Valuing water quality in the United States using a national dataset on property values.

High-quality water resources provide a wide range of benefits, but the value of water quality is often not fully represented in environmental policy decisions, due in large part to an absence of water quality valuation estimates at large, policy relevant scales. Using data on property values with nationwide coverage across the contiguous United States, we estimate the benefits of lake water quality as measured through capitalization in housing markets. We find compelling evidence that homeowners place a premium on improved water quality. This premium is largest for lakefront property and decays with distance from the waterbody. In aggregate, we estimate that 10% improvement of water quality for the contiguous United States has a value of $6 to 9 billion to property owners. This study provides credible evidence for policymakers to incorporate lake water quality value estimates in environmental decision-making.

Valuing improvements in the ecological integrity of local and regional waters using the biological condition gradient.

Scientific knowledge related to quantifying the monetized benefits for landscape-wide water quality improvements does not meet current regulatory and benefit-cost analysis needs in the United States. In this study we addressed this knowledge gap by incorporating the Biological Condition Gradient (BCG) as a water quality metric into a stated preference survey capable of estimating the total economic value (use and nonuse) for aquatic ecosystem improvements. The BCG is grounded in ecological principles and generalizable and transferable across space. Moreover, as the BCG translates available data on biological condition into a score on a 6-point scale, it provides a simple metric that can be readily communicated to the public. We applied our BCG-based survey instrument to households across the Upper Mississippi, Ohio, and Tennessee river basins and report values for a range of potential improvements that vary by location, spatial scale, and the scope of the water quality change. We found that people are willing to pay twice as much for an improvement policy that targets their home watershed (defined as a four-digit hydrologic unit) versus a more distant one. We also found that extending the spatial scale of a local policy beyond the home watershed does not generate additional benefits to the household. Finally, our results suggest that nonuse sources of value (e.g., bequest value, intrinsic aesthetic value) are an important component of overall benefits.

Integrated assessment modeling reveals near-channel management as cost-effective to improve water quality in agricultural watersheds.

Despite decades of policy that strives to reduce nutrient and sediment export from agricultural fields, surface water quality in intensively managed agricultural landscapes remains highly degraded. Recent analyses show that current conservation efforts are not sufficient to reverse widespread water degradation in Midwestern agricultural systems. Intensifying row crop agriculture and increasing climate pressure require a more integrated approach to water quality management that addresses diverse sources of nutrients and sediment and off-field mitigation actions. We used multiobjective optimization analysis and integrated three biophysical models to evaluate the cost-effectiveness of alternative portfolios of watershed management practices at achieving nitrate and suspended sediment reduction goals in an agricultural basin of the Upper Midwestern United States. Integrating watershed-scale models enabled the inclusion of near-channel management alongside more typical field management and thus directly the comparison of cost-effectiveness across portfolios. The optimization analysis revealed that fluvial wetlands (i.e., wide, slow-flowing, vegetated water bodies within the riverine corridor) are the single-most cost-effective management action to reduce both nitrate and sediment loads and will be essential for meeting moderate to aggressive water quality targets. Although highly cost-effective, wetland construction was costly compared to other practices, and it was not selected in portfolios at low investment levels. Wetland performance was sensitive to placement, emphasizing the importance of watershed scale planning to realize potential benefits of wetland restorations. We conclude that extensive interagency cooperation and coordination at a watershed scale is required to achieve substantial, economically viable improvements in water quality under intensive row crop agricultural production.

Conservation cobenefits from air pollution regulation: Evidence from birds.

Massive wildlife losses over the past 50 y have brought new urgency to identifying both the drivers of population decline and potential solutions. We provide large-scale evidence that air pollution, specifically ozone, is associated with declines in bird abundance in the United States. We show that an air pollution regulation limiting ozone precursors emissions has delivered substantial benefits to bird conservation. Our estimates imply that air quality improvements over the past 4 decades have stemmed the decline in bird populations, averting the loss of 1.5 billion birds, ∼20% of current totals. Our results highlight that in addition to protecting human health, air pollution regulations have previously unrecognized and unquantified conservation cobenefits.

The low but uncertain measured benefits of US water quality policy.

US investment to decrease pollution in rivers, lakes, and other surface waters has exceeded $1.9 trillion since 1960, and has also exceeded the cost of most other US environmental initiatives. These investments come both from the 1972 Clean Water Act and the largely voluntary efforts to control pollution from agriculture and urban runoff. This paper reviews the methods and conclusions of about 20 recent evaluations of these policies. Surprisingly, most analyses estimate that these policies' benefits are much smaller than their costs; the benefit-cost ratio from the median study is 0.37. However, existing evidence is limited and undercounts many types of benefits. We conclude that it is unclear whether many of these regulations truly fail a benefit-cost test or whether existing evidence understates their net benefits; we also describe specific questions that when answered would help eliminate this uncertainty.

Global solutions to regional problems: Collecting global expertise to address the problem of harmful cyanobacterial blooms. A Lake Erie case study.

In early August 2014, the municipality of Toledo, OH (USA) issued a 'do not drink' advisory on their water supply directly affecting over 400,000 residential customers and hundreds of businesses (Wilson, 2014). This order was attributable to levels of microcystin, a potent liver toxin, which rose to 2.5µgL-1 in finished drinking water. The Toledo crisis afforded an opportunity to bring together scientists from around the world to share ideas regarding factors that contribute to bloom formation and toxigenicity, bloom and toxin detection as well as prevention and remediation of bloom events. These discussions took place at an NSF- and NOAA-sponsored workshop at Bowling Green State University on April 13 and 14, 2015. In all, more than 100 attendees from six countries and 15 US states gathered together to share their perspectives. The purpose of this review is to present the consensus summary of these issues that emerged from discussions at the Workshop. As additional reports in this special issue provide detailed reviews on many major CHAB species, this paper focuses on the general themes common to all blooms, such as bloom detection, modeling, nutrient loading, and strategies to reduce nutrients.

Cost-effective targeting of conservation investments to reduce the northern Gulf of Mexico hypoxic zone.

A seasonally occurring summer hypoxic (low oxygen) zone in the northern Gulf of Mexico is the second largest in the world. Reductions in nutrients from agricultural cropland in its watershed are needed to reduce the hypoxic zone size to the national policy goal of 5,000 km(2) (as a 5-y running average) set by the national Gulf of Mexico Task Force's Action Plan. We develop an integrated assessment model linking the water quality effects of cropland conservation investment decisions on the more than 550 agricultural subwatersheds that deliver nutrients into the Gulf with a hypoxic zone model. We use this integrated assessment model to identify the most cost-effective subwatersheds to target for cropland conservation investments. We consider targeting of the location (which subwatersheds to treat) and the extent of conservation investment to undertake (how much cropland within a subwatershed to treat). We use process models to simulate the dynamics of the effects of cropland conservation investments on nutrient delivery to the Gulf and use an evolutionary algorithm to solve the optimization problem. Model results suggest that by targeting cropland conservation investments to the most cost-effective location and extent of coverage, the Action Plan goal of 5,000 km(2) can be achieved at a cost of $2.7 billion annually. A large set of cost-hypoxia tradeoffs is developed, ranging from the baseline to the nontargeted adoption of the most aggressive cropland conservation investments in all subwatersheds (estimated to reduce the hypoxic zone to less than 3,000 km(2) at a cost of $5.6 billion annually).

Potential water quality changes due to corn expansion in the Upper Mississippi River Basin.

While biofuels may yield renewable fuel benefits, there could be downsides in terms of water quality and other environmental stressors, particularly if corn is relied upon exclusively as the feedstock. The consequences of increased corn production will depend importantly on where (and how) the additional corn is grown, which, in turn, depends on the characteristics of land and its associated profitability. Previous work has relied on rules of thumb for allocating land to increased acreage based on historical land use or other heuristics. Here, we advance our understanding of these phenomena by describing a modeling system that links an economics-driven land use model with a watershed-based water quality model for the Upper Mississippi River Basin (UMRB). This modeling system is used to assess the water quality changes due to increased corn acreage, which is associated with higher relative corn prices. We focus on six scenarios based on six realistic pairs of corn and soybean prices which correspond to a scale of decreasing soybean to corn price ratio. These price-driven land use changes provide estimates of the water quality effects that current biofuel policies may have in the UMRB. Our analysis can help evaluate the costs and environmental consequences associated with implementation strategies for the biofuel mandates of the new energy bill. The amounts of total N and P delivered to the outlet of the UMRB (located at Grafton, Illinois, USA) rise as corn production becomes more intensive in the region. Our results indicate that a 14.4% in corn acreage in the watershed due to corn intensification in the most economically profitable locations would result in a 5.4% increase in total nitrogen loads and in a 4.1% increase in total phosphorus loads at Grafton. Our most aggressive scenario, driven by high but not out of reach crop prices, results in about a 57% increase in corn acreage with a corresponding 18.5% increase in N and 12% increase in P. These are somewhat conservative increases in nutrients, compared to those of previous studies, likely due to our focus on cultivated cropland which is already heavily fertilized.

Least-cost control of agricultural nutrient contributions to the Gulf of Mexico hypoxic zone.

In 2008, the hypoxic zone in the Gulf of Mexico, measuring 20 720 km2, was one of the two largest reported since measurement of the zone began in 1985. The extent of the hypoxic zone is related to nitrogen and phosphorous loadings originating on agricultural fields in the upper Midwest. This study combines the tools of evolutionary computation with a water quality model and cost data to develop a trade-off frontier for the Upper Mississippi River Basin specifying the least cost of achieving nutrient reductions and the location of the agricultural conservation practices needed. The frontier allows policymakers and stakeholders to explicitly see the trade-offs between cost and nutrient reductions. For example, the cost of reducing annual nitrate-N loadings by 30% is estimated to be US$1.4 billion/year, with a concomitant 36% reduction in P and the cost of reducing annual P loadings by 30% is estimated to be US$370 million/year, with a concomitant 9% reduction in nitrate-N.

Multiple benefits of carbon-friendly agricultural practices: empirical assessment of conservation tillage.

This study empirically estimates the multiple benefits of a subsidy policy that would offer payments to farmers in return for the adoption of conservation tillage, and compares the outcomes of alternative targeting designs for such a policy. The least-cost incentive payment policy schemes are simulated for the State of Iowa by using the data for roughly 12,000 National Resource Inventory (NRI) points. We use an economic conservation tillage adoption model to evaluate the costs of adoption and a physical process simulation model (EPIC) to estimate the environmental benefits due to adoption at each of the NRI points. Two targeting options are considered. We assess the costs and environmental consequences of a practice-based policy instrument (which maximizes the acres of land in conservation tillage, regardless of its level of environmental benefits) and contrast it to a performance-based instrument (which yields the highest amount of environmental benefits per dollar spent). Carbon sequestration in agricultural soils, reduction of soil erosion by wind and water, and the reduction in nitrogen runoff are considered as possible targets for the performance-based instruments. We find that the practice-based instrument provides high proportions of the four benefits relative to the policies that target the benefits directly, especially at the higher policy budget levels. Similarly, we estimate that targeting one of the four benefits individually provides high percentages of the other benefits as compared with the amounts of the benefits obtainable if they were targeted directly.