Economics and Ecological Risk Assessment: Applications to Watershed Management

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ISBN: 9781566706391 | 1566706394
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Copyright: 12/28/2004

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With contributions from a wide array of economists, ecologists, and government agency professionals, Economics and Ecological Risk Assessment: Applications to Watershed Management provides a multidisciplinary approach to environmental decision-making at a watershed level. It introduces the fields of ecological risk assessment (ERA) and economic analysis and discusses their application to the practice of watershed management. The book presents a general framework for the integration of ERA and economic analysis to improve environmental management in a diversity of watersheds.Focusing on real-world decisions, this book describes studies conducted in six U.S. watersheds where both ecological and economic analyses were needed. Decision contexts for these studies include negotiations to satisfy Endangered Species Act requirements, natural resource damage assessment, Clean Water Act permitting, and community development planning. The success of ecological-economic integration in each study, and the contribution to decision making, is critically examined.

Introduction

(10)

Randall J.F. Bruins

Matthew T. Heberling

The Importance of Integrated, Watershed-Level Analysis

(2)

Goal and Genesis of This Book

(2)

Organization

(3)

Unique Contributions

(1)

References

(3)

PART I Background, Concepts, and Methods

Watershed Planning and Management in the United States

(32)

Richard A. Cole

Timothy D. Feather

Joy D. Muncy

Introduction

(1)

Brief History

(11)

Awakening of Concerns and Early Strategies (1864--1900)

(1)

The Federal Government Takes the Lead (1901--1931)

(2)

Consolidating Federal Control (1932--1960)

(2)

Democratization and Devolution (1960--1990)

(4)

Searching for Unifying Approaches (1990--Present)

(1)

Impediments to Objective Achievement

(1)

Integrated Resource Management

(1)

Adaptive Management

(1)

Ecosystem Management

(1)

Institutional Mechanisms

(1)

Watershed Planning and Management Today

(5)

Frameworks and Geography

(1)

Resource Development and Regulatory Objectives

(2)

Project and Program Planning Interactions

(1)

Common Elements in Watershed Planning Frameworks

(1)

Watershed Planning Problems

(9)

Fragmented Authority and Mission

(4)

Inadequate Decision Frameworks

(1)

Stakeholder Inclusion

(1)

Technical

(1)

Analytical

(1)

Motivation

(1)

Summary

(2)

References

(4)

Introduction to Ecological Risk Assessment in Watersheds

(14)

Randall J.F. Bruins

Matthew T. Heberling

Framework and Methods for Ecological Risk Assessment

(5)

Planning

(1)

Problem Formulation

(1)

Analysis

(1)

Risk Characterization

(1)

Critiques of Ecological Risk Assessment

(2)

Watershed Applications of Ecological Risk Assessment

(2)

References

(4)

A Framework for Risk Analysis for Ecological Restoration Projects in the U.S. Army Corps of Engineers

(50)

Introduction

(2)

Background and Definitions

(2)

Risk and Uncertainty

(1)

Risk in USACE Ecosystem Restoration Projects

(1)

Timing of Risk Analysis

(1)

Risk Analysis

(1)

Procedures: The Planning Process

(26)

Planning Step 1: Identifying Problems and Opportunities

(1)

Federal Objective

(1)

Planning Objectives (Outcomes) versus Design Objectives (Outputs)

(1)

Criteria and General Model for Ecosystem Performance

(2)

Planning Step 2: Inventory and Forecast

(1)

Introduction

(1)

Development of the Conceptual Model

(1)

What the Conceptual Model Provides

(1)

Conceptual Model Types

(1)

General Form and Simple Example of a Conceptual Model

(2)

Landscape Model

(2)

Ecosystem Model

(1)

Habitat or Subsystem Model

(1)

Integrated Ecosystem Services Model

(1)

Steps To Develop Conceptual Models

(1)

Planning Step 3: Plan Formulation

(1)

Introduction

(1)

Systems Context

(1)

Conceptual and Empirical Models

(1)

Landscape Variables

(2)

Examples --- Marsh Wren and Mississippi Delta Marsh HSI Models

(1)

Marsh Wren Example

(2)

Mississippi Delta Marshes Example

(2)

Other Tools --- HGM Models

(1)

Hydrogeomorphic Functions

(1)

Habitat Functions

(1)

Implications for Plan Formulation

(2)

Uncertainties Associated with the Models used for Management

(1)

Design Risk

(1)

Planning Step 4: Evaluation of Plans

(1)

Planning Step 5: Comparison of Alternatives

(1)

Planning Step 6: Plan Selection

(1)

Conclusion

(1)

Acknowledgments

(1)

References

(5)

Appendix 4-A: Example Application of Risk Analysis to a USACE Ecological Restoration Project

(1)

Heida L. Diefenderfer

Ronald M. Thom

Keith Hofseth

Project Example Step 1 --- Problems and Opportunities: Setting Planning Objectives

(1)

Project Example Step 2 --- Inventory and Forecast

(1)

Conceptual Model

(1)

Existing Conditions Analysis

(1)

Project Example Step 3 --- Plan Formulation

(1)

What Could Go Wrong?

(1)

Potential Sources of Errors in the Analysis

(1)

Project Example Step 4 --- Evaluation of Alternative Plans

(7)

Initial Appraisal of the Alternatives

(1)

Alternative 1: Removal of Dike and Fill

(3)

Alternative 2: Removal of Dike and Fill with Planting of Desirable Species and Grazing Prevention

101

(1)

Alternative 3: Removal of Fill Only with Planting of Desirable Species, Grazing Prevention, and Modification of the Tide Gate to Regulate Water Depths

101

(1)

Alternative 4: Removal of Fill, Planting of Desirable Species, Grazing Prevention, and Partial Removal of the Dike

102

(1)

Alternative 5: Removal of Fill, Planting of Desirable Species, Grazing Prevention, and Removal of the Dike in Segments over Time

102

(1)

Qualifying Plans for Further Consideration

103

(1)

Project Example Step 5 --- Plan Comparison

104

(1)

Project Example Step 6 --- Plan Selection

104

(1)

References

105

(2)

Introduction to Economic Analysis in Watersheds

107

(20)

Welfare Economics

108

(2)

Economic Value

110

(3)

Cost-Benefit Analysis

113

(1)

Complementary Analyses

114

(1)

Game Theory

115

(1)

Ecological Economics

116

(1)

Applications of Ecological Economics

117

(1)

Conclusion

118

(1)

Acknowledgments

118

(1)

References

119

(4)

Appendix 5-A: Discussion of Stated Preference Methods Used in Three Case Studies

123

(4)

Matthew T. Heberling

Randall J.F. Bruins

Ecological and Economic Analysis for Water Quality Standards

127

(16)

Water Quality Standards and Ecological Risk Assessment

128

(2)

Water Quality Standards and Economic Analysis

130

(2)

The Need for Integration

132

(1)

References

133

(4)

Appendix 6-A: Using Multimetric Indices to Define the Integrity of Stream Biological Assemblages and Instream Habitat

137

(6)

Randall J.F. Bruins

Matthew T. Heberling

Decision-Making and Uncertainty in Ambient Water Quality Management

143

(22)

Leonard A. Shabman

Introduction

143

(2)

Analytical Uncertainty and Water Quality Management

145

(5)

Adaptive Implementation and the Clean Water Act

150

(1)

Water Quality Standards, Economics, and Adaptive Implementation

151

(7)

Water Quality Standards: Establishment and Assignment to Water Bodies

151

(1)

Economics and the Assignment of Water Quality Standards

152

(6)

Decision-Making Challenges to Adaptive Implementation

158

(3)

Conclusion

161

(1)

Acknowledgments

161

(1)

References

161

(4)

Scaling Environmental Restoration to Offset Injury Using Habitat Equivalency Analysis

165

(20)

P. David Allen II

David J. Chapman

Diana Lane

Introduction

166

(8)

Environmental Degradation Is Often Addressed via Restoration

166

(2)

Techniques for Scaling Restoration to Balance Environmental Impacts

168

(3)

Examples of Environmental Impacts and Restoration Opportunities Scaled under Federal Programs

171

(1)

Methods for Restoration Scaling

172

(2)

Introduction to Habitat Equivalency Analysis

174

(4)

Background

174

(1)

Advantages of HEA

174

(2)

Limitations of HEA

176

(1)

Selecting a Metric

176

(1)

HEA in NRDAs and in the Courts

177

(1)

How the HEA Technique Works

178

(4)

Quantifying Ecosystem Services

178

(2)

Quantifying Injury

180

(1)

Quantifying Restoration

181

(1)

Scaling Restoration to Match Injury

182

(1)

Discussion

182

(1)

References

183

(2)

Conceptual Approach for Integrated Watershed Management

185

(42)

Existing Frameworks for Watershed Management

186

(1)

Guiding Considerations for an Integrated Management Process

186

(4)

Diagramming an Integrated Management Process

190

(9)

Assessment Planning

191

(1)

Problem Formulation

192

(2)

Analysis and Characterization of Baseline Risk

194

(1)

Formulation of Alternatives

195

(1)

Consultation with Extended Peer Community

196

(1)

Analysis and Characterization of Alternatives

196

(1)

Comparison of Alternatives

197

(1)

Decision

198

(1)

Adaptive Implementation

198

(1)

Linkage to Regular Management Cycles

198

(1)

Examples of Analysis and Characterization Followed by Comparison of Alternatives

199

(3)

Example 1: Cost--Benefit Analysis of All Changes that Can Be Monetized, with Qualitative Consideration of Other Changes

199

(1)

Example 2: Use of Stated Preference Techniques to Effect Integration of Ecological, Economic, and Other Factors

200

(1)

Example 3: Use of Linked Ecological and Economic Models to Dynamically Simulate System Feedbacks and Iteratively Revise Management Alternatives

201

(1)

Conclusion

202

(2)

References

204

(3)

Appendix 9-A: Discussion of Existing Frameworks that Have Been Applied To Watershed Management

207

(1)

Situational Monitoring or Assessment Frameworks

207

(1)

Regular Monitoring or Assessment Frameworks

208

(1)

Situational Planning and Management Frameworks

208

(4)

Regular Planning and Management Frameworks

212

(2)

References

214

(3)

Appendix 9-B: Sociocultural Assessment Methods

217

(1)

Randall J.F. Bruins

Matthew T. Heberling

Tara A. Maddock

Need for Sociocultural Assessment

218

(1)

Role of Sociocultural Assessment

219

(1)

Analytic Methods: Social Science

220

(1)

Deliberative Methods: Public Participation

221

(1)

Sociocultural Assessment in Colorado Springs

222

(2)

References

224

(3)

PART II Applications

Evaluating Development Alternatives for a High-Quality Stream Threatened by Urbanization: Big Darby Creek Watershed

227

(26)

O. Homer Erekson

Orie L. Loucks

Steven R. Elliott

Donna S. McCollum

Marc Smith

Randall J.F. Bruins

Watershed Description

228

(2)

Ecological Risk Assessment

230

(3)

Planning

230

(1)

Problem Formulation

231

(1)

Current Status of Analysis and Risk Characterization

232

(1)

Economic Analysis

233

(14)

Research Approach

234

(2)

Communicating the Effects of Urban Development on Ecological Endpoints

236

(1)

Increased Nutrients, Leading to Change in Fish Species

236

(1)

Increased Sediment, Leading to a Decreased Insect Food Base in Streams

236

(1)

Toxic Substances, Changing the Insect Food Base, Fish Species, and Causing Disease

237

(1)

Changes in Runoff and Flooding Patterns, Decreasing Habitat Quality and Causing a Shift to Fewer, More-Tolerant Species

237

(1)

Communicating the Effects of Urban Development on Economic and Social Services

237

(1)

Land-Use Scenarios for Framing Expression of Preference and Value in the Stream

238

(2)

High-Density Development

240

(1)

Low-Density Ranchette Development

240

(2)

Low-Density Cluster Development

242

(1)

Agriculture Land Use

243

(1)

Eliciting Monetary Valuation

244

(1)

Linking Stream Integrity to the Development Scenarios

245

(1)

Linking Stream Integrity and Willingness to Pay

246

(1)

Discussion

247

(3)

Acknowledgments

250

(1)

References

250

(3)

Valuing Biodiversity in a Rural Valley: Clinch and Powell River Watershed

253

(38)

Watershed Description

254

(2)

Ecological Risk Assessment

256

(11)

Planning

256

(1)

Problem Formulation

257

(1)

Physical Habitat Alteration Hypotheses

258

(1)

Water Quality Hypothesis

259

(1)

Risk Analysis

260

(1)

Methods

260

(1)

Copper Creek Pilot Study

261

(1)

Clinch Valley

262

(1)

Effects of Land Use on Habitat Quality

262

(1)

Relationships between Land Use and Biological Measures of Effect

262

(1)

Relationships between Habitat Quality and Biological Measures of Effect

263

(1)

Cumulative Source Index for Each Site

263

(1)

Potential Effects of Toxic Chemicals

264

(1)

Risk Characterization

265

(1)

Ecological Risks

266

(1)

Uncertainties

266

(1)

Management Recommendations

267

(1)

Economic Analysis

267

(10)

Methods for Valuing Biodiversity and Environmental Quality

268

(1)

Conjoint Analysis versus Contingent Valuation

268

(2)

Choice Modeling Framework

270

(1)

Integrating the Choice Model with the Ecological Risk Assessment

270

(1)

Choice Model Design

270

(3)

Survey Implementation

273

(1)

Results of Economic Analysis

274

(1)

Results of Choice Model Estimation

274

(2)

Calculation of Part-Worths

276

(1)

Calculating the Value of a Biodiversity Management Program

277

(1)

Discussion

277

(4)

Consultation with Extended Peer Community

278

(1)

Baseline Risk Assessment

278

(1)

Formulation, Characterization, and Comparison of Alternatives

279

(2)

Adaptive Implementation

281

(1)

Acknowledgments

281

(1)

References

282

(3)

Appendix 11-A: Random Utility Model

285

(2)

Appendix 11-B: Excerpt from Survey Administered by the University of Tennessee: Explanation of Hypothetical Agricultural Policies and their Potential Impacts

287

(1)

Steve Stewart

James A. Kahn

Amy Wolfe

Robert V. O'Neill

Victor B. Serveiss

Randall J.F. Bruins

Matthew T. Heberling

Background Information on the Clinch River Valley

287

(1)

Evaluating Changes in Agriculture to Protect the Environment

288

(3)

Seeking Solutions for Interstate Conflict over Water and Endangered Species: Platte River Watershed

291

(50)

Watershed Description

292

(7)

Watershed Resources and Impacts of Development

292

(4)

Watershed Management Efforts

296

(3)

Ecological Risk Assessment

299

(7)

Planning

299

(1)

Problem Formulation

300

(2)

Analysis

302

(1)

Riparian Vegetation Successional Stage, Areal Extent, and Dispersion

302

(1)

Core Grassland Breeding Bird Diversity and Abundance

302

(2)

Sandhill Crane Abundance and Distribution

304

(2)

Risk Characterization

306

(1)

Economic Analysis

306

(22)

Model I: Determining Who Should Provide and Pay for Environmental Water

308

(1)

Data Sources

309

(1)

Model I Results

310

(2)

Model II: Determining How Much Water to Allocate to Environmental Use

312

(1)

Household Survey of Environmental Preferences

312

(1)

Level of Knowledge

313

(1)

Utility of Policy Attributes

313

(3)

Bargaining Theory and Model Solutions

316

(1)

Utilitarian Solution

317

(1)

Nash Solution

318

(1)

Egalitarian Solution

318

(1)

Survey Results

318

(1)

Demographics

319

(1)

Attitudes Regarding Environmental Policy

319

(1)

Beliefs Regarding Central Platte River Environmental Problems

320

(1)

Level of Support for Policy Attributes

320

(2)

Model II Results

322

(1)

Weights for Policy Attributes

322

(1)

Policy Preferences

322

(2)

Bargaining Solutions

324

(2)

Potential Impact of Education on Policy Preferences

326

(1)

Policy Implications of Model II

327

(1)

Discussion

328

(5)

Assessment Planning and Problem Formulation

329

(1)

Formulating Alternatives, and Baseline Ecological Risk Assessment

329

(1)

Analysis and Characterization of Alternatives, and Comparison of Alternatives

330

(2)

Consultation with Extended Peer Community

332

(1)

Decisions and Adaptive Implementation

332

(1)

Acknowledgments

333

(1)

References

333

(4)

Appendix 12-A: Summary of Survey Response Information Used to Calculate Utility of Environmental Management Policy Options for the Central Platte River Floodplain

337

(4)

Raymond J. Supalla

Osei Yeboah

Bettina Klaus

John C. Allen

Dennis E. Jelinski

Victor B. Serveiss

Randall J.F. Bruins

An Ecological Economic Model for Integrated Scenario Analysis: Anticipating Change in the Hudson River Watershed

341

(30)

Jon D. Erickson

Caroline Hermans

John Gowdy

Karin Limburg

Audra Nowosielski

John Polimeni

Karen Stainbrook

The Tyranny of Small Decisions

341

(2)

Watershed Communities and the Dutchess County Development Gradient

343

(2)

Economic Analysis, Land Use, and Ecosystem Integrity: An Integrated Assessment

345

(15)

Socioeconomic Submodel: Geo-Referenced Social Accounting Matrix

346

(5)

Land Use Submodel: Probabilistic Geographical Information System

351

(2)

Ecosystem Health Submodel: Spatially Correlated Indices of Biotic Integrity

353

(7)

Scenario Analysis

360

(1)

Multicriteria Decision Aid

361

(4)

Discussion

365

(2)

Acknowledgments

367

(1)

References

367

(4)

Determining Economic Tradeoffs among Ecological Services: Planning for Ecological Restoration in the Lower Fox River and Green Bay

371

(30)

Jeffery K. Lazo

P. David Allen II

Richard C. Bishop

Douglas Beltman

Robert D. Rowe

Background

372

(6)

The Lower Fox River and Green Bay Watershed

373

(1)

The PCB Problem in Green Bay

373

(2)

Natural Resource Damage Assessment

375

(2)

The TVE Approach

377

(1)

Determining Injuries

378

(2)

Determining Restoration Opportunities

380

(2)

Cleanup of PCBs from the Environment

381

(1)

Wetland and Related Habitat Restoration

382

(1)

Nonpoint-Source Runoff Control

382

(1)

Enhancement of Parks

382

(1)

Scaling Restoration Gains to PCB-Caused Losses

382

(8)

Economics of Trade-offs of Resource Services

383

(2)

Remediation Scenarios

385

(1)

TVE Survey

386

(2)

TVE Results: Awareness and Preferences

388

(2)

Incorporating the Results of the TVE into a Comprehensive Position: The Restoration and Compensation Determination Plan

390

(6)

Relating Realistic Restoration Projects to TVE-Scaled Restoration Programs

391

(1)

Estimating Costs of the Selected Restoration Alternative

392

(1)

Combining Restoration Projects in the Preferred Alternative

393

(1)

Comparing Restoration Costs to Willingness to Pay

394

(1)

Incorporating Recreational Fishing Damages and Restoration Costs into a Comprehensive Position

395

(1)

Discussion

396

(1)

Notes and Acknowledgments

397

(1)

References

398

(3)

The Habitat-Based Replacement Cost Method: Building on Habitat Equivalency Analysis to Inform Regulatory or Permit Decisions under the Clean Water Act

401

(22)

P. David Allen II

Robert Raucher

Elizabeth Strange

David Mills

Douglas Beltman

Introduction

402

(1)

Conceptual Basis and Rationale for the HRC Method

402

(2)

Overview of the HRC Method

404

(5)

Injury Quantification

405

(1)

Identify Limiting Habitat of Species Lost

405

(1)

Identify Suitable Habitat Restoration Alternatives

406

(1)

Consolidate, Categorize, and Prioritize Restoration Alternatives

406

(1)

Quantify Productive Capacity of Habitats

406

(1)

Scale Preferred Restoration Alternatives

406

(1)

Develop Unit Cost Estimates

407

(1)

Develop Total Cost Estimate for Offsetting Total Losses

407

(1)

Strengths, Limitations, and Uncertainties of the HRC Method

407

(2)

Case Study: HRC Analysis Applied to Clean Water Act Permitting

409

(6)

Permitting Context and Rationale for HRC Analysis

409

(2)

Location and Description of Case Study Facility

411

(1)

Use of the HRC Method in Permitting Process

412

(3)

Discussion

415

(3)

Relation of the HRC Method to the Conceptual Approach

415

(1)

Efficacy of the HRC Method

416

(1)

Costs versus Values

417

(1)

Acknowledgments

418

(1)

References

419

(4)

PART III Conclusions

Conclusions

423

(16)

Randall J.F. Bruins

Matthew T. Heberling

Overview of Case Studies

424

(3)

Ecological Threats

424

(2)

Proposed Management Strategies

426

(1)

Measurement of Preferences

426

(1)

Prospects for Success

427

(1)

Observations

427

(9)

Achieving Ecological--Economic Integration Requires a Coherent Strategy

428

(1)

Integration Requires Assessment Planning and Problem Formulation to be Interdisciplinary

429

(1)

Research is Needed on the Development and Use of Integrated Conceptual Models

430

(1)

Clearly Formulated Management Alternatives Facilitate Integrated Analysis

430

(2)

Careful Effort is Required to Relate Ecological Endpoints to Economic Value

432

(2)

The Appropriate Tools for Analysis and Comparison of Alternatives Depend on the Decision Context

434

(1)

Research is Needed on Transferring the Value of Ecological Endpoint Changes

435

(1)

The Role of Ecological Risk Information in the Measurement of Preferences Requires Further Research

435

(1)

Final Word

436

(1)

References

437

(2)

Index

439

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Economics and Ecological Risk Assessment: Applications to Watershed Management

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Economics and Ecological Risk Assessment: Applications to Watershed Management

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