Bioeconomic Modeling of Wetlands and Waterfowl in Western Canada: Accounting for Amenity Values

Abstract

This study extends an original bioeconomic model of optimal duck harvest and wetland retention by bringing in amenity values related to the nonmarket (in situ) benefits of waterfowl plsi the ecosystem values of wetlands themselves. The model maximizes benefits to hunters as well as the amenity values of ducks and ecosystem benefits of wetlands, subject to the population dynamics. Results indicate that wetlands and duck harvests need to be increased relative to historical levels. Further, the socially optimal ratio of duck harvest to wetlands is larger than what has been observed historically. Including amenity values leads to a significant increase in the quantity of wetlands and duck harvests relative to models that focus only on hunting values.

Evidence for 20th century climate warming and wetland drying in the North American Prairie Pothole Region

“…These findings align with other research done on Canada's western prairie provinces (Clair 1998; van Kooten et al 2011; Withey and van Kooten 2011) where climate warming and human modifications have reduced the flows of major rivers during the summer months (Schindler and Donahue 2006). Dry regions, such as Canada's western prairie provinces, were identified in the Millenium Ecosystem Assessment as hotspots for future environmental degradation because of the effects of climate warming and human activity (Millenium Ecosystem Assessment 2005a).…”

The Effect of Climate Change on Wetlands and Waterfowl in Western Canada: Incorporating Cropping Decisions Into a Bioeconomic Model

“…Given lack of information about the demand function for duck hunting, we adapt and update Brown and Hammack's (1973) function to obtain the following valuation function (van Kooten et al [2011]): v ( h ) = 114.580 h 0.409 . Net revenue from cropping is calibrated for all crops over the entire PPR using data from Statistics Canada 1 .…”

“…Van Kooten et al [2011] updated and reparameterized the foregoing model, extending it to include the amenity values of both ducks and wetlands. Upon solving for the optimal levels of ducks, harvests, and wetlands, these authors confirmed the original results of Brown et al Withey and van Kooten [2011] then extended the van Kooten et al [2011] model to consider the impact of climate change on wetlands management.…”

“…Van Kooten et al [2011] updated and reparameterized the foregoing model, extending it to include the amenity values of both ducks and wetlands. Upon solving for the optimal levels of ducks, harvests, and wetlands, these authors confirmed the original results of Brown et al Withey and van Kooten [2011] then extended the van Kooten et al [2011] model to consider the impact of climate change on wetlands management. Because wetlands in any given period were a linear function only of temperature and precipitation in the preceding period (i.e., a function of drought) and were not dependent on previous wetlands area, the decision to protect wetlands depended only on the wetlands area made available by the prevailing climate conditions and the impact that conservation of wetlands had on future duck viewing and hunting.…”

“…Given that, in the PPR, significant use and nonuse benefits derive from wetlands and waterfowl (van Kooten et al [2011]), it is important that these benefits are considered in any analysis regarding the retention of wetlands. It is also important to understand how climate change might impact wetlands, and how decisions to manage wetlands are affected by climate change and mitigation policies.…”