Mean WTP to increase five ecosystem services
(dilution of wastewater, natural purification of
water, erosion control, habitat for fish and
wildlife, and recreation) along 45 miles of the
South Platte river was $21 per month in a higher
water bill. When the $21 is generalized to households
living along the river, this is sufficient to
pay for the conservation easements on agricultural
land along the river and the leasing of water
for instream flow. Thus, the policy to increase
ecosystem services meets the economic efficiency
criteria that the gaining public could compensate the farmers and ranchers for the conservation
easement and water and still come out ahead.
Areas for further improvement include systematically
varying the number of ecosystem services
to be valued and the level of each ecosystem
service to be provided. This can be done using
multiple scenarios within a contingent valuation
survey or through the use of contingent choice or
conjoint analysis (Adamowicz et al., 1997). In this
way the incremental value of specific ecosystem
services could be valued and compared to the cost
of providing that ecosystem service or higher level
of ecosystem service.