Source: OHIO STATE UNIVERSITY submitted to NRP
ECONOMICS OF RIVER PROTECTION AND RESTORATION
Sponsoring Institution
National Institute of Food and Agriculture
Project Status
COMPLETE
Funding Source
Reporting Frequency
Annual
Accession No.
0189884
Grant No.
(N/A)
Cumulative Award Amt.
(N/A)
Proposal No.
(N/A)
Multistate No.
(N/A)
Project Start Date
Jul 1, 2001
Project End Date
Jun 30, 2007
Grant Year
(N/A)
Program Code
[(N/A)]- (N/A)
Recipient Organization
OHIO STATE UNIVERSITY
1680 MADISON AVENUE
WOOSTER,OH 44691
Performing Department
AGRICULTURE, ENVIRONMENTAL AND DEVELOPMENT ECONOMICS
Non Technical Summary
(N/A)
Animal Health Component
50%
Research Effort Categories
Basic
20%
Applied
50%
Developmental
30%
Classification

Knowledge Area (KA)Subject of Investigation (SOI)Field of Science (FOS)Percent
1120310301070%
1120310205015%
1120310106015%
Goals / Objectives
Extend the analysis in the Muskingum River corridor to Coshocton County and work with OSU Extension, Rivers Unlimited, and Community 20/20, in implementing pilot projects based on research results on greenways and household septic systems from earlier Muskingum River analysis by Ayalasomayajula and Lowder. Estimate the benefits of alternative degrees of river and stream water quality protection to all Ohio residents and bid functions with a CVM survey and estimate the costs to dischargers (extension of MS thesis research by Steve Irvin). In cooperation with an ecological engineer and an aquatic biologist assess the benefits and costs of removal vs. repair of the Ballville Dam and potentially other smaller dams on the Sandusky River in NC Ohio regarding flood damage limitation, water supply, walleye spawning, boating and riparian residential properties. Estimate the benefits and costs of bottom and bank toxics removal and containment from the lower 30 miles of the Mahoning River in NE Ohio. Develop and apply a benefit cost methodology for restoration to near-natural condition of channelized streams in the NW Ohio context where agricultural drainage is important. Develop a template/simulator and benefit transfer methods for generalizing the foregoing river and stream protection and restoration practices.
Project Methods
Well established non-market estimation 3 methods including contingent valuation, travel cost and hedonic pricing models will be utilized to estimate the social benefits of the selected river restoration and protection options. Collaborative work with engineers, ecologists and aquatic biologists will provide the necessary technical parameter for estimation of costs of the selected options. Simulation and benefit transfer methods will be developed to generalize research results to other river corridors.

Progress 07/01/01 to 06/30/07

Outputs
OUTPUTS: An economic analysis of a proposed greenway plan in the Mill Creek River corridor was completed for the Mill Creek Restoration Program utilizing hedonic pricing and benefit transfer methods. Support was provided by a grant from USEPA and methods and results were presented at a national conference on Low Impact Development in Wilmington, N.C., at seminars at O.S.U. and articles are pending in the International Journal of Sustainable Development and Planning, and Journal of Amer. Soc. Civil Engs. A new book was published in 2007 on Economic Valuation of River Systems by Edward Elgar Publishing, Northampton, MA summarizing several years of economic research at O.S.U. on water quality and infrastructure improvements of eight case river corridors. A new Hatch project has been drafted to continue this research to include sewage treatment upgrades in the Ohio River and codification and generalization of all previous research results. PARTICIPANTS: Nothing significant to report during this reporting period. TARGET AUDIENCES: Nothing significant to report during this reporting period. PROJECT MODIFICATIONS: Nothing significant to report during this reporting period.

Impacts
Professor John Loomis at Colorado State University in his review of our book said: "It is rare to find a book that attempts to integrate physical, biological and social sciences (economics) to address environmental problems, but this book does a great job of it. It is also rare to find a book that addresses both the benefits and the costs of river restoration, and again this book delivers. This collection of case studies provides an informative and practical guide to conducting economic analyses of many different types of river restoration. Scientists interested in quantifying the benefits and costs of river restoration will gain a very quick and thorough education from the case studies presented in this book." Several opportunities to present these research methods and results to professional and popular audiences have also resulted in strong feedback and numerous requests for further information.

Publications

  • Hitzhusen, F.J. (Editor). Economic Valuation of River Systems. Edward Elgar Publishing, Northampton, MA., 2007. Hitzhusen, F.J., Yen, N. and Schieffer, J. "Mill Creek River Resource Economic Study", final research report to Mill Creek Restoration Program and U.S. E.P.A., May, 2007. Hitzhusen, F.J., "Cost Benefit Analysis and its Application to River Water Quality and Infrastructure Improvements", International Journal of Sustainable Development and Planning, final edits submitted December 27, 2007.


Progress 01/01/06 to 12/31/06

Outputs
An M.S. thesis by Joana Ferreti-Meza utilized a hedonic pricing model to demonstrate a significant positive relationship between two indicators of water quality and residential property values in Cuyahoga River Valley. A. Abdul-Mohsen and F. Hitzhusen presented, 'Environmental Injustice: An Ohio Case Study,' (based on clean up of a contaminated river in N.E. Ohio), selected paper, AAEA Annual Meeting, Long Beach, CA, July 22-26, 2006. A resource economic assessment was done for a proposed greenway for the Mill Creek, a degraded river in S.W. Ohio by F. Hitzhusen, N. Yen and J. Schieffer. An invited paper on 'Cost Benefit Analysis of River Restoration' was presented by F. Hitzhusen at an Int'l. Environmental Economics conference in Mykonos, Greece, Sept. 12-14, 2006. A completed book manuscript on 'Economic Valuation of River Systems' by Hitzhusen, et.al. is in final editing at Edward Elgar Publishing for release in early 2007.

Impacts
The invited papers and presentations discussed in the previous section and the planned widespread marketing of the new book in the U.S. and Europe to academic, professional and popular audiences suggests considerable current and potential impact of this reaserach.

Publications

  • Ferreti-Meza, Joana. 'Water Quality and Property Value on the Lower Cuyahoga River: A Hedonic Analysis', M.S. thesis, AED Econ Dept, OSU, 2006.
  • Hitzhusen, F.J. 'Cost Benefit Analysis: Application to Restoration of Rivers', Environmental Economics and Investment Assessment, WIT Press, Boston, 2006.
  • Hitzhusen, F.J. et.al., Mill Creek Resource Economic Study, draft report to Mill Creek Restoration Project and USEPA, November, 2006.
  • Hitzhusen, F.J. (Editor). 'Economic Valuation of River Systems', Edward Elgar Publishers, UK forthcoming, 2007.


Progress 01/01/05 to 12/31/05

Outputs
An invited paper on "Economics of River Restoration" was presented by F. Hitzhusen at the 2005 USDA-CSRESS National Water Quality Conference in San Diego, February 9, 2005. A manuscript based on M.S. thesis research by Kora Dabrowska on impact of Mahoning River Toxics on Residential Property Values is in review in Journal of Ecological Economics. Results from Ph.D. dissertation research on economics of dam and toxics removal by Kruse and Abdul-Mohsen were presented in AAEA organized symposium and a selected paper based on M.S. thesis research by Tenwalde on Nitrogen Sequestration in River Related Wetlands was presented at the AAEA meetings in Providence, R.I., July 25, 2005. The Tenwalde thesis methods and results were also presented at the American Ecological Engineering Conference, Columbus OH, May 18, 2005. A book contract was signed with Edward Alger to publish the accumulated results of seven years of research on the Economics of River Protection and Restoration. Two new research and funding initiatives are being developed in the Millcreek and Ohio Rivers in Southwest Ohio and an M.S. thesis was completed by Carolina Prado on "Economics of Wetlands, Residential and Commercial Land Use: A Puerto Rico Hedonic Analysis."

Impacts
We continue to get numberous requests for our publications on the economics of river restoration from conservation and economic development groups and individuals. Possibilities for additional research and funding are bing explored by river advocacy groups in the Millcreek and Ohio River corridors. F. Hitzhusen continues to fill speaking engagements on the economics of river restoration with interested groups and has a book contract with a publisher that is targeted to academic, professional, and popular audience. The invited papers and presentations discussed in the previous section and the expected widespread marketing of the new book in the U.S. and Europe suggests considerable current and potential impact of this research

Publications

  • ______ Tenwalde, Tracy and Fred J. Hitzhusen. "An Economic Research Agenda for Valuing the ORWRP Wetlands", W.J. Mitsch, L. Zhang and A.E. Altor (eds.), ORWRP at OSU, Annual Report 2005, SNR. Pp 173-179.
  • ______ Prado, Carolina. Economics of Wetlands, Residential and Commercial Land Use: A Puerto Rico Hedonic Analysis, M.S. Thesis, AED Econ, OSU, 2005.


Progress 01/01/04 to 12/31/04

Outputs
A paper by F. Hitzhusen on economic valuation of river corridors was presented at an Extension Update conference at OSU and has been accepted for presentation at the 2005 National Water Quality Conference in San Diego, in February. The research by Ayalasomajula, Jeanty and Hitzhusen on the economics of restoration of the Great Miami River in S.W. Ohio was published as a research monograph by Rivers Unlimited. Two M.S. theses and two Ph.D. dissertations on the economics of river toxics and dam removal were completed by David Warren (M.S.), Kora Dabrowska (M.S.), Sarah Kruse (Ph.D.), and Ashraf Abdul-Mohsen (Ph.D.). These studies focused on a low head dam in Ft. Covington, N.Y., a high head dam in Ballville, OH and a contaminated segment of the Mahoning River in N.E. Ohio. The willingness to pay (WTP) for dam removal generally exceeded the costs of dam removal, but the costs of removal of toxics exceeded WTP for same. In the latter case, a distribution analysis was conducted to determine if lower socio-economic segments of the population were more impacted by river toxics (they were) and how the net benefits were impacted by relaxing the assumption of constant marginal utility of money income. Finally, an M.S. thesis by Tracy Tenwalde was completed on the value of Nitrogen sequestration in river related wetlands utilizing water consumer averting expenditures and municipal water treatment costs.

Impacts
We continue to get numerous requests for our publications on the economics of river restoration from conservation and economic development groups and individuals. Possibilities for additional research and funding are being explored by river advocacy groups in the Millcreek and Cuyahoga river corridors. F. Hitzhusen continues to fill speaking engagements on the economics of river restoration with interested groups and is pursuing a book contract with a publisher that would be targeted to academic, professional and popular audiences.

Publications

  • Ayalasomayajula, R., Hitzhusen, F.J. and Jeanty, P.W. "Sustaining a River: An Economic Impact Study of Lower Great Miami River Segment Improvements", Rivers Unlimited, Cincinnati, OH, 2004.
  • Warren, David. "An Estimation of the Economic Benefits of Low Head Dam Removal", M.S. thesis, AEDE, OSU, September, 2004.
  • Dabrowska, Kora. "A Hedonic Valuation of Environmental Disamenities: The Case of a Contaminated River and a Landfill". M.S. thesis, AEDE, OSU, September, 2004.
  • Kruse, Sarah. "Toward Improved Economic Efficiency Analysis of Dam Removal: Some CVM Considerations Applied to the Ballville Dam, Fremont, OH", Ph.D. dissertation, AEDE, OSU, December, 2004.
  • Abdul-Mohsen, Ashraf. "Economic Efficiency and Income Distribution Evaluation of Toxics and Dam Removal Using Contingent Evaluation", Ph.D. dissertation, AEDE, OSU, December, 2004.
  • Tenwalde, Tracy. "Averting and Treatment Costs Regarding Risk in Public Water Supplies in Columbus, OH: Implications for Wetland Nitrogen Sequestration," M.S. thesis, AEDE, OSU, December, 2004.


Progress 01/01/03 to 12/31/03

Outputs
An invited paper/poster on the economic valuation of river corridor research was presented at the Internationl Agriculture Economics meetings in Durban, S. Africa. Results of our Muskingum River Corridor research and benefit cost methods and results continue to be requested. With PhD student P. Wilner Jeanty and Rivers Unlimited researcher Radha Ayalasomayajula an economic feasibility of restoration of the Great Miami River in SW Ohio was completed (Rivers Unlimited funding). It includes regulation of in river gravel mining, development of bike trail and access facilities for boating and a final research report has been completed. A project on evaluation of removal of Ballville Dam on the Sandusky River as well as three other dams in Ohio, Michigan and New York is underway with RU funds, a $832,000 grant from the Great Lakes Protection Fund and collaboration with an ecological engineer and an aquatic biologist at OSU (Tim Granata and Uli Zika). Sarah Kruse, a PhD student, and Dave Warren, a MS student, are working on this project and are at the data collection phase at two dam sites, Ballville Dam (high head) in NC Ohio and Ft. Covington (low head) in upstate New York. The economic methods and data collection have been completed for a US Army COE project on toxics removal from a 30 mile segment of the Mahoning River in NE Ohio as the PhD dissertation of Ashraf Abdul-Mohsen. Kora Dabrowska, an MS student, is also working on this project examining the property value impacts of removing toxics from the river and placing them in a hazardous waste landfill. Paper proposals for both the AAEA meetings and AERE workshop have been developed from this work. The earlier PhD research by John Gutrich on ecologic economic assessment of wetlands has been accepted for publication in the Ecological Economics Journal.

Impacts
I have responded to requests to speak to watershed protection groups and OCES workshops and outlook meetings and have had dozens of requests for our river corridor research results interest by conservation and economic development groups is very high. Approaches for benefit capture developed from this research have been disseminated in a Dept working paper. Mike Fremont, President of Rivers Unlimited continues to speak favorably of the impact our research is having on interest in river restoration.

Publications

  • Ayalasomayajula, R, F Hitzhhusen and P W Jeanty. "Economic Feasibility of Great Miami River Restoration." Final research report to Rivers Unlimited. December, 2003.
  • Hitzhusen, Fred. "Economic Analysis of Selected River Corridor Impacts and Improvements: A Northeast U.S. Case." Invited paper/poster, International Association of Agricultural Economics meetings, Durban, S. Africa, August 17-22, 2003.
  • Gutrich, John and Fred Hitzhusen. "An Ecologic-Economic of Substitutability of Mitigation Wetland for Natural Sites." Journal of Ecological Economics, 2003.


Progress 01/01/02 to 12/31/02

Outputs
Results of our Muskingum River corridor research and benefit capture methods were distributed. An MS thesis by Steve Irvin on willingness to pay by fishers and boaters for water quality variations in inland Ohio rivers and streams was named outstanding thesis by AEDE Dept. Rivers Unlimited funding was secured to extend this analysis to all adult Ohio citizens. A project on evaluation of dam removal in Ohio, NY and Michigan is underway with funding from RU and a new $832,000 grant from the Great Lakes Protection Fund with an ecological engineer and aquatic biologist (Tim Granata and Uli Zika)and AEDE grad students Sarah Kruse and David Warren. The economic methodology has been developed for a US Army COE project on toxics removal from a 30 mile segment of the Mahoning River in NE Ohio by AEDE grad student Ashraf Abdul-Mohsen and a proposal to evaluate in river gravel mining, a bike trail and access points in the Great Miami River has been developed with research assoc. Radha Ayalasomayajula and grad student Wilner Jeanty.

Impacts
I have presented our results to several river protection groups and filled dozens of requests for our publications. Mike Fremont, Pres of Rivers Unlimited is very pleased with the impact our research has had on river restoration efforts.

Publications

  • Irvin, Steve, Fred Hitzhusen and Tim Haab,"What is Water Quality Worth to Ohio Residents",research report to Rivers Unlimited, AEDE Dept, OSU,June 2002.
  • Hitzhusen, FJ, Radha Aylasomayajula and Sarah Lowder,"Benefit Capture: Some Evidence from a River Corridor BCA Valuation" AEDE Dept Working Paper, August, 2002.
  • Ayalasomayajula, R, F Hitzhusen, M Joshi and W Jeanty, "Economic Feasibility of Great Miami River Restoration: A Preliminary Assessment" research report to Rivers Unlimited, AEDE Dept, OSU, December,2002.


Progress 07/01/01 to 12/31/01

Outputs
A paper was presented at the AAEA meetings which developed and applied the concepts of benefit capture to tax revenue functions added to the first stage hedonic pricing models and bid functions from the contingent valuation estimates from our evaluation of the Muskingum River corridor in SE Ohio. The MS thesis research of Steve Irvin is being extended to a CVM analysis of willingness to pay for river and stream water quality protection by all Ohio residents. A proposal for funding of the dam removal component of the project was prepared jointly with an ecological engineer and aquatic biologist for the Great Lakes Protection Fund ($585,000) involving assessment of four dams in Ohio and Michigan. Literature review and model development is underway for the removal of bank and bottom toxics component of the project in a 30 mile segment of the Mahoning River in NE Ohio. Finally, a meeting was held with natural stream restoration ecologist Steve Phillips to discuss the reaearch design for this component of the project.

Impacts
The paper on benefits capture was well received by peers and will hopefully have some impact on protocols in this area. The results of the reaearch on WTP for inland river and stream water quality protections shows increasing WTP as streams become more polluted, which has important implications for water quality management by state and federal EPA.

Publications

  • Irvin, Steve "Estimating Economic Benefits to Society from River and Stream Protection", M S Thesis, The Ohio State University, Columbus,OH, July, 2001. Hitzhusen, F., R. Ayalasomayajula, and S. Lowder,"Some Conceptual Clarification and Empirical Evidence on Benefit Capture: A River Corridor Case", Selected Paper, American Association of Agricultural Economists Meetings, Chicago, IL, August 6, 2001.