The Economic Value of Wetland Conservation and Creation: A Meta-Analysis

25 Pages Posted: 29 Sep 2008

See all articles by Andrea Ghermandi

Andrea Ghermandi

School for Advanced Studies in Venice Foundation

Jeroen C. J. M. van den Bergh

VU University Amsterdam - Department of Spatial Economics

Luke M. Brander

Institute for Environmental Studies (IVM)

Henri L. F. de Groot

VU University Amsterdam - Department of Spatial Economics; Tinbergen Institute

Paulo A. L. D. Nunes

University of Padua - Dipartimento Territorio e Sistemi Agro Forestali (TeSAF)

Date Written: September 24, 2008

Abstract

The rationale for conservation and creation of wetlands stems from the recognition of both their ecological and economic values. This paper examines the welfare impacts of goods and services provided by wetlands. We collected 385 estimates of the economic value of 181 natural and man-made wetlands from 167 studies worldwide. The resulting database is less biased towards North America than previous reviews of the literature. The relative importance of characteristics of the valuation study, of the wetland site, and of the socio-economic and geographical context is estimated by means of a meta-regression analysis of wetland values. Provision of amenities, flood control and storm buffering, and water quality improvement are the most highly valued wetland services. The relevance of the socio-economic and geographical context clearly emerges from the analysis and, in particular, the proximity to other wetland sites is negatively correlated with valuations. An analysis of the effect of environmental stress on wetland value shows that the latter increases with stress from human development activities and uses. In addition to the basic meta-regression model, the influence of authorship effects and of the geographic regions is examined by means of a multi-level approach. A second extended meta-regression model including cross-effects shows that the valuations of specific services vary according to the type of wetland producing them.

Keywords: Constructed Ecosystems, Economic Valuation, Man-Made Wetlands, Meta-Regression, Wetland Values

JEL Classification: C81, Q24

Suggested Citation

Ghermandi, Andrea and van den Bergh, Jeroen C.J.M. and Brander, Luke M. and de Groot, Henri L.F. and Dias Nunes, Paulo Augusto, The Economic Value of Wetland Conservation and Creation: A Meta-Analysis (September 24, 2008). FEEM Working Paper No. 79.2008. Available at SSRN: https://ssrn.com/abstract=1273002 or http://dx.doi.org/10.2139/ssrn.1273002

Andrea Ghermandi (Contact Author)

School for Advanced Studies in Venice Foundation ( email )

Island of San Servolo
Venice, 30100
Italy

Jeroen C.J.M. Van den Bergh

VU University Amsterdam - Department of Spatial Economics ( email )

De Boelelaan 1105
Faculty of Economics and Econometrics
1081HV Amsterdam
Netherlands

Luke M. Brander

Institute for Environmental Studies (IVM) ( email )

De Boelelaan 1115
Amsterdam, 1081 HV
Netherlands

Henri L.F. De Groot

VU University Amsterdam - Department of Spatial Economics ( email )

De Boelelaan 1105
Amsterdam, 1081 HV
Netherlands
+31 20 598 6168 (Phone)
+31 20 598 6004 (Fax)

Tinbergen Institute

Gustav Mahlerplein 17
Amsterdam, 1082 MS
Netherlands

Paulo Augusto Dias Nunes

University of Padua - Dipartimento Territorio e Sistemi Agro Forestali (TeSAF) ( email )

Legnaro, Padova 35020
Italy

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