The Economic Benefits of Forested Riparian Buffers: An Empirical Evaluation
Restricted (Penn State Only)
Author:
Pohlman, Max
Graduate Program:
Energy, Environmental, and Food Economics (PhD)
Degree:
Doctor of Philosophy
Document Type:
Dissertation
Date of Defense:
June 04, 2024
Committee Members:
Katherine Zipp, Program Head/Chair Daniel Brent, Major Field Member Martina Vecchi, Outside Field Member Katherine Zipp, Chair & Dissertation Advisor Melissa Kreye, Outside Unit Member
Keywords:
Nonmarket valuation Water quality Non-point source pollution Recreation Demand Best Management Practices
Abstract:
In 2011, Pennsylvania was tasked to reduce 32.5 million pounds of nitrogen in its waters by 2025. Since then, they’ve invested $562 million to help clean up the waters. $28.1 million has been invested in forested riparian buffers – a best management practice where farmers plant trees adjacent to their crops to reduce nitrogen runoff. As of 2015, 20,000 acres were planted out of a 90,000 acre goal. However, there is no empirical research as to how cleaner the waters are as a result of these buffers. This dissertation performs the first empirical analysis of how forested riparian buffers effect non-point source nitrogen pollution in waters. I find an empirical, statistically significant relationship between buffers and water quality. I also apply modern causal inference techniques and identify causality between buffers and water quality. Following, I calculate the economic benefits of the cleaner water, both aggregate and specifically recreational demand. I find that the recreational benefits alone nearly cover the whole costs of the buffers. Total benefits both local and downstream are approximately 26 times the costs.
