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A New Tool for Estimating and Simulating Economic Impacts of Dredging Activity

A New Tool for Estimating and Simulating Economic Impacts of Dredging Activity. New, Increased and R educed Dredging. Drs. Yue Cui and Ed Mahoney, Michigan State University a nd Dr. Wen–Huei Chang, Institute of Water Resources, USACE. Functions of the New Tool.

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A New Tool for Estimating and Simulating Economic Impacts of Dredging Activity

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  1. A New Tool for Estimating and Simulating Economic Impacts of Dredging Activity New, Increased and Reduced Dredging Drs. YueCui and Ed Mahoney, Michigan State University and Dr. Wen–Huei Chang, Institute of Water Resources, USACE

  2. Functions of the New Tool 1. Simulate the “economic effects” of new, increased, decreased or the stoppage of dredging 2. Estimates direct and secondary impacts: sales, employment and income 3. Estimates direct and “stemming –from” impacts 4. Enables users to identify and assess impacts for very specific economic impact areas

  3. Tool is being Modeled After the USACE’s RECONS Model and Other Web-based Economic Impact Tools Designed By MSU 1. Regional Economic System (RECONS) provides accurate and defensible estimates of local job creation and retention and other economic measures such as value added, income and sales 2. RECONS allows the USACE to evaluate direct investment spending associated with the annual Civil Work budget of the eight business lines managed by the USACE. 3. RECONS also enables users to evaluate the economic contribution of industries and activities that are dependent on or benefit from USACE programs and infrastructure; these downstream effects are termed “stemming from effects.”

  4. RECONS Approach – USACE Project Work Activities Economic Impacts Navigation, Hydropower, Environmental, Flood Risk, Emergency Management, Regulatory, Recreation, Water Storage Business Line Contracted Project Work Activities Expenditure by Work Activities Dredging, Lock Construction, Levee Repair, Investigations Labor, Materials, Equipment, Fuel, Services and Other Expenditures Spending Profiles and IMPLAN Industry Data IMPLAN Industry Multipliers (Region, State, Nation) Impact Areas and Multipliers Direct, Indirect and Induced Effects Measured as Jobs, Earnings, Output (Sales), and Valued Added (GDP) Economic Impacts

  5. Economic Impacts of Dredging

  6. Dredging Proposal and Definition of Economic Impact Area • 1. • Describe Dredging Project • Including Alternative Scales and Requirements • 2 • Define and Describe Economic Impact Area

  7. Direct Dredging Spending : Items and Amounts Lflfdldfllf;l;l;f

  8. Direct Dredging Spending : Economic Impacts Lflfdldfllf;l;l;f -

  9. The USACE’s RECONSEconomic Impact Assessment of Dredging Project

  10. The USACE’s RECONSEconomic Impact Assessment of Dredging Project

  11. Dredging Proposal and Definition of Economic Impact Area

  12. Dredging Proposal and Definition of Economic Impact Area

  13. The USACE’s RECONSEconomic Impact Assessment of Dredging Project

  14. The USACE’s RECONSEconomic Impact Assessment of Dredging Project

  15. Stemming-From Economic Impacts of Dredging Lflfdldfllf;l;l;f

  16. Beneficial Uses of Dredge Materials Lflfdldfllf;l;l;f Capping a landfill or brownfield Transforming dredged material into lightweight aggregates Reclaiming lands impaired by sand, gravel, and coal mining Manufacturing bricks and blocks and construction aggregates Creating fill for construction projects Wetland creation and restoration Creating wildlife habitat Levee maintenance Landfill daily cover

  17. Stemming-From Economic Impacts of Dredging Lflfdldfllf;l;l;f

  18. The USACE’s RECONSNewly Enhanced (Stemming From Effects) Port Model The model allows users to estimate the stemming from effects of port industries based on a modified version of Port Kit consist of the following: 1. Definition of Port locations and impact areas 2. Mapping of RIMSII industries to IMPLAN industries; extracting relevant industry economic multipliers derived from IMPLAN 3. Port default expenditures by sector for cargo 4. Identify cargo tonnage 5. Modal shares and distance for inland movements

  19. User Inputs RECONS Inputs Choose Impact Area The Impact Region, Multi-State Region, and Nation Choose Type of Impact – Origin and/or Destination Impacts Identify Tons Shipped by Commodity 18 Cost Profiles for Shipper Rates Shipper RatesIMPLAN Sector (No.) WW line-haul Waterborne transport (334) Assessorial W Trans support svcs (338) RECONS Output Calculate Direct Impacts Shipper Rates * Tons Shipped Jobs, Income, Value Added, Sales for Waterway Industries Calculate Multiplier Effects Direct Sales * Multipliers and Ratios RECONS: Port Model

  20. Identify Port And Associated Impact Area Cargo Volume by Shipping Type and Commodity Type RECONS User Input -- Cargo Forecast (Port Data/Research) Cargo Volume by Shipping Type Inflation-adjusted Port Kit default values for labor, materials, equipment, fuel, services Per Unit Expenditure by Type of Cargo Modal Share & Distance of Inland Movements Percent Rail, Short/Long Distance Truck, Barge, Air (FAF2) Total Expenditure Total Expenditure by Each Type of Commodity IMPLAN Industry Multipliers (Region, State, Nation) Industry Multipliers Direct, Indirect and Induced Effects Measured as Jobs, Earnings, Output (Sales), and Valued Added (GDP) Economic Contribution Economic Contribution by Each Type of Commodity RECONS: Newly Enhanced Port Model

  21. The USACE’s RECONSEconomic Impact Assessment of Ports and Shipping

  22. The USACE’s RECONSEconomic Impact Assessment of Ports and Shipping The RECONS port module estimates the economic contribution of cargo shipments within ports for various types of cargo (for example, dry bulk, automobiles, containers, etc.).

  23. The USACE’s RECONSEconomic Impact Assessment of Ports and Shipping

  24. The USACE’s RECONSEconomic Impact Assessment of Ports and Shipping • 1. The cost elements associated with the port include port services, cargo handling, fuel service, vessel and crew supplies, cargo storage, cargo packing and unpacking, crew leave and finally, inland transport costs. • 2. The costs were then aggregated by IMPLAN sector for each type of cargo to summarize the costs for the various types of cargo by type of cost, with the appropriate IMPLAN industry.

  25. The USACE’s RECONSEconomic Impact Assessment of Ports and Shipping

  26. The USACE’s RECONSEconomic Impact Assessment of Ports and Shipping

  27. The USACE’s RECONSEconomic ImpactImpact Assessment of Marinas

  28. The USACE’s RECONSEconomic ImpactImpact Assessment of Marinas

  29. The USACE’s RECONSEconomic ImpactImpact Assessment of Marinas

  30. The USACE’s RECONSEconomic ImpactImpact Assessment of Marinas

  31. The USACE’s RECONSEconomic ImpactImpact Assessment of Marinas

  32. Questions?

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