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A. Clean Marinas -- Clear Value Literature Review and Bibliography
Prepared by:
Impact Research Associates, Inc.
Timothy J. Tyrrell, Ph.D., Vice President
Maureen F. Devitt, Associate
September 21, 1995
Foreword
Each state within the US coastal zone has the responsibility to implement
and encourage compliance with nonpoint source (NPS) pollution control measures
that are mandated by Section 6217 of the Coastal Zone Act Reauthorization
Amendments (CZARA) of 1990. Enforcement of such measures at marinas and
recreational boating facilities is difficult. However, owners and operators of
many marinas have voluntarily made environmental improvements in their
operations. Case study examples of actual savings or profits realized from the
application of various NPS control practices may help encourage marina owners
to invest in such modifications to their operations.
With over 16.6 million recreational boats in use today, marina and boatyard
facilities are in high demand. Total recreational boating business retail sales
for 1994 hit $14.1 billions showing significant recovery from the industry
recession which started in 1989 and bottomed out in 1992. Of the total US
population, between 21 to 31 million people are involved in some form of
boating activity (fishing, power boating, water skiing, canoeing, sailing)
(Boating Industry, 1994).
Environmental impacts to surrounding surface waters from marina-related
activities can include toxicity in water, dissolved oxygen depletion, and
contamination of fish and shellfish. Economic impacts of water quality
degradation extend to the commercial fishing industry, water-related tourism,
and nearby real estate values (Hayes et al., 1992; Kirshner and Moore, 1988).
Thus, investments in water quality controls at the roughly 9,000 marinas and
boatyards in the United States may realize environmental and economic benefits
beyond the marina and boating industries (Boating Industry, 1994).
After an extensive search, it was determined that very little public
literature is available that documents firm level benefits and costs from
investments in environmental improvements. A 1992 EPA study estimated the costs
of NPS control measures to marinas, but did not consider possible benefits from
such investments. A 1986 publication from the Institute for Local Self-Reliance
documents in case study format the benefits and costs of pollution prevention
measures to companies in the chemical and manufacturing industries. Finally,
there is currently an effort within the hotel industry, spearheaded by a hotel
management consulting firm, to reform hotel management practices to become
environmentally friendly through reducing waste and conserving energy and
water.
Each of these four references is summarized here, along with comments on
their usefulness for the "Clean Marinas Clear Value" study.
Annotated Literature Summary
a. Jellicorse, Brenda L., J.M. Duffin, E.S. Newbold. Economic
Analysis of Coastal Nonpoint Source Pollution Controls: Marinas.
Prepared for: US Environmental Protection Agency. Prepared by: Center for
Economics Research, Research Triangle Institute, Research Triangle Park, NC.
September 1992.
Summary: This Jellicorse et al. (1992) study estimates the costs of
nonpoint source (NPS) pollution control measures to coastal marinas. The
analysis is conducted through hypothetical scenarios of various management
practices. The report first reviews the sources and impacts of NPS pollution
related to marina operation, and characterizes the design and distribution of
marinas in the US coastal zone.
Jellicorse et al. establish six hypothetical "model" marinas of varying
size, location, services provided, and financial standing to represent the
types of marinas found in the coastal zone. Costs of implementation are
estimated for three management scenarios, each gradually more stringent in
number and type of control measures. NPS controls were specified in the general
categories of: siting and design, storm water runoff, sewage disposal, and
operations and maintenance. Costs of implementation were estimated to vary
between less than 1% of sales up to 8% of sales for privately owned marinas,
depending on the management scenario and the characteristics of the marina.
Comments: Jellicorse et al. (1992) is the primary existing source of cost
analysis of the implementation of nonpoint source (NPS) pollution control
measures at US coastal marinas.
Because marina owners would not provide the financial information
necessary to conduct the analysis as a case study, the authors alternatively
set up hypothetical marinas to estimate costs. Without the availability of a
case study analysis, it is not possible to predict potential financial benefits
to marina owners from implementation of environmentally sound management
practices.
b. Huisingh, Donald, L. Martin, H. Hilger, N. Seldman. Proven
Profits from Pollution Prevention: Case Studied in Resource Conservation and
Waste Reduction. Institute for Local Self-Reliance. Washington, DC,
1986.
Summary: Huisingh et al. present a compilation of case studies of
companies that have invested in waste reduction, resource conservation, and
other pollution-preventing management measures. The focus is on hazardous waste
management issues in the manufacturing and chemical industries. The volume is
set up as guidebook to inform other manufacturing and chemical companies about
various pollution prevention measures, and the potential benefits that can be
realized through investment in, and implementation of these measures.
The case studies were compiled by distributing a questionnaire to
companies in the chemical and manufacturing industries. Results are reported in
a standardized, easy-to-follow format. Each case study provides a summarized
project description, economic benefits (profits or savings per year) and costs
(initial investment or cost per year), and environmental and health benefits
associated with the company's investment. Where economic information was not
available or not estimable, a verbal description of the impact is provided
(improved productivity or improved product quality).
One company that invested an initial $4.3 million in equipment to recycle
a fluoride manufacturing by-product now saves $1.35 million per year in
materials, waste disposal, and pollution control costs. Another invested just
over $3,000 to recycle solvents and switch to water-based cleaners in the
manufacturing process, and now saves approximately $20,000 per year in raw
materials and waste disposal costs. Other examples are less dollar-specific,
but recognize costs savings, and environmental and health benefits associated
with the changes made.
Comments: This book provides actual examples of profits and savings from
resource-conserving and waste-reducing investments. It will potentially
encourage manufacturing and other companies to invest in pollution prevention
measures without the use of government intervention/incentive policies. A
comparable book for the marina industry can encourage investments to reduce
nonpoint source pollution in the coastal zone.
c. Curtis, Sara. "Seeing the Forest and the Trees." Hotelier.
September/October 1992. pp. 11-14. Canadian Pacific Hotels & Resorts.
Company prospectus. Toronto, Ontario, Canada.
Summary: The largest hotel company in Canada, Canadian Pacific Hotels
& Resorts, developed "The Green Partnership Guide" for its 27 hotels across
the country. The 129-page guide book was made available to all managers, with
suggestions for environmental improvements in all departments at each hotel
including: waste disposal, laundry, kitchen, grounds, plant management, stores,
housekeeping, repairs and renovations, food service, and golf course
management. The initial ideas for savings/improvements came from workers in
each of these departments by way of a questionnaire. One of the chain's hotels
incurred an initial outlay of $100,000 to implement some of the suggested
practices, and netted $250,000 in savings.
Comments: Canadian Pacific has outlined many examples of cost savings at
its hotels throughout the country, including savings on energy costs and waste
disposal costs. In addition, the chain as a whole received a great deal of
publicity from the implementation of this "environmentally-friendly" program.
At least seven different publications covered the story of the company's
innovative environmental policies. The benefits that Canadian Pacific realized
from this "free" positive publicity are unknown. However, many companies pay
thousands of dollars for equivalent advertising space.
d. Dela Cruz, Tony. "Two Years After Bombing, Vista Reopens as First
Ecotel." Hotel Business. November 14, 1994. pp. 1b, 18b.
HVS Eco Services. "Environmental and Energy Consulting for the Hotel
Industry Awards the ECOTEL Certification." Company prospectus. Mineola, New
York.
Summary: In Fall of 1994, the New York Vista Hotel was the first company
to be awarded an "ECOTEL" certification from HVS Eco Services. HVS Eco Services
awards an "ECOTEL" designation to hotels that have exhibited environmentally
stringent management practices.
HVS Eco Services recently established the ECOTEL "green seal" of approval
to recognize hotels for excellence in the areas of solid waste management,
water conservation, energy efficiency, compliance with federal and state
regulations, and education and training for employees. A May 1995 news release
from the Mineola, New York, company announces the certification of two more
hotels, one in Florida and the other in Pennsylvania. Each certified hotel
becomes part of an ongoing promotional campaign, and will be listed in a
directory of ECOTEL that is distributed to travel agencies and tour operators
around the world.
The HVS prospectus provides estimates of the costs and annual savings for
hotel installation of: recycling, energy-efficient lighting fixtures, heating
insulation, and water-saving devices. Even investments as large as $2 million
for convention-size hotels were estimated to have a payback period of less than
2.5 years, with net savings after 5 years of over $700,000.
Summary and Conclusions
Very little literature exists which provides case studies of firm-level
benefits and costs of investing in pollution prevention measures. A 1992 study
prepared for EPA estimates the costs of nonpoint source (NPS) pollution control
to coastal marinas by using hypothetical scenarios of various management
practices. This study makes it clear that there are many variables to consider
when estimating the costs of control devices and measures for NPS pollution.
Thus, costs for a "generic" marina cannot be estimated. With the case study
approach, actual costs can be reported, and benefits associated with the
investment/changes can be estimated. An extensive and diverse sampling of
marina costs and benefits from pollution control measures may provide the
impetus for other marina owners around the country to invest in such sound
practices.
Only one compilation of case studies provides actual examples of profits
and savings from resource conserving and waste reducing investments.
Presentation of case studies in the marina industry may perhaps be modeled
after this industry guidebook, published by the Institute for Local
Self-Reliance.
Finally, the marina industry may consider the current movement within
the hotel industry to establish a green seal of approval for environmentally
sound management of individual hotels. Such an award system carries with it a
sense of pride that may encourage marina owners to "join the ranks" of those
who are investing in better management practices. Positive publicity (local or
national) may be an added bonus to marinas that make these investments.
Marketability of environmental improvements can help establishments regain, and
even profit from their investments.
Other References
Boating Industry Magazine. The BOATING BUSINESS - 1994 Annual Industry
Review. Argus Business, Atlanta, GA. 1994.
Hayes, K., T. Tyrrell, and G. Anderson. "Estimating the Benefits of Water
Quality Improvements in the Upper Narragansett Bay." Marine Resource Economics.
1992. v. 7. pp. 75-85.
International Marina Institute. National Marina Index - Marina Industry
Financial Performance. Quarterly Report. January 1990.
Kirshner, D., and D. Moore. "The Effect of San Francisco Bay Water
Quality on Adjacent Property Values." Environmental Defense Fund. Oakland, CA.
unpublished. 1988.
Ofiara, D.D., and B. Brown. Marine Pollution Events of 1988 and Their
Effect on Travel, Tourism, and Recreational Activities in New Jersey. Bureau of
Economics Research, Rutgers University. New Jersey. March 1989.
Rorholm, N., and D. Burrage. Economic Impact of the Rhode Island Boating
Industry. University of Rhode Island Department of Resource Economics. Sea
Grant Report. 1983.
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