The 2005 Great Lakes Regional Collaboration Strategy (GLRC Strategy) is a $26 billion federal-state plan, for cleaning and preserving the Great Lakes that will produce economic benefits well in excess of its costs.

The GLRC Strategy proposes a goal to restore all of the Great Lakes Areas of Concern by 2020. Congressional appropriations to do so would total more than $775 million over the next 5 years.

"Developing America’s North Coast" presented two approaches in estimating the benefits of the GLRC Strategy: the economic benefits of specific improvements and the aggregated economic benefits.

Direct economic benefits of specific improvements include:

• Restoring the Great Lakes will lead to direct economic benefits of $6.5 – $11.8 billion from tourism, fishing and recreation alone.
• Restoring the Great Lakes will directly raise coastal property values $12 billion to $19 billion by remediation of the Areas of Concern
• Restoring the Great Lakes will reduce costs to municipalities by $50 to $125 million.
• Restoring the Great Lakes will produce additional unquantifiable but significant economic activity by making the region more attractive to business and workers.

NOTE: These direct economic benefits total approximately $50 billion.

Aggregate economic benefits were arrived at by estimating the increase in property values that are likely to result from all of the restoring activities, and also taking into account a “multiplier effect.” In other words, every $1 spent by a fiscal authority results in additional spending of between 1.5 and 2.5 times the original investment.

NOTE: Aggregate economic benefits that take into account the multiplier effect are estimated to total approximately $30 to $50 billion.

Information included here is from the report, “Healthy Waters, Strong Economy: The Benefits of Restoring the Great Lakes Ecosystem,” by J.C. Austin, S. Anderson, P.N. Courant, R.E. Litan, Sept. 2007, The Brookings Institution – Great Lakes Economic Initiative.
 

photo courtesy of Mario Quintana