Agricultural and recreational impacts of the conservation reserve program in rural North Dakota, USA

The Conservation Reserve Program (CRP), created in 1985, provides conservation benefits and agricultural supply control through voluntary, long-term retirement of crop land. While the effects of the CRP on the agricultural sector are well understood, the implications of its conservation benefits for rural economies remain largely undocumented. To quantify the effects on rural economies, this study addressed the net economic effects of decreased agricultural activity and increased recreational activity associated with the CRP in six rural areas of North Dakota from 1996 to 2000. Based on the level of economic activity that would have occurred in the absence of the program, net revenues from CRP land if returned to agricultural production in the six study areas were estimated at $50.2 million annually or $37 per acre of land currently enrolled in the CRP. Recreational (hunting) revenues as a result of the CRP in the study areas were estimated at $12.8 million annually or $9.45 per CRP-acre. The net economic effect of the CRP (lost agricultural revenues and gains in recreational expenditures) indicated that several areas of the state are not as economically burdened by the CRP as previous research has suggested. In addition, the net economic effects of the program would appear more favourable if revenues from all CRP-based recreation were included. The degree that recreational revenues offset agricultural losses might be further enhanced by enterprises that capitalize on the economic opportunities associated with expanded recreational activities on CRP lands.     

Can California coastal managers plan for sea-level rise in a cost-effective way?

This paper examines five representative sites on the California coast to illustrate a cost-effective methodology using tools and data that local decision makers can apply to analyse the economics of sea level rise (SLR) adaptation. We estimate the costs/benefits of selected responses (e.g. no action, nourishment, seawalls) to future flooding and erosion risks exacerbated by SLR. We estimate the economic value of changes to public/private property, recreational and habitat value, and beach related spending/tax revenues. Our findings indicate that the costs of SLR are significant but uneven across communities, and there is no single best strategy for adaptation. For example, Los Angeles's Venice Beach could lose $450 million in tourism revenue by 2100 with a 1.4 m SLR scenario while San Francisco's Ocean Beach would lose $80 million, but the impacts to structures could total nearly $560 million at Ocean Beach compared to $50 million at Venice Beach.     

ECONOMIC IMPACTS OF GUIDED WHITEWATER RAFTING: A STUDY OF FIVE RIVERS1

ABSTRACT: This paper presents estimates of the statewide economic impacts of guided whitewater rafting on five rivers in six states: the Nantahala (North Carolina), Gauley (West Virginia), Kennebec (Maine), Middle Fork of the Salmon (Idaho), and Chattooga (Georgia-South Carolina). Except for the Chattooga and Middle Fork, rafting is dependent on upstream dam releases. Guide fees range from about $15 per trip on the Nantahala to over $1,000 on the Middle Fork. Economic impacts per nonresident 1000 visitors increase along with length of the rafting trip and remoteness of the river. Total industrial output per 1000 nonresident visitors ranged from $95,000 on the Nantahala to over $2.5 million on the Middle Fork. However, because of differences in annual visitation levels, total impacts were greatest at the Nantahala, at over $14 million in 1993. Multipliers for all economic measures were relatively consistent over the rivers. Employment multipliers (Type III) ranged from 1.67 to 1.90, income multipliers from 2.0 to 2.4, and industrial output multipliers from 2.1 to 2.5.     

The availability of primary nickel from the market economy countries

The US Bureau of Mines has determined the potential availability of nickel from 36 deposits or districts in 16 market economy countries (MECs). More than 95% of production in MECs was analysed. The study indicates the quantity of nickel available in resources and potential annual production at net production costs and on a total cost basis with a 0% and a 10% discounted cash flow rate of return (DCFROR). The properties included in this study contain approximately 33 million tonnes of recoverable nickel. About 26 million tonnes of nickel is potentially recoverable from nickel laterite deposits, of which 4.5 million tonnes can be produced at $2.50/lb or less with a 0% DCFROR. Approximately 7 million tonnes of nickel is potentially recoverable from nickel sulphide deposits of which about 6.3 million tonnes could be produced at $2.50/lb or less at a 0% DCFROR. Sensitivity studies indicate that the total cost of producing nickel from laterite deposits is most sensitive to increases in energy costs, and that the total costs of producing nickel from sulphide deposits is most sensitive to increases in labour costs and by changes in byproduct revenues.     

Economic amenity values of wildlife: Six case studies in Pennsylvania

The travel clost method (TCM) and contingent valuation method (CVM) were used to evaluate the economic value of six different ecotourism activities involving observation of wildlife in Pennsylvania. The six activities were: catch-and-release trout fishing; catch-and-release trout fishing with fly-fishing equipment; viewing waterfowl; watching elk; observing migration flights of raptors; and seeing live wildlife in an environmental education setting. TCM results provided significant statistical relationships between level of use and travel costs for the two types of trout fishing activities. CVM provided estimates of consumer surplus for the other four sites. The consumers' surplus value (1988 dollars) of all six activities to participants amounted to a total of more than $1.28 million annually—twice the total out-of-pocket expenditures of approximately $640,000 spent to visit the sites. The economic amenity values of the six activities compare favorably with similarly derived values in other studies for hunting, fishing, hiking, and backpacking in dispersed recreation environments and wilderness areas in western states.     

Economic Impacts of Zebra Mussels on Drinking Water Treatment and Electric Power Generation Facilities

Invasions of nonnative species such as zebra mussels can have both ecological and economic consequences. The economic impacts of zebra mussels have not been examined in detail since the mid-1990s. The purpose of this study was to quantify the annual and cumulative economic impact of zebra mussels on surface water-dependent drinking water treatment and electric power generation facilities (where previous research indicated the greatest impacts). The study time frame was from the first full year after discovery in North America (Lake St. Clair, 1989) to the present (2004); the study area was throughout the mussels’ North American range. A mail survey resulted in a response rate of 31% for electric power companies and 41% for drinking water treatment plants. Telephone interviews with a sample of nonrespondents assessed nonresponse bias; only one difference was found and adjusted for. Over one-third (37%) of surveyed facilities reported finding zebra mussels in the facility and almost half (45%) have initiated preventive measures to prevent zebra mussels from entering the facility operations. Almost all surveyed facilities (91%) with zebra mussels have used control or mitigation alternatives to remove or control zebra mussels. We estimated that 36% of surveyed facilities experienced an economic impact. Expanding the sample to the population of the study area, we estimated $267 million (BCa 95% CI = $161 million–$467 million) in total economic costs for electric generation and water treatment facilities through late 2004, since 1989. Annual costs were greater ($44,000/facility) during the early years of zebra mussel infestation than in recent years ($30,000). As a result of this and other factors, early predictions of the ultimate costs of the zebra mussel invasion may have been excessive.     

VISITOR VALUES AND LOCAL ECONOMIC IMPACTS OF RIPARIAN HABITAT PRESERVATION: CALIFORNIA'S KERN RIVER PRESERVE1

ABSTRACT: Preservation of the few remaining ecologically vital riparian areas in the southwestern United States is a significant policy concern. This article reports on two economic aspects of preserving a nationally renowned riparian birding area in Southern California. First, the article examines visitor willingness to pay (WTP) for habitat restoration and estimates an annual WTP of US $77 per visitor to preserve the habitat, about a half‐million dollars a year for estimated visitor numbers in 2000 and 2001. Second, it documents visitor expenditures in the local economy to be approximately three‐quarters of a million dollars per year. This direct visitor spending attributable to the riparian habitat generates around US $1.3 million in increased local business activity in this relatively remote rural area.     

ENVIRONMENTAL AUDITING: Economic Values of Recreational Power Boating Resources in Pennsylvania

/ The travel cost method was used to estimate the economic value of seven major power boating resources in Pennsylvania. A significant relationship between number of visitor trips and cost per visitor trip existed for five of the seven water bodies. The annual total value for those five resources was $396 million, which was 2.5 times greater than the total out-of-pocket expenditures of approximately $157 million visitors spent to visit them. Research results can help resource managers plan and craft programs and policies that are founded on economic values of the natural resources involved.     

A COST‐BENEFIT ANALYSIS OF WATER QUALITY PROTECTION IN THE CATAWBA BASIN1

ABSTRACT: The primary objective of this study was to perform a cost‐benefit analysis of maintaining the current level of water quality in the Catawba River basin. Economic benefits were estimated using a stated preference survey method designed to value respondents' willingness to pay for a management plan to protect water quality in the Catawba basin over time. From the surveys conducted with 1,085 area residents, we calculated an annual mean willingness to pay of $139 for the management plan, or more than $75.4 million for all taxpayers in the area. Over the five‐year time horizon in which respondents were asked to pay for the management plan, this resulted in a total economic benefit of $340.1 million. The Watershed Analysis Risk Management Framework model was used to estimate the amount of management activities needed to protect the current level of water quality in the basin over time. Based on the model results, the total cost of the management plan was calculated to be $244.8 million over a ten‐year period. The resulting cost‐benefit analysis indicated that the potential benefits of this management plan would outweigh the costs by more than $95 million.     

Potential for Advanced Technology to Improve Air Quality and Human Health in Shanghai

/ Air quality in most Asian cities is poor and getting worse. It will soon become impossible to sustain population, economic, and industrial growth without severe deterioration of the atmospheric environment. This paper addresses the city of Shanghai, the air-quality problems it faces over the next 30 years, and the potential of advanced technology to alleviate these problems. Population, energy consumption, and emission profiles are developed for the city at 0.1 degrees x 0.1 degrees resolution and extrapolated from 1990 to 2020 using sector-specific economic growth factors. Within the context of the RAINS-Asia model, eight technology scenarios are examined for their effects on ambient concentrations of sulfur dioxide and sulfate and their emission control costs. Without new control measures, it is projected that the number of people exposed to sulfur dioxide concentrations in excess of guidelines established by the World Health Organization will rise from 650,000 in 1990 to more than 14 million in 2020. It is apparent that efforts to reduce emissions are likely to have significant health benefits, measured in terms of the cost of reducing the number of people exposed to concentrations in excess of the guidelines ($10-50 annually per person protected). Focusing efforts on the control of new coal-fired power plants and industrial facilities has the greatest benefit. However, none of the scenarios examined is alone capable of arresting the increases in emissions, concentrations, and population exposure. It is concluded that combinations of stringent scenarios in several sectors will be necessary to stabilize the situation, at a potential cost of $500 million annually by the year 2020. KEY WORDS: Coal; China; Shanghai; Sulfur dioxide; Air quality; Health effects     

Simulating Direct and Indirect Damages to Commercial Fisheries from Marine Sand Mining: A Case Study in Korea

Rapid growth in marine sand mining for construction and other uses poses environmental challenges to coastal nations virtually worldwide. Yet the development of management policies, such as a system of fees imposed on operators for damage caused by mining, has been frustrated by a lack of studies to support such measures. Adapting a Beverton-Holt bioeconomic model, this paper attempts to contribute to the estimation of external costs to commercial fisheries due to marine mining. Using the major mining area of Ongjin in Korea as a case study, we estimate economic losses in use value of commercial fisheries through the time to recovery of the injured resource stocks. Present value of lost catch over a 1-year period from mining to resource recovery is estimated at $38,851 for a single “prototype” mining site. Estimated cumulative damages due to recurring mining for 5 and 10 years are $1.5 million and $2.2 million, respectively, at 20 mining sites. Sensitivity analyses are used to examine the effects of alternative assumptions to assess the many sources of uncertainty. Using a form of meta-analysis, dose-response information is used to assess the excess mortality the mining sediment plume has on eggs and larvae and, ultimately, on the value of lost catch ($841). Also addressed is the importance of specifying the appropriate “premining” conditions against which to assess environmental losses at the mining site. Damages estimated with premining fish populations are $23,066 higher than is the case using postmining conditions. Overall, the illustrative results suggest the variety of complex conditions which influence damage to fisheries from mining and which can benefit from further study to improve management guidelines. An erratum to this article can be found at     

International trade and air pollution: estimating the economic costs of air emissions from waterborne commerce vessels in the United States

Although there is a burgeoning literature on the effects of international trade on the environment, relatively little work has been done on where trade most directly effects the environment: the transportation sector. This article shows how international trade is affecting air pollution emissions in the United States' shipping sector. Recent work has shown that cargo ships have been long overlooked regarding their contribution to air pollution. Indeed, ship emissions have recently been deemed "the last unregulated source of traditional air pollutants". Air pollution from ships has a number of significant local, national, and global environmental effects. Building on past studies, we examine the economic costs of this increasing and unregulated form of environmental damage. We find that total emissions from ships are largely increasing due to the increase in foreign commerce (or international trade). The economic costs of SO2 pollution range from dollars 697 million to dollars 3.9 billion during the period examined, or dollars 77 to dollars 435 million on an annual basis. The bulk of the cost is from foreign commerce, where the annual costs average to dollars 42 to dollars 241 million. For NOx emissions the costs are dollars 3.7 billion over the entire period or dollars 412 million per year. Because foreign trade is driving the growth in US shipping, we also estimate the effect of the Uruguay Round on emissions. Separating out the effects of global trade agreements reveals that the trade agreement-led emissions amounted to dollars 96 to dollars 542 million for SO2 between 1993 and 2001, or dollars 10 to dollars 60 million per year. For NOx they were dollars 745 million for the whole period or dollars 82 million per year. Without adequate policy responses, we predict that these trends and costs will continue into the future.     

Energy analysis of nonmarket values of the Mississippi Delta

An energy analysis was used to estimate nonmarket values under various land cover scenarios in the Mississippi Delta. Land loss since 1900 has led to a decline in nonmarket values from $3.1 billion/year in 1900 to $2.5 billion in 1990, resulting in a total loss of $29.4 billion. This loss is concentrated in the Barataria-Terrebonne basins, where nonmarket value has dropped from $1.6 billion/year in 1956 to $1.3 billion/year in 1988. Although values are projected to increase in the Atchafalaya basin (from $723 million/year in 1988 to $756 million/year in 2058), total nonmarket value for the Louisiana coast is projected to decrease to $2.1 billion/year under currently approved levels of restoration.     

Allocation of supplementary aeration stations in the Chicago waterway system for dissolved oxygen improvement

The Chicago Waterway System (CWS), used mainly for commercial and recreational navigation and for urban drainage, is a 122.8 km branching network of navigable waterways controlled by hydraulic structures. The CWS receives pollutant loads from 3 of the largest wastewater treatment plants in the world, nearly 240 gravity Combined Sewer Overflows (CSO), 3 CSO pumping stations, direct diversions from Lake Michigan, and eleven tributary streams or drainage areas. Even though treatment plant effluent concentrations meet the applicable standards and most reaches of the CWS meet the applicable water quality standards, Dissolved Oxygen (DO) standards are not met in the CWS during some periods. A Use Attainability Analysis was initiated to evaluate what water quality standards can be achieved in the CWS. The UAA team identified several DO improvement alternatives including new supplementary aeration stations. Because of the dynamic nature of the CWS, the DUFLOW model that is capable of simulating hydraulics and water quality processes under unsteady-flow conditions was used to evaluate the effectiveness of new supplementary aeration stations. This paper details the use of the DUFLOW model to size and locate supplementary aeration stations. In order to determine the size and location of supplemental aeration stations, 90% compliance with a 5 mg/l DO standard was used as a planning target. The simulations showed that a total of four new supplementary aeration stations with oxygen supply capacities ranging from 30 to 80 g/s would be sufficient to meet the proposed target DO concentration for the North Branch and South Branch of the Chicago River. There are several aeration technologies, two of which are already being used in the CWS, available and the UAA team determined that the total capital costs of the alternatives range from $35.5 to $89.9 million with annual operations and maintenance costs ranging from $554,000 to $2.14 million. Supplemental aeration stations have been shown to be a potentially effective means to improve DO concentrations in the CWS and will be included in developing an integrated strategy for improving water quality in the CWS.     

Valuation of National Park System Visitation: The Efficient Use of Count Data Models, Meta-Analysis, and Secondary Visitor Survey Data

The National Park Service (NPS) currently manages a large and diverse system of park units nationwide which received an estimated 279 million recreational visits in 2011. This article uses park visitor data collected by the NPS Visitor Services Project to estimate a consistent set of count data travel cost models of park visitor willingness to pay (WTP). Models were estimated using 58 different park unit survey datasets. WTP estimates for these 58 park surveys were used within a meta-regression analysis model to predict average and total WTP for NPS recreational visitation system-wide. Estimated WTP per NPS visit in 2011 averaged $102 system-wide, and ranged across park units from $67 to $288. Total 2011 visitor WTP for the NPS system is estimated at $28.5 billion with a 95% confidence interval of $19.7–$43.1 billion. The estimation of a meta-regression model using consistently collected data and identical specification of visitor WTP models greatly reduces problems common to meta-regression models, including sample selection bias, primary data heterogeneity, and heteroskedasticity, as well as some aspects of panel effects. The article provides the first estimate of total annual NPS visitor WTP within the literature directly based on NPS visitor survey data.     

A Quantitative Method for Estimating Probable Public Costs of Hurricanes

/ A method is presented for estimating probable public costs resulting from damage caused by hurricanes, measured as local government expenditures approved for reimbursement under the Stafford Act Section 406 Public Assistance Program. The method employs a multivariate model developed through multiple regression analysis of an array of independent variables that measure meteorological, socioeconomic, and physical conditions related to the landfall of hurricanes within a local government jurisdiction. From the regression analysis we chose a log-log (base 10) model that explains 74% of the variance in the expenditure data using population and wind speed as predictors. We illustrate application of the method for a local jurisdiction-Lee County, Florida, USA. The results show that potential public costs range from $4.7 million for a category 1 hurricane with winds of 137 kilometers per hour (85 miles per hour) to $130 million for a category 5 hurricane with winds of 265 kilometers per hour (165 miles per hour). Based on these figures, we estimate expected annual public costs of $2.3 million. These cost estimates: (1) provide useful guidance for anticipating the magnitude of the federal, state, and local expenditures that would be required for the array of possible hurricanes that could affect that jurisdiction; (2) allow policy makers to assess the implications of alternative federal and state policies for providing public assistance to jurisdictions that experience hurricane damage; and (3) provide information needed to develop a contingency fund or other financial mechanism for assuring that the community has sufficient funds available to meet its obligations. KEY WORDS: Hurricane; Public costs; Local government; Disaster recovery; Disaster response; Florida; Stafford Act     

Evaluating China's Slope Land Conversion Program as sustainable management in Tianquan and Wuqi Counties

Increased soil erosion on sloped land has become a significant environmental concern in China that has been attributed to human activities such as deforestation, over-cultivation, and over-grazing of livestock. In order to reduce soil erosion on sloped lands, the Chinese government has responded by implementing large-scale, ecological rehabilitation programs, including the "Grain for Green" reforestation project. This program involves financial incentives to transition farmers into other economic activities with the goal of reducing ecological pressures and degradation. Because of the scope and potential impacts from these programs, detailed research is needed to understand their social and ecological effects. This paper reports on research conducted in Tianquan County, Sichuan Province, and Wuqi County, Shaanxi Province, that evaluates the effects of the program upon local economies and household livelihood systems. The paper argues that the successful conversion of farmland under "Grain for Green" depends upon local government involvement, local economic development, and funding for local projects. Without economic development within rural economies, we conclude that farmers will remain dependent upon continued subsidy assistance to meet the policy's ambitious environmental restrictions, thereby undermining the program's long-term sustainability.     

Economic use value of the Belize marine ecosystem: Potential risks and benefits from offshore oil exploration

The announcement of plans for exploratory oil drilling at a number of offshore sites in Belize raised concerns about the risks associated with drilling, particularly given the socio‐economic importance of the marine ecosystem. The current economic value of fisheries and marine ecotourism is estimated, along with the potential revenue from offshore oil and potential economic losses stemming from oil pollution, under various assumptions on risk and uncertainty. Marine fisheries and ecotourism are estimated to generate around US$ 183 million per year. Single‐year estimated maximum revenue is higher for oil extraction initially but quickly declines; during a 50 year (two generation) period, total discounted benefits from marine fisheries and ecotourism are estimated at US$ 5.1 billion, compared to US$ 3.2 billion from offshore oil revenue. Following a hypothetical oil spill, discounted losses in marine fisheries and ecotourism due to perception and ecological impacts are estimated at US$ 912 million, with clean‐up costs and capital losses of US$ 6.1‐10.4 billion. Considering the short extraction life of oil resources compared to fisheries and ecotourism, the difference in benefits increases substantially in favour of the latter with a longer time horizon. A recent public referendum resulted in a 98% vote against oil exploration and a subsequent annulment of oil concessions pending environmental impact assessments.     

Optimizing Agricultural Best Management Practices in a Lake Erie Watershed

Implementing agricultural best management practices (BMPs) is influenced by a balance of desired environmental outcomes, economic feasibility, and stakeholder familiarity, the latter taken to be related to BMP acceptability. To explore this balance, we developed a multi‐objective decision support system for allocating BMP type and placement by coupling the Soil and Water Assessment Tool with a nondominated sorted genetic algorithm that minimizes total phosphorus (TP) yields from agricultural hydrologic response units (HRUs) and costs, while using stakeholder BMP familiarity as a constraint; conventional tillage, no tillage, nutrient management, riparian buffers, and contour cropping were explored. Using constraints representing current conditions, the optimization resulted in 59.6 to 81.0% reduction in agricultural TP yield from HRUs at costs ranging between US $0.8 and US $5.3 million. The constrained optimization tended to select mostly single BMPs or at most two BMPs for a given HRU due to these BMPs having higher acceptability to stakeholders. In contrast, the unconstrained case, representing full familiarity, selected 2‐ and 3‐BMP applications. There was little difference in costs between the constrained and unconstrained cases below an 80% TP yield reduction; however, significant differences were found at larger reductions, supporting the value of stakeholder education and extension efforts. Editor's note : This paper is part of the featured series on SWAT Applications for Emerging Hydrologic and Water Quality Challenges. See the February 2017 issue for the introduction and background to the series.     

Economics of an ecotourism operation in Belize

The economic inputs and outputs for the Possum Point Biological Station in Belize during 1990–1992 are described to illustrate some aspects of an ecotourism operation. Eight hundred fifty-four people in 59 groups visited Possum Point during the study period to tour rain forests, estuaries, and coral reefs. The economic input to Possum Point from these groups increased from $74,552 in 1990 to $166,268 in 1992. Outputs were for license fees, capital improvements, goods and services, labor, fossil fuels, and development of a historic sugar mill site. An annual donation was also made to a scholarship fund for local Belizean students. The net cash balance of income and outputs changed from negative (−$6678) in 1990 to positive (+$4811) in 1992, suggesting development of the economic operation. Possum Point meets the economic criteria for ecotourism by feeding back some tourist monies for community and environmental support, particularly donations for the sugar mill site and the scholarship fund. Most of the outputs from Possum Point (about 80%) were retained in the local economy through employment and purchases, which have a positive influence on the local community. We conclude that ecotourism operations, such as Possum Point, offer important sustainable development opportunities for Belize.