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Economic Linkages Between Coastal Wetlands And Water Quality: A Review Of Value Estimates Reported In The Published Literature

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Author Info

  • Kazmierczak, Richard F., Jr.

Abstract

This manuscript summarizes a total of 12 peer-reviewed studies, published from 1981 to 2001, reporting 28 separate estimates for the disaggregate2 value of water quality services provided by coastal and non-coastal wetlands. Estimates ranged across three orders of magnitude and are highly dependent on the specific geographic site providing the service, the type of water quality service provided, the measurement technique, and whether locally derived benefits were calculated to extend across all existing wetlands. Considering only coastal zone wetlands across all study categories, the value of water quality services ranged from $2.85/acre/year to $5,673.80/acre/year, with a mean and median of $825.04/acre/year and $210.93/acre/year, respectively. The large difference between the mean and median value reflects the non-normal distribution of the estimates, and in particular the influence of a few very high values. Eliminating the most extreme outliers from the calculations generated mean and median values of $323.05/acre/year and $178.64/acre/year, respectively. By comparison, reported estimates of willingness-to-pay (WTP) values for wetland water quality services were relatively consistent across studies, ranging from $41.71 to $101.81, with a mean and median of $66.59 and $63.19, respectively. The apparent importance of geographic location, and the specific use demand, on water quality service value suggests that this facet of coastal wetland benefits needs to be carefully examined within a spatially disaggregated context.

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Bibliographic Info

Paper provided by Louisiana State University, Department of Agricultural Economics and Agribusiness in its series Staff Papers with number 31685.

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Date of creation: 2001
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Handle: RePEc:ags:lsustp:31685

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Postal: Baton Rouge, LA 70803-6306
Web page: http://www.agecon.lsu.edu/
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Keywords: Resource /Energy Economics and Policy;

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Cited by:
  1. Caffey, Rex H. & Wang, Hua & Petrolia, Daniel R., 2014. "Trajectory economics: Assessing the flow of ecosystem services from coastal restoration," Ecological Economics, Elsevier, vol. 100(C), pages 74-84.
  2. Petrolia, Daniel R. & Interis, Matthew G. & Hwang, Joonghyun, 2013. "America’s Wetland? A National Survey of Willingness to Pay for Restoration of Louisiana’s Coastal Wetlands," 2013 Annual Meeting, February 2-5, 2013, Orlando, Florida 142305, Southern Agricultural Economics Association.
  3. Birol, Ekin & Karousakis, Katia & Koundouri, Phoebe, 2006. "Using a choice experiment to account for preference heterogeneity in wetland attributes: The case of Cheimaditida wetland in Greece," Ecological Economics, Elsevier, vol. 60(1), pages 145-156, November.
  4. Wang, Hua & Caffey, Rex H. & Petrolia, Daniel R., 2012. "An Economic Assessment of Competing Technologies for Coastal Restoration," 2012 Annual Meeting, February 4-7, 2012, Birmingham, Alabama 119740, Southern Agricultural Economics Association.

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