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Welfare Loss Of Wetlands Disintegration: A Louisiana Study

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  • STEPHEN FARBER

Abstract

This study estimates the loss in welfare of projected Louisiana coastal wetlands disintegration. Various programs have initiated costly projects to terminate this disintegration process. But can these projects succeed, and will their benefits exceed their costs? This study addresses the benefits issues and estimates reductions in incomes and consumption opportunities and increases in costs that would be avoided if restoration and enhancement projects are successful. Estimated welfare losses that would be avoided do not include non‐user and lifestyle losses, which may be very important, and they do not include the costs of dismantling coastal infrastructure. These exclusions make the estimates of this study minimum estimates of welfare losses. Future economic welfare losses represent a 1990 present value in a range between $5.9 and $24.3 billion, depending upon discount rates and whether low or high loss estimates are used. In order to make these estimates more meaningful, the implied wetlands values were calculated on a per acre basis. These values ranged from $8,437 to $15,763 per acre.

Suggested Citation

  • Stephen Farber, 1996. "Welfare Loss Of Wetlands Disintegration: A Louisiana Study," Contemporary Economic Policy, Western Economic Association International, vol. 14(1), pages 92-106, January.
    • Handle: RePEc:bla:coecpo:v:14:y:1996:i:1:p:92-106
    DOI: 10.1111/j.1465-7287.1996.tb00606.x
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    1. Farber, Stephen, 1987. "The value of coastal wetlands for protection of property against hurricane wind damage," Journal of Environmental Economics and Management, Elsevier, vol. 14(2), pages 143-151, June.
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    Cited by:

    1. Alamanos, Angelos & Koundouri, Phoebe, 2022. "Economics of Incorporating Ecosystem Services into Water Resource Planning and Management," MPRA Paper 122046, University Library of Munich, Germany.
    2. Margarita Ignatyeva & Vera Yurak & Alexey Dushin, 2022. "Valuating Natural Resources and Ecosystem Services: Systematic Review of Methods in Use," Sustainability, MDPI, vol. 14(3), pages 1-17, February.
    3. Rao, Nalini S. & Ghermandi, Andrea & Portela, Rosimeiry & Wang, Xuanwen, 2015. "Global values of coastal ecosystem services: A spatial economic analysis of shoreline protection values," Ecosystem Services, Elsevier, vol. 11(C), pages 95-105.
    4. Aaron De Laporte & Alfons Weersink & Wanhong Yang, 2010. "Ecological Goals and Wetland Preservation Choice," Canadian Journal of Agricultural Economics/Revue canadienne d'agroeconomie, Canadian Agricultural Economics Society/Societe canadienne d'agroeconomie, vol. 58(1), pages 131-150, March.
    5. Daniel R. Petrolia & Matthew G. Interis & Joonghyun Hwang, 2014. "America's Wetland? A National Survey of Willingness to Pay for Restoration of Louisiana's Coastal Wetlands," Marine Resource Economics, University of Chicago Press, vol. 29(1), pages 17-37.
    6. Edward B. Barbier, 2016. "The Protective Value of Estuarine and Coastal Ecosystem Services in a Wealth Accounting Framework," Environmental & Resource Economics, Springer;European Association of Environmental and Resource Economists, vol. 64(1), pages 37-58, May.
    7. Heimlich, Ralph E. & Wiebe, Keith D. & Claassen, Roger & Gadsby, Dwight M. & House, Robert M., 1998. "Wetlands and Agriculture: Private Interests and Public Benefits," Agricultural Economic Reports 34043, United States Department of Agriculture, Economic Research Service.
    8. Gutrich, John J. & Hitzhusen, Fred J., 2004. "Assessing the substitutability of mitigation wetlands for natural sites: estimating restoration lag costs of wetland mitigation," Ecological Economics, Elsevier, vol. 48(4), pages 409-424, April.
    9. Craig A. Bond, 2017. "Valuing Coastal Natural Capital in a Bioeconomic Framework," Water Economics and Policy (WEP), World Scientific Publishing Co. Pte. Ltd., vol. 3(02), pages 1-26, April.
    10. Kaplowitz, Michael D. & Hoehn, John P., 2001. "Do focus groups and individual interviews reveal the same information for natural resource valuation?," Ecological Economics, Elsevier, vol. 36(2), pages 237-247, February.

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