Spatially explicit modeling of wetland conservation costs in Canadian agricultural landscapes

Abstract

Agriculture is an important source of food, employment, and tax revenue to society. However, agricultural expansion is an important driver of global natural ecosystem degradation, including wetlands. Economic theory shows that wetland loss is caused by a mismatch between the private wetland conservation costs borne by landowners and the public benefits generated. We develop a spatially explicit wetland management model to estimate the private economic benefit of wetland drainage in an agricultural landscape in Alberta, Canada. We estimate a full wetland supply curve and show that the private economic benefits of wetland drainage are highly heterogeneous within a watershed. We then combine these private costs of wetland conservation with non-monetary measures of public ecosystem benefits to assess four wetland conservation policy targeting scenarios. We find a positive correlation between the opportunity cost of wetland conservation on private landowners and the amount of environmental benefits wetlands offer, suggesting that conserving the wetlands that impose the lowest opportunity cost may not be optimal targets for wetland conservation policy. We contribute to wetland conservation economics by demonstrating that targeted wetland conservation policies can be more effective than a uniform conservation policy that assumes wetlands within agricultural landscapes have the same costs and benefits.