|
Summary of Results
<br />Everglades restoration will have important and significant economic impacts on several basic services
<br />provided by this massive and complex ecosystem. We have split these services into six distinct divisions. For
<br />each of these categories, we conservatively estimated, using best available data and economic methods, the
<br />increase in economic value of a restored Everglades ecosystem.
<br />Summary of Ecosystem Services Valuation of Everglades Restoration
<br />Service
<br />NPV Best Estimate
<br />1 Groundwater purification
<br />$
<br />13,150,000,000
<br />2 Real Estate
<br />$
<br />16,108,000,000
<br />3 Park Visitation
<br />$
<br />1,311,588,000
<br />4 Open space
<br />$
<br />830,700,000
<br />5 Fishing
<br />442,664
<br />Commercial
<br />$
<br />524,100,000
<br />Recreational
<br />$
<br />2,037,000,000
<br />6 Wildlife Habitat and Hunting
<br />$
<br />12,539,900,000
<br />TOTAL Value of Services
<br />$
<br />46,501,288,000
<br />Initial Investment
<br />$
<br />11,500,000,000
<br />Benefit -Cost Ratio
<br />4.04
<br />All calculations are based on discount rate of 2.1 %.
<br />Our analysis strongly suggests that restoration of the Everglades as described and planned in CERP will have
<br />large economic benefits. Our best estimate is that restoration will generate an increase in
<br />economic welfare of approximately $46.5 billion in net present value terms that could range
<br />up to $123.9 billion. The return on investment, as measured by the benefit -cost ratio, assuming a cost of
<br />restoration of $11.5 billion, is also high and significant, 4.04, which means for every one dollar invested in
<br />Everglades restoration $4.04 dollars are generated. Everglades restoration will also have an incremental
<br />impact on employment of about 442,000 additional workers over 50 years. In addition, the Corps of
<br />Engineers estimates there will be 22,000 jobs created as a result of the actual restoration projects.
<br />Throughout our analysis, we have taken a very conservative approach to estimation. Accordingly our best
<br />estimates almost surely understate the return on investment of Everglades restoration.
<br />Summary of Jobs Results
<br />Sector
<br />Incremental Jobs
<br />Commercial Fishing
<br />6,798
<br />Recreational Fishing
<br />36,868
<br />Residential Construction & Real Estate Services
<br />273,601
<br />Tourism (Lodging, Eating & Drinking, Transportation, Retail, Entertainment)
<br />48,552
<br />Agriculture
<br />(3,724)
<br />Wildlife Habitat & Hunting
<br />80,569
<br />TOTAL
<br />442,664
<br />
|