Economic losses associated with the degradation of an ecosystem: The case of submerged aquatic vegetation in Chesapeake Bay

This study employs theoretical and empirical concepts from ecology and economics to derive a lower bound of the marginal damage function for reductions in the level of submerged aquatic vegetation (SAV) in Chesapeake Bay. These reductions in SAV are believed to be a consequence of the runoff of agricultural chemicals, discharges from waste treatment plants, and soil erosion. The study examines the indirect ecological consequences of pollution in Chesapeak Bay fisheries, in a fashion which is consistent with the economic theory of benefit measurement.