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Valuing ecosystem services from wetlands restoration in the Mississippi Alluvial Valley

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  • Jenkins, W. Aaron
  • Murray, Brian C.
  • Kramer, Randall A.
  • Faulkner, Stephen P.

Abstract

This study assesses the value of restoring forested wetlands via the U.S. government's Wetlands Reserve Program (WRP) in the Mississippi Alluvial Valley by quantifying and monetizing ecosystem services. The three focal services are greenhouse gas (GHG) mitigation, nitrogen mitigation, and waterfowl recreation. Site- and region-level measurements of these ecosystem services are combined with process models to quantify their production on agricultural land, which serves as the baseline, and on restored wetlands. We adjust and transform these measures into per-hectare, valuation-ready units and monetize them with prices from emerging ecosystem markets and the environmental economics literature. By valuing three of the many ecosystem services produced, we generate lower bound estimates for the total ecosystem value of the wetlands restoration. Social welfare value is found to be between $1435 and $1486/ha/year, with GHG mitigation valued in the range of $171 to $222, nitrogen mitigation at $1248, and waterfowl recreation at $16. Limited to existing markets, the estimate for annual market value is merely $70/ha, but when fully accounting for potential markets, this estimate rises to $1035/ha. The estimated social value surpasses the public expenditure or social cost of wetlands restoration in only 1Â year, indicating that the return on public investment is very attractive for the WRP. Moreover, the potential market value is substantially greater than landowner opportunity costs, showing that payments to private landowners to restore wetlands could also be profitable for individual landowners.

Suggested Citation

  • Jenkins, W. Aaron & Murray, Brian C. & Kramer, Randall A. & Faulkner, Stephen P., 2010. "Valuing ecosystem services from wetlands restoration in the Mississippi Alluvial Valley," Ecological Economics, Elsevier, vol. 69(5), pages 1051-1061, March.
  • Handle: RePEc:eee:ecolec:v:69:y:2010:i:5:p:1051-1061
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    References listed on IDEAS

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    Cited by:

    1. Catherine L. Kling & Yiannis Panagopoulos & Sergey S. Rabotyagov & Adriana M. Valcu & Philip W. Gassman & Todd Campbell & Michael J. White & Jeffrey G. Arnold & Raghavan Srinivasan & Manoj K. Jha & Je, 2014. "LUMINATE: linking agricultural land use, local water quality and Gulf of Mexico hypoxia," European Review of Agricultural Economics, Foundation for the European Review of Agricultural Economics, vol. 41(3), pages 431-459.
    2. Gascoigne, William R. & Hoag, Dana & Koontz, Lynne & Tangen, Brian A. & Shaffer, Terry L. & Gleason, Robert A., 2011. "Valuing ecosystem and economic services across land-use scenarios in the Prairie Pothole Region of the Dakotas, USA," Ecological Economics, Elsevier, vol. 70(10), pages 1715-1725, August.
    3. repec:eee:ecomod:v:295:y:2015:i:c:p:216-226 is not listed on IDEAS
    4. Tait, Peter R. & Baskaran, Ramesh, 2011. "Incorporating Local Water Quality in Welfare Measures of Agri-environmental Policy: A Choice Modelling Approach Employing GIS," 2011 International Congress, August 30-September 2, 2011, Zurich, Switzerland 116074, European Association of Agricultural Economists.
    5. Richardson, Leslie & Loomis, John & Kroeger, Timm & Casey, Frank, 2015. "The role of benefit transfer in ecosystem service valuation," Ecological Economics, Elsevier, vol. 115(C), pages 51-58.
    6. Nahlik, Amanda M. & Kentula, Mary E. & Fennessy, M. Siobhan & Landers, Dixon H., 2012. "Where is the consensus? A proposed foundation for moving ecosystem service concepts into practice," Ecological Economics, Elsevier, vol. 77(C), pages 27-35.
    7. Kindler, Elisabeth, 2016. "A comparison of the concepts: Ecosystem services and forest functions to improve interdisciplinary exchange," Forest Policy and Economics, Elsevier, vol. 67(C), pages 52-59.
    8. Wainger, Lisa A. & Van Houtven, George & Loomis, Ross & Messer, Jay & Beach, Robert H. & Deerhake, Marion, 2013. "Tradeoffs among Ecosystem Services, Performance Certainty, and Cost-efficiency in Implementation of the Chesapeake Bay Total Maximum Daily Load," Agricultural and Resource Economics Review, Northeastern Agricultural and Resource Economics Association, vol. 42(1), April.
    9. repec:eee:ecomod:v:282:y:2014:i:c:p:69-82 is not listed on IDEAS
    10. Zareena Begum Irfan,, Jayakumar S and Satarupa & Venkatachalam. L & Jayakumar S & Satarupa Rakshit, 2017. "Evaluation Index System (Eis) For The Ecological- Economic- Social Performances Of Ousteri Wetland Across Puducherry And Tamil Nadu," Working Papers 2017-155, Madras School of Economics,Chennai,India.
    11. Sergey Rabotyagov & Catherine L. Kling & Philip W. Gassman & Nancy N. Rabalais & R. Eugene Turner, 2012. "Economics of Dead Zones: Linking Externalities from the Land to their Consequences in the Sea, The," Center for Agricultural and Rural Development (CARD) Publications 12-wp534, Center for Agricultural and Rural Development (CARD) at Iowa State University.
    12. Catherine L. Kling & Yiannis Panagopoulos & Adriana Valcu-Lisman & Philip W. Gassman & Sergey Rabotyagov & Todd Campbell & Mike White & Jeffrey G. Arnold & Raghavan Srinivasan & Manoj Jha & Jeff Richa, 2014. "Land Use Model Integrating Agriculture and the Environment (LUMINATE): Linkages between Agricultural Land Use, Local Water Quality and Hypoxic Concerns in the Gulf of Mexico Basin," Center for Agricultural and Rural Development (CARD) Publications 14-wp546, Center for Agricultural and Rural Development (CARD) at Iowa State University.
    13. Mutandwa, Edward & Grala, Robert K. & Grebner, Donald L., 2016. "Family forest land availability for the production of ecosystem services in Mississippi, United States," Forest Policy and Economics, Elsevier, vol. 73(C), pages 18-24.
    14. Tait, Peter & Baskaran, Ramesh & Cullen, Ross & Bicknell, Kathryn, 2012. "Nonmarket valuation of water quality: Addressing spatially heterogeneous preferences using GIS and a random parameter logit model," Ecological Economics, Elsevier, vol. 75(C), pages 15-21.
    15. Grossmann, Malte, 2012. "Economic value of the nutrient retention function of restored floodplain wetlands in the Elbe River basin," Ecological Economics, Elsevier, vol. 83(C), pages 108-117.
    16. Aevermann Tim & Schmude Jürgen, 2015. "Quantification and monetary valuation of urban ecosystem services in Munich, Germany," Zeitschrift für Wirtschaftsgeographie, De Gruyter, vol. 59(3), pages 188-200, December.
    17. Gao, Jie & Wang, Rusong & Huang, Jinlou & Liu, Min, 2015. "Application of BMP to urban runoff control using SUSTAIN model: Case study in an industrial area," Ecological Modelling, Elsevier, vol. 318(C), pages 177-183.
    18. Hansen, LeRoy & Hellerstein, Daniel & Ribaudo, Marc & Williamson, James & Nulph, David & Loesch, Charles & Crumpton, William, 2015. "Targeting Investments To Cost Effectively Restore and Protect Wetland Ecosystems: Some Economic Insights," Economic Research Report 199283, United States Department of Agriculture, Economic Research Service.

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