Identifying Real Avoided Costs to Key Stakeholders: Beavers and Farmers

Mark BuckleyECONorthwest

buckley@econw.comEcosystem Services Workshop

Portland, OR July 8, 2013

Influential Valuation• How can ecosystem service valuation most

efficiently inform decision-making, influence outcomes?

• Tradeoffs facing stakeholders who influence outcomes– Financing– Political support– Private property management– Individual behaviors

Research questions

Research Questions:• What effects would

beaver restoration have on a watershed?

• What are the socioeconomic demands for these effects?

• How much are these effects worth to society?

Sorenson 2011

Escalante Basin background

Source: The Nature Conservancy, University of Washington, University of Southern Mississippi. 2010. ClimateWizard. Retrieved on November 8, 2010 from http://www.climatewizard.org/. High emissions scenario (IPCC A2), and 60 percent of models project a greater increase. Models showing greater increase expand the size of the darkest area.

Precipitation and volume

Average Monthly Precipitation and Snowfall in Escalante (1901-2005)

Water Volume Flowing Through Basin

Water accumulates in the winter

Flows peak in late spring

Storage at Wide Hollow Reservoir

Surface water

Beaver impacts

Habitat and stream lengths suggest a potential for 1300 colonies in the basin, with 5200-7800 beavers

Beaver density

Dam Density

Colony Density

Economic benefits of ecosystem services

Impact on water quantity

Beaver activity could increase stream flow and volume in the Basin

Beaver activity could also flatten the hydrograph, increasing the volume of water available during dry months

Water quantity value

Value of Alternative Water Sources

Impact on sediment and water quality

Potential Sediment Retention Provided by Beaver

• Water Temperature• Pollutants (nitrogen, phosphates, fecal coliform, heavy

metals)

Impact on land cover

Average Impact of Beaver on Land Cover

Total Potential Impact in Basin (Acres)

Beaver activity could increase the total area of riparian habitat, wetlands, and aquatic habitat in the Basin

Quantified Total Annual Values

Many other benefits identifiable but specific incremental value difficult to isolate

Valuation Implications• Effective valuation means alignment with real

scarcities• Natural capital can provide equivalent benefits

to built capital• Avoided costs can be compelling and the most

appropriate measure of welfare tradeoffs

Escalante Report can be downloaded at www.econw.com

Support from the Grand Canyon Trust and Walton Foundation

Mark Buckley – buckley@econw.com