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Natural Capital in the Colorado River Basin

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Natural Capital in the Colorado River Basin NATURE’S VALUE IN THE COLORADO RIVER BASIN NATURE’S VALUE IN THE COLORADO RIVER BASIN JULY, 2014 AUTHORS David Batker, Zachary Christin, Corinne Cooley, Dr. William Graf, Dr. Kenneth Bruce Jones, Dr. John Loomis, James Pittman ACKNOWLEDGMENTS This study was commissioned by The Walton Family Foundation. Earth Economics would like to thank our project advisors for their invaluable contributions and expertise: Dr. Kenneth Bagstad of the United States Geological Survey, Dr. William Graf of the University of South Carolina, Dr. Kenneth Bruce Jones of the Desert Research Institute, and Dr. John Loomis of Colorado State University. We would like to thank our team of reviewers, which included Dr. Kenneth Bagstad, Jeff Mitchell, and Leah Mitchell. We would also like to thank our Board of Directors for their continued support and guidance: David Cosman, Josh Farley, and Ingrid Rasch. Earth Economics research team for this study included Cameron Otsuka, Jacob Gellman, Greg Schundler, Erica Stemple, Brianna Trafton, Martha Johnson, Johnny Mojica, and Neil Wagner. Cover and layout design by Angela Fletcher. The authors are responsible for the content of this report. PREPARED BY 107 N. Tacoma Ave Tacoma, WA 98403 253-539-4801 www.eartheconomics.org [email protected] ©2014 by Earth Economics. Reproduction of this publication for educational or other non-commercial purposes is authorized without prior written permission from the copyright holder provided the source is fully acknowledged. Reproduction of this publication for resale or other commercial purposes is prohibited without prior written permission of the copyright holder. FUNDED BY EARTH ECONOMICS i ABSTRACT This study presents an economic characterization of the value of ecosystem services in the Colorado River Basin, a 249,000 square mile region spanning across mountains, plateaus, and low-lying valleys of the American Southwest. Colorado River Basin ecosystems provide a suite of ecosystem services including drinking and irrigation water, flood control, and world- renowned recreational opportunities. This study calculates the economic value provided by these ecosystems. We used existing studies on the value of ecosystem services for land cover types found in the basin; these land cover types were assessed using Geological Information System (GIS) data. Several new primary values for ecosystem services in the Colorado River Basin were also derived as part of this study. The natural benefits (ecosystem services) examined in this study include potable water, irrigation water, carbon sequestration, flood risk reduction, water filtration, wildlife habitat, soil erosion reduction, soil formation, raw materials, food, recreation, air quality, and aesthetic value. CC BY Alwyn Loh This report highlights the scale of value provided by the landscape of the Colorado River Basin. Whether land is in private or public ownership, that value, in the form of water supply, flood risk reduction, recreation, and other benefits, is distributed across the landscape. The economic vitality of communities depends upon it. Healthy natural systems provide vast economic value, and investing in natural capital provides a high rate of return. Understanding the scale of value provided in the Colorado River Basin provides incentive for investing in healthy landscapes, healthy rivers, and healthy communities. ii WATER AND NATURE: ECONOMIC ENGINES OF THE COLORADO RIVER BASIN CONTENTS EXECUTIVE SUMMARY ...................................................................................................................................... 1 How to Use this Report ............................................................................................................................................2 Summary of Recommendations ..............................................................................................................................3 THE COLORADO RIVER BASIN: WHAT IS IT WORTH? ..................................................................................... 4 Characterizing the Colorado River Basin ................................................................................................................6 Ecosystem Services of the Colorado River Basin ...................................................................................................13 Land and Water: Dependency on the Colorado River ...........................................................................................16 MEASURING ECOSYSTEM SERVICES ACROSS THE COLORADO RIVER BASIN ............................................. 20 Quantification of Land Cover in the Colorado River Basin ....................................................................................20 Identifying Ecosystem Service Value across the Landscape ..................................................................................23 VALUING THE COLORADO RIVER BASIN ....................................................................................................... 29 Provisioning Ecosystem Services ...........................................................................................................................29 Regulating Ecosystem Services ..............................................................................................................................35 Supporting Ecosystem Services .............................................................................................................................44 Information Ecosystem Services ............................................................................................................................46 CALCULATING AN ASSET VALUE FOR THE COLORADO RIVER BASIN ......................................................... 52 Annual Ecosystem Service Valuation in the Colorado River Basin .........................................................................52 Asset Value .............................................................................................................................................................55 CONCLUSIONS, RECOMMENDATIONS, AND FUTURE RESEARCH ................................................................ 57 Recommendations: ................................................................................................................................................58 APPENDIX A: STUDY LIMITATIONS ................................................................................................................. 60 APPENDIX B: GIS AND PRIMARY VALUATION DATA SOURCES ..................................................................... 63 APPENDIX C: ADDITIONAL TABLES ................................................................................................................ 65 APPENDIX D: VALUE TRANSFER STUDIES USED BY LAND COVER ............................................................... 70 APPENDIX E: VALUE TRANSFER STUDIES FULL REFERENCES ...................................................................... 79 REFERENCES: .................................................................................................................................................. 86 © Zachary Christin EARTH ECONOMICS iii TABLES 1. Crosswalk between Basin Names in this Report and Hydrologic Unit Code Sub-Basins .......................................6 2. Descriptions of Colorado River Sub Basins ............................................................................................................7 3. Largest dams in the Colorado River Basin ...........................................................................................................12 4. Biomes and Terrestrial Ecoregions of the Colorado River Basin ..........................................................................13 5. 21 Ecosystem Services .........................................................................................................................................15 6. 2008 Acre-feet and Population by Water Service Area ........................................................................................18 7. Acreage by Sub-Basin Land Cover Type in the Colorado River Basin ..................................................................21 8. Sub-Basin Forest Sub-Types ................................................................................................................................22 9. Acreage by Land Cover Inside or Outside 200 foot River or Lake Buffer* ...........................................................22 10. Ecosystem Service Valuation Methodologies .......................................................................................................25 11. Valuation Method used by Benefit Type ..............................................................................................................26 12. Ecosystem Services Valued and/or Identified by Land Cover in the Colorado River Basin .................................28 13. Water Storage in Acre-feet ...................................................................................................................................31 14. Irrigation and Other Withdrawals from the Colorado River Basin by State ..........................................................31 15. Water Rate Per Acre-foot by State (2013 $) .........................................................................................................31 16. Annual Flow Value of Water Supply from the Colorado River ..............................................................................32
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