Economic criteria for using wetlands as nitrogen sinks under uncertainty

• Published in: Ecological economics Vol. 35; no. 1; pp. 35 - 45
• Main Authors: Byström, Olof, Andersson, Hans, Gren, Ing-Marie
• Format: Journal Article
• Language: English
• Published: Elsevier B.V 01.10.2000; Elsevier
• Series: Ecological Economics
• Subjects: Brackish; Chance constraints (CCP); Conservation; Costs; Ecology; Economic analysis; Ecosystems; Environmental economics; Environmental management; Freshwater; Institutions; Landscape; Marine; Nitrogen abatement; Stochastic; Sweden; Swedish wetlands; Uncertainty; Costs; Uncertainty; Nitrogen abatement; Stochastic; Chance constraints (CCP); Swedish wetlands
• ISSN: 0921-8009; 1873-6106
• DOI: 10.1016/S0921-8009(00)00166-X

If the environmental damages that are caused by excessive nitrogen load to the sea depend on the timing of emissions, then monitoring the stochastic variation of emissions is crucial for controlling eutrophication damages. A significant problem of nonpoint source (NPS) nitrogen pollution is that emissions are stochastic and difficult to control. The main purpose of this paper is to examine under what criteria wetlands are economically rational to use for controlling stochastic NPS pollution. Three criteria are identified using a simplified stochastic watershed model. It is suggested that wetlands are economically rational to use, especially when monitoring the uncertainty of emissions is a part of the decision problem. The theoretical findings are illustrated with an example from southwestern Sweden.