yr (wellhead), 0.7 billion/yr w/ DRBC regulations 84 tcf total, 7.3 tcf in DRB (mean), 4.7 tcf w/ DRBC regulations $11.21/1000 cf (residential), $4.16/1000 cf (wellhead) 4,700 sq mi (36% of DRB), 8.7% total Marcellus in DRB 1,642 sq mi excluded by proposed DRBC regulations 3,058 sq mi available for drilling, 25 year extraction period

USGS 2011, EIA 2010

Annual Wellhead Value Marcellus Shale Natural Gas

Delaware River Basin

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5

2005 2006 2007 2008 2009 2010 2011

$ b

illio

n/y

ea

r

w/DRBC regulations Mean

Annual Economic BenefitsDelaware River Basin

$1,220$1,540

$1,830$2,147

$2,457 $2,621

$3,371$3,818

$5,129

0

1,000

2,000

3,000

4,000

5,000

6,000

Rec

reat

ion

Fis

h/W

ildlif

e

Pub

lic P

arks

Mar

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hale

Gas

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ualit

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icul

ture

Wat

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uppl

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For

ests

$ m

illi

on

Wetlands - $6.8 billionFarms - $4.8 billionForests – $8.6 billion

Ecosystem Goods and Services

Ecosystem Services ValueDelaware River Basin

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8

10

Del. NY NJ Pa.

$ b

illio

n/y

r

Ecosystems Area (acres)Delaware River Basin, 2005

Freshwater wetlands 422,838 ac

Open water92,615 ac

Saltwater wetland, 145,765 ac

Urban1,206,504 ac

Forest4,343,190 ac

Farmland1,926,524 ac

Marine16,588 ac

Natural Capital Value of Ecosystems in the Delaware River Basin

$44 M $166 M $180 M $412 M$1,055 M

$4,823 M

$5,759 M

$8,591 M

0

2,000,000,000

4,000,000,000

6,000,000,000

8,000,000,000

10,000,000,000

$/yr

Marine & Water-related Construction

Fishing & AquacultureShip/Boat BuildingTourism/RecreationMarine Transportation Hunting/Fishing/

Wildlife Recreation-related

FarmingWater/Wastewater

UtilityPortsWatershed

Protection/Management

>600,000 jobs ($10 billion in wages)

The Delaware River Basin in Del., NJ, NY, and Pa. contributes:

1. $25 billion in annual economic value from recreation, water quality, water supply, ecotourism, forest, agriculture, open space, and port benefits.

2. Ecosystem goods and services worth $21 billion per year, net present value (NPV) = $683 billion.

3. Over 600,000 jobs with $10 billion in wages.