e Pergamon W/JI. Sci. Teelt. Vol. 32. No. 5-6. pp.63-70. 1995.
Copyngbl C 1995 IAwQ
Printed in Oreal Britain. All righla reserved.
0273-1223195 59'SO + 000
0273-1223(95)00647-8
WHAT'S A RIVER WORTH, ANYWAY?
A RESOURCE VALUATION SURVEY OF
THE OHIO RIVER
A. H. Vieory, Je and A. K. Stevenson
Ohio River Valley Water Sanitation Commission (ORSANCO). 5735 Kellogg Avenue.
Cincinnati. OR 45228. USA
ABSTRACT
The Ohio River Valley Water Sanitation Commission (ORSANCO) is a governmenl agency established in
1948 10 control and abate pollution of the interslalC waters of the Ohio River Valley. ORSANCO.
represented by eight SlateS of the Ohio Valley and the federal government. carries out water quality
monitoring and assessment programmes. CQo()rdinates spill response activities, promulgates pollution control
standards for the Ohio River. and ClKlI"dinates the individual programmes of SlaIC and federal agencies.
ORSANCO recognizes that public and political suppon are as important 10 effective river basin management
as technical knowledge and activities. Because such support is so closely related 10 economic interests.
ORSANCO and the National Park Service commissioned a survey project in May 199310 compile readily
available data 10 estimate the "value" of the Ohio River from several Icey standpoints. This information is
intended 10 draw attention to the national significance of the Ohio River in its economic. cultural and natural
resource dimensions, and to illustrate the magniwde of positive economic impacts to be realized by
achieving water quality improvements. This project brought together for the first time information that will
serve 10 enhance public and political awareness of the Ohio River Valley. and thus enhance support for
aggressive environmental management
KEYWORDS
Economic impacts; interstate agency; political awareness. river basin management; water quality.
INfRODUcnON
Public and politlcal support are as important to effective river basin management as technical knowledge and
activities. Because such support is so closely related to economic interests. the Ohio River Valley Water
Sanitation Commission (ORSANCO). the Ohio River Basin Commission and the U.S. National Park Service
commissioned a survey in May 1993 to acquire and assess readily available information concerning the
quantitative and qualitative values of the Ohio River Corridor. This report provided an overview of the local.
regional and national role and impact of the river in its economic. cultural. and environmental/natural
resource dimensions. An additional purpose of the survey was to identify significant information gaps in
data which needed to be addressed. ORSANCO envisions utilizing the results of this report to point out the
importance of the resource. and thus the need for it to be managed wisely.
63
64 A. H. VICORY. JR and A. K. STEVENSON
DESCRIPTION OF ORSANCO
ORSANCO is a government agency established in 1948 to control and abate pollution of the interstate
waters of the Ohio River Valley. ORSANCO was created by and obtains its authority from the Ohio River
Valley Water Sanitation Compact entered into by the states of Illinois. Indiana. Kentucky. New York. Ohio.
Pennsylvania. Virginia and West Virginia. Through ORSANCO. the states and federal agencies are able to
collectively focus their attention and resources on the watershed. The Ohio River and its associated drainage
area as a whole and within the states participating in the compact are shown in Fig. I .
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ORSANCO It8llllI and their
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Figure I. Obio River Drainage Basin and ORSANCO SI8leS.
The commission. comprising three representatives appointed by the governors of the eight participating
states and three appointed by the President of the United States. provides general direction to a full-time
staff of 17 in areas of administration and technical programmes. Among the commission's programmes are:
operation of ambient water quality monitoring networks; establishment of Ohio River discharge pollution
control standards; co-ordination of spill response activities; and overall co-ordination of individual state and
federal agency water pollution control activities.
NEED FOR STUDY/ORGANIZATION OF PROJECT
The need for a resource valuation study of the Ohio River was brought to light when it was recognized that
other notionally significant water resources. such as the Great Lakes and Chesapeake Bay. hod received
politicol attention and water quality management funding largely because they were identified as
economically and environmentally important to the nation. Although the Ohio River was utilized extensively
as a major transportation artery. provided water for industrial operation. electrical power generation and
municipal use. and was the site of numerous special events and leisure sports (boating and fishing). no
comprehensive survey of its full economic impact had been undertaken.
This study also evolved in part from ORSANCO's recognition of the need to broaden its perspective with
regard to the water quality of the Ohio River Valley and its interest in seeking new partners with which to
work. At the same time. the U.S. National Park Service was developing new projects and undertaking co•
operative agreements with various entities as a function of shifting its focus to endeavours such as river
corridor management and integrated land use planning.
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figure 2. Ohio River corridor counties. Study area for resource valuatioo survey. C - CIaIIJoII
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66 A. H. VICORY. JR and A. K. STEVENSON
For these reasons. ORSANCO. the National Park Service. and the Ohio River Basin Commission. another
regional agency concerned with co-ordination of water resource management programmes. jointly
committed funding to carry out a survey to acquire and assess infonnation leading to a valuation of the Ohio
River Corridor.
While each agency had its own interests and objectives in conducting such a study. all had the common goal
of achieving some sense of the overall value of the Ohio River locally, regionally and nationally.
Because this type of study had not been previously undertaken for the Ohio River Corridor, the type and
degree of available infonnation was unknown. The project co-ordinators recognized that. depending upon
available funding. the project could be time-consuming and extremely detailed. However. it was decided that
this should be a simple. inexpensive project A primary goal of the co-ordinating agencies was to obtain
results quickly so they could be used to draw attention to the region. It was recognized that future studies
could expand upon the findings and provide a more in-depth analysis. This study was largely to detennine
the type and degree of available infonnation. Project co-ordinators recognized the importance of
detennining what infonnation was not available in addition to that which was.
Research for the project was therefore limited to readily available infonnation that could be accumulated and
analyzed in a six-month period. The budget for the project was set at $12,500. The study area, shown in
Figure 2, comprised the 72 counties on either side of the Ohio River from its origin at Pittsburgh.
Pennsylvania to its confluence with the Mississippi River at Cairo. lllinois. a distance of 1.580 kID. This area
is referred to throughout the report as the "Ohio River Corridor".
EXECUTION OF PROJECT
The project. carried out by Miami University in Oxford, Ohio. was overseen by a steering committee
comprising representatives from the three funding agencies.
The data-gathering phase of the project was carried out over a three-month period from May to August of
1993. Infonnation was collected using available data sources. including libraries. natural resource and water
quality agencies. the U.S. Anny Corps of Engineers. Chambers of Commerce of municipalities and counties
along the river. and associations of such river-based interests as barge transportation. Data were gathered
through both telephone and written communications. and through site visits. Demographic infonnation
obtained from the U.S. Census Bureau was also collected in order to provide an overall picture of the
population and economic patterns of the Ohio River Corridor. In addition. project staff travelled the length
of the river corridor visiting communities and locations of interest to gain firsthand knowledge of the
corridor.
The data were entered into ORSANCO's Geographic Infonnation System (GIS), a data mapping system
which allowed infonnation to be displayed in map fonnat In this way. infonnation could be represented for
each county. such as the number of people employed in river-dependent industries and businesses. the
number of people employed in the tourism and recreation sectors, the number of parks and recreation areas,
the percentage of unemployment and the percent change in poverty o ..er time.
STUDY RESULTS AND OBSERVAnONS
The economy
Study results were presented in a 67-page report which included text, tables. and maps. For the purposes of
the study. the river-related economy was divided into two major categories: "primary" comprised those
industries and activities directly dependent upon or located along the river (e.g. industry that had a water
intake); "secondary" were those industries and activities not directly utilizing the river. but dependent to
some degree. Although the distinction was somewhat subjective, it served to highlight the river's role in
local and regional economies.
A resource valuation survey of the Ohio River 67
The economic infonnation readily available to the researchers pertained primarily to employment and
payroll figures. A major component beyond the scope of the study included infonnation on the overall
economic worth of river-related industries. This infonnation would include not only payroll. but such things
as the value of goods produced or revenues generated for major categories of river-related businesses and
industries. For this reason, the economic figures presented in the report should be viewed as a preliminary
and partial overview. Nevertheless. they provide an important initial view of the river-related economy of
the Ohio River Corridor.
Salient economic findings from this study include some important "bottom line" figures. It is estimated that
the industries associated with the Ohio River. either directly or indirectly. provide over $6 billion in payroll
annually; the value of products shipped annually on the Ohio River navigation system (including major
tributaries) is at least $43 billion; and special events and festivals held along the river collectively bring
communities an estimated $100 million annually.
The national economic importance of the Ohio River Corridor is illustrated by its specific use for industrial
transportation. Over 235 million tons of commodities are transported by barge annually on the Ohio River.
compared with. for example. 30 million tons on the entire Great Lakes System. In some counties. as much as
75 percent of the work force is employed by river-dependent industries. Approximately 600 businesses
employing 35 000 people with a total annual payroll of nearly $1 billion are directly dependent on the Ohio
River. Over 150000 people work for approximately 4000 businesses with a total annual payroll of nearly
$5 billion in industries that rely on river transportation or are otherwise indirectly dependent on the river.
Other estimates. which include major tributaries. cite as many as 358 000 jobs.
In order to show geographically the status of employment related to the river. maps were produced. such as
that shown in Figure 3.
Tourism and Recreation
Tourism infonnation proved more difficult to obtain. particularly with regard to the economic impacts of
river-related festivals. Because many areas of the Ohio River. Corridor did not actively promote tourism,
few reliable estimates of its economic impact were available. Nevertheless. available figures demonstrated
that tourism was an important source of income for communities along the river.
Approximately 56 million people live within a four-hour drive of some part of the Ohio River Corridor. and
approximately 130 million live within eight hours. Within the corridor. an estimated 10 000 businesses with
150000 full- and part-time employees provide services to visitors. On average. seven to eight percent of all
employees and businesses in the corridor are involved in the tourism and recreation industries selected for
this survey.
Nearly one thousand festivals and community events are held each year in the Ohio River Corridor. about
half of which are river-related thematically or conducted at a riverside location. Although surprisingly little
infonnation was available on dollar figures. special events and festivals could have a significant impact on
local economies. An important example was the "Tall Stacks" celebration. commemorating the American
steamboating era. held every four years in Cincinnati. Ohio. In 1992 the event attracted nearly 1.5 million
people and generated $26 million. resulting in a total economic impact of $40 million for the greater
Cincinnati area.
As the water quality of the Ohio River has improved. water-based recreation has increased significantly. and
is today an important source of income for local economies. Over 450 public and private boating facilities
along the river. including nearly 200 marinas. employ almost 1500 people. Boating activity can be estimated
by looking at the total recreational lockage at Ohio River dams. According to the U.S. Anny Corps of
Engineers' statistics, approximately 17.500 recreational lockages take place on the Ohio River annually.
~
PRIMARY SECTOR EMPLOYMENT - 1990 *
PENNSYLVANIA
OHIO
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ILLINOIS INDIANA ~
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KENTUCKY PERCENT EMPLOYED
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o LESS THAN 1
D 1T05
• 5TO 10
• Primary sector employment defined as workers employed in industry
or by businesses that directly use the Ohio River. • OVER 10
Figun: 3. Primary sector employmenl- 1990*.
A resource valuation survey of the Ohio River 69
Although the recreational boating industry on the Ohio River is large and continues to grow. figures on its
economic magnitude were unavailable. This is a significant information gap for an industry that generates
considerable economic benefits throughout the Ohio River Corridor.
Natural resources
The economic well-being of the corridor is heavily dependent upon the [Link]'£ environmental health.
"lndlIsny has been asked to increase its sensitivity to environmental issues during a period of increasing
international competitiveness and economic restructuring. Meanwhile. a society more demanding of
recreational opportunities and an economy more dependent upon tourism have pushed the limits of the Ohio
River as a multifaceted resource.
ln the early 20th century. lack of sewage treatment led to degraded water quality and epidemics of water•
borne illnesses. The construction of sewage treatment facilities and the regulation of industrial dischargers
greatly improved water quality and the resulting quality of life in the Ohio River Corridor. The focus of
control efforts is now turning toward other sources of pollution. such as runoff from agricultural and urban
areas. and combined sewer overflows.
Today the Ohio River supports over 100 species of fish. 70 species of mussels and many species of aquatic
and terrestrial birds and mammals. including a number of threatened and endangered species. The river
contains several unique and nationally significant ecosystems. including island chains and wetlands.
Natural resources of the river. while clearly of overall inestimable economic value. can be examined
indirectly by acquiring information such as revenues from commercial fishing and musseling. recreational
fishing. hunting and trapping. However. even these figures were not readily available.
STUDY IMPACTS
Upon its completion. the report was distributed to a relatively limited group of professionals interested in the
detailed results. But perhaps the most important means of disseminating the study results will be through a
shorter "brochure" style publication which will be widely distributed. This brochure will convey the essence
of the material in a concise and visual manner. The brochure will have wide applicability. and will be
distributed to regional and national lawmakers in an effort to bring attention to the Ohio River Valley. It can
also be used by local economic development agencies and chambers of commerce to promote the region.
Even with limited distribution of the full report completed to date. reactions to the study have been positive.
The commissioners who make up the governing body of ORSANCO. and who come from a wide variety of
professional backgrounds. have actively promoted the distribution and use of the information contained
within the report. In addition. a number of municipal areas throughout the Ohio River Valley have expressed
interest in the study results.
One significant outgrowth of the study has been discussions and actions by civic and political leaders to
explore creation of an "Ohio Valley Economic DevelopmentlMarketing Initiative". This initiative would
serve to market the attributes of the Ohio River from an economic development standpoint. This
development is viewed positively by ORSANCO as. in this contemporary era, healthy economic
development gives rise to environmental enhancement.
An important means of disseminating information is through the news media. Major newspapers in several
Ohio Valley communities have expressed interest in and have used material contained in the report to write
major articles highlighting the importance of the river. Finally. when the brochure is completed and ready
for distribution. the project co-ordinators plan to hold a series of co-ordinated press conferences throughout
the Ohio River Valley. At that time. significant study results will be highlighted and given extensive
coverage by various media in the region.
70 A. H. VICORY. JR and A. K. STEVENSON
CONCLUSIONS
Though modest in scale. this study has already proven extremely useful to the funding agencies. It has
generated considerable positive attention for the Ohio River Valley by bringing together for the fIrst time
readily available information on the region's economic importance. This study also drew attention to the
types of information which were not available. most notably economic fIgures on festivals. the recreational
boating industry, and revenues from the use of natural resources. Knowledge of what information was
difficult to obtain will be useful in deciding the direction of future studies on the economic value of the Ohio
River.
The manner in which the information is being used is almost as important as the study results themselves.
The study is proving relevant to professionals in a variety of fIelds. including economic development and
tourism offIcials, natural resource managers and policy makers. Given the limited funding available for this
project. the results have been positive and could potentially have far-reaching consequences for the Ohio
River Valley and its residents.
