Comparing Costs of Onsite Best Management Practices to Nutrient Credits for Stormwater Management: A Case Study in Virginia

Best management practices (BMPs) are widely used to mitigate impacts of increased impervious surfaces on stormwater runoff. However, there is limited detailed and up‐to‐date information available on the cost of designing, constructing, and maintaining BMPs over their lifetime. The objective of this study is to analyze BMPs recently constructed by the Virginia Department of Transportation (VDOT) to quantify their total cost per pound of phosphorus removed annually. A motivating factor for the study is recent changes to regulatory guidelines in Virginia which allow for full or partial substitution of purchased nutrient credits in lieu of constructing onsite BMPs to achieve compliance with stormwater quality regulations. Results of the analysis of nine BMPs found their cost ranged from $20,100 to $74,900, in 2014 dollars, per pound ($44,313‐$165,126 per kg) of phosphorus removed. Based on these results and assuming current credit prices procured by VDOT, purchasing nutrient credits is a cost‐effective option for the agency, especially when factoring in the cost of additional right of way for the BMP. Based on this finding, we expect compliance with stormwater quality regulations through credit purchases to become more widely used in Virginia. Moving forward, we suggest more direct tracking of BMP costs to support comparisons between BMP costs across a range of types and conditions to credit purchases for meeting stormwater regulations.     

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.     

An Ex Post Evaluation of Ohio’s Great Miami Water Quality Trading Program1

Newburn, David A. and Richard T. Woodward, 2011. An Ex Post Evaluation of Ohio’s Great Miami Water Quality Trading Program. Journal of the American Water Resources Association (JAWRA) 48(1): 156‐169. DOI: 10.1111/j.1752‐1688.2011.00601.x Abstract: Market‐based approaches to address water quality problems have resulted in only limited success, especially in trading programs involving both point and nonpoint sources. We analyze one of the largest point‐nonpoint trading programs – the Great Miami Trading Program in Ohio, administered by the Miami Conservancy District (MCD). Our evaluation focuses on the economic and institutional aspects of the program, including cost effectiveness, efficiency of bidding, transaction costs, trading ratios, and innovation. We use a unique dataset consisting of all bids from agricultural nonpoint sources and interviews of soil and water conservation district (SWCD) agents in the watershed. We find that the MCD’s reliance on county‐level SWCD offices to recruit and advise farmers has been essential to achieve relatively high rates of farmer participation. Additionally, the MCD is able to partly free ride on the administrative costs that SWCD offices receive to assist federal conservation programs, which is helpful to lower costs for a fledgling trading program. However, the involvement of SWCD offices reduced the potential cost savings from the reverse auction structure because some agents were able to learn about the threshold price over the six rounds of bidding and help farmers bid strategically. Overall, the program structure serves as an effective model for future trading programs in other regions that seek to involve agricultural nonpoint sources.     

Even-Aged and Uneven-Aged Forest Management in Boreal Fennoscandia: A Review

Since WWII, forest management in Fennoscandia has primarily been based on even-aged stand management, clear cut harvesting and thinning from below. As an alternative, uneven-aged management, based on selection cutting of individual trees or small groups of trees, has been proposed. In this review we discuss the theoretical aspects of ecology and economics of the two management approaches. We also review peer-reviewed studies from boreal Fennoscandia, which have aimed at comparing the outcomes of uneven-aged and the conventional even-aged forest management. According to a common view the main obstacle of practicing uneven-aged forestry is its low economic performance. However, the reviewed studies did not offer any straightforward support for this view and several studies have found uneven-aged management to be fully competitive with existing even-aged management. Studies on the ecological aspects indicated that selection cuttings maintain mature or late-successional forest characteristics and species assemblages better than even-aged management, at least at the stand scale and in the short term. We conclude that although the number of relevant studies has increased in recent years, the ecological and economic performance of alternative management methods still remains poorly examined, especially for those stands with multiple tree species and also at wider spatial and temporal scales. For future research we advocate a strategy that fully takes into consideration the interdisciplinary nature of forest management and is better connected to social goals and latest theoretical and methodological developments in ecology and economics.     

可持续转型与延伸生产者责任制度

本文采用多层次转型理论的分析框架,回顾了国内外延伸生产者责任(EPR)制度的理论和实践进展,对比了EPR制度倡导者最初提出的创新导向的制度设计,与当前各国实践中基于成本—效益平衡所开展的政策评估研究,指出两者在是否应该将激进的可持续转型作为EPR基本政策目标上观点不同,其原因在于政策的技术创新激励效果难以通过可测量的政策评估方法进行有效考察,由此造成两者在EPR政策调整方向上的分歧:前者坚持EPR制度设计应该进一步完善个体责任原则,以激励生产者创新和采纳绿色技术,推进生产消费模式的系统转型;而后者则强调在现有管制框架下简化制度设计,重点完善循环处理基础设施及其管理效率。这种分歧不仅影响到发达国家EPR制度的演化,也深刻影响了发展中国家EPR制度的移植和建构。结论以中国电子废物管理实践为例,提出构建包含三个层次的演化经济学分析框架,考察EPR制度建构过程中,微观层次的企业技术选择,中观层次的供应链治理结构变动,和宏观层次的再生资源产业转型,以系统考察制度发展对技术创新的激励效果。     

Prymnesium parvum: The Texas Experience1

Southard, Gregory M., Loraine T. Fries, and Aaron Barkoh, 2010. Prymnesium parvum: The Texas Experience. Journal of the American Water Resources Association (JAWRA) 46(1):14-23. DOI: 10.1111/j.1752-1688.2009.00387.x Abstract: Golden alga Prymnesium parvum was first identified in Texas during a fish kill investigation on the Pecos River in 1985. Since then golden alga kills occurred sporadically in a variety of waters in the western part of the state until 2001 when the alga became endemic in the Brazos, Canadian, Colorado, Red, and Rio Grande river systems, including the water supplies of two public fish hatcheries, the Possum Kingdom and Dundee state fish hatcheries. The increasing area adversely affected by the alga and frequent massive fish kills heightened public and political awareness and concerns regarding the ecological and economic impacts of P. parvum blooms. The Texas Parks and Wildlife Department (TPWD), the wildlife conservation agency of the state, responded to these concerns with a program to assess the ecological and economic impacts and to develop management options. To date 33 water bodies have been affected and losses are conservatively estimated at 34 million fish valued at US$13 million. Several sport fisheries, including smallmouth bass Micropterus dolomieu, striped bass Morone saxatilis, channel catfish Ictalurus punctatus, and blue catfish Ictalurus furcatus, have been severely affected. Additionally, 26 imperiled fish species occur in the affected water basins and some have been adversely affected. Economic losses associated with reduced fishing and other water-based recreational activities appear considerable. The combined economic losses to three counties (Palo Pinto, Stephens, and Young) surrounding Possum Kingdom reservoir for 2001 and 2003 were estimated at US$2.8 million and US$1.1 million, respectively. This paper describes how the TPWD responded to public and political concerns relative to the emergence of golden alga, its harmful effects to fisheries, and its historic and current statewide distribution.     

Biodiversity Conservation, Ecosystem Functioning, and Economic Incentives under Cocoa Agroforestry Intensification

Abstract:  World chocolate demand is expected to more than double by 2050. Decisions about how to meet this challenge will have profound effects on tropical rainforests and wild species in cocoa-producing countries. Cocoa, "the chocolate tree," is traditionally produced under a diverse and dense canopy of shade trees that provide habitat for a high diversity of organisms. The current trend to reduce or eliminate shade cover raises concerns about the potential loss of biodiversity. Nevertheless, few studies have assessed the ecological consequences and economic trade-offs under different management options in cocoa plantations. Here we describe the relationships between ant ecology (species richness, community composition, and abundance) and vegetation structure, ecosystem functions, and economic profitability under different land-use management systems in 17 traditional cocoa forest gardens in southern Cameroon. We calculated an index of profitability, based on the net annual income per hectare. We found significant differences associated with the different land-use management systems for species richness and abundance of ants and species richness and density of trees. Ant species richness was significantly higher in floristically and structurally diverse, low-intensity, old cocoa systems than in intensive young systems. Ant species richness was significantly related to tree species richness and density. We found no clear relationship between profitability and biodiversity. Nevertheless, we suggest that improving the income and livelihood of smallholder cocoa farmers will require economic incentives to discourage further intensification and ecologically detrimental loss of shade cover. Certification programs for shade-grown cocoa may provide socioeconomic incentives to slow intensification.     

CHARGES FOR URBAN RUNOFF: ISSUES IN IMPLEMENTATION1

ABSTRACT: Maryland officials have identified stormwater utilities as a potential method of financing programs to control nutrients in urban stormwater runoff that are proposed in Maryland's Chesapeake Bay Nutrient Reduction Plan. This paper reviews a number of issues related to the equity, efficiency and acceptability of user charge schemes. Overall, charges are found to be preferable to property taxes from both equity and efficiency perspectives. In addition, evidence suggests that elected officials will support creation of utilities. Obstacles to the implementation of utilities are identified.     

ECONOMIC POLICIES FOR REGULATING AGRICULTURAL DRAINAGE WATER1

ABSTRACT: Agricultural drainage water is a major source of environmental pollution in many areas. This paper reviews the literature on the economics of nonpoint-source pollution and applies it to the regulation of agricultural drainage water. Four types of regulatory policies are considered. The empirical analysis is carried out for cotton production in the San Joaquin Valley of California. Variable inputs are the quantity of water applied and the type of irrigation system. All four policies can achieve economic efficiency under the conditions assumed here, but the policies differ in terms of the distributional impacts and administrative requirements.     

WATER SUPPLY COSTS FOR SMALL PRIVATE UTILITIES1

ABSTRACT: This paper examines the cost of water supply for small and mid-sized private water utilities. An econometric approach was employed in which data on utility costs and characteristics were used to estimate a total water supply cost function from which average and marginal costs were derived. The results suggest that although average and marginal costs decline with output, the rate of decline rapidly approaches zero, and unit costs therefore appear to remain relatively constant over a wide range of output. Implications of the results for pricing policy are examined.