ECONOMIC ANALYSIS / ENVIRONMENTAL LAW

Estimates of Select Economic Values of New Hampshire Lakes, Rivers, Streams and Ponds

June 2003

By Dr. Lisa K. Shapiro and Heidi L. Kroll

Download this document:
lakes2.pdf (43 pages, 341 kb)

Read press release regarding this study.

Executive Summary

New Hampshire has approximately 1,000 lakes and nearly 10,000 miles of rivers and streams. Besides serving as a wildlife habitat, these surface waters provide a variety of recreational and non-recreational uses: for boating, fishing, and swimming; for transportation, manufacturing, and generating electricity; and as a source of drinking water supplies.

Surface waters are valuable both as a natural and economic resource. Residents, in-state property owners, and tourists spend money on water-based recreational activities, and waterfront property owners pay a purchase and tax premium to be located there. Public water utilities depend on surface waters to serve customers and businesses. People also place value on the enjoyment of great ponds and rivers, beyond any dollar figure that they are generally willing to pay to preserve them now and for the future. Business people start and keep businesses here in part because of access to water-based recreational activities.

These activities generate economic wealth that clearly benefits New Hampshire. The magnitude of this economic activity in New Hampshire, however, has not been previously estimated. Information about the economic contribution of the State’s surface waters in their current environmental condition, and the value that could be lost if these waters are degraded, will assist policy-makers in making fully informed choices when faced with decisions among multiple and sometimes competing uses of public waters.

The New Hampshire Lakes Association (NHLA) commissioned the Phase II Study on behalf of the Lakes, Rivers, Streams and Ponds Partnership. In addition to NHLA, members of the Steering Committee include the NH Rivers Council, NH Department of Environmental Services, NH Fish and Game Department, Squam Lakes Association, Lake Sunapee Protective Association, and Newfound Lake Region Association. Please contact NHLA for a list of organizations that have contributed funding to date.

The purpose of the Phase II Study is to provide estimates of the economic value from three recreational uses – fishing, swimming, and boating – and two non-recreational uses – public drinking water supplies and waterfront property ownership for New Hampshire lakes, rivers, streams and ponds. Although there are other significant economic values from surface waters, the Phase I Study suggested that these five uses provide both significant value and have data available to estimate the value.

The economic value of commercial and industrial uses is generally not included in the Phase II Study, nor is the economic benefit of businesses locating in the Granite State due to access to lakes, rivers, streams and ponds. People’s willingness to pay for clean New Hampshire surface waters, for keeping them available for future generations, and for the value of knowing they just exist, are not measured in the Phase II Study either, but probably exceed the actual use values examined here based on other studies that have attempted to measure such non-use values.

The key findings for the uses presented in the Phase II Study are summarized below. Please refer to the Glossary of Acronyms and Terms for definitions of economic terminology.

• The Total Sales generated by recreational uses (i.e., boating, fishing, swimming) of New Hampshire’s freshwaters, and by public drinking water supplies, range from $1.1 billion to as much as $1.5 billion annually.
   
• Annually, there are approximately 14.7 million visitor days spent by both residents and nonresidents in New Hampshire boating, fishing, and swimming. These visitor days represent roughly 65% of the State’s summer visitor days and roughly 25% of the State’s annual visitor days.
   
• Day spent boating, fishing, and swimming collectively generate approximately:
  • $320 million to $340 million in annual Household Income;
  • 9,000 to 15,000 full- and part-time Jobs; and,
  • $850 million to $1.2 billion in annual Total Sales, which represents 8% to 12% of the total impact of visitor spending on the State’s economy.
     
• Nearly 200,000 households and businesses rely on public drinking water from surface waters supplies. This generates approximately $75 million to $150 million in annual Household Income, 1,900 to 2,600 full- and part-time jobs, and $276 million to $300 million in annual Total Sales.
   
• A preliminary estimate suggests that waterfront property owners on lakes, rivers, streams and ponds pay an estimated $247 million per year in property taxes.

Download entire report:
lakes2.pdf (43 pages, 341 kb)

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