Fish Habitat: Essential Fish Habitat and Rehabilitation

The Economic Value of the Lorain County, Ohio, Artificial Reef

Leroy J. Hushak, David O. Kelch, and Sophia J. Glenn

doi: https://doi.org/10.47886/9781888569124.ch26

Abstract.— Ohio constructed two artificial reefs beginning in 1986 in Lorain and Cuyahoga counties. The reefs were a demonstration project to evaluate the effects of reefs on fishing satisfaction and the feasibility of reef construction in other areas. Evaluation of the effects of reefs on recreational activity was viewed as essential for further reef development in Ohio and other Great Lakes states. A two-pronged research effort was undertaken: an underwater video investigation and a travel cost study. The travel cost study estimated the economic value derived from use of the Lorain County reef by sport anglers and divers. The results of this research were critical in supporting construction of a large artificial reef off the coast in Cleveland (Cuyahoga County) using rubble from the old Cleveland Stadium. From April to October 1992, 850 individuals who were willing to participate were contacted at Lorain County marinas and launch ramps. In early February 1993, these individuals were mailed questionnaires, with a second questionnaire mailed to nonrespondents in late February. Fifty-five percent responded. We estimated three alternative single-equation travel cost models. The most conservative estimate of consumer surplus (economic value) showed that the typical angler who used the reef in 1991 made nearly 10 more fishing trips during 1992 than the typical angler who did not use the reef in 1991, that is, nearly 26 trips in 1992 compared to 16 trips in 1992 by those who did not use the reef in 1991. The most conservative estimate of consumer surplus also showed that anglers who used the reef before 1992 valued total angling activity at US$302 more for the year 1992 than anglers who did not use the reef before 1992. When aggregated across all Lorain County anglers using the reef during 1991, the total value of the reef was $276,000 in 1992 compared to total construction costs of less than $100,000. Thus, the consumer surplus generated by the reef in one year exceeded construction costs by a wide margin.