ESTIMATION OF POTENTIAL REDUCTIONS IN RECREATIONAL BENEFITS DUE TO SEDIMENTATION1

ABSTRACT: A travel cost model is developed to estimate the potential reductions in recreational benefits from sedimentation in Reelfoot Lake in northwestern Tennessee. In addition to the consumer surplus estimates generated by the model, three other aspects of the study were significant. First, the study applied a relatively untested methodology for deriving the opportunity cost of travel time. The study resulted in a value that is less than one-half of the Water Resource Council's “one-third of the wage rate” rule-of-thumb. Second, water quality perceptions were unsuccessfully incorporated into the model as a demand shifter. This raised questions as to the appropriate manner in which perceptions could be included in a travel cost model. Finally, a simple methodology was outlined by which estimates of the recreational value of Reelfoot Lake could be used to suggest how much cost could be justified for soil erosion control on agricultural land surrounding the lake.     

Monetary assessment of the recreational benefits of improved water quality – description of a new model and a case study

The European Union Water Framework Directive (WFD) has created a demand for comparing the benefits and costs of the remedial measures. A major part of the benefits from improved water quality relate to the increased recreational value. However, there is a lack of easily operative and widely applicable quantitative methods to assess the benefits of improved water quality for recreational use. We present a new model to link physical indicators of water quality, water feasibility indicators for different recreational uses, individuals’ perceptions concerning the current feasibility of water for recreational purposes and monetary measures of water-related recreation benefits. The model has been applied to nine lakes, three rivers and one large coastal area in Finland. In this paper, we present the principles of the method and the results from one case study. In Finland, the method has been applied for the economic analysis required in the WFD.     

Managing Sustainable Development Conflicts: The Impact of Stakeholders in Small-Scale Hydropower Schemes

The growing importance of the environment and its management has simultaneously emphasized the benefits of hydroelectric power and its environmental costs. In a changing policy climate, giving importance to renewable energy development and environmental protection, conflict potential between stakeholders is considerable. Navigation of conflict determines the scheme constructed, making sustainable hydropower a function of human choice. To meet the needs of practitioners, greater understanding of stakeholder conflict is needed. This paper presents an approach to illustrate the challenges that face small-scale hydropower development as perceived by the stakeholders involved, and how they influence decision-making. Using Gordleton Mill, Hampshire (UK), as an illustrative case, soft systems methodology, a systems modeling approach, was adopted. Through individual interviews, a range of problems were identified and conceptually modeled. Stakeholder bias towards favoring economic appraisal over intangible social and environmental aspects was identified; costs appeared more influential than profit. Conceptual evaluation of the requirements to meet a stakeholder-approved solution suggested a complex linear systems approach, considerably different from the real-life situation. The stakeholders introduced bias to problem definition by transferring self-perceived issues onto the project owner. Application of soft systems methodology caused a shift in project goals away from further investigation towards consideration of project suitability. The challenge of sustainable hydropower is global, with a need to balance environmental, economic, and social concerns. It is clear that in this type of conflict, an individual can significantly influence outcomes; highlighting the need for more structured approaches to deal with stakeholder conflicts in sustainable hydropower development.     

A method to assess the allocation suitability of recreational activities: An economic approach

Most existing methods of planning focus on development of a recreational area; less consideration is placed on the allocation of recreational activities within a recreational area. Most existing research emphasizes the economic benefits of developing a recreational area; few authors assessed the allocation suitability of recreational activities from an economic point of view. The purpose of this work was to develop a model to assess the allocation suitability of recreational activities according to the application of a concept of analysis of cost and benefit under a premise of ecological concern. The model was verified with a case study of Taiwan. We suggest that the proposed model should form a critical part of recreational planning.     

Nature-based marine tourism in the Gulf of California and Baja California Peninsula: Economic benefits and key species

Ecotourism can incentivize social and environmental benefits through marine conservation, in parallel with efforts to better manage fisheries, coastal development, and other human pressures. In Mexico's Gulf of California and Baja California Peninsula (GCBP), marine ecosystems support tourism activities in many communities, but to date there have been no region-wide studies to estimate their benefits or identify key species. Based on data collected in this study, each year nature-based marine tourism in the GCBP results in 896,000 visits, US$518 million in expenditures and at least 3,575 direct jobs from formal operations. In interviews with operators, over 40 species groups were named as important; sea lions, whale sharks, whales, and marlin were the highest ranked, highlighting the importance of ecosystem-wide health for nature-based tourism sustainability. Local employment and the ability to make economic and conservation goals compatible were noted by operators as significant opportunities provided by nature-based marine tourism; challenges included pollution and declines in ecosystem health, a lack of infrastructure, poor resource management policies, and high operating costs. As nature-based marine tourism expands, a wider transition to true ecotourism, a focus on equitable benefits and collaboration between stakeholders and a cross-scale and ecosystem approach to management will be vital for achieving potential sustainable social, ecological and economic benefits.     

Evaluating the multiple benefits of marine water quality improvements: how important are health risk reductions?

Marine water pollution affects many recreational sites around the world. It has impacts not only on recreational activities but also on health risks for those who come into direct contact with the water. Few economic studies have explicitly considered the health risks of bathing in polluted marine waters and none have attempted to separate health benefits from other benefits of marine water quality improvements. This paper uses stated preference techniques to separately evaluate the multiple benefits of improving the quality of marine recreational waters at the Estoril Coast in Portugal. The results indicate that health risk reductions are only a small fraction of the total social benefits of water quality improvements.     

LAKE EUTROPHICATION–A NATURAL PROCESS1

Lake eutrophication is an economic, recreational, and aesthetic problem that affects every lake of the world. Eutrophication is the natural process of lake aging, and progresses irrespective of man's activities. Pollution, however, can hasten the natural rate of aging and shorten the life expectancy of a body of water. The eutrophication of a lake consists of the gradual progression from one life stage to another based on the degree of nourishment or productivity. The extinction of a lake is attributed to enrichment by nutritive materials, biological productivity, decay, and sedimentation. Presently used methods for retarding eutrophication are the abatement of cultural enrichment, treatment of eutrophic symptoms, and control of fundamental causes.     

Urban estuarine systems under stress: Environmental issues facing Louisiana's Lake pontchartrain

Summary Lake Pontchartrain is part of a brackish coastal estuarine system which serves as an important economic and recreational resource for the New Orleans region. Seafood extraction, shell dredging and leisure time activities are the major uses occurring on Lake Pontchartrain. In the past several decades, man has severely altered this system through urbanization, industrial activity, levée construction and subsequent destruction of wetlands surrounding the lake. There is a growing awareness of the environmental crisis facing Lake Pontchartrain, advanced by recent fish kills, detection of toxic chemicals, curtailment of recreational opportunities and the report of dead zones in the lake. This study summarizes a series of international environmental management techniques and examines the utilization of a regional structure for water resources management in the Lake Pontchartrain Basin.Dr. Fritz Wagner is Director and Professor of the School of Urban and Regional Studies at the University of New Orleans and David Hart was a Research Assistant in the same school, and is now employed in a local engineering and planning company.     

Ornamental Plants as Invasive Aliens: Problems and Solutions in Kruger National Park,South Africa

The most widespread invasive alien plant species in South Africa’s Kruger National Park (KNP) were either introduced unintentionally along rivers and roads, or intentionally for use as ornamentals. We examine the spatial distribution of ornamental alien plants in KNP, look at the link between human population size, history, and species richness, and show how the distribution of particular species reflects the likely history of ornamental plantings. Results are used to assess whether past management actions have been appropriately directed. Two hundred and fifty-eight alien species have been recorded in the 36 tourist camps and staff villages. The number of staff housed in villages explains much of the diversity of cultivated alien plant species. Older camps also tend to have more ornamental alien plant species. However, the lack of a strong link between camp age and number of cultivated species suggests that ornamental plants have been widely spread around the KNP by humans. We also show that increased camp activity (either size or age) has led to more ornamental species, while, with the notable exception of Skukuza, camp activity has had a much smaller effect on the number of noncultivated species. Noncultivated species tend to be naturally dispersed, as opposed to directly spread by humans between camps. Past management prioritized certain species on the basis of their potential to invade KNP and on the prevailing national legislation. These species were removed manually and follow-up control was carried out. Once the priority species were deemed to be under control, less invasive species were targeted. All alien species were removed from vacated houses, regardless of the potential invasiveness of the species. Electronic supplementary material The online version of this article (doi:) contains supplementary material, which is available to authorized users.     

ENERGY,ENVIRONMENTAL, AND ECONOMIC IMPLICATIONS OF SOME RECENT ALBERTA WATER RESOURCES PROJECTS1

ABSTRACT: Most of us are aware, or feel we are aware, of the impacts of major water resources projects on our lives. “Dam-lovers” note the life-saving flood-risk reduction and recreational benefits of a proposed reservoir, while “dam-haters” bemoan the future drowning out of the wildlife habitat of its river valley, and the recreational disbenefits to stream (as opposed to lake) fishermen. Water supply projects can often be given such a revered status, assuming the “obvious” tenet that water, air, food, and shelter are basic requirements of decent living, that the economic viability of the project may not even be assessed. Water resources planners are supposed to impartially weigh the environmental and economic benefits, and especially now, the energy implications of all proposed water projects, but many times the partial views of political or public advocates may be hard to ignore. The assumptions used in the planning of four recent water projects in the Province of Alberta will be presented and some revisions suggested which materially affect their Benefit/Cost ratios. In one project that is still in the public hearing stage, the economic analysis will be revealed, indicating that the original B/C ratio of about 1.6:1 might be more realistically placed at 0.6:1. In another project just completed, the apparent lack of an economic or energy analysis that has resulted in a perpetual and unnecessary energy load on the province, will be described.     

Sustaining appearances: sustainable development and the fisheries of Lake Victoria

The fisheries of Lake Victoria have undergone a major transformation over the last three decades. The character of the lake has been subject to the influence of many powerful factors including: substantial increases in fishing effort; growing integration into the global fish market; acceleration of anthropogenic activities in the catchment area; demographic change; the influence of adverse shifts in the climate; and introduction of exotic plant and animal species. The task of managing the lake's resources, therefore, has never been more daunting. This article argues that, in most cases, the authorities charged with achieving the goal of sustainable development for the fishery, have failed to address the symptoms—let alone the origins—of the current unsustainable tendencies embedded in the social, economic and political fabric of Lake Victoria's riparian States. It is these factors that directly impinge upon the success of management initiatives for the lake. The article argues that if sustainable development is to be achieved, then stakeholders must act in concert, eliminate unsustainable practices and reprogramme development plans to focus on realistic goals. A possible way forward will be to develop a participatory management system.     

Distribution of Economic Benefits from Ecotourism: A Case Study of Wolong Nature Reserve for Giant Pandas in China

Ecotourism is widely promoted as a conservation tool and actively practiced in protected areas worldwide. Theoretically, support for conservation from the various types of stakeholder inside and outside protected areas is maximized if stakeholders benefit proportionally to the opportunity costs they bear. The disproportional benefit distribution among stakeholders can erode their support for or lead to the failure of ecotourism and conservation. Using Wolong Nature Reserve for Giant Pandas (China) as an example, we demonstrate two types of uneven distribution of economic benefits among four major groups of stakeholders. First, a significant inequality exists between the local rural residents and the other types of stakeholder. The rural residents are the primary bearers of the cost of conservation, but the majority of economic benefits (investment, employment, and goods) in three key ecotourism sectors (infrastructural construction, hotels/restaurants, and souvenir sales) go to other stakeholders. Second, results show that the distribution of economic benefits is unequal among the rural residents inside the reserve. Most rural households that benefit from ecotourism are located near the main road and potentially have less impact on panda habitat than households far from the road and closer to panda habitats. This distribution gap is likely to discourage conservation support from the latter households, whose activities are the main forces degrading panda habitats. We suggest that the unequal distribution of the benefits from ecotourism can be lessened by enhancing local participation, increasing the use of local goods, and encouraging relocation of rural households closer to ecotourism facilities.     

南四湖湿地建设的综合效益

南四湖作为南水北调东线工程的主要输水干线和调蓄水库,目前人工湿地建设已初见成效。从环境效益、生态效益、社会效益、经济效益、科研效益等方面分析了南四湖人工湿地在改善南四湖流域生态环境、稳定南水北调调水水质方面发挥的重要作用。     

INTEGRATED RIVER BASIN OPTIMIZATION: MODELING ECONOMIC AND HYDROLOGIC INTERDEPENDENCE1

ABSTRACT: This paper presents an integrated optimal control model that optimizes economic performance of reservoir management in watersheds in which there are significant economic and hydrologic interdependencies. The model is solved using the General Algebraic Modeling System (GAMS). Results show that application of this model to New Mexico's Rio Chama basin can increase total system benefits over historical benefits by exploiting complementarities between hydroelectricity production, instream recreation, and downstream lake recreation.     

The market and shadow value of informal fish catch: a framework and application to Panama

Fisheries catches are known to be widely underreported, and much of their value flows in informal markets. Goods and services that are not directly sold in a market also have a corresponding economic value, here termed ‘shadow value’, which can apply to discarded fish—or those that are consumed but not sold (e.g., subsistence catches). Here, we estimate the monetary value of fisheries catches in Panama that are landed but not reported, or that are discarded at sea; this includes catches from artisanal and industrial fleets, as well as recreational and subsistence fisheries. Based on available data, we estimate that the market and shadow value of unreported catches in Panama in 2010 was around US$92 million, equal to approximately 43% of the total reported landed value. In the case of discarded fish, the shadow value represents the potential but entirely unrealized economic benefit of landing such fish; in the case of unreported landings, unreported market value represents only the first link in the potentially sophisticated informal seafood economy. One must be careful in considering these results for policy. It is possible that, rather than seeking to capture these ‘lost’ benefits, fish that are discarded or unreported should not have been caught at all, for example, if they are juveniles or of threatened species; conversely, unreported subsistence catches are crucial for food security throughout the world. These results help contextualize the scale of unreported fisheries in economic terms, and can inform subsequent policies and strategies to ensure social, ecological, and economic sustainability.     

LINEAR PROGRAMMING USE FOR EVALUATING WATER RESOURCES AND COST AND BENEFIT ALLOCATION1

ABSTRACT A linear programming model for a river basin was developed to include almost all water-related economic activity both for consumers and producers. The model was so designated that the entire basin or basin sub-division could be analyzed. The model included seven sectors, nine objective function criteria, and three river-flow levels. Economic basis for conflicts among sectors over incidence of cost allocation and level of economic activity can be traced to some chosen objective. The disposal of untreated household waste water, particularly from the rural household, directly into the river was consistent with maximizing net benefits and minimizing costs. The optimum resource allocation, water-treatment plants, farms and industry activities would change with flow level. For each of the three industries analyzed separately, paper, wool and tanning, public treatment of industrial waste water was the optimal treatment process in one or more of the solutions. Lake shoreline was the dominant feature determining lake-resource valuation. Implied capital value varied from $126 per shoreline foot to over $250 depending on discount rate. Implied prices on lake surface ranged from $42 to $147 per acre. Strong economic forces encouraged small lot sizes for vacation cottages.     

ESTIMATING THE BENEFITS OF PHOSPHORUS POLLUTION REDUCTIONS: AN APPLICATION IN THE MINNESOTA RIVER1

ABSTRACT: In order to make economically efficient decisions about water quality improvements, data on both the costs and benefits of these improvements is needed. However, there has been little research on the benefits of reducing phosphorus pollution which implies that policy decisions are not able to make the comparison of costs and benefits that is essential for economic efficiency. This research attempts to ameliorate this situation by providing an estimate of the benefits of a 40 percent reduction in phosphorus pollution in the Minnesota River. A 1997 mail survey gathered information on Minnesota residents'use of a recreational site on the Minnesota River, the Minnesota Valley National Wildlife Refuge, and their willingness to pay for phosphorus reductions in the Minnesota River. The random effects probit model used in this research to investigate household willingness to pay for phosphorus pollution reductions in the Minnesota River incorporates recent innovations in nonmarket valuation methodology by using both revealed and stated preference data. This model estimated annual household willingness to pay for phosphorus reductions in the Minnesota River at $140. These results may be used in combination with cost estimates to determine the economic efficiency of phosphorus clean up.     

Socioeconomic evaluation of the impact of natural resource stressors on human-use services in the Great Lakes environment: A Lake Michigan case study

The Great Lakes watershed is home to over 40 million people (Canadian and U.S.) who depend on a healthy Great Lakes ecosystem for economic, societal, and personal vitality. The challenge to policymakers and the public is to balance economic benefits with the need to conserve and replenish regional natural resources in a manner that ensures long term prosperity. Nine critical broad-spectrum stressors of ecological services are identified, which include pollution and contamination, agricultural erosion, non-native species, degraded recreational resources, loss of wetlands habitat, climate change, risk of clean water shortage, vanishing sand dunes, and population overcrowding. Many of these stressors overlap. For example, mining activities alone can create stress in at least five of these categories. The focus groups were conducted to examine the public’s awareness of, concern with, and willingness to expend resources on these stressors. This helped generate a grouping of stressors that the public is especially concerned about, those they care little about, and everything else in between. Stressors that the respondents have direct contact with tend to be the most important to them. This approach of using focus groups is a critical first step in helping natural resource managers such as Trustees and NGOs understand what subsequent steps to take and develop policy measures that are of most interest and value to the public. Skipping or glossing over this key first task could lead to difficulties with respect to survey design and model development in a non-market valuation study. The focus group results show that concern related to pollution and contamination is much higher than for any of the others. It is thus clear that outreach programs may be necessary to educate the public about the severity of some low-ranked stressors including climate change.     

Is Urban Stream Restoration Worth It?1

Kenney, Melissa A., Peter R. Wilcock, Benjamin F. Hobbs, Nicholas E. Flores, and Daniela C. Martínez, 2012. Is Urban Stream Restoration Worth It? Journal of the American Water Resources Association (JAWRA) 48(3): 603-615. DOI: 10.1111/j.1752-1688.2011.00635.x Abstract: Public investment in urban stream restoration is growing, yet little has been done to quantify whether its benefits outweigh its cost. The most common drivers of urban stream projects are water quality improvement and infrastructure protection, although recreational and aesthetic benefits are often important community goals. We use standard economic methods to show that these contributions of restoration can be quantified and compared to costs. The approach is demonstrated with a case study in Baltimore, Maryland, a city with a legal mandate to reduce its pollutant load. Typical urban stream restoration costs of US$500-1,200 per foot are larger than the cost of the least expensive alternatives for management of nitrogen loads from stormwater (here, detention ponds, equivalent to $30-120 per foot of restored stream) and for protecting infrastructure (rip-rap armoring of streambanks, at $0-120 per foot). However, the higher costs of stream restoration can in some cases be justified by its aesthetic and recreational benefits, valued using a contingent valuation survey at $560-1,100 per foot. We do not intend to provide a definitive answer regarding the worth of stream restoration, but demonstrate that questions of worth can be asked and answered. Broader application of economic analysis would provide a defensible basis for understanding restoration benefits and for making restoration decisions.     

Tiny Stowaways: Analyzing the Economic Benefits of a U.S. Environmental Protection Agency Permit Regulating Ballast Water Discharges

The U.S. Environmental Protection Agency has proposed permitting ballast water discharges—a benefit of which would be to reduce the economic damages associated with the introduction and spread of aquatic invasive species. Research on ship-borne aquatic invasive species has been conducted in earnest for decades, but determining the economic damages they cause remains troublesome. Furthermore, with the exception of harmful algal blooms, the economic consequences of microscopic invaders have not been studied, despite their potentially great negative effects. In this paper, we show how to estimate the economic benefits of preventing the introduction and spread of harmful bacteria, microalgae, and viruses delivered in U.S. waters. Our calculations of net social welfare show the damages from a localized incident, cholera-causing bacteria found in shellfish in the Gulf of Mexico, to be approximately $706,000 (2006$). On a larger scale, harmful algal species have the potential to be transported in ships’ ballast tanks, and their effects in the United States have been to reduce commercial fisheries landings and impair water quality. We examine the economic repercussions of one bloom-forming species. Finally, we consider the possible translocation within the Great Lakes of a virus that has the potential to harm commercial and recreational fisheries. These calculations illustrate an approach to quantifying the benefits of preventing invasive aquatic microorganisms from controls on ballast water discharges. The views expressed in this paper are those of the authors and do not necessarily reflect the views or policies of the U.S. Environmental Protection Agency.