Integrating Ecological Risk Assessment and Economic Analysis

8,47
MB in Watersheds: A Conceptual Approach and Three Case Studies

392
stron

5909
ID UNITED STATES ENVIRONMENTAL PROTECTION AGENCY

2004
rok

TABLE OF CONTENTS

LIST OF TABLES ix

LIST OF FIGURES xii

LIST OF ABBREVIATIONS .xv

PREFACE xviii

AUTHORS, CONTRIBUTERS AND REVIEWERS xix

EXECUTIVE SUMMARY xxvii

1. INTRODUCTION.1-1

1.1 THE IMPORTANCE OF INTEGRATED, WATERSHED-LEVEL ANALYSIS1-1

1.2 GENESIS OF THIS DOCUMENT.1-5

1.3 OBJECTIVES AND ORGANIZATION. 1-7

1.3.1 Create a context for understanding by a diverse, technical audience (Chapter 2)1-7

1.3.2 Present a conceptual approach for integrating ERA and economics in the context of watershed

management (Chapter 3).1-8

1.3.3 Present and critically evaluate the methods and findings of three case studies (Chapter 4-

6).1-8

1.3.4 Identify research needed to improve the integration of ERA and economic analysis in

watershed (Chapter 7).1-8

1.4 RELATIONSHIP TO EXISTING USEPA GUIDANCE DOCUMENTS1-9

1.4.1 USEPA Guidelines for Ecological Risk Assessment.1-9

1.4.2 USEPA Guidelines for Preparing Economic Analyses.1-9

1.4.3 USEPA Framework for Economic Assessment of Ecological Benefits.1-10

1.5 LIMITATIONS1-10

1.5.1 Lack of complete integration.1-10

1.5.2 Specificity to a watershed context.1-11

1.6 UNIQUE CONTRIBUTIONS.1-12

1.7 REFERENCES1-13

2. BACKGROUND: ECOLOGICAL RISK ASSESSMENT AND ECONOMIC ANALYSIS IN

WATERSHEDS AND THE NEED FOR INTEGRATION2-1

2.1 ECOLOGICAL RISK ASSESSMENT.2-1

2.1.1 Framework and methods for ecological risk assessment.2-2

2.1.2 Critiques of ecological risk assessment.2-11

2.1.3 Watershed applications of ecological risk assessment.2-14

2.2 ECONOMIC ANALYSIS.2-17

2.2.1 Welfare economics.2-17

2.2.2 Economic value2-20

2.2.3 Cost-benefit analysis2-25

2.2.4 Complementary analyses.2-26

2.2.5 Game theory.2-28

2.2.6 Ecological economics2-30

2.2.7 Applications of ecological economics.2-31

2.3 ECOLOGICAL AND ECONOMIC ANALYSIS FOR WATER QUALITY STANDARDS.2-33

2.3.1 Water quality standards and ecological risk assessment2-34

2.3.2 Water quality standards and economic analysis2-38

2.4 THE NEED FOR INTEGRATION.2-41

2.5 REFERENCES2-44

APPENDIX 2-A: DISCUSSION OF STATED PREFERENCE METHODS USED IN TWO CASE

STUDIES.2-59

APPENDIX 2-B: USING MULTIMETRIC INDICES TO DEFINE THE INTEGRITY OF STREAM

BIOLOGICAL ASSEMBLAGES AND INSTREAM HABITAT2-64

3. A CONCEPTUAL APPROACH FOR INTEGRATED WATERSHED MANAGEMENT.3-1

3.1 EXISTING FRAMEWORK FOR WATERSHED MANAGEMENT3-1

3.2 GUIDING CONSIDERATIONS FOR AN INTEGRATED MANAGEMENT PROCESS3-2

3.3 DIAGRAMING AN INTEGRATED MANAGEMENT PROCESS3-7

3.3.1 Assessment planning3-10

3.3.2 Problem formulation3-11

3.3.3 Analysis and characterization of baseline risk.3-14

3.3.4 Formulation of alternatives3-16

3.3.5 Consultation with extended peer community3-18

3.3.6 Analysis and characterization of alternatives3-18

3.3.7 Comparison of alternatives3-20

3.3.8 Decision.3-21

3.3.9 Adaptive implementation.3-21

3.3.10 Linkage to regular management cycles3-22

3.4 EXAMPLES OF ANALYSIS AND CHARACTERIZATION FOLLOWED BY COMPARISON OF

ALTERNATIVES.3-23

3.4.1 Example 1: Cost-benefit analysis of all changes that can be monetized, with qualitative

consideration of other changes3-23

3.4.2 Example 2: Use of stated preference techniques to effect integration of ecological, economic

and other factors.3-25

3.4.3 Example 3: Use of linked ecological and economic models to dynamically simulate system

feedbacks and iteratively revise management alternatives3-27

3.5 CONCLUSION3-29

3.6 REFERENCES3-31

APPENDIX 3-A: DISCUSSION OF EXISTING FRAMEWORKS THAT HAVE BEEN APPLIED TO

WATERSHED MANAGEMENT3-38

4. EVALUATING DEVELOPMENT ALTERNATIVES FOR A HIGH-QUALITY STREAM THREATENED

BY URBANIZATION: BIG DARBY CREEK WATERSHED4-1

4.1 WATERSHED DESCRIPTION4-2

4.2 ECOLOGICAL RISK ASSESSMENT.4-4

4.2.1 Planning.4-4

4.2.2 Problem formulation4-6

4.2.3 Current status of analysis and risk characterization.4-8

4.3 ECONOMIC ANALYSIS.4-11

4.3.1 Research approach.4-12

4.3.2 Communicating the effects of urban development on ecological endpoints.4-14

4.3.3 Communicating the effects of urban development on economic and social services.4-17

4.3.4 Land use scenarios for framing expression of preference and value in the stream.4-19

4.3.5 Eliciting monetary valuation4-30

4.3.6 Linking stream integrity to the development scenarios.4-33

4.3.7 Linking stream integrity and willingness to pay4-34

4.4 DISCUSSION4-37

4.5 REFERENCES4-42

5. VALUING BIODIVERSITY IN A RURAL VALLEY: CLINCH AND POWELL RIVER

WATERSHED.5-1

5.1 WATERSHED DESCRIPTION5-1

5.2 ECOLOGICAL RISK ASSESSMENT.5-4

5.2.1 Planning.5-4

5.2.2 Problem formulation5-8

5.2.3 Risk analysis5-12

5.2.4 Risk characterization5-22

5.3 ECONOMIC ANALYSIS.5-25

5.3.1 Methods for valuing biodiversity and environmental quality5-26

5.3.2 Integrating the choice model with the ecological risk assessment5-29

5.3.3 Results of economic analysis.5-36

5.4 DISCUSSION5-43

5.4.1 Consultation with extended peer community5-43

5.4.2 Baseline risk assessment5-45

5.4.3 Formulation, characterization and comparison of alternatives.5-45

5.4.4 Adaptive implementation.5-49

5.5 REFERENCES5-50

APPENDIX 5-A: EXCERPT FROM SURVEY ADMINISTERED BY THE UNIVERSITY OF

TENNESSEE: EXPLANATION OF HYPOTHETICAL AGRICULTURAL POLICIES AND THEIR

POTENTIAL IMPACTS.5-53

APPENDIX 5-B: RANDOM UTILITY MODEL5-56

6. SEEKING SOLUTIONS FOR AN INTERSTATE CONFLICT OVER WATER AND ENDANGERED

SPECIES: PLATTE RIVER WATERSHED6-1

6.1 WATERSHED DESCRIPTION6-1

6.1.1 Watershed resources and impacts of development6-1

6.1.2 Watershed management efforts6-7

6.2 ECOLOGICAL RISK ASSESSMENT.6-13

6.2.1 Planning.6-13

6.2.2 Problem formulation6-15

6.2.3 Analysis6-21

6.2.4 Risk characterization6-25

6.3 ECONOMIC ANALYSIS.6-26

6.3.1 Model I: Determining who should provide and pay for environmental water.6-29

6.3.2 Model II: Determining how much water to allocate to environmental use6-35

6.4 DISCUSSION6-62

6.4.1 Assessment planning and problem formulation.6-62

6.4.2 Formulating alternatives, and baseline ecological risk assessment6-63

6.4.3 Analysis and characterization of alternatives, and comparison of alternatives.6-64

6.4.4 Consultation with extended peer community6-68

6.4.5 Decisions and adaptive implementation.6-69

6.5 REFERENCES6-70

APPENDIX 6-A: SUMMARY OF SURVEY RESPONSE INFORMATION USED TO CALCULATE

UTILITY OF ENVIRONMENTAL MANAGEMENT POLICY OPTIONS FOR THE CENTRAL PLATTE

RIVER FLOODPLAIN6-80

7. CONCLUSIONS .7-1

7.1 ACHIEVING ECOLOGICAL-ECONOMIC INTEGRATION REQUIRES A COHERENT

STRATEGY7-1

7.2 INTEGRATION REQUIRES ASSESSMENT PLANNING AND PROBLEM FORMULATION TO BE

INTERDISCIPLINARY.7-3

7.3 RESEARCH IS NEEDED ON THE DEVELOPMENT AND USE OF INTEGRATED

CONCEPTUAL MODELS.7-5

7.4 CLEARLY FORMULATED MANAGEMENT ALTERNATIVES FACILITATE INTEGRATED