The water, natural resources, and ecosystems in the New Jersey tributary watersheds to the Delaware River contribute an economic value of $1.8 to $2.3 billion annually to the regional economy in Mercer, Hunterdon, Morris, Warren, and Sussex Counties. This report examines that economic value in three different ways:

  1. Economic value directly related to the New Jersey tributary water resources and habitat. The New Jersey tributary watersheds contribute over $1.8 billion in annual economic activity from water quality, water supply, fish and wildlife, recreation, agriculture, forests, and public parks benefits.
  2. Value of goods and services provided by the New Jersey tributary watershed ecosystems. Using natural capital as a measure of value, habitat in the New Jersey tributary watersheds provides $2.3 billion annually in ecosystem goods and services in 2020 dollars, with a net present value (NPV) of $74.9 billion calculated over a 100-year period. The annual ecosystem services value of the New Jersey tributary watersheds is $59 million in Mercer County, $354 million in Hunterdon County, $104 million in Morris County, $858 million in Warren County, and $920 million in Sussex County.
  3. Employment related to the New Jersey tributary watersheds resources and habitats. Using employment as a measure, natural resources within the New Jersey tributary watersheds directly and indirectly support over 40,000 jobs with over $2 billion in annual wages.

Estimates for the three methods are based on values from the literature, applied to the New Jersey tributary watersheds using ecological economics and benefits-transfer techniques. Values are converted to 2020 dollars based on the mean annual change in the Northeast Region Consumer Price Index (CPI), which is 3% annually.

Additionally, a survey-based investigation was conducted to measure the direct monetary contribution of recreational visitors to the economy of the study area. In-person surveys were conducted at recreational locations along the Musconetcong River, focused on four types of recreational activity: fishing, general recreation (hiking, biking, picnicking, etc.), boating, and hunting. The estimated total annual spending on these recreational activities ranges from a low of more than $133 million to a high of nearly $352 million.

Finally, to assess the impact on real estate values of proximity to clean water, house values at various distances to Lake Musconetcong were analyzed. It was found that housing values increase by 6.7% (27.1% on a per-acre basis) for lakeside properties versus those at 1000 feet from the lake, and 10.0% (23.5% per acre) at 2000 feet. Overall, it is estimated that the lake adds an additional $14.7 million to residential retail value.

These estimates demonstrate that the New Jersey tributary watersheds provide significant economic benefits to the regional five county economy in northwest New Jersey and are worthy of investment to protect and preserve the valuable watershed resources.