title: Evaluating the role of coastal habitats and sea-level rise in hurricane risk mitigation: An ecological economic assessment method and application to a business decision.
abstract: Businesses may be missing opportunities to account for ecosystem services in their decisions, because they do not have methods to quantify and value ecosystem services. We developed a method to quantify and value coastal protection and other ecosystem services in the context of a cost-benefit analysis of hurricane risk mitigation options for a business. We first analyze linked biophysical and economic models to examine the potential protection provided by marshes. We then applied this method to The Dow Chemical Company's Freeport, Texas facility to evaluate natural (marshes), built (levee), and hybrid (marshes and a levee designed for marshes) defenses against a 100-y hurricane. Model analysis shows that future sea-level rise decreases marsh area, increases flood heights, and increases the required levee height (12%) and cost (8%). In this context, marshes do not provide sufficient protection to the facility, located 12 km inland, to warrant a change in levee design for a 100-y hurricane. Marshes do provide some protection near shore and under smaller storm conditions, which may help maintain the coastline and levee performance in the face of sea-level rise. In sum, the net present value to the business of built defenses ($217 million [2010 US$]) is greater than natural defenses ($15 million [2010 US$]) and similar to the hybrid defense scenario ($229 million [2010 US$]). Examination of a sample of public benefits from the marshes shows they provide at least $117 million (2010 US$) in coastal protection, recreational value, and C sequestration to the public, while supporting 12 fisheries and more than 300 wildlife species. This study provides information on where natural defenses may be effective and a replicable approach that businesses can use to incorporate private, as well as public, ecosystem service values into hurricane risk management at other sites.
authors.affiliation: Central Science Division, The Nature Conservancy, Durham, North Carolina, USA.
authors.forename: Sheila M W
authors.initials: SM
authors.lastname: Reddy
authors.affiliation: The Natural Capital Project, Woods Institute for the Environment-Stanford University, School of Environmental and Forest Sciences, University of Washington, Seattle, Washington, USA.
authors.forename: Gregory
authors.initials: G
authors.lastname: Guannel
authors.affiliation: The Natural Capital Project, Woods Institute for the Environment-Stanford University, Stanford, California, USA.
authors.forename: Robert
authors.initials: R
authors.lastname: Griffin
authors.affiliation: The Natural Capital Project, Woods Institute for the Environment-Stanford University, School of Environmental and Forest Sciences, University of Washington, Seattle, Washington, USA.
authors.forename: Joe
authors.initials: J
authors.lastname: Faries
authors.affiliation: Central Science Division, The Nature Conservancy, Arlington, Virginia, USA.
authors.forename: Timothy
authors.initials: T
authors.lastname: Boucher
authors.affiliation: Texas State Chapter, The Nature Conservancy, Corpus Christi, Texas, USA.
authors.forename: Michael
authors.initials: M
authors.lastname: Thompson
authors.affiliation: Texas State Chapter, The Nature Conservancy, Corpus Christi, Texas, USA.
authors.forename: Jorge
authors.initials: J
authors.lastname: Brenner
authors.affiliation: The Natural Capital Project, Woods Institute for the Environment-Stanford University, School of Environmental and Forest Sciences, University of Washington, Seattle, Washington, USA.|Department of Zoology, University of British Columbia, Vancouver, British Columbia, Canada.
authors.forename: Joey
authors.initials: J
authors.lastname: Bernhardt
authors.affiliation: The Natural Capital Project, Woods Institute for the Environment-Stanford University, Conservation Science Program, World Wildlife Fund-US, Washington, DC, USA.|The Natural Capital Project, Woods Institute for the Environment-Stanford University, Stanford, California, USA.
authors.forename: Gregory
authors.initials: G
authors.lastname: Verutes
authors.affiliation: The Natural Capital Project, Woods Institute for the Environment-Stanford University, School of Environmental and Forest Sciences, University of Washington, Seattle, Washington, USA.
authors.forename: Spencer A
authors.initials: SA
authors.lastname: Wood
authors.affiliation: The Natural Capital Project, Woods Institute for the Environment-Stanford University, School of Environmental and Forest Sciences, University of Washington, Seattle, Washington, USA.
authors.forename: Jessica A
authors.initials: JA
authors.lastname: Silver
authors.affiliation: The Natural Capital Project, Woods Institute for the Environment-Stanford University, School of Environmental and Forest Sciences, University of Washington, Seattle, Washington, USA.
authors.forename: Jodie
authors.initials: J
authors.lastname: Toft
authors.affiliation: Central Science Division, The Nature Conservancy, Durham, North Carolina, USA.|Nicholas School of the Environment, Duke University, Durham, North Carolina, USA.
authors.forename: Anthony
authors.initials: A
authors.lastname: Rogers
authors.affiliation: Central Science Division, The Nature Conservancy, Durham, North Carolina, USA.|Department of Agricultural and Resource Economics, Colorado State University, Fort Collins, Colorado, USA.
authors.forename: Alexander
authors.initials: A
authors.lastname: Maas
authors.affiliation: The Natural Capital Project, Woods Institute for the Environment-Stanford University, School of Environmental and Forest Sciences, University of Washington, Seattle, Washington, USA.
authors.forename: Anne
authors.initials: A
authors.lastname: Guerry
authors.affiliation: Central Science Division, The Nature Conservancy, Arlington, Virginia, USA.
authors.forename: Jennifer
authors.initials: J
authors.lastname: Molnar
authors.affiliation: Global EH&S and Sustainability, The Dow Chemical Company, Midland, Michigan, USA.
authors.forename: Johnathan L
authors.initials: JL
authors.lastname: DiMuro
mesh_terms: D003247:Conservation of Natural Resources / Q000191:economics*; D003362:Cost-Benefit Analysis; D055867:Cyclonic Storms; D017753:Ecosystem; D008962:Models, Theoretical; D012306:Risk; D053833:Wetlands
keywords: Economic valuation; Ecosystem services; Green infrastructure; Natural hazard; Risk management