Restoration Scaling: Ecology and Economics
Transcript of Restoration Scaling: Ecology and Economics
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Restoration Scaling:Ecology and Economics
State Water Resources Board Training Session Regulation and Impact Assessment of Once-Through Cooling Systems of California Coastal Power Plants
August 21-22, 2006, Moss Landing, CA
Elizabeth M. Strange, PhDStratus Consulting
Washington, DC
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Concepts of Scaling and Equivalence
Scaling matches losses and gains to determine extent of compensation or restorationEcological equivalence
Resource equivalency analysis (REA)abundance equivalence (e.g., 1,000 individuals lost per year requires 1,000 individuals produced per year)biomass equivalence (e.g., production foregone of the individuals lost requires equivalent production gained)
Habitat equivalency analysis (HEA) type, quality, and extent of habitat lost requires equivalent habitat gained
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Value Equivalence
Value equivalence economic estimate of total value of loss matched with habitat-based and/or non habitat-based actions that the public values equivalently
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Restoration
Habitat-basede.g., tidal wetlands, intertidal mudflats, and sloughs
Non-habitat basede.g., purchase of commercial fishing capacity (fishing licenses)
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Habitat Restoration Issues
Uses of habitat restoration
Provides a supplement to technology implementation
Informs decision-making – costs of restoration compared to costs of preventive technologies
Use of restoration in either context raises key ecological and economic issues
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Ecological Issues
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What restoration options are relevant?
Are the species and life stages of interest habitat-limited?
What habitat is limiting?
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How much of the relevant restoration is needed to offset I&E losses?
Scaling is an objective method for determining how muchScaling matches losses and gains to determine extent of restoration
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Calculating scale of implementation
Need common metric for losses and gains
Need to account for losses and gains through time
Need to determine relationship between habitat and production of organisms
E.g., recruitment or production per year
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Calculating scale of implementation (cont.)
Need to account for restoration trajectoryTime lag from beginning of restoration action until benefits begin to accrue Maximum life span of restoration benefitsPoint of maximum benefits
Trajectory will differ for differentSpeciesHabitat structures and functions
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Mean Density of Fish in Salt Marshes Created on Dredged Sediment
Galveston Bay, Texas
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1 5 9
Ages of Marshes (yrs)
% o
f Nat
ural
Sources: Minello 1997; Minello and Webb 1997.
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Mean Density of Blue Crabs in Marshes Created on Dredged Sediment
Galveston Bay, Texas
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1 5 9
Ages of Marshes (yrs)
% o
f Nat
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Sources: Minello 1997; Minello and Webb 1997.
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Macrofaunal Density of MarshesPlanted on Dredged Spoil
North Carolina
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2 15
Ages of Marshes (yrs)
% o
f Nat
ural
Sources: Cammen 1976; Sacco et al. 1994.
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Acre s of R e s tora tion R e quire d
Se rvice
R e cov e ry C urv e Sha pe
Line ar C o nve x C o ncav e
So il S ta bi l iza tion (5 ye ars ) 3 32 3 25 3 39
So il C he mist ry (2 5 ye a rs ) 4 45 4 02 5 00
So il S ta bi l iza tion (5 ye ars ) 3 32 3 25 3 39
So il C he mist ry (2 5 ye a rs ) 4 45 4 02 5 00
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Calculating scale of implementationNot necessarily 1:1
If assume 1:1 and ratio is 2:1, will underestimate habitat needed If assume 1:1 and ratio is 0.5:1, will overestimate habitat needed
A scientific questionUse of expert panels to address data needs and achieve scientific consensus
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Uncertainty
Develop upper and lower bound estimates of losses and gainsIf sufficient data are available, develop confidence intervalsAlternatively, use multiple methods to obtain high and low estimates
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Economic Issues
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Cost-benefit analysis
Concept of value
Value is based on human preferences
Individual value: How much an individual is willing to give up or exchange for the loss of a good or service?
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Value is composed of use and nonuse values
Use valuesDirect uses – consumptive and nonconsumptive, e.g., fish harvestingIndirect uses – support or protect direct uses, e.g., forage fish
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Value is composed of use and nonuse values (cont.)
Nonuse valuesExistence value – knowledge that resource is available and protectedBequest value – availability for future use
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Valuation
Use values are easier to measure than nonuse values – but cannot omit nonuse values
Use and nonuse values are independent and additive
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Nonuse values
Nonuse values seldom considered in 316(b) studies
Methods are available to quantify and monetize nonuse valuesMethods are controversial and can be expensiveBut valuation studies are incomplete without inclusion of nonuse values
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Nonuse values (cont.)
Most I&E organisms lack direct use value
Use value can only be estimated indirectly, e.g., contribution of forage fish to yield of fish with market valueValuation is incomplete without consideration of nonuse values; can lead to significant underestimate of total value
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Nonuse values (cont.)
EPA 316(b) focus groups indicated nonuse values may be significant
Both users and nonusers hold values for reducing I&EMain motives for reducing I&E are existence and bequest (nonuse) valuesAll fish species (including forage fish) play an important role in affected ecosystems and therefore have significant values
(Report available at: http://www.epa.gov/waterscience/316b/)
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Cost and value
Cost indicates value only under very limited conditions
When cost is voluntarily incurred, value is at least as much as cost
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Cost-cost analysis
Cost of restoration compared to cost of technology
Can inform decision-making without knowing values
Requires full accounting of restoration benefits
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Evaluating technology costs – Brayton Point
Are the costs of technology “wholly disproportionate to the benefits?”
Congress and the courts have recognized that even unquantifiable natural resource values may be significant to the public and should be considered
If values are ignored or perceived to be too low, environmental resources may be depleted
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Evaluating Technology Costs – Brayton Point
EPA R1 used habitat-based replacement cost (HRC) analysis to place technology costs in perspective HRC combines HEA and REA –
habitat need to produce organisms lost (based on maximum)
Restoration costs can be estimated more easily and reliably than resource valuesHRC estimates the cost to restore habitat to a condition sufficient to naturally produce the organisms lost in an effective, ecologically sound manner
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Restoration costs
Land acquisition or conservation easementPhysical intervention to conduct restorationPlanning, coordinating, and communicatingManagement of restoration actionsMaintenance Monitoring of effectivenessAdaptive management
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Evaluating Technology Costs – Brayton Point
EPA R1 considered the cost of restoring organisms lost compared to cost of technology to avoid losses
Restoration costs - $28M per year, Closed Cycle Cooling – $41M, with cost to ratepayer of $0.03 to $0.13 per month
CC cooling was permit requirement
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Conclusions
Scaling is an objective way to quantify restoration needed to offset losses
Objective advantages of scaling depend on addressing underlying ecological and economic issues associated with both the implementation of scaling and the application of scaling results
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Conclusions (cont.)
Use of expert panels help address data needs and achieve scientific consensusUse of multiple methods help account for uncertaintyGoal is to develop an estimate of the scale of restoration that is
Ecologically meaningfulScientifically soundConsensus-building