Evaluating the role of coastal habitats and sea-level rise in hurricane risk mitigation: An ecological economic assessment method and application to a business decision.

Businesses may be missing opportunities to account for ecosystem services in their decisions, because they do not have methods to quantify and value ecosystem services. We developed a method to quantify and value coastal protection and other ecosystem services in the context of a cost-benefit analysis of hurricane risk mitigation options for a business. We first analyze linked biophysical and economic models to examine the potential protection provided by marshes. We then applied this method to The Dow Chemical Company's Freeport, Texas facility to evaluate natural (marshes), built (levee), and hybrid (marshes and a levee designed for marshes) defenses against a 100-y hurricane. Model analysis shows that future sea-level rise decreases marsh area, increases flood heights, and increases the required levee height (12%) and cost (8%). In this context, marshes do not provide sufficient protection to the facility, located 12 km inland, to warrant a change in levee design for a 100-y hurricane. Marshes do provide some protection near shore and under smaller storm conditions, which may help maintain the coastline and levee performance in the face of sea-level rise. In sum, the net present value to the business of built defenses ($217 million [2010 US$]) is greater than natural defenses ($15 million [2010 US$]) and similar to the hybrid defense scenario ($229 million [2010 US$]). Examination of a sample of public benefits from the marshes shows they provide at least $117 million (2010 US$) in coastal protection, recreational value, and C sequestration to the public, while supporting 12 fisheries and more than 300 wildlife species. This study provides information on where natural defenses may be effective and a replicable approach that businesses can use to incorporate private, as well as public, ecosystem service values into hurricane risk management at other sites.

Embedding ecosystem services in coastal planning leads to better outcomes for people and nature.

Recent calls for ocean planning envision informed management of social and ecological systems to sustain delivery of ecosystem services to people. However, until now, no coastal and marine planning process has applied an ecosystem-services framework to understand how human activities affect the flow of benefits, to create scenarios, and to design a management plan. We developed models that quantify services provided by corals, mangroves, and seagrasses. We used these models within an extensive engagement process to design a national spatial plan for Belize's coastal zone. Through iteration of modeling and stakeholder engagement, we developed a preferred plan, currently under formal consideration by the Belizean government. Our results suggest that the preferred plan will lead to greater returns from coastal protection and tourism than outcomes from scenarios oriented toward achieving either conservation or development goals. The plan will also reduce impacts to coastal habitat and increase revenues from lobster fishing relative to current management. By accounting for spatial variation in the impacts of coastal and ocean activities on benefits that ecosystems provide to people, our models allowed stakeholders and policymakers to refine zones of human use. The final version of the preferred plan improved expected coastal protection by >25% and more than doubled the revenue from fishing, compared with earlier versions based on stakeholder preferences alone. Including outcomes in terms of ecosystem-service supply and value allowed for explicit consideration of multiple benefits from oceans and coasts that typically are evaluated separately in management decisions.