ESTIMATING THE VALUE OF NATURAL CAPITAL IN A MODEL WATERSHED
Natural Resources/Aquaculture
William Sciarappa
COUNTY AGENT II
Rutgers ANR - NJAES-RCE
Neptune City
Abstract
There are approximately 14,000 horses yet only 11,999 residents in the Colt’s Neck Watershed. This project identified environmental and economic benefits from such agricultural landuse and determined the amount and financial value of all surface and ground water recharge. Natural capital from goods like farm crops were valued at $2.8 to $9.7 billion dollars annually yet eco-services from these same lands were valued at $8.6 to $19.8 billion per year. \r\n The total volume of water recharged into this model watershed is approximately 7.8 billion gallons annually having real value both as goods extracted and eco-services provided. If the amount of open space and inflation remain constant through the year 2030, the Colt’s Neck/Navesink Watershed would maintain an annual water recharge rate increasing in worth to $60 Million dollars annually rather than the current worth of $34 Million dollars – a difference of $26 million annually in value as actual goods. On the other hand, conservative build-out estimates show the population reaching 12,447 people by the year 2025; assuming growth were to occur at a rate of 756 acres/year. This rate decreases water recharge by 13% every five years or ca. 1 billion gallons. Nonetheless, the water costs rise such that even if recharge lands are reduced, the total value remains similar around $35,000,000 per year, with an expected increase in higher prices for drinking water. The real economic loss of eco-services/natural capital is masked without this baseline knowledge.
Authors: Sciarappa, W.
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Sciarappa, W. County Agent Ii, Rutgers Cooperative Extension of Monmouth County, New Jersey, 07728