ECONOMIC VALUATION OF SOME WETLAND OUTPUTS OF MUD LAKE, MINNESOTA-SOUTH DAKOTA

Lisa A. Roberts and Jay A. Leitch

No 23406, Agricultural Economics Reports from North Dakota State University, Department of Agribusiness and Applied Economics

Abstract: The objective of this study was to estimate some economic values of Mud Lake, a managed, lacustrine wetland on the Minnesota-South Dakota border. Several outputs of Mud Lake were identified and an economic value was estimated for each. Flood control was valued at approximately $440 per acre, based on dollar damages prevented; water supply, using public utility revenues, was valued at $94 per acre; fish/wildlife habitat, recreation, and aesthetics were valued at about $21 per acre using the Contingent Valuation Method; and corrective expenditures were used to evaluate water quality at a negative per acre value of $180. When capitalized at 6 percent, the estimated total annual value of these four outputs is $6,250 per acre. These values can assist managers and policy makers in making decisions regarding the opportunity costs of Mud Lake management options or of wetland alterations or preservation. These snapshot values of Mud Lake "at the margin" are estimated under the assumption that all other wetlands and water resources in the region are unchanged.

Keywords: Resource/Energy Economics and Policy; Land Economics/Use (search for similar items in EconPapers)
Pages: 22
Date: 1997
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Citations: View citations in EconPapers (14)

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Persistent link: https://EconPapers.repec.org/RePEc:ags:nddaer:23406

DOI: 10.22004/ag.econ.23406

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