Integrated Economic-Hydrologic Modeling for Examining Cost-Effectiveness of Wetland Restoration Scenarios in a Canadian Prairie Watershed

Abstract

This study develops an integrated economic-hydrologic modeling to examine cost-effectiveness of wetland restoration scenarios in the 75-km2 South Tobacco Creek watershed in the Canadian prairie region. The modeling results show that spatial variations of wetland restoration costs are driven by forgone cropping returns while wetland restoration benefits in terms of total phosphorus (TP) reductions are related to wetland drainage area characteristics including slope, soil, and land use, and wetland features such as size, volume, and position relative to the stream network. For a TP reduction goal of 141.1 kg/yr or 4.3 % at the watershed outlet, the spatial targeting scenario based on economic cost to environmental benefit ratios identifies 28.8 ha of wetland restoration costing $3,058.6/yr. The cost ceiling scenario based on minimizing economic costs only would have to restore 80.1 ha of wetlands costing $8,032.6/yr. In comparison, the cost ceiling scenario requires 178.2 % more wetland restoration areas and would cost 162.6 % more than those of the spatial targeting scenario. The study contributes to develop integrated economic-hydrologic modeling to inform wetland restoration decision at farm field scale. The modeling results demonstrate the importance of spatially targeting wetland restoration based on economic cost to environmental benefit ratios in order to achieve cost-effectiveness.