California's Ocean Economy - California Resources Agency - State ...

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ocean and economic activity, so a methodology has been devised that allows the data sets to
be as compatible as possible with the realities of this particular slice of the economy; (2)
other essential data are missing or irregularly available. Particularly, sector data at the county,
and even regional level, in many cases cannot be publicly revealed because of federal rules of
disclosure that protect proprietary information on firms; (3) standard economic data do not
fully capture all of the economic value of the ocean. Recreational uses such as a day at the
beach, or just enjoying a view of the sea do not appear in market data sets, but rather, are
found in studies using a range of methodologies, and are thus not included in our estimates.
1.3 Definitions and Terminology
To avoid repetition and for clarification purposes, the following terms and definitions
regarding economic indicators and valuation categories are found in the beginning of this
report, so that the reader can fully understand what is intended.
Coastal Economy: the sum of all economic activity occurring in counties defined as part of
a state’s coastal zone management program, including four additional counties that are part
of San Francisco Bay and the Sacramento River Delta areas. Most, but not all of the Ocean
Economy is part of the Coastal Economy.
Ocean Economy: those activities that create goods and services, a portion of whose value
is affected by the ocean and its resources. Economic statistics are grouped by a classification
system known as the Standard Industrial Classification (SIC), which imperfectly reflects the
relationship between economic activity and the ocean. 8 Only part of the Coastal Economy is
part of the Ocean Economy.
Dollar Values: expressed in constant 2000 dollars (adjusted by the Consumer Price Index).
• Dollar values are estimated as direct and indirect values. Indirect values include induced
values.
• Direct values: those activities associated only with the designated ocean industries such
as travel and tourism and living resources (examples include labor and capital costs
associated with hotel accommodations or labor and capital costs for fish processing).
• Multipliers: indirect and induced values. Multipliers affect the estimates of employment,
wages, and output within the region. Indirect effects include both the change in
economic activity in industries within the region that buy or sell from ocean industries
(examples include sales of food to restaurants and hotels and the activities of travel
agents booking trips) and the change in economic activity resulting from the spending of
the wages earned by those employed by the ocean industries within the region. All
indirect values or multiplier effects are based on IMPLAN, a standard and widely used
economic impact model.
8 After 2000, all industries are classified using the North American Industry Classification System (NAICS) rather than the
Standard Industrial Classification (SIC by BLS). Both SIC and NAICS codes have been provided for 2001 as a benchmark
leaving further calculations to the user. NAICS focuses on how products and services are created, as opposed to SIC which
focuses on what is produced. Using NAICS yields significantly different industry groupings from those produced using SIC.
These differences in NAICS and SIC structures, preclude direct comparison between NAICS data and SIC-based data for
earlier years for historical series.
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