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: REVISED
• Funding Source: HATCH
• Reporting Frequency: Annual
• Accession No.: 1015480
• Project No.: WYO-595-18
• Multistate No.: W-4133
• Project Start Date: Jan 29, 2018
• Project End Date: Sep 30, 2022

Project Director
McLeod, DO.

Recipient Organization
UNIVERSITY OF WYOMING
1000 E UNIVERSITY AVE DEPARTMENT 3434
LARAMIE,WY 82071-2000

Performing Department
Agricultural And Applied Economics

Non Technical Summary
Federal land management agencies have adopted sustainable ecosystem management as a guiding principle, which requires information on the trade-offs among environmental, social, and economic aspects. The objectives of this regional research project are designed to provide this type of information for ecosystem services that are not valued directly by markets, as needed by decision makers in the public and private sectors.The next five years of the W4133 project will be a period in which ecosystem services on public and private lands will experience increased pressure from changes in direct and derived demand for public lands uses, as well as possible ecosystem changes from increased variation in extreme weather events, invasive species, altered wildfire regimes, and other natural hazards. In addition, federal agencies will require solid research findings that delineate the economic values of ecosystem services that are not priced in the market, in order to face possible challenges to regulatory regimes originally designed to conserve ecosystem service values, such as generation of renewable energy and possible new listings under the Endangered Species Act. At their core, many policy issues have values that are public good in nature and are therefore subject to market failure in a changing economic and political environment. Public policy with regard to public land, water, air quality, and other natural assets continues to evolve using more efficient economic incentive mechanisms; the success of these mechanisms lies in the ability to measure the value of natural assets and ecosystem services under changing economic and natural environments. The proposed objectives and sub-tasks for the W4133 project research over the next five years directly address these challenges.

Animal Health Component

0%

Research Effort Categories

Basic

20%

Applied

80%

Developmental

0%

Classification

Knowledge Area (KA)	Subject of Investigation (SOI)	Field of Science (FOS)	Percent
131	3010	3010	10%
136	0820	3010	10%
136	3010	3010	10%
131	6050	3010	20%
136	6199	3010	10%
134	6199	3010	10%
608	6050	3010	10%
605	6050	3010	10%
605	0850	3010	10%

Knowledge Area
136 - Conservation of Biological Diversity; 605 - Natural Resource and Environmental Economics; 134 - Outdoor Recreation; 608 - Community Resource Planning and Development; 131 - Alternative Uses of Land;

Subject Of Investigation
0820 - Wild birds; 6199 - Economy, general/other; 0850 - Wildlife habitats; 3010 - Honey bees; 6050 - Communities, areas, and regions;

Field Of Science
3010 - Economics;

Keywords

land use conversion

habitat

ecosystem services

public services

Goals / Objectives
Resource Management Economic Valuation Integrated Policy and Decision-Making

Project Methods
Resource ManagementChanging global and regional markets, demographic change, and climate change create a challenging context for leaders, communities, and households to make informed decisions about land, forest, and water resource management, safe and healthy recreation, and rural community development. The proposed research strives to improve support of federal, state, and local public decision-makers and private landowners, households, and recreationists. By helping these public and private actors negotiate this challenging context, the proposed work aims to facilitate both economic growth and resilient land, water, and forest systems. Colleagues from several states will conduct economic analyses of land and water resource management policies and individual/household land, water, and recreation decisions to improve natural resource management.Economic Analysis of Forests,Agricultural Land,Water,Open Space andtheWildland-Urban InterfaceSeveral sets of researchers in Colorado, Nevada, Wyoming, and Louisiana will work on cross-cutting research to study land and water resources' the W4133 network will provide all of them with a community of co-authors and research support for this work. CSU, along with UNRis working to develop local general equilibrium models that incorporate water, in order to examine the economy-wide impacts of population growth and competition for scarce land and water. Our focus is on direct and indirect impacts in both urban and rural areas. CSU is also currently working on a model of participation in land retirement programs currently used to conserve water in Eastern Colorado (CREP).Wyoming intends to follow-up on the impact of rural development on public services provision and ecosystem services related to open space (Lieske et al., 2015). The scale will be extended from county to state and regional level. Other public services including law enforcement will be evaluated. It is intended to develop insights as per sustainable rural development and developments. Wyoming also intends to continue investigating mechanisms for open space conservation, in particular Conservation Easements (Bastian et al., 2017). This will shed light on different Conservation Easement features that are mutually agreeable to buyers and sellers alike. Wyoming will continue to work with several researchers at both Colorado State University and Memorial University Newfoundland Canada.Economic Analysis of Natural andMan-madeHazardsResearch under this task will develop knowledge and tools related to valuation, communication and risk management that will be broadly applicable, but the research will be carried out in three applied contexts.A second body of work will consider optimal management of fire risk in the West. Wyoming intends to follow-up on the federal cost of fire suppression (Clark et al., 2016) by further delineating important spatial considerations for mitigation. This is intended to demonstrate development patterns less costly to defend leading to more fire prevention and less suppression. Researchers atNorthern Arizona Universityare working on a hedonic property model to estimate the impacts of post-wildfire flooding on house prices in Northern Arizona. The 2010 Schultz wildfire resulted in landscape changes and devastating post-wildfire flooding in areas without any historical record of floods. The results will be presented to the City of Flagstaff and other regional constituents to help inform the Four Forest Restoration Initiative. Utah State will examine the economic consequences of wildfire on grazing and National Park recreation resources in the red rock regions of southern Utah and northern Arizona.

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

Outputs
Target Audience:The audiences for the outcomes consist of policy makers, landowners, land use planners, land trusts, federal and state agency personnel, other researchers, elected officials and concerned citizens. Research offers insights as to maximizing benefits and minimizing damages and costs from land use decisions. This includes fiscal impacts of development, loss of arable agricultural lands from conversion to other uses, and the ecosystem services implications of land use changes. Changes/Problems: Nothing Reported What opportunities for training and professional development has the project provided?Investigator learning of advanced econometric, experimental economics, and spatial analysis techniques. Graduate student research and communication training. How have the results been disseminated to communities of interest?Via Extension and popular press products. What do you plan to do during the next reporting period to accomplish the goals?Make use of previously gathered data to continue to analyze cost and benefits of rural development and land use conversion as well as management of land at the wildland urban interface. Continued examination of the role and importance of pollinators as well as their value is taking place.

Impacts
What was accomplished under these goals? Habitat conservation exchange development in Wyoming is being impacted by our research, particularly as it relates to nonattainment risk and market design for sagegrouse habitat. Current policy for pollinator habitat is likely to be ineffective according to our analysis of current policy. Our research indicates that policy designed in the manner our research tests would improve pollinator habitat and pollinator populations. Estimation techniques indicated that land trusts have different missions that influence the types of Conservation Easements they would pursue. This research has policy ramifications as per NRCS's and FSA's CPGL, CRP, CSP, EQIP, FRPP, GRP, WRP, WHIP; USFS's Forest Legacy, Stewardship and Land Enhancement Programs; USF&W's Cooperative Endangered Species Conservation Fund and Partnership with Private Landowners for fish and wildlife habitat conservation; LT's and Public PACE programs. The work also has implications for state, county and municipal land use planning efforts as well as property owners, rural communities and developers. Outcomes provide perspectives as per landowner preferences for conservation easements as well as land trust concerns for initiating conservation easement agreements. The research is designed to improve the decision making environment for program provider and participants. These results are being shared with the academic community, extension educators, land trusts and producer groups. The consequences of local land use decisions on federal lands management has also been pursued. It is understood that land use management on private land affects public land management strategies (and vice versa). Federal fire suppression costs have risen dramatically as ex-urban development (on former agricultural lands) has occurred in the Wildland Urban Interface (WUI). Water allocation in the face of competing demands and limited supplies has also been pursued as related to land use decisions and resource management. Cost of community services is yet another consequence of different development patterns and locations in the rural landscape. Continued efforts in data collection relevant to land use for valuation of parcel attributes and for development trends are ongoing. Continuing research into pollinator impacts and value including the use of experimental economics is ongoing.

Publications

• Type: Journal Articles Status: Under Review Year Published: 2021 Citation: Conte, Marc, Kristiana Hansen, Kyle Horton, Chian Jones Ritten, Leah H. Palm-Forster, Jason F. Shogren, Frank W�tzold, and Teal Wyckoff. A Framework to Evaluate Mechanisms to Support Seasonal Migratory Species. Under review at Review of Environmental and Economics Policy. Submitted November 2020.
• Type: Journal Articles Status: Published Year Published: 2019 Citation: Panchalingam*, T., C. Jones Ritten, J. F. Shogren, M. D. Ehmke, C. T. Bastian, and G. M. Parkhurst. Adding Realism to the Agglomeration Bonus: How Endogenous Land Returns Affect Habitat Fragmentation, Ecological Economics. 164(October 2019): 1-10. Article 106371 doi: 10.1016/j.ecolecon.2019.106371
• Type: Journal Articles Status: Awaiting Publication Year Published: 2021 Citation: Bastian, C. T., C. M. Keske, D. L. Hoag, and D. M. McLeod. Comment on Eaton et al.s Reconceptualization of Economic Dependence in Trouble with Sense of Place in Working Landscapes, Society and Natural Resources (Currently in Press).

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

Outputs
Target Audience:The audiences for the outcomes consist of policy makers, landowners, land use planners, land trusts, federal and state agency personnel, other researchers, elected officials and concerned citizens. Research offers insights as to maximizing benefits and minimizing damages and costs from land use decisions. This includes fiscal impacts of development, loss of arable agricultural lands from conversion to other uses, and the ecosystem services implications of land use changes. Changes/Problems: Nothing Reported What opportunities for training and professional development has the project provided?Investigator learning of advanced econometric, experimental economics, and spatial analysis techniques. Graduate student research and communication training. How have the results been disseminated to communities of interest? Via Extension and popular press products. What do you plan to do during the next reporting period to accomplish the goals?Make use of previously gathered data to continue to analyze cost and benefits of rural development and land use conversion as well as management of land at the wildland urban interface (WUI). Continued examination of the role and importance of pollinators as well as their value is taking place.

Impacts
What was accomplished under these goals? Habitat conservation exchange development in Wyoming is being impacted by our research, particularly as it relates to nonattainment risk and market design for sagegrouse habitat. Current policy for pollinator habitat is likely to be ineffective according to our analysis of current policy. Our research indicates that policy designed in the manner our research tests would improve pollinator habitat and pollinator populations. Estimation techniques indicated that land trusts have different missions that influence the types of Conservation Easements they would pursue. This research has policy ramifications as per NRCS's and FSA's CPGL, CRP, CSP, EQIP, FRPP, GRP, WRP, WHIP; USFS's Forest Legacy, Stewardship and Land Enhancement Programs; USF&W's Cooperative Endangered Species Conservation Fund and Partnership with Private Landowners for fish and wildlife habitat conservation; LT's and Public PACE programs. The work also has implications for state, county and municipal land use planning efforts as well as property owners, rural communities and developers. Outcomes provide perspectives as per landowner preferences for conservation easements as well as land trust concerns for initiating conservation easement agreements. The research is designed to improve the decision making environment for program provider and participants. These results are being shared with the academic community, extension educators, land trusts and producer groups. The consequences of local land use decisions on federal lands management has also been pursued. It is understood that land use management on private land affects public land management strategies (and vice versa). Federal fire suppression costs have risen dramatically as ex-urban development (on former agricultural lands) has occurred in the Wildland Urban Interface (WUI). Water allocation in the face of competing demands and limited supplies has also been pursued as related to land use decisions and resource management. Cost of community services is yet another consequence of different development patterns and locations in the rural landscape. Continued efforts in data collection relevant to land use for valuation of parcel attributes and for development trends are ongoing. Continuing research into pollinator impacts and value including the use of experimental economics is ongoing.

Publications

• Type: Journal Articles Status: Published Year Published: 2019 Citation: Panchalingam, T., C. Jones Ritten, J. F. Shogren, M. D. Ehmke, C. T. Bastian, and G. M. Parkhurst. Adding Realism to the Agglomeration Bonus: How Endogenous Land Returns Affect Habitat Fragmentation, Ecological Economics. 164(October 2019): doi: 10.1016/j.ecolecon.2019.106371
• Type: Journal Articles Status: Published Year Published: 2019 Citation: Lamb, K., K. Hansen, C. T. Bastian, C. Jones Ritten, and A. Nagler, Investigating Potential Impacts of Credit Failure Risk Mitigation on Habitat Exchange Outcomes. Environmental and Resource Economics. Conference on Behavioral and Experimental Agri-Environmental Research Special Issue. 73,3(2019): 815-842.
• Type: Journal Articles Status: Accepted Year Published: 2019 Citation: Jones Ritten, C., L. Thunstrom, M. Ehmke, J. Beiermann and D. McLeod. 2019. International honey laundering and consumer willingness to pay a premium for local honey: and experimental study. The Australian Journal of Agricultural and Resource Economics. 59:1-16.
• Type: Conference Papers and Presentations Status: Other Year Published: 2019 Citation: K. Hansen, C. Jones-Ritten, A. Nagler and C. Bastian, A Laboratory Comparison of Risk Mitigation Strategies in Conservation Markets. Selected Paper Presentation. 2019 Western Agricultural Economics Association Annual Meeting. June 30-July 2, 2019. Coeur dAlene, ID
• Type: Conference Papers and Presentations Status: Accepted Year Published: 2019 Citation: Karsyn Lamb, Kristi Hansen, Chris Bastian, Amy Nagler, and Chian Jones Ritten. Managing Landowner Risk in Environmental Markets. University of Wyoming, Agricultural Experiment Station, 2019 Field Days Bulletin.
• Type: Conference Papers and Presentations Status: Accepted Year Published: 2019 Citation: Ehmke, Mariah, Christopher Bastian, Vardges Hovhannisyan, Chian Jones Ritten, and Hunter Bruce. Almond Grower Demand for Beekeeping Services in the Western United States. American Agricultural Economics Associations Annual Meeting. Atlanta, Georgia: July 21-23, 2019.
• Type: Conference Papers and Presentations Status: Accepted Year Published: 2019 Citation: Jones Ritten, Chian, Christopher Bastian, Mariah Ehmke, Linda Thunstrom, Vardges Havhannisyan, and Hunter Bruce. The Well Traveled Bee: Marketing Honey Bees for Pollination Services  What to Know, Expect, and Plan For. Invited Presentation. Wyoming Bee College. Cheyenne, Wyoming: March 23-24, 2019.
• Type: Conference Papers and Presentations Status: Accepted Year Published: 2019 Citation: Scott Lieske, Roger Coupal and Donald McLeod. Political jurisdiction, reputation and urban form: a more complete specification of public service costs. Western Agricultural Economics Association. Coeur dAlene, ID. June 30  July 2, 2019.

Progress 01/29/18 to 09/30/18

Outputs
Target Audience:The audiences for the outcomes consist of policy makers, landowners, land use planners, land trusts, federal and state agency personnel, other researchers, elected officials and concerned citizens. Research offers insights as to maximizing benefits and minimizing damages and costs from land use decisions. This includes fiscal impacts of development, loss of arable agricultural lands from conversion to other uses, and the ecosystem services implications of land use changes. Changes/Problems: Nothing Reported What opportunities for training and professional development has the project provided?Investigator learning of advanced econometric, experimental economics, and spatial analysis techniques. Graduate student research and communication training. How have the results been disseminated to communities of interest?Via Extension and popular press products. What do you plan to do during the next reporting period to accomplish the goals?Make use of previously gathered data to continue to analyze cost and benefits of rural development and land use conversion as well as management of land at the wildland urban interface (WUI). Continued examination of the role and importance of pollinators as well as their value is taking place.

Impacts
What was accomplished under these goals? (1.) Habitat conservation exchange development in Wyoming being impacted by our research, particularly as it relates to non-attainment risk and market design for sagegrouse habitat. Current policy for pollinator habitat likely to be ineffective according to our analysis of current policy. Our research indicates that policy designed in the manner our research tests would improve pollinator habitat and pollinator populations. Estimation techniques indicated differences between Colorado and Wyoming landowner preferences for conservation easement programs. It also indicates that land trusts have different missions that influence the types of Conservation Easements they would pursue. This research has policy ramifications as per NRCS's and FSA's CPGL, CRP, CSP, EQIP, FRPP, GRP, WRP, WHIP; USFS's Forest Legacy, Stewardship and Land Enhancement Programs; USF&W's Cooperative Endangered Species Conservation Fund and Partnership with Private Landowners for fish and wildlife habitat conservation; LT's and Public PACE programs. The work also has implications for state, county and municipal land use planning efforts as well as property owners, rural communities and developers. Outcomes provide perspectives as per landowner preferences for conservation easements as well as land trust concerns for initiating conservation easement agreements. The research is designed to improve the decision making environment for program provider and participants. These results are being shared with the academic community, extension educators, land trusts and producer groups. The consequences of local land use decisions on federal lands management has also been pursued. It is understood that land use management on private land affects public land management strategies (and vice versa). Federal fire suppression costs have risen dramatically as ex-urban development (on former agricultural lands) has occurred in the Wildland Urban Interface (WUI). Water allocation in the face of competing demands and limited supplies has also been pursued as related to land use decisions and resource management. Continued efforts in data collection relevant to land use for valuation of parcel attributes and for development trends are ongoing. Continuing research into pollinators impacts and value including the use of experimental economics is ongoing.

Publications

• Type: Conference Papers and Presentations Status: Other Year Published: 2018 Citation: Presentation made at the World Congress of Environmental Economics. S. Brockman, T. Panchalingam, C. Jones Ritten, J. F. Shogren, M. D. Ehmke, C. T. Bastian, and G. Parkhurst, Adding Realism to the Agglomeration Bonus: How Endogenous Land Returns, Spatial Heterogeneity, and Affordability Affect Pollinator Habitat Fragmentation, Selected Paper Presentation. 6th World Congress of Environmental and Resource Economists. June 25-29, 2018. Gothenburg, Sweden. (Presented by S. Brockman).
• Type: Journal Articles Status: Under Review Year Published: 2018 Citation: Panchalingam*, T., C. Jones Ritten, J. F. Shogren, M. D. Ehmke, C. T. Bastian, and G. M. Parkhurst. Adding Realism to the Agglomeration Bonus: How Endogenous Land Returns, Spatial Heterogeneity, and Affordability Affect Pollinator Habitat, Ecological Economics.
• Type: Conference Papers and Presentations Status: Under Review Year Published: 2018 Citation: Lamb, K.*, K. Hansen, C. T. Bastian, C. Jones Ritten, and A. Nagler, Investigating Potential Impacts of Non-Attainment Risk Mitigation on Habitat Exchange Outcomes. Environmental and Resource Economics. Conference on Behavioral and Experimental Agri-Environmental Research Special Issue.