Valuing Ecosystem Goods and Services in the Columbia River Basin

Author: A. Cotter, S. Sihota

This report has three objectives: 1. To identify the connections between food, water, energy, and biodiversity (the nexus) in the Columbia River Basin (CRB). 2. To estimate the economic value of some of the non-market benefits that ecosystems in the CRB provide to the US as well as some of the costs to British Columbia (BC) incurred by the co-ordinated management of water flows under the Columbia River Treaty (CRT, or the Treaty). 3. To consider the effects on these values and connections between changing supplies and demands driven by a changing climate and a growing population.

Our findings represent an initial look at ecosystem goods and services (EGS), and identify the following benefits provided by ecosystems in the US Columbia River Basin (CRB).

1. Provisioning Goods Provided by Salmon
Salmon for harvest represent significant monetary value irrevocably tied to economies in the region and benefits to fishers, the commercial fishing industry, US Tribes and consumers. BC has a significant role to play in allocating flows and cooler waters to the US through Treaty mechanisms to guarantee these benefits. Without these coordinated flows, the US may face significant economic losses due to projected climate change impacts leading to salmon stock decline. BC should consider the value of salmon in the US CRB and derive compensation for operations in BC that enhance and preserve this ecosystem service.

2. Agency Spending
US agencies are spending increasing amounts on fish and wildlife restoration and rehabilitation. This spending is fuelled by the listing of salmon under the US Endangered Species Act and the importance of sport and commercial fisheries to the regional economy and regional identity, as well as the desire to avoid lawsuits from Indigenous groups over fishing rights, should the salmon go extinct. For example, in 1951, 1975, and 1991, the Colville and Spokane Tribes took legal actions against the US government for the loss of traditional fishing. In 1994, partial agreement was reached, with the Colville Tribes receiving a lump sum of $53 million and $15 million annually thereafter (Ortolano & Cushing, 1999). The importance of high flows during critical periods indicates that BC has a significant role to play in restoring the salmon fishery in the US Pacific Northwest, and that BC should therefore be compensated for managing its dams in accordance with US desire to restore and maintain salmon.

3. The Value of Regulatory Ecosystem Goods and Services
Regulatory ecosystem services are critical to CRB residents health and quality of life. Timed BC flows contribute to the health of wetlands, forests, and grasslands, and therefore to the health benefits provided by these ecosystems. For example, managing BC flows to restore wetlands in the US provides a benefit to the US at the expense of BC. BC should likely be compensated for managing flows in such a way that contributes to the overall health of ecosystems in the CRB.

4. The Value of Ecosystem-Dependent Recreation
The primary studies summarized in this report indicate that ecosystem-dependent recreation is a major source of economic activity in the CRB. As recreation spending is tied to the health of the ecosystems on which it depends, and as sport fisheries are particularly dependent on increased flows from BC during summer months, the contribution of BC-managed flows to US economic activity from recreation should be considered.

5. The Amount Individuals Are Willing to Pay to Protect, Enhance, and Preserve Ecosystems
Individual wellbeing, utility, and welfare are linked to the preservation and existence of freshwater fish and nature in the US CRB. The preservation value expressed in this study represents the annual amount US Basin residents are willing to pay to protect and maintain the existence of freshwater fish and nature in the Basin, even if they do not intend to directly benefit from it. This value serves as an indicator of how much money households in the US portion of the Basin might be willing to forego to preserve and restore freshwater fish and ecosystem health. BC should consider conducting an empirical contingency valuation survey (see Methods) with residents in the Basin to discuss whether money from willingness to pay could be used to compensate Canada for water flows and, in doing so, find equitable Treaty impacts.

For the full summary of findings, see “Chapter 6: Conclusions” in report (pp. 61-64).

Our findings represent an initial look at ecosystem goods and services (EGS), and identify the following benefits provided by ecosystems in the US Columbia River Basin (CRB).

1. Provisioning Goods Provided by Salmon
Salmon for harvest represent significant monetary value irrevocably tied to economies in the region and benefits to fishers, the commercial fishing industry, US Tribes and consumers. BC has a significant role to play in allocating flows and cooler waters to the US through Treaty mechanisms to guarantee these benefits. Without these coordinated flows, the US may face significant economic losses due to projected climate change impacts leading to salmon stock decline. BC should consider the value of salmon in the US CRB and derive compensation for operations in BC that enhance and preserve this ecosystem service.

2. Agency Spending
US agencies are spending increasing amounts on fish and wildlife restoration and rehabilitation. This spending is fuelled by the listing of salmon under the US Endangered Species Act and the importance of sport and commercial fisheries to the regional economy and regional identity, as well as the desire to avoid lawsuits from Indigenous groups over fishing rights, should the salmon go extinct. For example, in 1951, 1975, and 1991, the Colville and Spokane Tribes took legal actions against the US government for the loss of traditional fishing. In 1994, partial agreement was reached, with the Colville Tribes receiving a lump sum of $53 million and $15 million annually thereafter (Ortolano & Cushing, 1999). The importance of high flows during critical periods indicates that BC has a significant role to play in restoring the salmon fishery in the US Pacific Northwest, and that BC should therefore be compensated for managing its dams in accordance with US desire to restore and maintain salmon.

3. The Value of Regulatory Ecosystem Goods and Services
Regulatory ecosystem services are critical to CRB residents health and quality of life. Timed BC flows contribute to the health of wetlands, forests, and grasslands, and therefore to the health benefits provided by these ecosystems. For example, managing BC flows to restore wetlands in the US provides a benefit to the US at the expense of BC. BC should likely be compensated for managing flows in such a way that contributes to the overall health of ecosystems in the CRB.

4. The Value of Ecosystem-Dependent Recreation
The primary studies summarized in this report indicate that ecosystem-dependent recreation is a major source of economic activity in the CRB. As recreation spending is tied to the health of the ecosystems on which it depends, and as sport fisheries are particularly dependent on increased flows from BC during summer months, the contribution of BC-managed flows to US economic activity from recreation should be considered.

5. The Amount Individuals Are Willing to Pay to Protect, Enhance, and Preserve Ecosystems
Individual wellbeing, utility, and welfare are linked to the preservation and existence of freshwater fish and nature in the US CRB. The preservation value expressed in this study represents the annual amount US Basin residents are willing to pay to protect and maintain the existence of freshwater fish and nature in the Basin, even if they do not intend to directly benefit from it. This value serves as an indicator of how much money households in the US portion of the Basin might be willing to forego to preserve and restore freshwater fish and ecosystem health. BC should consider conducting an empirical contingency valuation survey (see Methods) with residents in the Basin to discuss whether money from willingness to pay could be used to compensate Canada for water flows and, in doing so, find equitable Treaty impacts.

For the full summary of findings, see “Chapter 6: Conclusions” in report (pp. 61-64).