Third Quarter Journal Review
1. “Estimating the Societal Benefits of Carbon Dioxide Sequestration Through Peatland estoration,” Ecological Economics Volume 154, December 2018, Pages 145-155, Emily Pindilli, Rachel Sleeter, Dianna Hogan
We at rbouvier consulting are very interested in ecosystem restoration, and in particular, methods that economists might use to measure the benefits of ecosystem restoration. This article presents an analysis of the benefits associated with managing and restoring the Great Dismal Swamp National Wildlife Refuge in Virginia (particular appropriate for a dismal scientist!). The GDS is a forested peatland. While there are those who might look at the swamp and appreciate it solely for its aesthetic appearance, a system such as the GDS can provide essential ecosystem services in terms of carbon sequestration. In fact, the authors find that actively managing and preserving the swamp can provide benefits to society of up to $524 million, above and beyond management costs. The authors use the social cost of carbon (link to blog post here) to monetize the benefits.
2. “Neither Boon nor Bane: The Economic Effects of a Landscape-Scale National Monument,” Land Economics, Volume 94, Number 3, August 2018, pp. 323-339, by Paul M. Jakus, Sherzod B. Akhundjanov.
The designation of a national monument has been a source of controversy over the past several years. Proponents of national monuments point to the potential increase in tourism that such a designation can bring, whereas opponents point out the restrictions that are sometimes made (such as restrictions on hunting or ATV use). This article looks at the Grand Staircase–Escalante National Monument in Utah, and examines trends in economic activity both before designation and after designation. Their conclusion is that, at least in this case, designation as a national monument neither helped nor hindered the per capita income of the region. However, as the authors point out, economic efficiency is only one metric by which to measure the success of a national monument designation. It would be helpful to study other recently-designated national monuments to see if their results are transferable.
3. “Population health effects and health-related costs of extreme temperatures: Comprehensive evidence from Germany,” Journal of Environmental Economics and Management 91 (2018) 93–117 by Martin Karlsson and Nicolas R. Ziebarth.
Given some of our current projects, we have been very interested in the local costs of climate change-related events. While this article was published in Germany, it nonetheless gives us an idea of the health related costs of extreme temperatures – and a possible methodology to follow. The article finds that extreme heat “significantly and immediately increases hospitalizations and deaths.” The effects decline over time, as one might imagine, but the economic impact include not just the cost of treatment, but lost productivity as well. An interesting methodological result is that their findings hold whether they use standard economic models or epidemiological models – good news for those doing their research in either field.
4. “Urban Stream Restoration Projects: Do Project Phase, Distance, and Type Affect Nearby Property Sale Prices?” Land Economics, Volume 94, Number 3, August 2018, pp. 368-385, by Maya Jarrad, Noelwah R. Netusil, Klaus Moeltner, Anita T. Morzillo, J. Alan Yeakley
We were also interested in this article, which investigated whether urban stream restoration projects affected nearby property values. We have done some work related to this in the past. The authors find positive effects on property values for properties located in close proximity to storm water, floodplain, and revegetation projects, but negative effects for wetland restoration projects. They identify two counter-vailing effects that could help to explain: a “benefit” effect, whereby the restored area conveys benefits onto nearby properties (such as storm water mitigation or flood reduction) and a “damaged goods” effect (wetland restoration can often necessitate large – temporary – aesthetic damage that might affect a property’s sale price).