ATTACHMENT 1
Project Title: Review of Economic Impacts of Harmful Algal Blooms in Western Lake Erie
STATEMENT OF WORK
Background
In February 2014, after two years of study, the Commission released a report, A Balanced Diet for Lake Erie: Reducing Phosphorus Loadings and Harmful Algal Blooms. The report contained a survey and analysis of the best science regarding western Lake Erie harmful algal blooms (HABs) along with policy advice to governments. In support of the report the Commission received a summary document from a contractor entitled A Review of the Economic Benefits and Costs of Reducing Harmful Algal Blooms in Lake Erie but there was insufficient time to complete estimates for key impacts, including impacts on property values.
Although it is clear that HABs in western Lake Erie have profound negative economic impacts, most estimates of those impacts are generally based on anecdotal evidence or estimates of the value of Lake-based industries and activities. IJC seeks to pinpoint those impacts on the entire suite of Lake-based values. Sound analysis and authoritative evidence is crucial to a full understanding of the impact of harmful algal blooms. This project is a step toward that objective.
The Commission has decided to pursue this matter as part of a second phase of its Lake Erie Ecosystem Priority (LEEP). In particular, the Commission wishes to complete estimates for impacts not fully developed in the first phase summary report, and to receive a “road map” for completing a comprehensive analysis of the economic impacts of HABs in western Lake Erie. Given the time frame of the project, no original research is contemplated. This project will not only inform LEEP but also strengthen advice to governments. To prevent duplication of effort, the contractor will monitor and in his/her work plan take into account western Lake Erie HAB economic impact products funded by Environment Canada [https://buyandsell.gc.ca/procurement-data/tender-notice/PW-14-00647320 ] and other public/private entities.
Tasks
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1. To review the literature and the previous contractor report, confirm or refine estimates from that report, consult with experts as appropriate and complete development of estimates for impacts not fully developed in the contractor report.
2. To report results and provide recommendations for further research, analysis and/or policy development in a draft and final report to the Commission.
Deliverables
1. A draft and final report to the Commission containing a comprehensive accounting for all of the costs and welfare losses associated with HABs using a Total Economic Value framework.
2. A cover letter summarizing findings and providing advice on further research, analysis and/or policy needs relative to the economic losses resulting from western Lake Erie HABs.
Timeline/Activities
Contractor will:
Month 1
· Meet with IJC staff to discuss and agree on parameters of the project and work plan.
· Begin work task 1 described above.
Month 2-4
· Continue work task 1.
· Participate in biweekly conference calls with IJC staff to provide updates on progress.
Month 5
· Submit draft report to IJC staff providing results and accompanying analysis. Draft and final reports will contain identification of any persons consulted and citations from the literature.
· Meet with IJC staff to obtain reactions to draft report and direction on completing report.
Month 6-7
· Complete final report and submit to IJC staff.
Requirements
Contractor will possess the following:
· A Ph.D. in economics with experience in valuation of the environment.
· Demonstrated capacity to produce project deliverables in line with project schedule.
Contractor will submit a 3-4 page work plan and budget prior to selection.