Linking Agricultural Nutrient Pollution to the Value of Freshwater Ecosystem Services

Frank Lupi, Bruno Basso, Cloé Garnache, Joseph A. Herriges, David W. Hyndman and R. Jan Stevenson

Abstract

This paper describes our efforts to integrate economic and biophysical models to evaluate the effects agri-environmental policies have on the value of freshwater ecosystem services. We are developing an integrated assessment model (IAM) that links changes in phosphorus-related management practices on farm fields to changes in the value of key freshwater ecosystem services, including biological condition, water clarity, species-specific fish biomasses, and beach algae. Our IAM approach enables examination of the effects of policies and conservation programs on ecosystem services and values. Results will help policy makers allocate conservation dollars to improve water quality, enhance ecosystem services, and promote more sustainable agricultural production. (JEL Q24, Q51)