Galveston Bay

National Estuary Program

GBNEP-38

June 1994

The Economic Value of

Improving The Environmental

Quality of Galveston Bay
GBNEP-38 The Economic Value of Improving The Environmental Quality of Galveston Bay June 1994
The Economic Value of Improving

The Environmental Quality of

Galveston Bay

printed on recycled paper using soy-based ink

The Economic Value of Improving

The Environmental Quality of

Galveston Bay

Prepared by

Dale Whittington

Glenn Cassidy

Deborah Amaral

Elizabeth McClelland

Hua Wang

Christine Poulos

Department of Environmental Sciences and Engineering

The University of North Carolina

at Chapel Hill

The Galveston Bay National Estuary Program

Publication GBNEP-38

June 1994

iii
This project has been funded in part by the United States Environmental

Protection Agency under assistance agreement # CE-006550-01 to the Texas

Natural Resource Conservation Commission. The contents of this document

do not necessarily represent the views of the United States Environmental

Protection Agency or the Texas Natural Resource Conservation Commission, nor do the contents of this document necessarily constitute the views

or policy of the Galveston Bay National Estuary Program Management

Conference. The information presented is intended to provide background

information for Management Conference deliberations in drafting of

official policy in the Comprehensive Conservation and Management Plan

(CCMP). The mention of trade names or commercial products does not

in any way constitute an endorsement or recommendation for use.

iv
Policy Committee

The Honorable Rodney Ellis, Chair

Texas Senate

Mr. John Hall

Chair, Texas Natural Resource

Conservation Commission

Mr. James Blackburn

Galveston Bay Foundation

Mr. Charles Miller

Past Chairman of the Board of Directors,

Greater Houston Partnership

Ms. Jane Saginaw

Regional Administrator,

EPA Region 6

Ms. Terry Hershey

Commissioner,

Texas Parks and Wildlife Commission

Mr. Charles W. Jenness

Chair,

Texas Water Development Board

Local Governments Advisory Committee

The Honorable Ray Holbrook, Chair

Management Committee

Mr. Myron O. Knudson, Chair Mr. Tom Remaley, Vice-Chair

Scientific/Technical Advisory Committee

Dr. Robert McFarlane, Chair Ms. Teresa Battenfield, Vice-Chair

Citizen's Advisory Steering Committee

Ms. Sharron Stewart, Chair Mr. Ron Embry, Vice-Chair

Galveston Bay Public Forum

Dr. Don Bass, Chair

Program Director

Dr. Frank S. Shipley

V

The Galveston Bay National Estuary Program

Texans increasingly express their expectations for a clean environment in terms of

entire ecosystems. Until recently, our tendency was to view environmental problems in

isolated pieces we could understand—indeed this view was institutionalized (and

seemingly immortalized) in an elaborate mosaic of fragmented jurisdictions. The

Galveston Bay National Estuary Program (GBNEP) is a forerunner in elevating handson management of coastal environments to the level of the ecosystem; and in doing so,

is encouraging an integration of traditionally disparate institutions.

The GBNEP was established under the authority of the Water Quality Act of 1987 to

develop a Comprehensive Conservation and Management Plan (CCMP) for Galveston

Bay. The purpose of the CCMP is to address threats to the Bay resulting from pollution,

development, and overuse. To address these threats, five years of work commenced in

1990, consisting of three phases: (1) Identification of the specific problems facing the

Bay; (2) A Bay-wide effort to compile data and information to describe status, trends,

and probable causes related to the identified problems; and (3) Creation of the CCMP

itself to enhance governance of the Bay at the ecosystem level. The GBNEP is

accomplishing this work through a cooperative agreement between the U.S. EPA

(Region 6) and the State of Texas (administered by the Texas Natural Resource

Conservation Commission.)

The structure of the GBNEP reflects a strong commitment to consensus-building among

all Galveston Bay user groups, government agencies, and the public. The GBNEP

"Management Conference" consists of six Governor-appointed committees with broad

representation, totaling about one hundred individuals. Meetings of these committees

are also open to the public, and public participation in policy-setting and in Bay

management are considered strengths of the program. When submitted to the Governor

of Texas in late 1994, the CCMP will reflect thousands of hours of involvement (much

in the form of volunteer time) by individuals who in various ways use, enjoy, or help

govern this vital coastal resource.

vii

TABLE OF CONTENTS

Section Page

LIST OF TABLES xi

LIST OF FIGURES xiv

EXECUTIVE SUMMARY 1

PART I: OVERVIEW

Chapter 1 Introduction 11

PART II: STUDY DESIGN AND IMPLEMENTATION

Chapter 2 Development of the Contingent Valuation Survey Instruments . . 23

Chapter 3 Final Questionnaire Design and Survey Implementation 37

PART III: STUDY RESULTS

Chapter 4 Overview of Study Results 49

Chapter 5 The Factors Determining Households' Willingness to Support a

Management Plan for Galveston Bay 71

Chapter 6 Estimates of the Economic Value of Improvements in the

Environmental Quality of Galveston Bay 81

Chapter 7 Summary and Conclusions 89

REFERENCES 105

APPENDIX 1 Estimates of the Economic Value of Various Uses of Galveston Bay

Based on Other Methodological Approaches 109

Preface Overview of Services Provided by the Bay 1ll

Chapter I Estimates of the Economic Value of Recreational and Commercial

Uses of Galveston Bay 113

Chapter II The Marginal Value of Wetland Systems for Recreational Fisheries in

Galveston Bay 131

Chapter III The Economic Value of Galveston Bay: An Embodied Energy

Analysis 139

APPENDIX 2 The Sample Selection Model 149

APPENDIX 3 Correspondence and Questionnaires Used in the Contingent Valuation

Survey 167

APPENDIX 4 Frequency Tabulations of Responses from Questionnaires .... 241

ix
TABLE OF CONTENTS

Section Page

Part I Mail/In-Person Follow-Up Survey Results 243

Part II Mail-Only Survey Results 277

X