SW 448

September 2007

W I L D L I F E P R O J E C T

Economic Importance of Wildlife INTRODUCTION How much is a squirrel worth? A trout? A deer? A robin? What is a fair price for a medium sized snake? If you have difficulty answering these questions, you are not alone. Very similar questions are a difficult problem for those people who are charged with protecting our wildlife resources. In this project we will examine the problem of determining the value of wildlife. We will review six different kinds of wildlife values and learn how some values can be measured while others cannot. COMMERCIAL VALUE Some wildlife and wildlife products do enter the marketplace. These include the pelts of fur-bearing mammals, the skins and meat of commercially raised game birds, commercially harvested alligators and several kinds of fishes, crayfish and frogs collected by commercial fishing. Since these items are marketable, it is relatively easy to assign some dollar value to them. Note, however, that the money earned each year by harvesting part of a wildlife population is not the true value of the resource. Because wildlife resources are renewable, they produce income year after year. It is necessary, therefore, to calculate the capital worth of each resource based on its ability to yield income. This sounds complicated, but it really isn’t. Consider the example of a trapper who “owns” the rights to his trap line. The trapper’s income from collected pelts is $6,000 per year. This is his gross income rate. When all of his expenditures are subtracted, including his time (he might be able to earn $1,000 each year spending the same amount of time at

another job), his net income rate might be $4,000 per year. But, what is the value of the trapline if he decides to sell it? How much would he have to receive to replace the trapline with an equally valuable source of income? The figure we seek is the capital worth of the trapline. We can calculate this capital worth by considering a substitute source of income. If bank certificates pay 10% of the capital invested each year, then the trapper would need to purchase a certificate worth $40,000 to maintain his $4,000 per year net income (10% of $40,000 = $4,000 per year). Therefore, the capital worth of the trapline (the furbearer populations which produce the trapper’s pelts) is $40,000.

This same procedure can be applied to determine the capital worth of any of the wildlife species that are harvested commercially. Keep in mind that all of these wildlife resources may simultaneously have other kinds of value and that those values are additive. RECREATIONAL VALUE Wildlife and its supporting habitat has economic value as a recreational resource. Hunting and fishing are the most visible kinds of recreation that depend directly on wildlife resources. There are, however, many other recreational activities that depend less directly on wildlife populations. These include bird watching, nature photography, hiking, camping, boating, cross-country skiing, rock hounding and

expenses can be used as a measure of the value of the recreational resource to these groups.

wild-food gathering. Of course, any trip to the countryside could include any combination of these activities, or all of them. Assigning dollar values to this aspect of wildlife worth is difficult. Most methods of doing this involve measuring the amounts of money that people are willing to spend to pursue their particular interest. With hunters and fishermen, this is less difficult than with the others because they can be counted easily (they must buy licenses) and because much of the equipment they buy is clearly identifiable with their sport. It is possible to use license sales, sales of hunting and fishing equipment, and information on travel from surveys to estimate costs to the average sportsman. Estimating the value that the other groups place on wildlife habitat and wildlife resources is much more difficult. Such estimates usually rely on surveys which determine how far people are willing to travel to participate in their recreation. Travel

Again, a particular bit of wildlife habitat and its resident wildlife populations can have value to all the recreation groups during each year. These values are therefore additive – they build on one another. ENVIRONMENTAL MONITORING VALUE The basic necessities that sustain our lives - our air, our water and the soil in which we grow our food are constantly threatened by contamination of various sorts. More frequently than not, our sensitive wildlife populations warn us of these dangers. Would we have suspected the potentially dangerous effects of DDT and similar chemicals if declining populations of birds of prey had not warned us that something was wrong? How would we discover spills of toxic chemicals or untreated municipal wastes in our waterways if there were not thousands of dead fish to sound the alarm? Everywhere on the earth and in its waters armies of animals constantly test our air, taste our water and concentrate many kinds of chemicals in their bodies. The very diversity of animal life on earth insures that at least some of them will be more sensitive than we are. The rule for the present seems to be that animals die before people. The rule will change when the sensitive species are gone.

How valuable is this environmental monitoring service? How much would it cost to replace it by placing delicate sensing instruments in all of the fields, forests, streams, lakes and seas of the earth? Could we hire enough people to read and service them? Do we know enough to interpret all the

measurements in terms of human welfare? It should be obvious that it is not within our means to replace the environmental monitoring service of our wildlife resources. Here is a wildlife value so important to us that we cannot affix a price tag.

WASTE PROCESSING VALUE It is impossible to separate wildlife species from their habitat requirements. When we speak of preserving or managing wildlife species, we are usually talking about preserving or managing their habitat. This habitat, with all the varied forms of life that it supports, performs a waste processing service that benefits us. The service that crows and vultures perform in removing carrion (dead and decaying animals) from our highways and fields should be obvious to all of us. Less obvious are the roles that wildlife habitats themselves play in waste management and pollution reduction. Forests moderate water runoff from the land. This has many benefits - one of which is reduction of soil erosion and turbidity in receiving streams. Reduced

turbidity means reduced pollution since many pollutants are carried on the surfaces of suspended soil particles in the water. Wetlands (swamps, bogs and marshes) also perform this function and more. Wetlands act as filters and settling basins. The organisms they support break down organic materials and bind other pollutants. Wetlands near coasts perform a special function by moderating water flow into estuaries. In these seafood nursery grounds, freshwater itself can be a pollutant if it fluctuates radically. All wildlife habitats, from vast tracts of forest land to the much-abused small streams which drain our cities, have some value as waste processors. Wetlands in particular are especially suited to this task. Dr. Eugene Odom, a well-known ecologist, maintains that if wetlands had no other value they would be worth protecting for their ability to process wastes alone. The precise role that wetlands play in waste treatment is in need of further study.

Some scientists have measured the ability of natural environments to process wastes and compare their results with the capabilities of modern sewage treatment plants. Because the construction and operating costs of treatment plants were known, they could estimate the economic worth of natural systems that could do the same job. This approach, of course, does not take into account any of the other values of wildlife and wildlife habitat. ESTHETIC VALUE In 1953, Aldo Leopold concluded his essay, Goose Music, with the following words: “I have congenital hunting fever and three sons. As little tots, they spent their time playing with my decoys and scouring vacant lots with wooden guns. I hope to leave them good health, an education, and possibly even a competence. But what are they going to do with these things if there be no more deer in the hills, and no more quail in the coverts? No more snipe whistling in the meadow, no more piping of pigeons and chattering of teal as darkness covers the marshes; no more whistling of swift wings when the morning star pales in the east! And when the dawn-wind stirs through the ancient cottonwoods, and the gray light steals down from the hills over the old river sliding so softly past its wide brown sandbars -what if there be no more goose music?” Of all the values which wildlife has, the esthetic value is most difficult to measure in economic terms. Attempts have been made to relate the seemingly tranquilizing effects of accessible natural areas to human aggression, crime and mental health. These things might well be related, and they have obvious economic impact. But, it is questionable whether esthetic values, or beauty, should be measured in these or any other terms. Esthetic values are intensely personal and emotional. Each of us relates to the esthetic aspects of our wildlife resources in a particular way. Our feelings in this regard tend to be unchangeable. Our inner feelings for the “beautiful” value of wildlife, however, are not likely to be changed by persuasion. Most survey data points out that esthetic values associated with hunting and fishing ranks high in man’s value judgement.

SCIENTIFIC VALUE Much of what we know about ourselves and our environment has been learned by studying animals. Imagine how much the white rat has taught us about medicine and some of the basic aspects of behavior. Studying the social interactions of many animals has given us much insight into the complexities of human cultures. The turtle, the guinea pig and the steelhead trout have all contributed to our knowledge of heart disease. Each year diseases are discovered in wild animal populations that may help us understand and treat human diseases. Recently, a form of cancer peculiar to humans was discovered in some primitive monkeys from South America. Colonies of these animals are now being raised in captivity for cancer research. Isn’t it fortunate that we know enough about their biology to raise them in captivity? Wouldn’t it have been ironic if this species had been one of those on the brink of extinction? ADDITIONAL THOUGHTS The Multiplier Effect - Wildlife, like any resource, may attract money to a community. As we have seen, the amount of money attracted can be a measure of the value of the resource. But as this money circulates from hand to hand in the community, its value multiplies. With the added income from selling furs, the trapper may buy services that he would have earlier performed for himself. Thus, the local auto mechanic and the local barber also benefit from added income. Each time the money is re-spent, it acts as new income for the community - its value multiplies. This is called the multiplier effect It is frequently used to calculate the expanded value of a local resource. Replacement Cost for Wildlife - The laws of most states say that when a factory spills toxic wastes into public waters and kills fish, it must pay for the damage it has done. But how much should the factory pay? For the southeastern United States this question has been answered by the Pollution Committee of the

American Fisheries Society, Southern Division. They have published a booklet which lists prices for many common fish species. To arrive at the prices, they asked the question - “How much would it cost to replace each fish by buying it from a commercial fish producer?” Committee members asked the producers to cite prices for each size of fish within species and compiled the booklet using their answers. The completed booklet, “Monetary Values of Fish” is printed by the Tennessee Wildlife Resources Agency. Now, fisheries agencies in the Southeast can assess the damage done in a fish kill by collecting dead fishes, determining how many (number and weight) of each species have been killed, and tallying the replacement costs listed in the booklet. There is an attempt underway to assemble a similar book to cover other groups of wildlife species. This represents a major step forward in answering the question: “How much is wildlife worth?” SUMMARY 1. All wildlife values have economic impact, but only a few of them can be assigned dollar values. 2. Wildlife resources are renewable resources, which if managed properly, will have continuous values. 3. All wildlife values are additive - building on one another. 4. Because some wildlife values cannot be assigned dollar values, attempts to put price tags on wildlife habitats necessarily are estimates of minimum worth. THINGS TO DO Hunters and fishermen spend money in pursuit of their sport. How much money they spend can be a measure of how they value this one area of wildlife resources. Interview a friend, neighbor or relative to obtain an estimate of his or her annual hunting and fishing expenses. Report your results at your next club meeting. It will probably be better if you do not mention your contact’s name. 1. Do a thorough job of uncovering all expenses in at least one of the following categories: a.Equipment - expensive items that last over several years (boats, 4-wheel drive vehicles,

guns, rods, etc.) should be reported in terms of their annual costs. Maintenance and depreciation costs are important. b.Travel - You can attempt to itemize all costs related to hunting and fishing travel, but it would be easier to estimate total miles traveled and then assign a cost per mile (i.e., 3O¢/mile) which would account for maintenance and depreciation of the vehicle as well as fuel. If the maintenance and depreciation costs are covered under a special vehicle above, include only fuel here. Do not forget hotel, motel or cabin rental costs or meals taken on the road. c.Suppiles - Things that are purchased nearly every trip or replaced nearly every year (tackle, bait, ammunition, insect repellent, special clothing, food and drink, ice, ice chests, etc.). d.Fees - Hunting or fishing licenses, registration for boat trailers or special vehicles, lease payments, access fees, blind rental, boat ramp fees. e.Miscellaneous - Magazine subscriptions, club dues, donations to organizations, etc. 2. Try to estimate how many other people use the same hunting and/or fishing areas as your contact. If their expenses were similar, how much would they all spend together each year? 3. Make a list of all the kinds of people who receive money from your contact each year in support of his or her hunting and/or fishing. Which ones provide goods? Which ones provide services only? Can you estimate what percentage of their income is obtained from people like your contact? How will these people spend their money? Can you see the “multiplier effect” in operation? 4. Try to estimate the average annual yield in pounds of food harvested by your contact. Considering his or her total expenditures, calculate cost per pound. How does this compare with supermarket prices for similar items? 5. Ask your hunting or fishing friend to consider the alternatives and then estimate how much he or she would have to be paid in cash never to be able to hunt or fish again - if he or she were paid in cash and could never pursue these activities for

a season, for 5 years, or for a lifetime. 6. Using posters or other appropriate visual aids, report your findings to your club. Be sure to include your contact’s reaction to your summary. Was your contact surprised at the amount of his or her expenditures? Did your contact consider the money well spent? Ask your audience their reaction to your findings.

7. From your new knowledge and appreciation of wildlife, estimate the value of wildlife in your community to yourself. Are you surprised at how valuable wildlife is to each of us but how few people have ever considered the value? 8. Request information from your State Fish and Wildlife agency about the values of wildlife and fish to your state.

ACKNOWLEDGEMENTS This material was prepared by the Southern Regional 4-H Wildlife Literature Committee and is dedicated in the memory of Charles Lilly Horn of Federal Cartridge Corporation. He was devoted to 4-H youth, their objectives and philosophy and helped pioneer 4-H conservation efforts and camping throughout the nation beginning in 1934. His efforts on behalf of 4-H have left a permanent memorial in the minds and hearts of the thousands of 4-H youth whose lives were affected by his generosity. COMMITTEE: Alvin C. Blake, Tennessee; Dan T. Gardner, Alabama; Dennis Goodman, Kentucky; James E. Miller, Arkansas; Lewis R. Shelton, III, Mississippi; Andrew Weber, North Carolina (Vice Chairman); and James L. Byford, Tennessee (Chairman). Text prepared by: David J. DeMont, Extension Fisheries Specialist, North Carolina State University Illustrated by: Tina Bromberg Coordinator: Robert B. Hazel The Clemson University Cooperative Extension Service offers its programs to people of all ages, regardless of race, color, sex, religion, national origin, disability, political beliefs, sexual orientation, marital or family status and is an equal opportunity employer. Clemson University Cooperating with U.S. Department of Agriculture, South Carolina Counties, Extension Service, Clemson, South Carolina. Issued in Furtherance of Cooperative Extension Work in Agriculture and Home Economics, Acts of May 8 and June 30, 1914 Public Service Activities