The Economic Value of Water and Ecosystem Preservation

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industries. It can also predict how these affects will impact on consumers, government, foreign suppliers, and on the economy. Input-output analysis considers inter-industry relations in an economy, depicting how the output of one industry goes to another industry where it serves as an input, thereby making industries interdependent on another, both as customers of output and suppliers of inputs. An input-output model depicts this dynamic relationship. In addition to studying the structure of national economies, input-output analysis has been used to study regional economies within a nation and a state. Impacts can be divided into three categories: Direct, indirect, and induced. The sum of impacts in these three categories generates a total impact. The direct impact is the number of jobs gained or lost in a specific industry. Indirect impact is the impact that is generated from the ancillary industries that support the specific industry in question. For example, in Table 5-8 the fishing category under Indirect shows that 3.5 jobs were created in industries that support fishing such as boat repair and maintenance, fuel, etc. Induced impact is generated when individuals in direct and indirect categories spend their income in sectors not related to the primary. For example, the fisherman uses his income to take his family to dinner and the movies, buy groceries and clothing, etc, thus multiplying his income in the regional economy. For each industry there are three economic impacts presented: Output, employment, and income. Employment and income are self-explanatory. Output refers to the value of the goods and services produced in the industry. These are typically the largest of the three values and for the sectors under analysis here, most output is exported from the counties. For the purposes of this report we will use the IMPLAN modeling software for the development of input-output matrices for three regions: Aransas/Calhoun (combined), Aransas, and Calhoun. The input-output modeling allows us to develop economic multipliers for each of the four sectors of concern to determine the impact of the employment change identified in the shift-share analysis. Data for the model is based on the year 2003, which falls in the middle of study time period. While the decline or growth in employment will have occured over several years, the impacts calculated are based on the total change in the time period and the values generated are annualized. These two techniques have been widely used by several studies, such as 1. “NAFTA and the Lower Rio Grande Valley of Texas: Measuring impacts”, 2. “The economic base of Chaffee County, Colorado”, and 3. “Competitive Advantage Analysis: Results for the Northwest Region”. The first study aimed to measure the impact NAFTA had on the displacement of jobs (or not) from United States to Mexico, analyzing the economic trends of the four counties that compose the Lower Rio Grande Valley – Willacy, Cameron, Starr, and Hidalgo. Opponents of NAFTA argued that this agreement would tend to displace jobs to Mexico and its proponents believed that the free trade agreement would lead to more jobs at higher wages rates. Texas was a target state for this analysis since it shares an extensive border with Mexico. This paper 56
included an economic analysis of the Lower Rio Grande Valley. It begins with a demographic description of the four counties. Later, earnings and employment data were used to show trends and growth rates, to calculate location quotients and derive a shift – share analysis (Morales and Stallmann, 2000). The shift – share analysis was used to identify the sources of growth and decline of particular sectors and the location quotients were used to identify the sectors with low or high wage rates (Morales and Stallmann, 2000). The second study analyzed only the county of Chafee, Colorado, and it used a shift-share analysis specifically to identify the importance of different economic sectors to the regional economy and its level of specialization in an industry. The second report was primarily used to consider economic development plans in Chaffee, and it was divided into two sections: 1. Background and demographic information, and 2. Economic analysis. The first section focused on land use, population, employment and income. The second section used four economic analyses: location quotients analysis, shift-share analysis, economic base analysis, and input-output model. The location quotient analysis highlighted agriculture, construction, and services as major export sectors. Similarly, the shift-share analyzed these sectors as the fastest growing in the regional economy. In turn, the report concludes that these industries should be explicitly taken into account in any long-term economic development plan (Cline and Seidl, 2007). The third study evaluated an entire Canadian region and used a shift-share analysis to identify the regional industries that possessed competitive advantages compared to others, after a brief description of the regional economy. The results of the shift-share analysis focused on only one component – the competitive share component, since the goal of the paper was to identify sectors with competitive advantages. Mining and manufacturing were considered sectors with the most competitive advantages, since the results reported these sectors as having the highest competitive share component (Elliot, 2007). 5.2.2. Sources / Data The employment and earnings data was retrieved from the Bureau of Economic Analysis and the industries analyzed were codified by the NAICS classification. The shift-share analysis is employed on the national level and it investigates changes in four private sectors from 2001 to 2005. This time-frame starts with the recession and it ends with an economic boost for the nation. The sectors analyzed include 1) Forestry, Fishing and related activities, 2) Mining, 3) Construction and 4) Manufacturing. The regions covered in this analysis are: 1) Aransas/Calhoun, 2) Aransas, and 3) Calhoun. Refugio could not be included in our shift-share analysis since there is not enough data available, and the sectors, except for Mining did not show estimates, to avoid disclosure of confidential information. 57
Page 1 and 2:
Final Report to the Texas Coastal M
Page 3 and 4:
5.2.2. Sources / Data .............
Page 5 and 6:
Executive Summary The San Antonio B
Page 7 and 8:
ecotourism included in the model. T
Page 9 and 10:
1. Overview of San Antonio Bay Regi
Page 11 and 12:
and shellfish species and estuarine
Page 13 and 14: According to the Rockport-Fulton Ch
Page 15 and 16: effect is limited by assimilative c
Page 17 and 18: freshwater inflow acts as a mechani
Page 19 and 20: sulfide. Heavy metals bounds to sed
Page 21 and 22: inflow levels and populations of se
Page 23 and 24: and could potentially make the cran
Page 25 and 26: 3. Characterization of Ecotourism i
Page 27 and 28: Contributes actively to the conserv
Page 29 and 30: Figure 3-1. Public Protected Areas
Page 31 and 32: 1987 and then purchased in 1991. Pr
Page 33 and 34: 3.3.2. The Economics of Multiple Na
Page 35 and 36: Table 3-2. Average Willingness to P
Page 37 and 38: Table 3-3. Personal Income and Prod
Page 39 and 40: impact. It is necessary to conduct
Page 41 and 42: 4.2. Key Site Details for the Analy
Page 43 and 44: approach allows examination of ques
Page 45 and 46: This average number of trips from t
Page 47 and 48: occasional flood and drought events
Page 49 and 50: The results of the regression yield
Page 51 and 52: gallons, which results in a value o
Page 53 and 54: Aransas distinguishes itself from C
Page 55 and 56: thresholds vary according the size
Page 57 and 58: The total number of full-time and p
Page 59 and 60: The County also shows a lower educa
Page 61 and 62: Refugio shows a rapid decrease in t
Page 63: IM t+ n ic = E t ic ⎡⎛ E × ⎢
Page 67 and 68: Table 5-5. Employment Shift-Share A
Page 69 and 70: Fishing and related activities. The
Page 71 and 72: Figure 5-15. Employment change by s
Page 73 and 74: 5.3.2. Input-Output Analysis The in
Page 75 and 76: Calhoun Calhoun County’s experien
Page 77 and 78: an advantage, particularly in oyste
Page 79 and 80: Impacts on the Freshwater Inflows t
Page 81 and 82: However, due to the lack of consist
Page 83 and 84: This implicitly assumes that flows
Page 85 and 86: for fresh product. This fishery wil
Page 87 and 88: Elliot, D. (2007). Competitive Adva
Page 89 and 90: Pearce, D. W. (1994). The MIT Dicti
Page 91 and 92: The Nature Conservancy. (2002). "Na
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