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The Value of Investing in Wetlands for Nitrogen Abatement

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  • Gren, Ing-Marie

Abstract

The values of nitrogen abatement through measures involving investment in wetlands, sewage treatment plants and agriculture are calculated and compared. The analytical results show that the marginal value of investment in wetlands, including current and future utility, is likely to exceed that of other measures, due to two factors; the joint production of several environmental services and the net natural growth in the capacity to produce these services. The multifunctionality implies that, in addition to nitrogen abatement, other outputs such as buffering of water and biodiversity are produced jointly and the growth in wetlands, or the self organizing capacity, implies an increase in the supply of future outputs. Empirical results for Gotland, an area with a high concentration of nitrate in the groundwater, suggest that the value of investment in wetlands could significantly exceed that of sewage treatment plants. Copyright 1995 by Oxford University Press.

Suggested Citation

  • Gren, Ing-Marie, 1995. "The Value of Investing in Wetlands for Nitrogen Abatement," European Review of Agricultural Economics, Foundation for the European Review of Agricultural Economics, vol. 22(2), pages 157-172.
  • Handle: RePEc:oup:erevae:v:22:y:1995:i:2:p:157-72
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    Cited by:

    1. Turner, R. Kerry & Paavola, Jouni & Cooper, Philip & Farber, Stephen & Jessamy, Valma & Georgiou, Stavros, 2003. "Valuing nature: lessons learned and future research directions," Ecological Economics, Elsevier, vol. 46(3), pages 493-510, October.
    2. Heimlich, Ralph E. & Wiebe, Keith D. & Claassen, Roger & Gadsby, Dwight M. & House, Robert M., 1998. "Wetlands and Agriculture: Private Interests and Public Benefits," Agricultural Economics Reports 34043, United States Department of Agriculture, Economic Research Service.
    3. Encarna Esteban & Ariel Dinar, 2013. "Cooperative Management of Groundwater Resources in the Presence of Environmental Externalities," Environmental & Resource Economics, Springer;European Association of Environmental and Resource Economists, vol. 54(3), pages 443-469, March.
    4. Olof Byström, 2000. "The Replacement Value of Wetlands in Sweden," Environmental & Resource Economics, Springer;European Association of Environmental and Resource Economists, vol. 16(4), pages 347-362, August.
    5. Gren, Ing-Marie, 2008. "Adaptation and mitigation strategies for controlling stochastic water pollution: An application to the Baltic Sea," Ecological Economics, Elsevier, vol. 66(2-3), pages 337-347, June.
    6. Ingo Bräuer & Rainer Marggraf, 2004. "Valuation of Ecosystem Services Provided by Biodiversity Conservation: An Integrated Hydrological and Economic Model to Value the Enhanced Nitrogen Retention in Renaturated Streams," Working Papers 2004.54, Fondazione Eni Enrico Mattei.
    7. Hart, Rob, 2003. "Dynamic pollution control--time lags and optimal restoration of marine ecosystems," Ecological Economics, Elsevier, vol. 47(1), pages 79-93, November.
    8. Bystrom, Olof & Andersson, Hans & Gren, Ing-Marie, 2000. "Economic criteria for using wetlands as nitrogen sinks under uncertainty," Ecological Economics, Elsevier, vol. 35(1), pages 35-45, October.
    9. Paulsen, Sandra Silva, 2007. "Topics on the ecological economics of coastal zones," Department of Economics publications 1529, Swedish University of Agricultural Sciences, Department of Economics.
    10. Carlsson, Fredrik & Frykblom, Peter & Liljenstolpe, Carolina, 2003. "Valuing wetland attributes: an application of choice experiments," Ecological Economics, Elsevier, vol. 47(1), pages 95-103, November.
    11. Gren, Ing-Marie & Isacs, Lina, 2009. "Ecosystem services and regional development: An application to Sweden," Ecological Economics, Elsevier, vol. 68(10), pages 2549-2559, August.
    12. Gren, Ing-Marie & Kaitala, Veijo, 1997. "Supervising skill information and violation of environmental regulations," International Review of Law and Economics, Elsevier, vol. 17(3), pages 395-407, September.

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