Economic Analysis for Ecosystem-Based Management: Applications to Marine and Coastal Environments »

Daniel S. Holland is a research scientist at the Gulf of Maine Research Institute, and a former senior economist at the New Zealand Seafood Industry Council.

James N. Sanchirico is a professor of environmental science and policy at the University of California at Davis and a former senior fellow at Resources for the Future.

Robert J. Johnston is director of the George Perkins Marsh Institute and a professor of economics at Clark University.

Deepak Joglekar is a doctoral student in agricultural economics at the University of Connecticut, Storrs.

Ocean and coastal management regimes are increasingly subject to competing demands from stakeholders. Regulations must not only address fishing, recreation, and shipping, but also sand and gravel mining, gas pipelines, harbor/port development, offshore wind and tidal energy facilities, liquefied natural gas terminals, offshore aquaculture, and desalinization plants. The growing variety and intensity of ocean and coastal uses increases the call for a more holistic, comprehensive, and coordinated management approach that recognizes the often complex relationships between natural and human systems.

For both economist and non-economist audiences, this book describes ways in which economic analysis can be an important tool to inform and improve ecosystem-based management (EBM). Topics include modeling economic impacts, benefit-cost analysis, spatial considerations in EBM, incentives and human behaviors, and accounting for uncertainty in policy analysis. Throughout the book the authors elucidate the different kinds of insights which can be gained from the use of different economic tools. In this rigorous and accessible work, the authors defy the conventional stereotype that economic perspectives necessarily favor the greatest commercial development. Instead, they demonstrate how comprehensive economic analyses consider the full range of potential services offered by marine and coastal ecosystems, including the conservation of biodiversity and creation of recreational opportunities.

Foreword: Economic Models and Complex Ecosystems Jon G. Sutinen vii

Foreword: The Role of Economics in Ecosystem-Based Management Stephanie Moura ix

Acknowledgments xi

About the Authors xiii

Abbreviations and Acronyms xiv

1 Economics and Ecosystem-Based Management 1

2 Frameworks for Economic Evaluation 10

3 Modeling Human Behavior 51

4 Nonmarket Valuation of Ecosystem Services and Environmental Resources 73

5 Incorporating Uncertainty into Economic Decision Frameworks 110

6 Regulatory Methods and Governance 132

7 Spatially Refined Management and Zoning of the Coastal Marine Ecosystem 141

8 Integrating Economics into Coastal Policy: Guidelines and Case Studies 153

Appendix A Four Case Studies from Massachusetts 165

1 Offshore Wind Farms 165

2 Offshore Sand and Gravel Mining for Beach Nourishment 180

3 Impacts of Pollutants in the Coastal Zone 189

4 Spatial Controls to Address Environmental Impacts of Fishing 196

Appendix B A Mathematical Example of Quasi-Option Value 205

References 207

Index 225