PARENT SESSION
OOS 3: Valuation of Ecological Resources: Integration of Ecology and Socio-economics to Inform Environmental Decisions.
Organized by: LA Kapustka, RG Stahl, WR Munns, and RJF Bruins
Monday, August 2, 8:00 AM to 11:30 AM, Meeting Room E 145.

Ecological complexity and resource valuation in the CALFED Bay-Delta program.

Luoma, Samuel¹, ¹ US Geological Survey, Menlo Park, CA, USA

ABSTRACT- The San Francisco Bay-Delta program (CALFED) illustrates how ecological complexity can affect resource valuations. The Bay-Delta Program is a state-federal, stakeholder-driven, multi-billion dollar, 30 year plan to, improve water supply reliability for 60% of California and restore ecosystems in 40% of the watershed. Scientific uncertainties are critical considerations in implementation of CALFED. For example, little uncertainty surrounded the endangered status of Winter Run salmon in 1994 (only a few hundred fish were left). The shutdown of water diversions to prevent winter run mortalities appeared justified, without economic valuation of either the fish or alternative actions. Winter Run populations recently increased. Uncertainty grew about whether there was an acceptable level of mortality from diversions. Ultimately, investment in environmental improvements was traded for assurances that water supplies would not be curtailed until a pre-defined take of listed species was exceeded. This raised questions in which science and environmental economics were intertwined: What amounts of water and restoration money balanced adverse effects from water diversions? What determined what water users paid to avoid disruption of their supplies? How did the ecosystem agencies invest in ecosystem restoration? Poor understanding of complexities may have shifted the burden of proving the value of conservation to the resources managers. Growth in understanding of complexities resulted in new options that changed some tradeoffs. Difficulties in interpreting long-term trends in populations required asking where economic valuations were appropriate. Tradeoffs between ecosystem services and ecosystem protection require a tighter coupling between natural science and economics than is often recognized.

Key words: environmental economics, ecosystem restoration, CALFED, endangered species