Virpi Lehtoranta

Cost-Effective Marine Protection - A Pragmatic Approach

This paper puts forward a framework for probabilistic and holistic cost-effectiveness analysis to provide support in selecting the least-cost set of measures to reach a multidimensional environmental objective. Following the principles of ecosystem-based management, the framework includes a flexible methodology for deriving and populating criteria for effectiveness and costs and analyzing complex ecological-economic trade-offs under uncertainty. The framework is applied in the development of the Finnish Programme of Measures (PoM) for reaching the targets of the EU Marine Strategy Framework Directive (MSFD). The numerical results demonstrate that substantial cost savings can be realized from careful consideration of the costs and multiple effects of management measures. If adopted, the proposed PoM would yield improvements in the state of the Baltic Sea, but the overall objective of the MSFD would not be reached by the target year of 2020; for various environmental and administrative reasons, it would take longer for most measures to take full effect.

Willingness to pay for water level regulation in Lake Pielinen, Finland

Water environments provide many benefits for humans. In Finland, thousands of inland lakes serve a very rich and important environment for many activities and a number of ecosystem services. These services can be threatened due to other human activities but also for natural reasons. The natural fluctuation of water level in Lake Pielinen, the largest non-regulated lake in Finland, damages occupational, recreational and housing possibilities. This paper focuses on the examination of the local households’ attitudes, opinions and willingness to pay (WTP) for water level regulation at optimum level for recreational purposes in the summertime. The related economic benefits are analysed by applying the contingent valuation (CV) method. The logistic regression model and a variant of the Tobit model are used in the econometric analyses. The results show that WTP increases with higher income, youth, living near the shore, having a boat, being aware of the regulation plans and having no difficulties with the questions. The aggregate WTP of the local population is approximately EUR 0.24–0.44 million. The attitudinal results reveal a strong local interest in the regulation of Lake Pielinen.

Watershed Management Benefits in a Hypothetical, Real Intention and Real Willingness to Pay Approach

Despite growing knowledge of a disparity between stated and actual willingness to engage in pro-environmental behavior, little is known about the cognitive or attitudinal factors explaining the disparity. In the context of water quality improvement in a river basin, we address the disparity issue by applying two approaches: a typical valuation question with a hypothetical option of voluntary payment and a valuation question with a real option of voluntary payment. The latter treatment allows for further analysis of the respondents who committed to a real payment. We show empirical evidence on the psychological factors explaining the disparity between the treatments and its relationship with response uncertainty. The extent of learning from the survey about water management of the watershed increased the likelihood of stating the willingness to contribute, either with certainty or uncertainty. In turn, a previous contribution to the environmental issue, higher income, belief in the scenario, and responding to the hypothetical treatment increased the likelihood of stating certain willingness to contribute. Our findings indicate that the factors influencing the decision on the maximum payment differ between treatments. Cognitive factors, such as perceiving the valuation scenario as plausible, learning from the questionnaire, and in which mailing round the respondent completed the survey, only explained the stated amount for the willingness to pay in the treatment with a hypothetical option for voluntary payment. In the real option treatment, a higher stated willingness to pay was more likely if the respondent actually made the payment and had a higher household income.

Are Urban Stream Restoration Plans Worth Implementing

To manage and conserve ecosystems in a more sustainable way, it is important to identify the importance of the ecosystem services they provide and understand the connection between natural and socio-economic systems. Historically, streams have been an underrated part of the urban environment. Many of them have been straightened and often channelized under pressure of urbanization. However, little knowledge exists concerning the economic value of stream restoration or the value of the improved ecosystem services. We used the contingent valuation method to assess the social acceptability of a policy-level water management plan in the city of Helsinki, Finland, and the values placed on improvements in a set of ecosystem services, accounting for preference uncertainty. According to our study, the action plan would provide high returns on restoration investments, since the benefit–cost ratio was 15–37. Moreover, seventy-two percent of the respondents willing to pay for stream restoration chose “I want to conserve streams as a part of urban nature for future generations” as the most motivating reason. Our study indicates that the water management plan for urban streams in Helsinki has strong public support. If better marketed to the population within the watershed, the future projects could be partly funded by the local residents, making the projects easier to accomplish. The results of this study can be used in planning, management and decision making related to small urban watercourses.