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Finding solutions to water scarcity: Incorporating ecosystem service values into business planning at The Dow Chemical Company’s Freeport, TX facility

Author

Listed:
  • Reddy, Sheila M.W.
  • McDonald, Robert I.
  • S. Maas, Alexander
  • Rogers, Anthony
  • Girvetz, Evan H.
  • North, Jeffrey
  • Molnar, Jennifer
  • Finley, Tim
  • Leathers, Gená
  • L. DiMuro, Johnathan

Abstract

Water scarcity presents a major risk to businesses, but it can be hard to quantify. Ecosystem service valuation methods may help businesses better understand the financial impacts of water shortages and identify solutions. At The Dow Chemical Company’s facility in Freeport, TX, we used natural capital asset valuation to assess the risk from future changes in industrial water supplies. We found that the value of industrial water rights may increase in the future with increased demand but that potential decreases in reliability of water rights due to demand growth and climate change could reduce their value. Using this information, experts identified 16 potential nature-based and collaborative (involving other water users) solutions to future water scarcity. We used multi-criteria analysis to select five of the 16 solutions for further analysis. Two solutions (marsh wastewater treatment, land management) were not cost-competitive and three solutions (reservoir flood pool reallocation/floodplain restoration, irrigation efficiency, municipal rebate program) were cost-competitive with the business-as-usual solution (expanding reservoir storage). However, these solutions have significant technical, legal, and political hurdles. We also found that these solutions provide substantial collective benefits to the public and biodiversity, suggesting that such solutions may be appropriate for implementation via multi-stakeholder collaboration.

Suggested Citation

  • Reddy, Sheila M.W. & McDonald, Robert I. & S. Maas, Alexander & Rogers, Anthony & Girvetz, Evan H. & North, Jeffrey & Molnar, Jennifer & Finley, Tim & Leathers, Gená & L. DiMuro, Johnathan, 2015. "Finding solutions to water scarcity: Incorporating ecosystem service values into business planning at The Dow Chemical Company’s Freeport, TX facility," Ecosystem Services, Elsevier, vol. 12(C), pages 94-107.
    • Handle: RePEc:eee:ecoser:v:12:y:2015:i:c:p:94-107
    DOI: 10.1016/j.ecoser.2014.12.001
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    1. Liquete, Camino & Udias, Angel & Conte, Giulio & Grizzetti, Bruna & Masi, Fabio, 2016. "Integrated valuation of a nature-based solution for water pollution control. Highlighting hidden benefits," Ecosystem Services, Elsevier, vol. 22(PB), pages 392-401.
    2. Hackbart, Vivian C.S. & de Lima, Guilherme T.N.P. & dos Santos, Rozely F., 2017. "Theory and practice of water ecosystem services valuation: Where are we going?," Ecosystem Services, Elsevier, vol. 23(C), pages 218-227.
    3. Jingdong Zhang & Jiatian Fu & Chaoyang Liu & Zhiguang Qu & Yanan Li & Fei Li & Zhaofei Yang & Luping Jiang, 2019. "Evaluating Water Resource Assets Based on Fuzzy Comprehensive Evaluation Model: A Case Study of Wuhan City, China," Sustainability, MDPI, vol. 11(17), pages 1-16, August.
    4. Maas, Alexander S. & Lu, Liang, 2020. "“Elections have Consequences”: Partisan Politics are Literally Killing Us," 2020 Annual Meeting, July 26-28, Kansas City, Missouri 304457, Agricultural and Applied Economics Association.
    5. Olander, Lydia & Polasky, Stephen & Kagan, James S. & Johnston, Robert J. & Wainger, Lisa & Saah, David & Maguire, Lynn & Boyd, James & Yoskowitz, David, 2017. "So you want your research to be relevant? Building the bridge between ecosystem services research and practice," Ecosystem Services, Elsevier, vol. 26(PA), pages 170-182.
    6. Stephen C. L. Watson & Adrian C. Newton, 2018. "Dependency of Businesses on Flows of Ecosystem Services: A Case Study from the County of Dorset, UK," Sustainability, MDPI, vol. 10(5), pages 1-14, April.

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