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Lehigh Valley Return on Environment Study Lehigh Valley Planning Commission Wildlands Conservancy Keystone Conservation Trust 4WARD Planning ECONSULT

Lehigh Valley Return on Environment Study

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Page 1: Lehigh Valley Return on Environment Study

Lehigh Valley

Return on Environment Study

Lehigh Valley Planning Commission

Wildlands Conservancy

Keystone Conservation Trust

4WARD Planning

ECONSULT

Page 2: Lehigh Valley Return on Environment Study

1.Natural System Services

2.Air Quality Benefits

3.Outdoor Recreation Economic Benefits

4.Enhanced Property Values

What Makes Up The Lehigh Valley’s

Natural Capital

Page 3: Lehigh Valley Return on Environment Study

1. Natural System Services

Page 4: Lehigh Valley Return on Environment Study

Natural System Services

• Water supply – Ensure that rainwater is stored and released gradually

• Waste assimilation – forests and wetlands provide a natural protective buffer between anthropogenic activities and water supplies

• Flood Mitigation – Forests, wetlands, and floodplains help trap and contain stormwater

• Soil formation/retention – Create and enrich soil through weathering and decomposition and protect existing soil from erosion

Page 5: Lehigh Valley Return on Environment Study

Natural System Services

• Biological Control – Provides dynamic regulation of species populations, including invasives

• Wildlife Habitat – Contiguous patches of land cover can hold naturally functioning ecosystems to support plant and animal species

• Pollination – Provides local pollinators for agricultural crops

Page 6: Lehigh Valley Return on Environment Study

Natural System Services Provided by

Different Land Cover TypesSource: ESI (2014)

Natural System Service

Water Supply - - - - - - - - - - - - - - - - -

Waste Assimilation - - - - - - - - - - - - -

Disturbance Prevention - - - - - - - - - -

Biological Control - - - - - - - - - - - - - -

Habitat - - - - - - - - - - - - - - - - - - - - - -

Soil Formation - - - - - - - - - - - - - - - - -

Pollination - - - - - - - - - - - - - - - - - - - -

Associated Land Covers

Forests, Freshwater Wetlands, Open

Freshwater, Riparian Buffers

Forests, Freshwater Wetlands, Pasture

Freshwater Wetlands, Riparian Buffers,

Urban Green Space

Cropland, Forests, Pasture

Cropland, Forests, Freshwater Wetlands

Forests, Pasture

Cropland, Forests, Pasture

Page 7: Lehigh Valley Return on Environment Study

Value Transfer Model

for Natural System ServicesSource: Robert Costanza et.al. 2006

Land Cover Types

(Acres)

Estimates of Natural

System Values by

Cover Type

Total Natural System Service

Value /Year By Service

2011,GIS data

Minimum, Mean and Maximum

Service Values

Page 8: Lehigh Valley Return on Environment Study

Natural System Service Benefits Calculated

Using the Minimum, Mean and Maximum Values from Costanza, et. al. (2006)($ Millions)

Natural System Service Min. Mean Max

Lehigh County

Biological Control $1.2 $1.2 $1.2

Pollination $4.3 $11.0 $17.2

Habitat and Wildlife

Conservation $20.6 $97.0 $266.5

Soil Formation $0.3 $0.4 $0.6

Waste Treatment $4.7 $6.7 $6.7

Disturbance (Flood)

Prevention $9.1 $16.6 $24.2

Water Supply $0.6 $20.9 $72.4

Total $40.9 $153.8 $388.8

Northampton County

Biological Control $1.3 $1.3 $1.3

Pollination $4.2 $11.4 $17.8

Habitat Wildlife

Conservation $32.3 $122.5 $309.1

Soil Formation $0.3 $0.4 $0.5

Waste Treatment $7.0 $8.0 $8.0

Disturbance (Flood)

Prevention $18.7 $34.0 $49.6

Water Supply $0.6 $24.1 $74.6

Total $64.5 $201.7 $460.8

Lehigh Valley Total $105.4 $355.5 $849.6Source: ESI (2014)

Page 9: Lehigh Valley Return on Environment Study

• Pollutant removal

• Carbon sequestration and

storage

2. Air Quality Benefits

Page 10: Lehigh Valley Return on Environment Study

I-Tree Model Source: U.S Forest Service

Land Cover

Estimates of Tons of Pollutant Removed

Total Pollutant Removal Values byPollutant

Forest Mix

Estimates of Value of Pollutants Removed

Page 11: Lehigh Valley Return on Environment Study

Air Pollutant Removal Benefits

Pollutant

Pollutant Removal

(Tons)

Benefits

($ Millions)

Lehigh County

Ozone (O3) 1,018 $10.4

Particulate Matter (PM10) 1,068 $7.3

Nitrogen Dioxide (NO2) 512 $5.2

Sulfur Dioxide (SO2) 226 $0.6

Carbon Monoxide (CO) 55 $0.1

Total $23.5

Northampton County

Ozone (O3) 1,069 $10.9

Particulate Matter (PM10) 1,121 $7.6

Nitrogen Dioxide (NO2) 537 $5.5

Sulfur Dioxide (SO2) 237 $0.6

Carbon Monoxide (CO) 58 $0.1

Total $24.7

Lehigh Valley Total $48.2

Source: ESI (2014) and iTree (2014)

Total of $48.2 million per year

Page 12: Lehigh Valley Return on Environment Study

Carbon Sequestration and Storage

Pollutant Tons of Carbon

Benefits

($ millions)

Lehigh County

Carbon Sequestration (annually) 88,397 $1.7

Carbon Storage 2,681,374 $52.1

Northampton County

Carbon Sequestration (annually) 92,792 $1.9

Carbon Storage 2,814,695 $59.1

Lehigh Valley $3.6

Source: ESI (2014) and iTree (2014)

Page 13: Lehigh Valley Return on Environment Study

The outdoor recreation

economy grew

approximately 5 percent

annually between

2005 and 2011 during an

economic recession when

many sectors contracted.

Outdoor Industry Association, 2012

3. Outdoor Recreation’s Economic Benefits

Page 14: Lehigh Valley Return on Environment Study

Economic Benefits Process

1. Data gathering

2. Interviews with local experts

3. Preliminary analysis on participation and

spending

4. Create scenarios (Minimum and

Expected)

5. Run the IMPLAN Model

Page 15: Lehigh Valley Return on Environment Study

Minimum Direct

Contribution

Minimum Participation

Rate and Minimum Spending

Expected Direct

Contribution

Expected Participation

Rate and Expected Spending

Recreation Economic Benefits

Scenarios

Page 16: Lehigh Valley Return on Environment Study

Lehigh Valley ROE Participation Rate Analysis (%)

Ou

tdo

or

Fou

nd

atio

n

20

13

Par

tici

pat

ion

Surv

ey (

8)

20

11

U.S

. Fis

h a

nd

Wild

life

Serv

ice

(2)

20

14

Pen

nsy

lvan

ia

Ou

tdo

or

Rec

reat

ion

Par

tici

pat

ion

Surv

ey (

9)

No

rth

amp

ton

Ou

tdo

or

Rec

reat

ion

Su

rvey

20

14

Inte

rvie

ws

Wit

h

Loca

l Exp

erts

Cen

ter

for

Dis

ease

Co

ntr

ol

Walking 69.1 75.35 .6

Fishing*

13.6 11.0 18.3

23.94

13.6

Hunting*

5.1 8.0 14.5 10.56 8.0

Birding/Bird Watching

5.0 27.0 30.9 33.45 30.0

Wildlife Watching 8.0 36.0 35.0 50.7

Camping 13.3 15.5 11.27 6.0

Kayaking/ Canoeing

2.8 17.4

27.11

14.0

Bicycling 16.4 21.6 47.54 17.0

Hiking/

Backpacking 15.1 13.6 10.0

Jogging/ Running

18.5 17.3 16.0

Nature Study

9.2 23.94 14.0

Numbers to be used for model:Tan – LowGreen – ExpectedBlue – Low and Expected

Page 17: Lehigh Valley Return on Environment Study

0.00

0.10

0.20

0.30

0.40

0.50

0.60

0.70

Participation InOutdoor Activities

Participation Minimum

Participation Expected

Page 18: Lehigh Valley Return on Environment Study

Lehigh Valley ROE Spending Rate Analysis

US

Fish

an

d

Wild

life

Ser

vice

,

20

11

.

Rec

om

men

ded

by

Gam

e C

om

mis

sio

n

DC

NR

20

09

Ou

tdo

or

Rec

reat

ion

Res

iden

t

par

tici

pat

ion

Surv

eySo

uth

wic

k N

atio

nal

20

13

Eco

no

mic

An

alys

is

Ru

nn

ers

Wo

rld

Loca

l Exp

erts

esti

mat

es

Walking $96

Fishing $409 $831

Hunting $1,207 $687

Birding/Bird Watching

$329

$211

Wildlife Watching $308

Camping $2,529 $2,009 $600

Kayaking/ Canoeing $482 $375

Bicycling $453 $1,196 $600

Hiking/Back packing $280 $1,115

$458

Jogging/ Running $238 $196 $3,734

$900

Nature Study

$150

Numbers to be used for model:Tan – LowGreen – ExpectedBlue – Low and Expected

Page 19: Lehigh Valley Return on Environment Study

Lehigh ValleyActivity Direct Impact Output (million) Employment

State and Local

Taxes

Walking $37,280,563 $53.3 741 $4,054,840

Fishing $29,118,967 $41.6 579 $3,167,141

Hunting $22,232,419 $31.7 442 $2,418,122

Bird Watching $6,828,297 $9.7 78 $718,503

Wildlife Watching $15,947,796 $22.6 181 $1,678,097

Camping $23,300,352 $36.6 376 $1,494,972

Kayaking/ $7,281,360 $10.8 144 $791,960

Bicycling $46,911,375 $67.0 932 $5,102,340

Hiking $18,122,496 $22.6 318 $1,971,103

Jogging/ Running $20,297,195 $27.3 381 $2,207,635

Nature Study $8,737,632 $12.5 99 $919,413

Totals $236,058,455 $340 4,334 $24,524,126

Activity Direct Impact Output EmploymentState and Local

Taxes

Walking $37,280,563 $53.3 741 $4,054,840

Fishing $37,060,504 $53.0 736 $4,030,906

Hunting $85,932,992 $122.8 1,708 $9,346,547

Bird Watching $66,011,191 $93.5 746 $6,945,987

Wildlife Watching $69,771,609 $98.8 788 $7,341,676

Camping $23,300,352 $36.6 376 $1,494,972

Kayaking/ $33,979,680 $48.5 675 $3,695,819

Bicycling $66,017,664 $94.4 1,313 $7,180,447

Hiking $29,643,225 $42.4 590 $2,841,624

Jogging/ Running $93,201,408 $133.2 1,852 $6,453,123

Nature Study $13,591,872 $19.3 154 $1,430,197

Totals $555,791,063 $795 9,678 $58,882,653

Low Economic Contribution Scenario

Expected Economic Contribution Scenario

Page 20: Lehigh Valley Return on Environment Study

4. Enhanced Property Values

• Value transfer of enhanced value from detailed study outside of Lehigh Valley

• Local residential property values determined from county tax assessment records

Page 21: Lehigh Valley Return on Environment Study

Open Space’s Impact On

Property Values

Methodology

Housing Data on Homes Within

Specified Distances

From Open Space

Average Open Space

Premium

Total Impact of Open Space on Property

Values

Average Assessed Value of Homes

Estimates Value by distance

from Open Space

Page 22: Lehigh Valley Return on Environment Study

Percent Value of Proximity to Open Space by Planning Area (<1 mile)

Core City 14.4%Developed Community 6.7% Growing Suburb 1.1%Rural Area .7%

Source: Delaware Valley Regional Planning Commission, Economic Value of Protected Open Space in Southeastern Pennsylvania, 2011

Page 23: Lehigh Valley Return on Environment Study

The value of Proximity (1/4 mile) to open

space is approximately $14,600 per

single-family dwelling and

$1.87 Billion in the Lehigh Valley

Page 24: Lehigh Valley Return on Environment Study

Questions?

Geoffrey A. Reese, P.E.

Lehigh Valley Planning Commission

[email protected]