The Economic Benefits of Wetland Retention and Restoration in Manitoba

Abstract

This study examines the willingness to pay of Manitobans for wetland retention and restoration using stated preference methods applied to a sample of 1,980 respondents from the provincial population. The approach employed an iterated series of binary choice scenarios framed as referenda and utilized both cheap talk and certainty approaches in the design as well as tests of sensitivity to scope of the environmental improvement. The results suggest that over a five-year period Manitobans would be willing to pay $296-$326/household/year depending on the level of the wetland program improvement. Using 5% (10%) discount rates these estimates result in present value aggregate payments of $504 ($550) million for retaining wetlands at current levels and about a further $106($110) million (for a total of $611 [$666] million) for restoring wetlands to estimated 1968 levels. Comparison of these benefits with current land values and restoration costs suggests that full restoration may not be economically efficient, but that retention in concert with some restoration may be. © 2011 Canadian Agricultural Economics Society.