Source: UNIVERSITY OF ILLINOIS submitted to NRP
COSTS AND BENEFITS OF NATURAL RESOURCES ON PUBLIC AND PRIVATE LANDS: MANAGEMENT, ECONOMIC VALUATION, AND INTEGRATED DECISION-MAKING
Sponsoring Institution
National Institute of Food and Agriculture
Project Status
COMPLETE
Funding Source
Reporting Frequency
Annual
Accession No.
1014584
Grant No.
(N/A)
Cumulative Award Amt.
(N/A)
Proposal No.
(N/A)
Multistate No.
W-4133
Project Start Date
Nov 1, 2017
Project End Date
Sep 30, 2022
Grant Year
(N/A)
Program Code
[(N/A)]- (N/A)
Recipient Organization
UNIVERSITY OF ILLINOIS
2001 S. Lincoln Ave.
URBANA,IL 61801
Performing Department
Agricultural & Consumer Economics
Non Technical Summary
Objective 1: Resource Management Task 1-2: Economic Analysis of Natural and Man-Made HazardsFlood events are expected to increase in frequency and severity as climate change progresses; the only way to remove homes from flood prone areas to permit climate adaptation efforts is through homeowner buyout programs, but little research exists to inform policies to facilitate timely and strategic buyouts. Ando will carry out research in consultation with FEMA that uses a contingent valuation survey to evaluate homeowner willingness to pay for a novel pre-flood agreement such that the homeowner pre-commits to relocating if a flood damages their home by more than 50% of its value, in exchange for which they gain an expedited and streamlined buyout process with payment equal to the full market value of their home.Task 1-3: Economic Analysis of Recreation ServicesMuch research has estimated the recreational values of protected natural areas, but that research has largely neglected the values of natural areas in urban environments, and has focused on generating total or median household values rather than exploring how benefits are distributed among racial, ethnic, and socio-economic sub-groups of society. Ando will carry out research that fills these gaps. One project will collaborate with researchers in Michigan to estimate the factors that influence values of beaches in Chicago and along less urban stretches of Lake Michigan and how those values vary among people of varied racial, ethnic, and income groups. A second project will study how race and access to transportation affect the recreational value a person places on the Indiana Dunes National Lakeshore. A third project will work with researchers in Oregon and Colorado to carry out a meta-analysis of the extensive literature on recreation services to look for patterns in how the value people place on such services varies with race.Task 1-4: Economic Analysis of Climate Change Impacts and AdaptationUncertainty from sources like climate change makes it difficult to use conventional site-selection tools for conservation and other kinds of resource investments using historical information about the current spatial distributions of species and other targets of protection or investment. Modern Portfolio Theory (MPT) has been adapted from finance to characterize optimal spatial targeting of conservation investment to reduce outcome risk with the smallest possible reduction in the expected level of ecological benefits. Ando will work with researchers from Minnesota on research that expands spatial MPT analysis to allow (1) optimization over multiple distinct environmental targets, and (2) interactions between parcels in the landscape in production of ecosystem services.Objective 2: Economic Valuation Task 2-1: Advances in Stated/Revealed Preference ResearchEconomists have long insisted that WTP for improvements in environmental quality are separable from the actions taken to accomplish those improvements. However, when the costs and limitation required for improvement in, for example, water quality, are borne disproportionately by people in a particular area or occupation, the value people have for the improvement itself may be affected. Ando will work with researchers in Missouri to estimate how an individual's WTP for water quality improvements in a watershed in Illinois is affected by their proximity to the area where landscape changes are implemented to accomplish the change and by their affiliation with farming, the affected economic sector.Objective 3: Integrated Policy and Decision-Making Task 3:2: Watershed-Scale Valuation and Management Ando will work with researchers in Missouri to couple valuation research with spatial hydrological and fish population modeling in a case study of the Upper Sangamon River watershed in Illinois to identify how agricultural BMPs can best be implemented in a landscape to maximize the benefits obtained from reduced nutrients, reduced sediment, and increased fish populations in a corn-belt watershed.
Animal Health Component
50%
Research Effort Categories
Basic
50%
Applied
50%
Developmental
(N/A)
Classification

Knowledge Area (KA)Subject of Investigation (SOI)Field of Science (FOS)Percent
6050210301050%
6056050301050%
Goals / Objectives
Resource Management Economic Valuation Integrated Policy and Decision-Making
Project Methods
This project will use several non-market valuation methods: contingent valuation, travel cost analysis, and choice experiment surveys. Ando will carry out a meta-analysis of previously published research using Modern Portfolio Theory analysis. The results of the valuation research will be coupled with hydrological modeling in simulation analysis.

Progress 10/01/19 to 09/30/20

Outputs
Target Audience:We communicated to farm groups like the Illinois Farm Bureau. We informed environmental non-profits like NRDC and the Nature Conservancy, and the American Farmland Trust. Finally, our work informs agencies such as the USDA's NRCS and Forest Service. We also presented results to scholars in environmental and natural resource economics. Changes/Problems: Nothing Reported What opportunities for training and professional development has the project provided?This year the project helped train 7 PhD students (5 of whom were women) and 2 M.S students at UIUC. PhD student Bryan Parthum gained employment in the National Center for Environmental Economics at the USEPA, and PhD student Liqing Li has been hired as an Assistant Professor at California State Fullerton. One post-doctoral associate, Bowen Chen, was mentored as part of this project. Dr. Chen secured a job working as a Data Scientist for Bunge in St. Louis, MO in September 2020. M.S. student Melody Pinamang completed her degree supervised by Dr. Yun and began pursuing her Ph.D. at West Virginia University starting in fall 2020 How have the results been disseminated to communities of interest?Presentations to scholarly audiences: Research by Amy Ando and Bryan Parthum on the values of nutrient reduction in surface waters (Estimating Values of Water Quality: Local and Distant, Rural and Urban." (B. Parthum and A.W. Ando) was presented by Ando in November 2019 at a joint seminar of Duke University, NC State University, and the Research Triangle Institute - the Triangle Resource and Environmental Economics (TREE) seminar series in Durham, NC. Research by Amy Ando and Liqing Li on the influence of early childhood experience on grassland valuation ("Early Exposure to Nature and WTP for Conservation") was presented by Ando in October 2020 at the Department of Agricultural, Food, and Resource Economics at Michigan State University. Ando gave a virtual keynote talk in March 2020 at the "Economics of Biodiversity Conservation under Climate Change: Programme Video Conference" in Berlin, Germany. The talk was titled "Biodiversity Conservation under Climate Change: Shifting Landscapes and Preferences." Gramig participated in two different organized sessions as part of the (virtual) annual meeting of the Agricultural and Applied Economics Association. Both sessions focused on research to address public policy objectives surrounding nutrient loss reduction from agricultural land and industries in the Corn Belt region. Gramig presented research about phosphorus pollution integrating economics with engineering models of treatment technologies and hydrology, and using ambient water quality measurements to assess the impact of USDA conservation programs on nutrient pollution measurements in Indiana and Illinois rivers. Extension/Outreach presentations Gramig was an invited speaker at the US EPA-USDA Workshop on Enhanced Efficiency Fertilizers (EEF) to launch new Innovation Challenge in October 2019. His talk, "Socio-Economic Considerations for the Adoption of Enhanced Efficiency Fertilizers," addressed private economic conditions that would support more widespread adoption of EEFs and also the importance to be mindful of the relative cost of achieving agricultural nutrient loss abatement goals using EEFs instead of other available practices or technologies. Gramig was an invited panelist at the Farm Journal Trust in Food Symposium in January 2020. Together with collaborators Prof. Linda Prokopy (Purdue) and Dr. Kristin Floress (USDA-USFS), we spoke with private sector firms along agricultural value chain, food companies and producers about the implications of a recently published meta-review (Prokopy, et al. (2019)) on the factors that influence adoption of agricultural conservation practice and regenerative agricultural systems. What do you plan to do during the next reporting period to accomplish the goals?Ando and her students will carry out the follow work: Finalize and submit a paper with Liqing Li on the impacts of bison restoration on local economies. Finalize and submit a paper with Liqing Li for publication on the influence of early childhood experience on the values people place on grassland restoration. Draft a paper with Fred Nyanzu and Bryan Parthum on the valuespeople place on local food and peri-urban conservation of natural and farmland areas. Draft a paper with Oregon co-authors including Sahan Dissanayake and Noelwah Netusil onwith the values people place on different features of green roof installations in urban areas. Draft a paper with Kaylee Wells, Sahan Dissanayake, and partners at the USDA on the values of grassland restoration across the entire tallgrass prairie region, and field a survey to estimate the benefits of landscape level changes in grassland prevalence across the entire U.S. Gramig and his students will do the following work: Gramig and Seojeong Oh will: Conduct a non-market valuation survey of the general public in IN, IL and IA to estimate the value of water quality improvements from nutrient loss abatement Draft a manuscript on using water quality trading to address phosphorous and nonpoint source sediment pollution in the Upper Sangamon River watershed Conduct a contingent valuation survey on public preferences for who pays for nutrient loss reduction and alternative payment vehicles Gramig and Hsin Hsieh will draft a manuscript evaluating the impact of the Conservation Stewardship Program on ambient water quality in the Illinois River basin of IL, IN and WI Gramig and Chang Cai will draft a manuscript on the impact of wildfires in National Park visitation in the Western US Gramig and Menglin Liu will draft a manuscript exploring the empirical relationship between adoption of precision agricultural practices and conservation on working lands. Ando and Gramig will collaborate to develop a network of stakeholders in the private and public sector working on sustainability dimensions of agricultural and food systems as part of the new Center for the Economics of Sustainability at UIUC.

Impacts
What was accomplished under these goals? Objective 1 Resource Management Outputs Gramig published a national county-level open source data set with Prof. Seong Yun from Mississippi State for researchers and practitioners constructed from multiple publicly available datasets that are difficult for many practitioners and researchers to access unless they have technical computing and data processing skills. Agro-Climatic Data by County (ACDC) is available for download: dx.doi.org/10.4231/R72F7KK2. Ando and graduate student Liqing Li refined a paper that analyzed the impact of bison restoration on local economies. Ando published a paper in Environment and Resource Economics with former graduate student Aparna Howlader that shows the impact of forest conservation in Nepal on household wood gathering and consumption. Ando worked with a multi-disciplinary team of researchers at many different institutions to write a paper that was published in Science evaluating the costs and possible benefits of ecological approaches to avoiding another pandemic like COVID-19. Activities Gramig worked with doctoral student Hsin-Chieh Hsieh at UIUC, Prof. Michael Delgado at Purdue University and Prof. Shanxia Sun at Shanghai University to evaluate the impact of USDA conservation program expenditures by EQIP and CSP on ambient water quality in the Wabash (Indiana) and Illinois River basins. A working paper on the Wabash work is being finalized for submission, and different methods and empirical approaches are being explored for the Illinois work. Gramig began new work with graduate student Menglin Liu and Prof. Nick Paulson at UIUC to investigate the relationship between adoption of precision agriculture technologies/practices and conservation practices using USDA-ERS Ag Resource Management Survey data. Gramig provided public service by working with Current in the city of Chicago to develop an online survey of residents of the greater Chicago area on perceptions of and interactions with the Chicago River as part of Current's H2Now project that is installing real-time water quality sensors for fecal coliform at multiple locations along the river in the city of Chicago that can be monitored online. The project is part of a broader effort to increase Chicagoans' engagement with the river. Ando completed revising and resubmitting a manuscript to Land Economics that informs management of flood hazards. She uses a contingent valuation survey to evaluate homeowner willingness to pay for a novel pre-flood agreement such that the homeowner pre-commits to relocating if a flood destroys their home in exchange for an expedited and streamlined buyout process. The study finds that nearly all homeowners would gain value from being able to enter into such a contract. Ando worked with graduate student Liqing Li to estimate the impact of bison restoration on local economic activity in the U.S. They have refined a manuscript on this research. Objective 2 Economic Valuation Outputs Ando has collaborated with other researchers at UIUC and in Missouri on research to estimate the values of water quality improvements in the Corn Belt. She and UIUC graduate student Bryan Parthum wrote a paper reporting on a choice experiment that finds that both urban and rural residents of the Upper Sangamon River watershed place large value on achieving nutrient reduction targets to stop Gulf hypoxia and reducing local algal blooms. This paper was accepted for publication at Land Economics. Activities Gramig worked with doctoral student Seojeong Oh and interdisciplinary collaborators at UIUC to develop a choice experiment survey to be conducted in 2020 to estimate household willingness to pay to improve water quality (reduce nutrient pollution) in Illinois, Indiana and Iowa. This work is funded by the NSF. Ando advised graduate student Liqing Li in research to understand how early life experience influences the values people have for nature when they are adults. They conducted a choice experiment survey eliciting people's values for grassland restoration in Illinois, Minnesota, and Iowa. Results show that willingness to pay for grasslands is higher for people who grew up near them. This paper has been presented and is close to being ready for journal submission. Ando wrote a paper with W-4133 participant Dale Manning at Colorado State to estimate the benefits of pest control services by bats. This research uses the spread of white-nose syndrome to quantify the impact of bat population reductions on acres of crops planted and the net surplus gained by producers on the acres they do plant. It is under review at the Journal of the Association of Environmental and Resource Economists. Ando worked with graduate student Frederick Nyanzu on research funded by the USDA-NIFA to estimate the values people place on peri-urban conservation of natural and farmland areas and expansion of local food supply. That survey has been drafted and is almost ready to field. Ando worked with partners in Oregon on choice-experiment research to estimate the values people place on different features of green roof installations in urban areas. That survey has been fielded and the data are ready to analyze. Objective 3 Integrated Policy and Decision-Making Activities Ando and Gramig worked to launch the Center for the Economics of Sustainability in the Department of Agricultural and Consumer Economics at the UIUC. Ando is Co-Director of this new center working to establish partnerships with stakeholders in the public and private sectors to do research demanded by decision makers and put economic research into action to improve the sustainability of agriculture, urban areas, and natural environments. Gramig mentored post-doctoral associate Bowen Chen at UIUC and worked with W-4133 member Prof. Seong Do Yun at Mississippi State University on a project for USDA-NRCS to quantify the on-farm benefits of agricultural conservation practices that are subsidized by federal agri-environmental programs (i.e. EQIP). This work also involves USDA-ERS through the use of data from the Agricultural Resource Management Survey (ARMS) administered by NASS for ERS. This work will quantify how NRCS conservation practices economically impact farms that adopt them, and will be used to provide economically relevant information about these practices to NRCS customers evaluating alternative conservation strategies. This work is funded by NRCS Gramig worked with a team of interdisciplinary researchers at UIUC, Northwestern University, USDA-ARS, Illinois State Water Survey, and staff of The Nature Conservancy in Illinois to develop a state Climate Impacts Assessment report. Gramig is the lead author of the agriculture chapter. Ando and W-4133 partner Sahan Dissanayake in Oregon worked with graduate student Kaylee Wells on a cooperative agreement with the USDA to do a choice experiment survey of the values of different kinds of grassland restoration that is carefully tailored to inform legislative and agency decisions about the size and administration of the Conservation Reserve Program. The first survey has been designed and is almost ready to field. Ando worked with researchers at UIUC, CUNY, and Argonne National Lab on their NSF-INFEWS funded project to integrate ecosystem service valuation and physical/climatological modeling to study "Climate-induced extremes on the food, energy, water nexus (C-FEWS) and the role of engineered and natural infrastructure." She has worked with graduate student Joseph Chang on an economic valuation model that takes inputs from coupled biophysical models to estimate the values of changes in things like carbon sequestration, crop yields, water pollution, and the cost of electricity production as a result of climate shocks.

Publications

  • Type: Journal Articles Status: Published Year Published: 2020 Citation: Bauchet, Jonathan, Nigel Asquith, Zhao Ma, Claudia Radel, Ricardo Godoy, Laura Zanotti, Diana Steele, Benjamin M. Gramig and Andrea Estrella Chong. 2020. The Practice of Payments for Ecosystem Services (PES) in the Tropical Andes: Evidence from Program Administrators. Ecosystem Services 45 (2020): 101175.
  • Type: Journal Articles Status: Published Year Published: 2020 Citation: L.C. Bowling, K. Cherkauer, C. Lee, J. Beckerman, S. Brouder, J. Buzan, O. Doering, J. Dukes, P. Ebner, J. Frankenberger, B.M. Gramig, E. Kladivko and J. Volenec. 2020. Agricultural Impacts of Climate Change in Indiana and Potential Adaptations Climatic Change, 2020.
  • Type: Journal Articles Status: Published Year Published: 2020 Citation: Dobson, Andrew P., Stuart L. Pimm, Lee Hannah, Les Kaufman, Jorge A. Ahumada, Amy W. Ando, Aaron Bernstein et al. 2020. Ecology and Economics for Pandemic Prevention. Science 369, no. 6502 (2020): 379-381.
  • Type: Journal Articles Status: Published Year Published: 2019 Citation: Hodde, Whitney, Juan Sesmero, Benjamin Gramig, Tony Vyn and Otto Doering. 2019. The Predicted Effect of Projected Climate Change on the Economics of Conservation Tillage. Agronomy Journal 111, no. 6 (2019): 3130-3139.
  • Type: Journal Articles Status: Published Year Published: 2020 Citation: A Howlader and A. Ando. 2020. Consequences of Protected Areas for Household Forest Extraction, Time Use, and Consumption: Evidence from Nepal. Environmental and Resource Economics 75:769808. https://doi.org/10.1007/s10640-020-00407-2.
  • Type: Journal Articles Status: Accepted Year Published: 2020 Citation: Parthum, B. and A.W. Ando. 2020. Overlooked Benefits of Nutrient Reductions in the Mississippi River Basin. Land Economics. (Accepted).
  • Type: Journal Articles Status: Awaiting Publication Year Published: 2020 Citation: Y. Wang, M.S. Delgado, J.P. Sesmero and B.M. Gramig. 2020. Market Structure and the Effect of Ethanol Expansion on Land Allocation: A Spatially Explicit Analysis. American Journal of Agricultural Economics (Online Early).
  • Type: Journal Articles Status: Published Year Published: 2019 Citation: S.D. Yun and B.M. Gramig. 2019. Agro-Climatic Data by County: A Spatially and Temporally Consistent U.S. Dataset for Agricultural Yields, Weather and Soils. Data 4(2):66, 2019. The data source discussed in this article is available for download here: dx.doi.org/10.4231/R72F7KK2.


Progress 10/01/18 to 09/30/19

Outputs
Target Audience:We communicated to farm groups like the Illinois Farm Bureau. We informed environmental non-profits like NRDC and the Nature Conservancy, and the American Farmland Trust. Finally, our work informs agencies such as the USDA's NRCS and Forest Service. We also presented results to scholars in environmental and natural resource economics. Changes/Problems: Nothing Reported What opportunities for training and professional development has the project provided?This year the project helped train three PhD students (two female) and one MS student in resource economics and survey research methods. One post-doctoral associate is being mentored as part of this project. How have the results been disseminated to communities of interest?Project members have given numerous presentations at conferences and to Extension audiences. They have also published papers in journals and in online outlets. The publications and presentations are all listed in "Outputs." What do you plan to do during the next reporting period to accomplish the goals?All investigators will work to shepherd papers in review through the publication process. Ando will carry out the following additional new work: (1) Work with graduate student Liqing Li to complete a manuscript on the impact of early life experience on the value people place on nature conservation, and submit it for publication;(2) Complete a manuscript on the impact of bison restoration on local economies and submit it to a journal; and (3) Complete a paper estimating the recreational value of urban beaches and submit it to a journal. Gramig is currently leading a non-market valuation study of public preferences for nutrient loss reduction in Illinois, Indiana, and Iowa. He is conducting a choice experiment with a random sample of the general public to estimate the marginal value of water quality improvements as well as preferences for the means of achieving those marginal improvements. A later phase of the project will investigate part of the supply side of achieving water quality improvements by surveying farmers in the same states to estimate their willingness-to-accept payment to change management practices in order to supply nutrient loss abatement. Gramig and Andoused support from this Multistate Hatch grant to do work necessary to secure the following new grants. They will work on research funded by those sources: Vorosmarty, C.J., A.W. Ando, A.K. Jain, J.M. Melillo, and D.J. Wuebbles, co-PIs. "INFEWS/T1: Climate-induced extremes on the food, energy, water nexus (C-FEWS) and the role of engineered and natural infrastructure." National Science Foundation. 2019-2023. $2,499,998. Ando, A.W. and S. Dissanayake, co-PIs. "Estimating the values of prairie grassland habitat: A choice experiment study on preferences, charismatic megafauna, and visual information." U.S. Department of Agriculture. 2019-2021. $76,624. Gramig (PI), B.M., S.D. Yun, G.S. Schnitkey and L.F. Gentry. "On-farm Benefits and Costs of Conservation Practices and Systems." USDA-NRCS Cooperative Ecosystems Study Unit, 2018-2020, $462,403. X Cai (PI), R Cusick, BM Gramig, G McIsaac, V Singh. "INFEWS/T1: Advancing FEW System Resilience in the Corn Belt by Integrated Technology-Environment-Economics Modeling of Nutrient Cycling." NSF-Innovations at the Nexus of Food-Energy-Water Systems (INFEWS), 2017-2021, $2.43 million.

Impacts
What was accomplished under these goals? Objective 1: Resource Management Ando received an invitation to revise and resubmit a manuscript to Land Economics that informs management of flood hazards. She uses a contingent valuation survey to evaluate homeowner willingness to pay for a novel pre-flood agreement such that the homeowner pre-commits to relocating if a flood damages their home by more than 50% of its value, in exchange for which they gain an expedited and streamlined buyout process with payment equal to the full market value of their home. The study finds that nearly all homeowners would gain value from being able to enter into such a contract. Ando and social scientists at UIUC worked with scholars at the Northern Research Station of the USDA Forest Service, the Center for Northern Forest Ecosystem Research in the Ontario Ministry of Natural Resources and Forestry, and other departments at UIUC on a co-authored paper published in Landscape and Urban Planning. Their work identifies the tradeoffs people are willing to make between elements of a community's future growth trajectory in parts of Illinois and Iowa. They find that people are willing to accept more unemployment in exchange for protecting agricultural lands and opportunities for recreation, but respondents did not have strong preferences for increased bison populations in the grasslands nearby. Ando and graduate student Liqing Li analyzed the impact of bison restoration on local economies and presented that work several times. Gramig published a review paper with multi-state (some are members of NC-1190) collaborators in California, Illinois, Iowa, Indiana, Maine, and Montana of the recent literature on motivations and barriers to adoption of conservation practices on agricultural land in the U.S. since 1980. A meta-regression analysis using the underlying article database is complete and a manuscript based on this ongoing collaborative work is under development examining groups of related practices to determine if there are genuine effects on adoption after controlling for the precision of estimates and whether publication bias is present in the literature. Gramig, along with W-4133 member Seong Do Yun at Mississippi State University, have continued their work under a cooperative agreement with NRCS and ERS economists to use econometric methods to measure the on-farm yield and cost of production effects of adopting NRCS conservation practices using public and private data sources. Post-doctoral associate Dr. Bowen Chen joined this team in 2019 and is working to build datasets for empirical analysis, estimate models, and communicate findings for NRCS and the economics profession. Objective 2: Economic Valuation Ando has collaborated with other researchers at UIUC and in Missouri on research to estimate the values of water quality improvements in the Corn Belt. She and UIUC graduate student Bryan Parthum completed a manuscript reporting on a choice experiment that finds that both urban and rural residents of the Upper Sangamon River watershed place large value on achieving nutrient reduction targets to stop Gulf hypoxia and reducing local algal blooms. Ando worked with W-4133 coauthors (UIUC graduate student Bryan Parthum, former UIUC graduate student Catalina Londono Cadavid, and Reed College professor Noelwah Netusil in Portland, Oregon) to publish a paper in the Journal of Environmental Economics and Management that estimates the values that people in Chicago, Illinois and Portland, Oregon place on environmental improvements that can result from improved stormwater management. They find that the potential benefits of improved aquatic habitat, pollution reduction, and flood control are large, and that people may be willing to volunteer time to help produce these benefits in their own neighborhoods. Ando advised graduate student Liqing Li in research to understand how early life experience influences the values people have for nature when they are adults. They conducted a choice experiment survey eliciting people's values for grassland restoration in Illinois, Minnesota, and Iowa. Preliminary results show that willingness to pay for grasslands is higher for people who grew up near them. Additionally, people have higher value for specific recreational attributed such as trails and fishing ponds if they learned how to do those activities as children. Ando started research with W-4133 participant Dale Manning at Colorado State University to estimate the benefits of pest control services by bats. This research uses the spread of white-nose syndrome to quantify the impact of bat population reductions on acres of crops planted and the net surplus gained by producers on the acres they do plant. Gramig is conducting a synergistic valuation study to measure the public's preferences for different mechanisms (point source nutrient abatement versus various approaches to non-point source pollution reduction) to achieve state Nutrient Loss Reduction Strategies in force throughout the Corn Belt region. Ando and Gramig have coordinated their WTP work to maximize insights from the resulting valuation estimates. Objective 3 Integrated Policy and Decision Making Ando and W-4133 partner Sahan Dissanayake in Oregon entered into a cooperative agreement with the USDA to do a choice experiment survey of the values of different kinds of grassland restoration that is carefully tailored to inform legislative and agency decisions about the size and administration of the Conservation Reserve Program. Ando teamed up with researchers at places including UIUC, CUNY, and Argonne National Laboratoryto secure $2.5 million in funding for a project from the NSF-INFEWS program for a project that will integrate ecosystem service valuation and physical/climatological modeling to study "Climate-induced extremes on the food, energy, water nexus (C-FEWS) and the role of engineered and natural infrastructure."

Publications

  • Type: Conference Papers and Presentations Status: Other Year Published: 2019 Citation: B. Parthum and A.W. Ando. 2019. Estimating values of water quality: Local and distant, rural and urban. Triangle Resource and Environmental Economics (TREE) seminar series, Durham, NC.
  • Type: Conference Papers and Presentations Status: Other Year Published: 2018 Citation: Londo�o, C., A.W. Ando, N. Netusil and B. Parthum. 2018. Willingness-to-volunteer and stability of preferences between cities: Benefits of storm water management. Seminar at Department of Agricultural Economics, Mississippi State University.
  • Type: Conference Papers and Presentations Status: Other Year Published: 2018 Citation: A.W. Ando. 2018. Estimating the value of well-managed water. Seminar in School of Business at Saint Louis University.
  • Type: Conference Papers and Presentations Status: Other Year Published: 2019 Citation: B. Parthum and A. Ando. 2018. Preferences for environmental quality across the rural-urban divide. The Social Cost of Water Pollution and IAM Workshop at Cornell University, Ithaca, NY.
  • Type: Conference Papers and Presentations Status: Other Year Published: 2019 Citation: L. Li and A. Ando. 2019. The impact of bison reintroduction on local economies. Agricultural and Applied Economics Association (AAEA) Annual Meeting, Atlanta, GA (Poster).
  • Type: Conference Papers and Presentations Status: Other Year Published: 2019 Citation: L. Li. 2019. Early life experience and willingness to pay for conservation. Annual W-4133 Workshop, Costs and Benefits of Natural Resources on Public and Private Lands; Santa Fe, New Mexico.
  • Type: Conference Papers and Presentations Status: Other Year Published: 2019 Citation: L. Prokopy, J.G. Arbuckle, B. Gramig and P. Ranjan. 2019. Meta-review of barriers and motivations for farmers to adopt conservation practices. 2019 SWCS, Pittsburgh, PA. July 31, 2019.
  • Type: Conference Papers and Presentations Status: Other Year Published: 2019 Citation: S.D. Yun and B.M. Gramig. 2019. Economic management and climatic challenges posed by days suitable for field work in the U.S. Corn Belt. 2019 AAEA, Atlanta, GA.
  • Type: Conference Papers and Presentations Status: Other Year Published: 2019 Citation: B.M. Gramig, K.M. Floress and L.S. Prokopy. 2019. What explains different findings about the determinants of agricultural conservation adoption? A Meta-Analysis. 2019 AAEA, Atlanta, GA.
  • Type: Conference Papers and Presentations Status: Other Year Published: 2018 Citation: Yun, S.D. and B.M. Gramig. 2018. Agro-climatic data by county (ACDC): Methods and data generating processes. 2018 North American Regional Science Conclave (NARSC), San Antonio, TX. November 10, 2018.
  • Type: Conference Papers and Presentations Status: Other Year Published: 2018 Citation: Wang, Y., M. Delgado, J.P. Sesmero and B.M. Gramig. Impact of ethanol plant spatial competition on local corn supply: A spatially explicit analysis. Southern Economic Association, 2018 Annual Meeting, Washington, DC. November, 2018.
  • Type: Other Status: Other Year Published: 2018 Citation: A.W. Ando and E. Brown. 2018. Stormwater 101: How to address local flooding and water quality issues. University of Illinois Extension Webinar. https://www.youtube.com/watch?v=MwS6Hc5ys3s&feature=youtu.be.
  • Type: Conference Papers and Presentations Status: Other Year Published: 2018 Citation: A.W. Ando. 2018. The economics of environmental benefits and local policy design. University of Illinois Extension Conference. Champaign, IL.
  • Type: Other Status: Published Year Published: 2018 Citation: Coppess, J., G. Schnitkey, C. Zulauf, N. Paulson, B. Gramig and K. Swanson. 2018. The Agriculture Improvement Act of 2018: Initial Review. farmdoc daily (8):227, Department of Agricultural and Consumer Economics, University of Illinois at Urbana-Champaign, December 12, 2018.
  • Type: Journal Articles Status: Published Year Published: 2019 Citation: A.W. Ando, C.L. Cadavid, N. Netusil and B. Parthum. 2019. Willingness-to-volunteer and stability of preferences between cities: Estimating the benefits of storm water management. Journal of Environmental Economics and Management (In Press).
  • Type: Journal Articles Status: Published Year Published: 2019 Citation: Foelske, L., C.J. Van Riper, W. Stewart, A. Ando, P. Gobster and L. Hunt. 2019. Assessing preferences for growth on the rural-urban fringe using a stated choice analysis. Landscape and Urban Planning 189: 396-407.
  • Type: Journal Articles Status: Under Review Year Published: 2019 Citation: Parthum, B. and A.W. Ando. 2019. Local benefits and willingness to pay to reduce hypoxia in the Gulf of Mexico. Revise and Resubmit.
  • Type: Journal Articles Status: Under Review Year Published: 2019 Citation: Gramig, B.M. and S.D. Yun. 2018. Days suitable for fieldwork in the U.S. Corn Belt: Climate, soils and spatial heterogeneity. Under Review.
  • Type: Journal Articles Status: Published Year Published: 2019 Citation: Khanna, M., B.M. Gramig, E.H. DeLucia, X. Cai and P. Kumar. 2019. Harnessing the potential of emerging technologies to mitigate the hypoxia challenge. Nature Sustainability, 23 September 2019.
  • Type: Journal Articles Status: Published Year Published: 2019 Citation: Margenot, A., D. Kitt, B.M. Gramig, T. Berkshire, N. Chatterjee, A. Hertzberger, S. Aguiar, A. Furneaux, N. Sharma and R. Cusick. 2019. Toward a regional phosphorus (re)cycle in the U.S. Midwest. Journal of Environmental Quality, 48(5):1397-1413.
  • Type: Journal Articles Status: Published Year Published: 2019 Citation: Prokopy, L.S., K. Floress, J.G. Arbuckle, S.P .Church, F. Eanes, Y. Gao, B.M. Gramig, P. Ranjan and A.S Singh. 2019. Adoption of agricultural conservation practices in the United States: Evidence from 35 Years of quantitative literature. Journal of Soil and Water Conservation 74(5):520-534.
  • Type: Journal Articles Status: Published Year Published: 2019 Citation: Yun, S.D. and B.M. Gramig. 2019. Agro-climatic data by county: A spatially and temporally consistent U.S. dataset for agricultural yields, weather and soils. Data 4(2):66, 2019.
  • Type: Journal Articles Status: Published Year Published: 2019 Citation: Hodde, W., Sesmero, J., Gramig, B., Vyn, T. and Doering, O. 2019. The predicted effect of projected climate change on the economics of conservation tillage. Agronomy Journal 111:110. doi:10.2134/agronj2019.01.0045.


Progress 11/01/17 to 09/30/18

Outputs
Target Audience:We communicated our results to environmental non-profits, environmental consulting companies, and the USDA. We also presented results to scholars in these fields of study. Changes/Problems: Nothing Reported What opportunities for training and professional development has the project provided?The project has helped train four PhD students (three female) and one MS student in resource economics and survey research methods. How have the results been disseminated to communities of interest?Presentations to Scholarly Audiences: Sept. 2018: A.W. Ando. "Finance and conservation: Reducing risk and mobilizing resources." Keynote talk at the 23rd Annual Meeting of the Society for Environmental Economics and Policy Studies. Tokyo, Japan. Sept. 2018: A.W. Ando, Catalina Londono Cadavid, Noelwah Netusil, Bryan Parthum. "Willingness-to-Volunteer and Stability of Preferences between Cities: Benefits of Stormwater Management". Workshop presentation, Economics department, Sophia University, Tokyo, Japan. June 2018: A.W. Ando, Collin Reeser. "Net Value of Pre-Flood Guaranteed Flood Buyout Program" World Congress of Environmental and Resource Economics. Gothenberg, Sweden. February 2018. Parthum, B. "Place, awareness, and WTP". W4133 Working Group, February 2018, Austin, TX. February 2018: A.W. Ando, Catalina Londono Cadavid, Noelwah Netusil, Bryan Parthum. "Willingness-to-Volunteer and Stability of Preferences between Cities: Benefits of Stormwater Management". Workshop presentation, Economics department, University of Wyoming. Laramie, WY. August 2018. Sun, S, M Delgado and BM Gramig. "Cost-effectiveness of Nutrient Loss Reduction from Working Lands Agricultural Conservation Expenditures," 2018 AAEA, Washington, DC. July 2018. L Prokopy, S Church, B Gramig, P Ranjan. "Meta-Review of Barriers and Motivations for Farmers to Adopt Conservation Practices," 2018 Soil and Water Conservation Society annual meeting, Albuquerque, NM. July 30, 2018. February 2018. BM Gramig, S Sun, M Delgado. "Cost-effectiveness of Nutrient Loss Reduction from Working Lands Agricultural Conservation Expenditures," W-4133 USDA multi-state project annual meeting, Austin, TX. February 2018. Yun, SD and BM Gramig. "Agro-Climatic Data by County (ACDC): Methods and Data Generating Processes." 2018 Southern Agricultural Economics Association, Jacksonville, FL. Extension/Outreach Presentations March 23, 2018. "Environmental Economic Approaches to Soil Health as a Capital Stock." Soil Health on Rented Lands in Indiana: A Workshop for Agricultural, Conservation and Landowner Service Professionals to Explore Potential Solutions convened by The Nature Conservancy at the NCAA Hall of Champions, Indianapolis, IN. November 15, 2017. "What is a Day Spent Fishing on Southern Lake Michigan Worth to Anglers?" Lake Michigan Fisheries Workshop, Illinois-Indiana Sea Grant. City Hall, Michigan City, Indiana. November 4, 2017. "The Food-Energy-Water Nexus in and around the Sangamon River." Sangamon Watershed Celebration, Decatur, IL. November 1, 2017. "What is a Day Spent Fishing on Southern Lake Michigan Worth to Anglers?" Lake Michigan Fisheries Workshop, Illinois-Indiana Sea Grant. Hammond Marina, Hammond, Indiana. What do you plan to do during the next reporting period to accomplish the goals?All investigators will work to shepherd papers in review through the publication process. Researchers will carry out the following additional new work: 1) Ando will complete the choice-experiment survey to estimate how an individual's WTP for water quality improvements in a watershed in Illinois is affected by their proximity to the area where landscape changes are implemented to accomplish the change and by whether they are in rural or urban parts of the watershed. We will analyze the data, write the manuscript, and submit it for publication. 2) Ando will work to complete a new analysis that applies multi-objection portfolio analysis to real data and identifies what kinds of correlations among conservation targets makes the multi-objective approach most important. 3) Ando will complete a paper estimating the recreational value of urban beaches and submit it for publication. 4) Gramig is currently leading a non-market valuation study of public preferences for nutrient loss reduction in Illinois, Indiana and Iowa. Over the next year a choice experiment will be conducted with a random sample of the general public to estimate the marginal value of water quality improvements, as well as preferences for the means of achieving those marginal improvements. A later phase of the project will investigate part of the supply side of achieving water quality improvements by surveying farmers in the same states to estimate their willingness-to-accept payment to change management practices in order to supply nutrient loss abatement.

Impacts
What was accomplished under these goals? Objective 1: Resource Management Ando completed a manuscript to inform management of flood hazards and submitted it for review. She uses a contingent valuation survey to evaluate homeowner willingness to pay for a novel pre-flood agreement such that the homeowner pre-commits to relocating if a flood damages their home by more than 50% of its value, in exchange for which they gain an expedited and streamlined buyout process with payment equal to the full market value of their home. The study finds that nearly all homeowners would gain value from being able to enter into such a contract. Ando worked with coauthors to complete and publish a paper that sets forth principles for optimal spatial targeting of conservation investment to reduce outcome risk with the smallest possible reduction in the expected level of ecological benefits when the decision maker is interested in multiple distinct environmental targets. Ando worked with coauthors to complete and publish a paper that shows the kinds of conservation problems for which spatial portfolio theory analysis can be most useful. Gramig worked throughout 2017 and 2018 with multi-state (some are members of NC-1190) collaborators in California, Iowa, Indiana, and Maine to review the recent literature on motivations and barriers to adoption of conservation practices on agricultural land in the U.S. since 1980. A high-level initial analysis has been submitted for expedited review and five additional manuscripts are under development examining specific practices, actual adoption versus willingness-to-adopt and undertaking a statistical meta-analysis of the literature. Gramig, along with W-4133 member Seong Do Yun at Mississippi State University, began a cooperative agreement with NRCS and ERS economists to use econometric methods to measure the on-farm yield and cost of production effects of adopting NRCS conservation practices using public and private data sources. This work also partners with the Illinois Corn Growers Association's Precision Conservation Management program led Dr. Laura Gentry that has partial support from the USDA Regional Conservation Partnership Program. Impacts: The analysis of homeowner willingness to pay for a pre-flood agreement to accept an expedited post-flood buyout if their home is severely damaged in a flood has informed active policy formation in Congress. The research has supported efforts to pilot such a program in South Carolina. The research on multiple-objective environmental portfolio optimization is informing research by ecologists and other economists (including W4133 partners at Mississippi State) seeking to carry out such studies. Objective 2: Economics Valuation Ando has collaborated with researchers in Missouri to identify key attributes of water quality improvements in the Corn Belt that should be valued. She has worked with a graduate student to refine a choice-experiment survey to estimate how an individual's WTP for water quality improvements in a watershed in Illinois is affected by their proximity to the area where landscape changes are implemented to accomplish the change and by whether they are in rural or urban parts of the watershed. Gramig is conducting a synergistic valuation study to measure the public's preferences for different mechanisms (point source nutrient abatement versus various approaches to non-point source pollution reduction) to achieve state Nutrient Loss Reduction Strategies in force throughout the Corn Belt region. Ando and Gramig have coordinated their WTP work to maximize insights from the resulting valuation estimates. Gramig completed a study through Illinois-Indiana Sea Grant with a collaborator at Purdue University of the value of recreation fishing in Southern Lake Michigan along the shores in Illinois and Indiana. This work partnered with the Illinois Natural History Survey and the Indiana Department of Natural Resources to collect data using an angler intercept survey. Ando collaborated with W-4133 affiliate Noelwah Netusil at Reed College to write a review of the literature estimating the values of green infrastructure. Impacts: Expertise gained from research supported by W-4133 helped Ando (UIUC) and Lang (URI) to partner successfully to obtain USDA-NIFA funding (with Lang as PI) for research to estimate how the benefits of open space and farmland conservation programs are distributed across different groups of people. The paper on the benefits of green infrastructure provides economists, urban planners, ecologists, and engineers with comprehensive knowledge about what is known about such benefits. Objective 3 Integrated Policy and Decision Making A team of researchers from W-4133 partner universities UIUC and Oregon State, Amy Ando and Christian Langpap, wrote an analytical review of research on the economics of species conservation. They analyzed research on the values of species conservation and optimal policy design for species conservation. Impacts: Ando and Langpap's paper on the economics of species conservation informs current and future policies for species conservation by summarizing what is known about the effectiveness of different policy designs and what the benefits of such conservation may be.

Publications

  • Type: Journal Articles Status: Published Year Published: 2018 Citation: Ando, A.W., A. Howlader and M. Mallory. 2018. Diversifying to reduce conservation outcome uncertainty in multiple environmental objectives. Agricultural and Resource Economics Review 47(2): 220⿿238. doi.org/10.1017/age.2018.7.
  • Type: Journal Articles Status: Published Year Published: 2018 Citation: Ando, A.W., J. Fraterrigo, G. Guntenspergen, A. Howlader, M. Mallory, J. Olker and S. Stickley. 2018. When portfolio theory can help environmental investment planning to reduce climate risk to future environmental outcomes ⿿ And when it cannot. Conservation Letters. http://dx.doi.org/10.1111/conl.12596.
  • Type: Journal Articles Status: Under Review Year Published: 2018 Citation: Stamberger, L., C.J. van Riper, W. Stewart, A.W. Ando, P. Gobster and L. Hunt. 2018. Assessing preferences for growth on the rural-urban fringe using a stated choice analysis.
  • Type: Journal Articles Status: Under Review Year Published: 2018 Citation: Reeser, C. and A.W. Ando. 2018. Homeowner willingness to pay for a pre-flood buyout agreement.
  • Type: Journal Articles Status: Under Review Year Published: 2018 Citation: Cadavid, C., A.W. Ando, N. Netusil and B. Parthum. 2018. Willingness-to -volunteer and stability of preferences between cities: Estimating the benefits of stormwater management.
  • Type: Journal Articles Status: Published Year Published: 2018 Citation: Ando, A.W. and N. Netusil. 2018. Valuing the benefits of green stormwater infrastructure. Oxford Encyclopedia of Environmental Science. doi: 10.1093/acrefore/9780199389414.013.605.
  • Type: Journal Articles Status: Published Year Published: 2018 Citation: Ando, A.W. and C. Langpap. 2018. The economics of species conservation. Annual Review of Resource Economics 10: 445-467. doi.org/10.1146/annurev-resource-100517-022921.
  • Type: Journal Articles Status: Published Year Published: 2018 Citation: Byrd, E.S., N.J.O. Widmar and B.M. Gramig. 2018. Presentation matters: Number of attributes presented impacts estimated preferences. Agribusiness: An International Journal, 34(2):377-389, 2018.
  • Type: Book Chapters Status: Published Year Published: 2018 Citation: Doering, O.C., B.M. Gramig and D. Jeong. 2018. Economic and policy implications of nitrogen management. Soil Nitrogen Uses and Environmental Impacts, Advances in Soil Science: Soil Nitrogen, eds. R. Lal and B.A. Stewart. CRC Press, Taylor & Francis Group: 2018.
  • Type: Journal Articles Status: Published Year Published: 2018 Citation: Gramig, B.M. and N.J.O. Widmar. 2018. Farmer preferences for agricultural soil carbon sequestration schemes. Applied Economic Perspectives and Policy, 40(3):502-521, 2018.
  • Type: Journal Articles Status: Published Year Published: 2018 Citation: Liu, Y., M.R. Langemeier, I.M. Small, L. Joseph, W.E. Fry, J.B. Ristaino, A. Saville, B.M. Gramig and P.V. Preckel. 2018. A risk analysis of precision agriculture technology to manage tomato late blight. Sustainability 10(9), 3108, 2018.
  • Type: Journal Articles Status: Under Review Year Published: 2018 Citation: Prokopy, L.S., K. Floress, J.G. Arbuckle, S.P. Church, F. Eanes, Y. Gao, B.M. Gramig, P. Ranjan and A.S. Singh. 2018. Adoption of agricultural conservation practices in the United States: Evidence from 35 years of quantitative literature.
  • Type: Journal Articles Status: Under Review Year Published: 2018 Citation: Wang, Y., M. Delgado, J.P. Sesmero and B.M. Gramig. 2018. Impact of ethanol plant spatial competition on local corn supply: A spatially explicit analysis.
  • Type: Journal Articles Status: Under Review Year Published: 2018 Citation: Hodde, W., J.P. Sesmero, B.M. Gramig and A. Vyn. 2018. The effect of projected climate change on the economics of conservation tillage.
  • Type: Book Chapters Status: Under Review Year Published: 2018 Citation: Gramig, B.M. and S.D. Yun. 2018. Days suitable for fieldwork in the U.S. Corn Belt: Climate, soils and spatial heterogeneity.