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Title: Economic effects of oil and gas development on marine aquaculture leases. Study 17. Final report

Technical Report ·
OSTI ID:5895941

There are three primary mariculture products grown in California waters: oysters, mussels, and abalone. In total, the California mariculture industry earns revenues of about $6.5 million. Water quality degradation was the primary concern of most growers. Coliform bacteria and pesticide residues are currently threatening several shallow-water sites. Lease holders (and potential lease holders) for deep-water sites state that coliform bacteria from municipal sewer outfalls and offshore oil and gas drilling effluents are the greatest dangers to their profitability. The Southern California Educational Initiative is an attempt to determine whether such concerns are warranted. A simple model of economic externalities was described to highlight the scientific data one must gather so as to choose the optimal production levels for both energy and mariculture resources. That information is necessary to assess the economic consequences to the California mariculture industry of chronic exposure to oil and gas development. The co-development model shows that the marginal (incremental) effects of oil production on mariculture costs needs to be assessed. The model also shows that if the effects are moderated by distance from the point of discharge, such changes must be estimated in order to determine optimal lease boundaries. The report concludes that interdisciplinary cooperation is essential for designing a co-development plan that maximizes the social welfare to be gained from developing multiple coastal resources.

Research Organization:
California Univ., Santa Barbara, CA (United States)
OSTI ID:
5895941
Report Number(s):
PB-92-116029/XAB
Resource Relation:
Other Information: See also PB91-241034. Sponsored by Minerals Management Service, Camarillo, CA. Pacific OCS Region
Country of Publication:
United States
Language:
English

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