Original article




                              An ecological economics
                              approach to the management
                              of a multi-purpose coastal wetland
                              R. K. Turner Æ I. J. Bateman Æ S. Georgiou Æ A. Jones Æ I. H. Langford Æ N. G. N. Matias
                              L. Subramanian

                                well as from hydrological perturbation, pollution and
    Abstract Three interrelated management         pollution-related effects (Turner 1991).
    problems—eutrophication of multiple use shallow     Wetlands are complex ecological systems whose structure
    lakes, sea level rise and flood risk mitigation and   provides us with goods or products involving some direct
    tourism pressures—are analysed in the context of an   utilisation of one or more wetland characteristics (Maltby
    internationally important wetland area, the Norfolk   et al. 1996). Wetland ecosystem processes also provide us
    and Suffolk Broads in the UK. The ecological-      with ecologically related services, supporting or protecting
    economic research findings presented should       human activities or human properties without being used
    provide essential information to underpin the      directly. Wetland systems, as well as their distinctive
    regulatory and management process in this        landscapes, are also often significant socio-cultural assets.
    internationally important conservation area. The    So, the stock of wetlands is a multifunctional resource
    relevant authority somehow has to integrate the     generating substantial socio-economic values (Balmford
    maintenance of public navigation rights, nature     et al. 2002; Turner et al. 2003). Sustainable management of
    conservation, and tourism promotion in a highly     these assets has therefore become a high priority.
    dynamic ecosystems setting. Because of the       In this paper, three interrelated management prob-
    stakeholder conflicts, potential and actual, a more   lems—eutrophication of multi-use shallow lakes and
    inclusionary decision-making procedure is required,   connecting rivers, sea level rise and flooding risks, and
    and is currently being implemented.           tourism preferences and patterns—will be explored and
                                analysed from an ecological-economic perspective in the
    Keywords Ecological economics Æ Wetlands Æ       context of the Norfolk and Suffolk Broads (see Fig. 1). The
    Eutrophication Æ Tourism pressure Æ           overall management tasks in this national park equivalent
    Deliberative and Inclusionary processes         area encompass the maintenance of public navigation
                                rights and the area’s biological diversity, sustainable util-
                                isation of the various functions the wetlands provide, and
                                the resolution of conflicts between stakeholder groups as a
                                result of different usages of the area. The statutory duties
                                of the management agency (the Broads Authority), how-
        Introduction                  ever, constrain the range of options because no one
                                interest (nature conservation, recreation and tourism
   Wetland ecosystems account for about 6% of the global
   land area and are among the most threatened of all envi- promotion, or maintenance of navigation rights) can be
                                given significant relative priority. The Authority has to
   ronmental resources. The wetlands found in temperate
   climate zones in developed economies have long suffered operate by making often-pragmatic trade-offs, which can
                                be subject to legislative constraints including EU Direc-
   significant losses and continue to face threats from
   industrial, agricultural, and residential developments, as tives and the general guidance provided by the UK’s
                                sustainable development strategy.




                                                 Towards a framework
         Received: 9 January 2001 / Accepted: 2 May 2004
         Published online: 4 June 2004
                                                 for integrated wetland
         ª Springer-Verlag 2004

                                                 management assessment
         R. K. Turner (&) Æ I. J. Bateman Æ S. Georgiou Æ A. Jones
         I. H. Langford Æ N. G. N. Matias Æ L. Subramanian          The structure of and processes within wetland ecosystems
         Centre for Social and Economic Research on the Global Environment,
                                            generate a wide array of resources that directly or indi-
         (CSERGE), School of Environmental Sciences,
                                            rectly support the economic and social welfare of diverse
         University of East Anglia, Norwich, NR4 7TJ, UK
                                            groups of people. Sustainable development based on the
         E-mail: r.k.turner@uea.ac.uk



86   Reg Environ Change (2004) 4:86–99                        DOI 10.1007/s10113-004-0075-x
                                                        Original article




                                             Fig. 1
                                           The Broads and its waterways


                                with a co-evolving society (Clayton and Radcliffe 1996;
maintenance of the functional diversity provided by
                                Brouwer and Crooks 1998).
wetland ecosystems will require careful management and
                                In this paper, the Driving Forces-Pressure-State-Impact-
evaluation of the different functions in terms of the welfare
                                Response (DPSIR) framework was used as a scoping de-
benefits they provide. In view of their complex, dynamic
                                vice (Turner et al. 1998). This framework has been used to
and co-evolving multi-functionality, a management ap-
                                make explicit the means by which human activities in a
proach is needed that addresses the pressures exerted on
                                given context and spatial area relate to the environmental
wetland ecosystems that threaten future flows of benefits.
                                pressures that impact wetland ecosystem states (see Fig. 2
The Broads Authority has produced a strategic manage-
                                for an application to the Broads wetland (Broads Authority
ment and action plan (Broads Authority 2004). The im-
                                2004). These impacts cause environmental change, which,
plicit aim is to achieve greater co-ordination between its
                                in turn, impact human beings, usually in some kind of
three main functions—nature conservation, enhancement
                                societal response that feeds back into human activities.
of recreation and quiet amenity and the maintenance of
                                This feedback loop and any lags are important aspects of
rights of navigation—in order to fulfil sustainability goals.
                                the human and natural systems interface.
Integrated planning and management means combining
                                The DPSIR framework provides a conceptual and organi-
assessments of the resources available to meet stated
                                sational backdrop for the contributions of different disci-
objectives; the formulation of a strategy or plan of action
                                plines to the description and analysis of environmental
to use the resources in a wise way; and the implementation
                                problems, given that the socio-economic aspects of envi-
of the strategy in an orderly and efficient manner
                                ronmental problems are an integral part of this co-evolu-
(Burbridge 1994). Underpinning integrated management
                                tionary framework. It should be stressed that the DPSIR is
and planning is research that supports and informs such a
                                a framework, not a model. Its main purpose is to make
management approach. A wetland research methodology
                                more manageable the complexity of environmental prob-
somehow has to make compatible the very different per-
                                lems; for example in wetland ecosystems and related
ceptions of how a dynamic wetland ecosystem interacts


                                                                  87
                                               Reg Environ Change (2004) 4:86–99
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                                       Functions, uses, stakeholders,
      Fig. 2
   Pressures facing the Broads and consequent conflicts of use
                                       pressures and environmental
   protection and sustainable management issues. It provides
                                       changes
   an important starting point on the road towards a com-
   mon level of understanding and consensus between
                                  The Broads wetlands perform a variety of functions valued
   researchers, natural resource managers, and policy makers
                                  by a range of stakeholder groups living and working in the
   as they debate the links between the various driving forces
                                  area or for those visiting the area. The main wetland
   that pose a threat to the intrinsic functioning of a wetland
                                  functions are presented in Table 1. The table details the
   ecosystem. In the case of the Broads, these pressures have
                                  biophysical structure and processes maintaining the
   included land conversion, agricultural development,
                                  functions, their socio-economic uses and benefits, and
   hydrological perturbation and pollution, increasing flood
                                  threats to future availability of the functions.
   risk perceptions, and their consequent impact on the
                                  The Broads wetlands provide a buffer against extreme
   various interests or tourism, stakeholder groups who uti-
                                  hydrological conditions; providing water storage in times
   lise the goods and services provided by these ecosystems
                                  of flood, and water release during a drought. Wetlands also
   and/or contribute to the pressures on them. Moreover,
                                  have the capacity to change water quality through the re-
   there are likely to be differences in stakeholders’ percep-
                                  moval of chemical pollutants such as nitrogen and phos-
   tions of pressures, impacts and environmental values (see
                                  phate. A third major function is the provision of a
   Fig. 2).
                                  nationally and internationally important habitat for flora
   In the context of complex decision-making that aims to
                                  and fauna (including a number of rare species), which, in
   maintain functioning and ecological diversity in wetland
                                  turn, along with the waterways themselves, attracts tourists
   ecosystems and satisfy multiple stakeholder groups, a
                                  to the area.
   range of protection and management options are likely to
                                  The Broads floodplain is at risk from two types of flooding:
   be available. Such options can be translated into man-
                                  tidal flooding, caused by high sea levels, and fluvial
   agement or development scenarios with each option likely
                                  flooding, caused by high river flows (Turner, Adger and
   to have different impacts on human and natural systems
                                  Doktor 1995). Surge tides can cause saline flooding of land
   across different spatial and time scales. These impacts are
                                  by breaching or overtopping flood banks. Saline intrusion
   often complex, but can, in principle, be measured with the
                                  also occurs in surge conditions as more salt water forces
   help of indicators. Capturing the whole range of relevant
                                  upstream between the banks. This can damage the ecology
   impacts on natural and human systems within different
                                  of normally freshwater reaches and cause extensive fish
   protection or management scenarios, given the overall
                                  kills. Fluvial flooding, caused by heavy rainfall, is less
   goal of sustainable development, will require a combina-
                                  damaging from an agricultural or conservation perspec-
   tion of environmental, social and economic indicators.
                                  tive, although flooding of any kind can damage property. If
   Figure 3 summarises the indicators being developed by the
                                  low river flow conditions occur in the autumn, normal
   Broads Authority alongside its 20-year plan.



88   Reg Environ Change (2004) 4:86–99
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                                                 Fig. 3
                                              Potential performance indicators


high tides can cause the same saline intrusion effect    which puts considerable demand on the region’s water
(Turner and Brooke 1988; Turner, Adger and Doktor      resources and poses a potential threat to the Broads. The
1995).                           region is furthermore the driest in Britain and droughts
Besides the threat of increased salt water incursion and  are a common feature of the area. Agriculture is another
tidal salt water flooding, the Broads is threatened with   significant water user, in particular through spray irriga-
another water problem: variable river flows and depleted   tion of land in dry periods.
groundwater. The Broads are part of a much wider      Adequate groundwater levels and river flows are crucial for a
catchment area. About 6 million people live in this area,  number of reasons. First, sufficient water of good quality is


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     Table 1
   Wetland functions and associated socio-economic benefits in the Broads

   Function           Biophysical structure or process    Socio-economic use and benefits   Threats
                  maintaining function

   Hydrological functions
   Flood water retention     Short and long-term storage of     Natural flood protection alternative, Conversion, drainage, filling and
                  overbank flood water and         reduced damage to infrastructure   reduction of storage capacity,
                  retention of surface water       (road network etc.), property    removal of vegetation
                  runoff from surrounding slopes     and crops
   Groundwater recharge     Infiltration of flood water in      Water supply, habitat        Reduction of recharge rates,
                  wetland surface followed        maintenance             overpumping, pollution
                  by percolation to aquifer
   Groundwater discharge     Upward seepage of groundwater      Effluent dilution          Drainage, filling
                  through wetland surface
   Sediment retention and    Net storage of fine sediments      Improved water quality       Channelization, excess reduction
   deposition          carried in suspension by river     downstream, soil fertility     of sediment throughput
                  water during overbank flooding
                  or by surface runoff from other
                  wetland units or contributory
                  area
   Biogeochemical functions
   Nutrient retention      Uptake of nutrients by plants      Improved water quality       Drainage, water abstraction,
                  (n and p), storage in soil organic                     removal of vegetation, pollution,
                  matter, absorption of n as                         dredging
                  ammonium, absorption of p
                  in soil
   Nutrient export        Flushing through water system      Improved water quality,       Drainage, water abstraction,
                  and gaseous export of n         waste disposal           removal of vegetation,
                                                        pollution, flow barriers
   Peat accumulation       In situ retention of c         Fuel, paleo-environmental      Overexploitation, drainage
                                      data source
   Ecological functions
   Habitat for (migratory)    Provision of microsites for macro-   Fishing, wildfowl hunting,     Overexploitation, overcrowding
   species (biodiversity)    invertebrates, fish, reptiles, birds,  recreational amenities,       and congestion, wildlife
                  mammals and landscape          tourism               disturbance, pollution,
                  structural diversity                            interruption of migration routes,
                                                        management neglect
   Nursery for plants,      Provision of microsites for macro-   Fishing, reed harvest        Overexploitation, overcrowding
   animals, micro-        invertebrates, fish, reptiles,                        and wildlife disturbance,
   organisms           birds, mammals                               management neglect
   Food web support       Biomass production, biomass       Farming, fen biomass as       Conversion, extensive use of inputs
                  import and export via physical     alternative energy source      (pollution), market failures
                  and biological processes

   Source: Modified from Turner et al. (1997) and Burbridge (1994)

   vital for the wildlife diversity of the fens and marshes. The       treatment works, while nitrates mainly come from the
   particular character of a fen is determined by its reliance on      run-off from agricultural land within the Broads catch-
   water supply: groundwater, river water, rainfall, or a com-        ment, and to a lesser extent from sewage treatment works.
   bination of the three. Also, the drained marshland depends        Phosphorus comes from a limited number of sewage
   upon an adequate freshwater supply to the dyke (field           treatment works and can be removed before it is dis-
   drains) systems. Many grazing marsh dykes rely on fresh-         charged into the water, and nitrogen comes from all over
   water conditions to maintain the diversity of their aquatic        the catchment and is therefore difficult to control in the
   flora. Dykes are also a source of drinking water for livestock       short term. Phosphorus levels have declined or are low in
   on the marshes, especially during the summer.               the main rivers, but nitrogen levels remain problematic.
   Secondly, water abstraction decreases summer river flows,         Only 12 of the 63 permanent water bodies are in good
   which in turn concentrates sewage discharges, reduces the         condition with stable aquatic plant populations and clear
   flushing of algae from the Broads system, and exacerbates         water (Broads Authority 2004). We will return to the
   the problem of saline intrusion. The increase in nutrient         eutrophication problem in a later section.
   levels as a result of the introduction of river-based sewage       Species conservation is a key management objective but the
   works during the early part of the 20th century has, in          success of conservation or restoration generally, particu-
   particular, triggered an enormous change in the Broads          larly in wetlands, depends upon restoration of wider eco-
   water ecosystem, known as eutrophication. Eutrophication         system function (Moss 1983; Madgwick and Phillips 1996;
   is essentially a fertilisation of the water through nutrient       Holzer et al. 1997; Pitt et al. 1997; Moss et al. 1996; Stansfield
   enrichment. Two nutrients are involved: phosphates (P)          et al. 1997 and Scheffer et al. 1993). One administrative
   and nitrates (N). Phosphates enter the system from sewage         issue arises from the difference between ecological and


90   Reg Environ Change (2004) 4:86–99
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                                      river stretches are not particularly wide, while most of the
management authority boundaries which affects Broadland.
                                      broads cover less than 10 ha. The size and shape of a craft
The executive area of the Broads Authority of Norfolk and
                                      significantly influences the amount of wash produced
Suffolk follows the river valleys, but much of the Broads
                                      (May and Waters 1986). Boat wash has an impact on the
groundwater catchment, as well as the upper catchments of
                                      bankside vegetation and eventually the floodwall itself.
the main rivers that supply the Broads, are outside the direct
                                      A more sustainable approach to tourism is therefore an
influence of the Authority. The quantity and chemical
                                      urgent requirement. It has been estimated that the overall
quality of water received by the lakes and rivers of Broad-
                                      value of tourism generated in the Broads area is approxi-
land is thus, at least in part, outside the direct influence of
                                      mately £147 million/annum. This financial flow supports
the area’s major management authority. Such administra-
                                      3,107 full-time job equivalents. Some 4.4 million nights are
tive problems may prove a substantial impediment to the
                                      spent in the area by visitors and around 1.3 million day
implementation of a holistic and integrated programme for
                                      visits are made to the Broads (Broads Authority, personal
Broadland management.
                                      communication). However, the local hire boat industry has
In succeeding sections, we highlight three policy chal-
                                      been negatively affected by changing consumer tasks and
lenges—the multiple use management of the shallow lakes
                                      trends in recent years. The national leisure and tourism
and rivers (Broads) given the threat posed by eutrophi-
                                      market is now characterised by trends such as the increase
cation; the provision of a selective flood alleviation scheme
                                      in holidays taken outside the UK, more frequent and
to protect nature conservation, recreation and other eco-
                                      shorter holidays, and a much greater emphasis on high
nomic interests; and the need for better information on
                                      standards of service and value for one’s money. These
recreation/amenity users and their preferences, in order to
                                      factors together with demographic changes have served to
promote sustainable tourism.
                                      cause a significant fall in demand for the traditional
                                      Broads boating holidays, with subsequent negative eco-
                                      nomic multiplier impacts throughout the adjacent area.
      Sustainable tourism                       Recreation value can be estimated using an indirect travel
                                      cost (TC) method. Here, the relevant demand curve is
                                      assessed by comparing the number of trips taken by vis-
Managing the water resources is also important for the
                                      itors with the cost of those trips in terms of direct
public enjoyment of the area and navigation. Low fresh-
                                      expenditure upon travel and entrance fees and the indirect
water flows can exacerbate problems of blue-green algae,
                                      opportunity costs of travel time (Bateman 1993; Bergin
botulism, salt water incursions and other water quality
                                      and Price 1994). One aspect of TC analysis that has been a
factors that severely affect people’s enjoyment of the
                                      focus in recent research is the potential of the method for
waterways, particularly those who participate in recreation
                                      undertaking ‘‘benefit transfer’’ analyses. Benefit transfer
or sports involving contact with the water.
                                      has been defined as ‘‘the transfer of existing estimates of
On the other hand, the visitors themselves, in aggregate,
                                      non-market values to a new study which is different from
have put considerable strains on the area for a number of
                                      the study for which the values were originally estimated’’
reasons with the risk of impairing those environmental
                                      (Boyle and Bergstrom 1992). Within the Broads, the
features that people come to see and experience in the first
                                      objective has been to construct models based upon data
place. Large numbers of visitors disturb local wildlife,
                                      from a set of surveyed sites and use these to estimate the
especially during the breeding and nesting season. The
                                      number of visitors to unsurveyed sites and their corre-
expansion of boating activity in the past is believed to have
                                      sponding recreational values. This is an attractive proce-
confined wildfowl to less disturbed and non-navigable
                                      dure because it saves time and money on repeated studies,
broads. The Broads provide an important habitat for a
                                      particularly as there are many forces that are likely to
number of rare bird species such as the marsh harrier,
                                      increase the demand for non-market benefit estimates over
bearded tit and the bittern.
                                      the next few years (McConnell 1992).
The large numbers of visitors on boats, especially motor-
                                      Visitor arrivals functions can be estimated linking visits to
boats, result in considerable boat wash, and hence, river
                                      a series of predictors, values for which can be collected for
bank erosion and potential increased flood risk. Most hire
                                      the target unsurveyed sites. An example of such a function
boats are designed to meet comfort requirements, not to
                                      is given as Eq. (1) (see Table 2). This equation links the
meet the specific environmental needs of the Broads. The

   Table 2
Explanation of visitor arrival functions

Visits             =f(     Price        Soc-econ,      Quality,      Subs,        X)

No. of visits to              Cost of a visit in  Socio-economic    Type and quality  Type, availability  A matrix of other
under take a given             terms of travel   factors (e.g. car  of facilities   and quality of    explanatory
activity at a site.            expenditure and   ownership,      provided at the  substitute sites   variables
Expressed as either            the opportunity   unemployment,    site under
total visits of individuals        cost of travel    etc.)        consideration
or a visitor rate (e.g.          time
per household pa.)



                                                                         91
                                                      Reg Environ Change (2004) 4:86–99
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                                                 Fig. 4
                                              Holiday visitor traffic flows to the Norfolk
                                              Broads, simulated in a GIS


   number of visits to a site to the time and distance cost of   with benefit transfer, while facilitating several methodo-
   those visits (thereby allowing the estimation of visit val-   logical improvements.
   ues) and other predictors, including the type and quality of   The baseline data for our GIS-based transferable travel
   facilities at the target site, the availability and quality of  cost model is taken from a Broadland survey undertaken
   substitutes, socio-economic and possibly cultural factors,    in 1996 and discussed in detail in a following section. This
   and other explanatory variables.                 survey provides a total of 2,098 visitor interviews con-
                                   ducted at 10 sites across the area. Trip origin information
   VISITS ¼ f ðPRICE, SOC À ECON, QUALITY, SUBS, XÞ         was collected from each survey respondent in the form of a
                                   full postcode of their home address (Bateman et al. 1996).
                               ð1Þ
                                   The GIS was then used to interrogate the Bartholomew’s
   To date, relatively few benefit transfer analyses have been    1:250,000 digital map database to extract data concerning
   undertaken. This is largely because it is difficult to obtain   the distribution and quality of the entire UK road network
   accurate information on several important elements in the    to permit computation of minimum travel time routes
   transfer function, such as travel times taken for visitors to  from all origin addresses to the survey site. Figure 4
   reach the site, the availability of substitute sites, and the  illustrates some of the output from this analysis showing
   definition of visitor zones of origin. However, recent      the diversity of outset origins and routes taken to reach
   advances in geographical information systems (GIS)        Broadland.
   technology have provided a superior foundation for        The advanced spatial analytic capabilities afforded by a
   implementing benefit transfer methods of placing eco-       GIS permit the analyst to extract high-quality data on
   nomic values on recreational demand (Bateman et al. 1999;    many of the other determinants of Eq. (1), both for sur-
   Brainard et al. 1999). In particular, GIS can help to resolve  veyed and unsurveyed sites. For example, interrogations of
   some of the spatial and data-handling problems associated    data sources such as the satellite-image based Institute of


92   Reg Environ Change (2004) 4:86–99
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                                Hickling Broad (Turner et al. 2003), and has been broad-
Terrestrial Ecology UK Land Cover Database, have, and
                                ened out to discuss management issues across sub-catch-
are, being used to identify potential substitute destina-
                                ment scales (know as the Upper Thurne River Catchment
tions, and their accessibility is being estimated within the
                                Group). It turned out that the ‘‘local’’ problem was in fact
GIS (Brainard et al. 1999). Similarly, socio-economic data
                                symptomatic of causal mechanisms that were catchment-
on both actual and potential visitors can be extracted from
                                wide, including areas beyond the executive control of the
the UK Census of Population to examine the influence of
                                BA. The new EU Water Framework Directive will also
deprivation indicators such as levels of unemployment and
                                serve to emphasise the catchment-scale and management
urbanisation on visitor recreation demand in Broadland
                                processes that are inclusionary. We now turn to examine
and to identify which groups do not visit sites (a factor
                                these wider questions and the general problem of man-
that opens up previously unexplored avenues for distri-
                                aging a rate of environmental change in a highly dynamic
butional and equity analyses). A particular factor that
                                setting.
merits attention is the possible existence of different sub-
groups, with diverse priorities and recreational prefer-
ences within the catchment areas of the sites. The use of
GIS allows a more sophisticated analysis of the nature of
                                     Managing dynamic ecosystem
recreational interactions than is normally seen in con-
ventional environmental value studies.
                                     change: combating eutrophication
A range of interests have recently come together to set out
                                     and feedback effects
a new strategy to combat the decline in tourism demand
and to generate new economically and environmentally
sustainable business growth. The ambitious vision is to    It is expected that climate change, through, for example,
foster a thriving boat hire industry and ancillary services  alterations to the nutrient cycle will exacerbate existing
via a quality experience based on customer needs. Over the   water quality problems such as eutrophication (Horne and
medium term, the boat fleet will need to be made more      Goldman 1994). In addition, secondary effects upon water
environmentally efficient, with increased use of electric    quality are expected through the role of climate change in
boats, solar boats and sail craft. A more niche-orientated   increasing human demand for water services such as water
marketing strategy is perceived to be required in prefer-   provision, sewage treatment, etc. (Climate Change 2001).
ence to the old preoccupation with volume maximisation,    The stresses put upon the integrity of freshwater sources
which will highlight environmental quality as the key     are exacerbated by population growth. For example, in our
Broads holiday characteristic (Strategic Leisure and TEP    study area of East Anglia, a region with higher than
2001).                             average population flows, there has been increasing pres-
With this emerging context in mind, some recent research    sure upon open-water resources such as rivers and lakes.
based on a combination of quantitative and qualitative     A valuation study was undertaken whose main objective
social research approaches has focused on tourism over-    was to measure the benefits that individuals derive from
crowding in the Broads. Face-to-face interviews of visitors  preventing excess algae (eutrophication) impacts upon
who hire motorboats and group discussions with local      open water in rivers and lakes in East Anglia (see Bateman
residents who own motorboats were used to reveal stake-    et al. 2004 for full details). A questionnaire based on the
holder preferences and attitudes to perceived and actual    contingent valuation (CV) method was used to estimate an
problems (Brouwer 1999; Brouwer, Turner and Voisey       individual’s willingness to pay for a scheme to prevent
2002). A majority of respondents felt that overcrowding    excess algae in the rivers and lakes in order to ensure
was a real problem and that it was reducing the quality of   continued access to the amenity and recreation facilities
the holiday/environmental experience, in terms of general   which each site provides. The scheme was based on a
amenity and peace and quiet. But there was also a sensi-    sewage treatment programme that would remove nutrients
tivity to increased hire prices as a mechanism to mitigate   and reduce eutrophication.
overcrowding. Water space zoning was another policy      The contingent valuation survey comprised a variety of
option that was met with significant opposition. The      sections including: assessments of present use of water
negative response to this instrument also served to un-    bodies; reactions (including belief indicators) regarding
cover a deeper problem. Issues of trust, responsibility and  process by which water bodies and related activities may
blame seem to underlie opposition to change. The Broads    be affected by eutrophication; assessments of how such
Authority (BA) was seen as too remote and bureaucratic     changes might impact upon usage of those water bodies;
by the boaters and its motives were questioned. To the     valuation scenario section outlining the proposed scheme
boaters, the hidden agenda appeared to be the eventual     and valuation task that examines households willingness
exclusion of boating from the Broads in favour of nature    to pay to avoid the specified eutrophication impacts.
conservation. This group polarisation has emerged despite   The valuation scenario included information on the rising
the fact that the BA’s stated and actual policy is one of   population of East Anglia and increased pressure on
balancing the main interests in a long-term management     sewage treatment works and the effects of changing
strategy. In recognition of this problem, the BA has begun   weather patterns on water quality. Survey respondents
to institute a more overt stakeholder consultation process.  were given a plausible solution to the potential problem of
This more inclusionary approach has been piloted in a     eutrophication in the form of, for example, a phosphate
localised problem case connected with one particular lake,   removal scheme at the sewage works. Respondents were


                                                                 93
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                                  although it is noted that non-use values would exist for
   told that such a treatment would increase their annual
                                  individuals living elsewhere in the country. The sample
   household water bill. After the presentation of the valua-
                                  mean WTP per household was thus multiplied by the
   tion scenario and payment mechanism, respondents were
                                  number of households in East Anglia, which is 2.253
   faced with the elicitation question, asking them how much
                                  million, to give annual benefits of £169 million.
   they would be willing to pay for the good if given the
                                  Turning now to the costs of reducing eutrophication,
   opportunity to obtain it, under specified terms and con-
                                  compliance cost estimates from a previous study con-
   ditions. The particular method of elicitation used was a
                                  ducted by Pretty et al. (2002) were obtained. The authors
   relatively new approach, known as the one and one half-
                                  carried out a preliminary assessment of the environmental
   bound (OOHB) elicitation method (Cooper et al. 2002).
                                  costs of eutrophication of freshwaters in England and
   Rather than facing a single yes/no response question about
                                  Wales. The relevant compliance costs are those associated
   the cost of provision, the OOHB mechanism presents
                                  with sewage treatment. Sewage treatment companies incur
   survey respondents with upper and lower bound cost
                                  costs to comply with environmental legislation for the
   estimates per household (or per individual) associated
                                  removal of phosphorus before it enters watercourses.
   with the provision change under consideration. The pre-
                                  Pretty et al. (2002) predicted that nutrient removal at
   cise values of these amounts (bids) are varied across the
                                  sewage treatment works, which come under the EC Urban
   sample to permit estimation of survival functions and
                                  Wastewater Treatment Directive, would cost water com-
   associated univariate WTP measures such as the mean and
                                  panies £50 million/year, with a further operating cost of
   median. Such an approach is considered to have greater
                                  £0.3 million/year for each year over the period 2000–2010.
   statistical efficiency, plausibility and incentive compati-
                                  These costs are for the whole of England and Wales. As
   bility than alternative mechanisms (Bateman et al. 2002).
                                  such, the comparison of aggregate benefits from the pre-
   The contingent valuation survey approached 2,321
                                  vention of eutrophication just for the East Anglia region
   households for face-to-face interviews; 1,067 of these re-
                                  with the costs of a nutrient removal scheme for the entire
   fused to take the survey. A total of 1,254 households thus
                                  English and Welsh region indicates that there are signifi-
   answered the survey, which contained one of the 13 bid
                                  cant positive net benefits. Within the Broads (national
   (cost) treatments selected randomly so as to ensure equal
                                  park equivalent) area, however, complicated feedback
   sample size of each bid level. In order to obtain estimates
                                  effects have served to make practical management more
   of the WTP for the phosphorus removal scheme, it was
                                  difficult.
   assumed that a respondent’s yes/no choice regarding the
                                  The Broads Authority’s (BA) powers are similar to other
   payment of a given bid amount to obtain a given
                                  UK National Park authorities, plus a navigation duty. But
   improvement in environmental quality is made in the
                                  the BA is not subject to the Sandford principle, which
   context of a utility maximising choice by the respondent.
                                  mandates primary status for nature conservation in all the
   In accordance with the random utility framework, the
                                  other UK National Park areas. The BA’s statutory duties
   individual’s WTP is a random variable with a cumulative
                                  are focussed around the requirement to balance naviga-
   distribution function whose parameters can be estimated
                                  tion, nature conservation and recreation/amenity interests.
   on the basis of the responses to the contingent valuation
                                  This complex political, economic and environmental
   survey (Bateman et al. 2002).
                                  trade-off process is becoming even more difficult as the
   Table 3 presents the mean and median WTP values. Of the
                                  result of recent EU Directives (notably The Birds and
   1,254 respondents sampled, only 1,112 responses were used
                                  Habitats Directive). This regulatory approach has at its
   for the econometric analysis, since 142 responses had
                                  core a rather ‘‘static’’ interpretation of nature protection.
   missing observations for significant explanatory variables.
                                  Such an interpretation does not sit easily with the BA’s
   The mean household annual WTP for the total sample
                                  remit of ‘‘balancing’’ different interests in order to sus-
   (n =1,112) was found to be £75.4. Protest bids were identi-
                                  tainably manage all the assets within its executive area.
   fied based on the answers to questions regarding the reasons
                                  The navigation duty sometimes proves to be at odds with
   for acceptance/refusal of a bid amount. The removal of the
                                  the provision of quiet public enjoyment and the conser-
   232 protest bids produced no significant change to the WTP
                                  vation of the area’s natural beauty.
   amount, which remained at £75.4/household/year.
                                  The difficulties likely to be posed more generally by the
   Aggregation of the sample WTP is crucial for benefit
                                  Habitat Directive for management authorities such as the
   estimation to be used in a CBA. As the study was carried in
                                  BA have been highlighted in the case of Hickling Broad
   the East Anglia region, and had to do with the protection
                                  (see Fig. 1). This is a water body that over the last 30 years
   of lakes and rivers against eutrophication in this region,
                                  or so has become a focal point for private and other sail
   the aggregation was constrained to consider only the local
                                  and power boaters. Rights of navigation are restricted to a
   population, and not to include the whole of the UK,
                                  specified channel, but boating has become possible over a
                                  large part of the surface of the water body. In more recent
     Table 3
                                  years, as water quality has been improved, aquatic plant
   Mean and Median WTP for avoiding eutrophication damages
                                  growth has accelerated, and large sections of the water
                                  body have at times become virtually inaccessible to navi-
   Mean WTP (£)             75.41
   Median WTP (£)            69.07          gation.
   95% Confidence interval        69.41–84.36
                                  Restoration policies promoted by the BA have reduced
   Standard error            3.71
                                  nutrient flow into the Norfolk Broads and greatly


94   Reg Environ Change (2004) 4:86–99
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improved water quality. In Hickling Broad, these measures    particular standard of flood protection to the costs of such
have proved to be especially successful insofar as they have   an undertaking. Although market benefits from flood
encouraged the return of previously threatened aquatic      protection were considered in terms of agriculture,
plants. However, the thickness of plant growth sometimes     industry/residential and infrastructure (Turner and
slows boat traffic and adversely affects local sailing com-    Brooke 1988), the value of the non-market benefits from
petitions. As part of its overall commitment to supporting    the area were uncertain.
the sustainable development of the Broads, the BA has a     As part of the cost-benefit assessment for the Flood Alle-
statutory duty to maintain the area for the purposes of     viation Study, a Broadland contingent valuation (CV)
navigation. It also tries to encourage environmentally      survey of recreational visitors was commissioned in 1991
friendly boating. However, the increasingly dense beds of    to assess the willingness of individuals to pay (WTP) to
aquatic plant (including a rare species of stonewort)      preserve the existing Broadland landscape, ecology and
growth can periodically destruct non-powered and elec-      recreational possibilities (Bateman et al. 1992, 1994, 1995).
trically-powered craft, and local boatyards may be temped    Respondents were presented with two scenario:
to revert back to using diesel-powered craft on Hickling
                                 1. ‘‘do nothing’’ in which due to saline intrusion virtually
Broad, thereby increasing noise and water pollution
                                  all the Broadland landscape and ecology would change
(Turner et al. 2003).
                                  in character;
Clearly, management of a dynamic and multiple-use eco-
                                 2. implementation of an unspecified scheme for flood
system is hindered if a ‘‘static’’ interpretation of the EC
                                  alleviation, which would preserve the current Broad-
Directives is adopted. A more flexible interpretation is
                                  land landscape and ecology.
essential to allow, in the Hickling case, experimental plant
                                 The study consisted of two surveys: (i) a postal survey of
cutting and monitoring. Other management action to
                                 households across the UK designed to capture the values
maintain navigation and recreation interests throughout
                                 which non-users might hold for preservation of the pres-
the Broads executive area will also fall foul of a static
                                 ent state of Broadland and (ii) an investigation of the
interpretation of the provisions of the Habitats Directive.
                                 values held by users for the same scenario as elicited
Some room for manoeuvre may be possible in terms of
                                 through an on-site survey. Further theoretical and meth-
whether all management actions necessarily need to be
                                 odological investigations were undertaken via a second
interpreted as ‘‘projects’’ and therefore as requiring impact
                                 on-site survey conducted in 1996. Details of all three of
assessments. For an authority like the BA, the cost impli-
                                 these studies are presented below.
cations alone would make such a ruling impracticable.
                                 Non-user values were estimated by means of a mail survey
From the UK government perspective, there is an element
                                 questionnaire sent to addresses throughout Great Britain
of ‘‘wait and see’’ in its position, as it monitors how events
                                 in order to capture both socio-economic and distance
play out in the Broads context. From the BA’s perspective,
                                 decay effects on stated WTP. Table 4 details the sampling
there is a need to achieve a working compromise, or at
                                 strategy employed in this survey and the response rates
least to engage stakeholders in an ongoing process of
                                 achieved (Bateman and Langford 1997).
dialogue. Efforts are under way to promote such a delib-
                                 The survey questionnaire was designed to best practice
erative and participatory process in order to achieve a
                                 standards (Dillman 1978). It was pre-tested through a
reasonable compromise between navigation and conser-
                                 focus group with pilot exercises, and included visual, map,
vation needs. It is also now clear that the management
                                 and textual information detailing the nature of Broadland,
objective can only be the maintenance of relative stability
                                 the flooding problems and flood defence options together
in the Broad’s conditions. The stakeholder dialogue pro-
                                 with necessary details supporting a WTP question such as
cess has been constantly widened and now has to
                                 payment vehicle, payment time frame, etc. The survey
encompass flooding risk management issues in the area.
                                 achieved a typically modest response rate of some 31%,
                                 however initial analysis showed that this was heavily
                                 supported by past users of Broadland who represented
     Flood alleviation and sea level            well over one-third of the responses in each distance cat-
                                 egory. Although experience of visiting the Broads declines
     rise mitigation strategies               significantly with distance from the area (p<0.0001), this
     for Broadland: valuation analysis           sample can best be characterised as a sample of dormant
                                 past users.
                                 Analysis of the response rates detailed in Table 4 together
In 1991 the National Rivers Authority (NRA), later named
                                 with respondent characteristic data showed that response
the Environment Agency (EA), initiated a wide ranging
                                 rates were negatively related to increasing distance from
investigation to develop an: ‘‘effective and cost-effective
                                 the Broads, and positively related to respondent income.
strategy to alleviate flooding in Broadland for the next
                                 These relationships were further reflected within the re-
50 years’’ (Bateman et al. 1992).
                                 plies of those who did return their questionnaires. When
The appraisal process consisted of five main components:
                                 asked whether or not they agreed with the principle of
hydraulic modelling, engineering, cost-benefit assessment,
                                 incurring extra personal taxes to pay for flood defences in
environmental assessment, and consultations. The item of
                                 Broadland (the ‘‘payment principle’’ question), 166
most relevance here is the cost-benefit assessment, which
                                 respondents (53.5%) answered positively to the payment
compared benefits of undertaking a scheme to provide a


                                                                   95
                                                Reg Environ Change (2004) 4:86–99
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     Table 4
   Non-user survey response rate by sample group

   Sample group       Distance      Socio-economic     No. of usable     Group response     Proportion of total
                zonea                               rate (%) b
   identification label              class or area     responses                   usable responses (%)

   1M            1          Middle (2A)      58           34.7          18.7
   2M            2          Middle (2A)      66           39.5          21.3
   3M            3          Middle (2A)      59           35.3          19
   4M            4          Middle (2A)      47           28.1          15.2
   3U            3          Upper (1A)       54           31.1          16.8
   3L            3          Lower (4A)       28           16.8          9
   Group mean                              52           30.9          16.7
   Total                                310          -           100
   a
   Zone 1=central (Broadland) distance band (width approximately 40 km); remaining zones are approximately 110 km wide; 4=most distant
   bank
   b
    167 questionnaires mailed out to each sample group (total mailings=1,002)

   principle question. Determinants of these responses were       Including, as zero’s, those respondents who refused
   investigated, yielding the model described in Eq. (2):        the payment principle (i.e. those who stated they were
                                     not willing to pay to prevent flooding), this question
   LOGIT ðYESÞ                             elicited a whole-sample mean WTP of £23.29/annum
    ¼ 0:370 À 0:866 DISTANT                      (95% CI: £17.53 to £32.45). It was also found that mean
                                     WTP decreases as the distance from Broadland increases,
       ð0.61Þ  ð2.59Þ
                                     and previous Broadland visitors expressed a substantially
       þ 0:602 FISH þ 0:446 SOMEVIS
                                     higher WTP than those who have never visited the area.
        ð2.16Þ    ð1.68Þ                    Aggregation of WTP estimates was conducted using three
       þ 1:112 OFTVIS Ä 1:458 INCMID þ 1:924 INCHI         approaches, via the sample mean WTP, distance zone
                                     adjusted, and by bid functions. (see Table 5 and Bateman
         ð2.23Þ         ð2.81Þ     ð3.45Þ
                                     et al. 2000). Analysis of the data that produced the results
                                  ð2Þ  in Table 5 suggests that the simple ‘‘sample mean’’ and
                                     ‘‘distance zone’’ approaches to aggregation yield sub-
   where:                                stantial overestimates of total non-users benefits, which
                                     were very sensitive to the omission of any unusually high
   – LOGIT(YES)= In {pi/[1-pI]} where pI = the probability       WTP responses. By contrast, the ‘‘bid function’’ approach
     of the respondent saying ‘‘yes’’ to the payment principle
                                     gave robust and stable estimates of aggregate value.
     question.
                                     In summary, the study of present non-users yields a
   –  DISTANT= 1 if respondent lives outside zone 1 (= 0
                                     consistent picture and provides the basis for some defen-
     otherwise).
                                     sible estimates of aggregate benefits, which in turn yield an
   –  FISH= 1 if respondent participates in fishing at least      interesting commentary upon current practice. We now
     occasionally (= 0 otherwise).                  turn to consider the various on-site CV surveys of visitors
   –  SOMEVIS= 1 if respondent sometimes but not often         to Broadland.
     visits the countryside for relaxation/scenery (= 0        The 1991 user study generally conformed to the CV testing
     otherwise).                           protocol subsequently laid down by the NOAA blue ribbon
   –  OFTVIS= 1 if respondent often visits the countryside       panel (Arrow et al. 1993). Survey design was extensively
     for relaxation/scenery (= 0 otherwise).             pre-tested with any changes to the questionnaire being
   –  INCMID= 1 if household income is £10–30 k/annum (=
     0 otherwise).
   –  INCHI= 1 if household income exceeds £30 k per an-
                                     Table 5
     num (= 0 otherwise).
                                  The present non-user’s benefits of preserving the present condition of
   –  Scaled deviance = 378.89; df = 300; Figures in brackets Broadland aggregated across Great Britain using various procedures
     are t-values                       (£ million/annum)
   Equation (2) also shows that even after controlling for       Aggregation approach
   proximity, participation in certain of the activities for
   which Broadland is synonymous (i.e. fishing, relaxing and       (1) Aggregation using sample mean     98.4–159.7
                                        WTP
   enjoying scenery) is positively related to respondents
                                     (2) Aggregation adjusting for distance  98.0–111.1
   agreeing to the payment principle.                    zones
   Those respondents who accepted the payment principle         (3) Aggregation by bid functions:
   were presented with an ‘‘open-ended’’ format valuation          i. using distance zone and national  25.3–27.3
                                        income
   question asking them to state the maximum amount of
                                       ii. using county distance and     24.0–25.4
   extra taxes they would pay WTP per annum to safeguard           regional income
   Broadland from the effects of increased flooding.


96    Reg Environ Change (2004) 4:86–99
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                                Since the publication of the Kahneman and Knetsch’s
re-tested over a total pilot sample of some 433 respon-
                                (1992) ‘‘embedding’’ critique of CV, there has been a wide
dents. One of the many findings of this process was that a
                                ranging debate over whether respondents give sufficient
tax-based annual payment vehicle appeared optimal when
                                consideration of the specific characteristics of the goods
assessed over a range of criteria (details in Bateman et al.
                                valued when responding to CV questions. More specifi-
1993).
                                cally, the subsequent academic debate has focused on the
The final questionnaire was applied through on-site
                                sensitivity of WTP estimates to the scope of the good
interviews with visitors at representative sites around
                                considered, where scope can be defined in terms of
Broadland, with 2,897 questionnaires being completed.
                                quantity and/or quality. A follow-up survey to the
This sample was composed of 846 interviewees given the
                                Broadland 1991 survey was therefore undertaken, which
open-ended (OE) WTP questionnaire, and the remaining
                                considered the circumstances under which sensitivity to
2,051 facing in turn the single-bound dichotomous
                                scope occurs, where scope was defined in terms of the area
choice (1DC) and interactive bidding (IB) questions. The
                                protected by a flood alleviation scheme (FAS) for either
1DC elicitation method faces respondents with a single
                                the whole (W) of that area of Broadland which is under
question such as ‘‘are you willing to pay £x?’’ and then
                                threat from saline flooding or a series of part (P) areas
the bid level £x is varied across the sample. The IB
                                within that whole. As such, the P FASs are nested within
method supplements the initial question with two
                                the W FAS.
further dichotomous choice questions reducing £x or
                                It was suggested by Carson and Mitchell (1995) that the
increasing £x according to the answers given. The
                                most appropriate test of scope sensitivity is through the
respondent is then finally given an OE question, the
                                comparison of independent valuations from different lev-
answer to which determines the WTP value used by the
                                els of amenity. Such a test was undertaken in the Broad-
analysts. Prior to any WTP question, respondents were
                                land 1996 survey by collecting two samples of users, the
presented with a ‘‘payment principle’’ question. Negative
                                first of which faced a questions concerning their WTP for
responses to this question reduced sample sizes to 715
                                the W scheme followed by their WTP for the P scheme (the
(OE) and 1,811 (1DC/IB), respectively. Except where
                                ‘‘top-down’’ W/P sequence sample); while the second
indicated, all those refusing the payment principle are
                                sample faced the same questions but presented in reverse
treated as having zero WTP in calculating subsequent
                                order ‘‘bottom-up’’; P/W sequence sample).
WTP measures.
                                Full results of the Broadland 1996 survey are presented in
The theoretical validity of responses to the various WTP
                                Powe (2000), however, they do not provide conclusive
questions was assessed through the estimation of a series
                                evidence for either CV supporters or their critics, and
of bid functions. The analysis indicated that a consistent
                                suggest instead that a mixture of economic and psycho-
set of predictors explain WTP responses, including mea-
                                logical influences are at work here. This points towards a
sures of respondent income, experience of Broadland and
                                complexity of preference motivations that is at the same
participation in related activities, and interest in envi-
                                time both unsurprising and challenging, and ought to be
ronmental issues.
                                the future research agenda for CV research.
As noted previously, the Norfolk Broads CV study was
                                While the valuation work indicates that the public does
conducted in answer to a real-world question regarding
                                put significant value on the environment that Broadland
the funding of flood defences in Broadland. The study
                                provides, the costs of flood protection provision are also
fed into a wider cost-benefit analysis that also examined
                                very high. Over the 1990s, the Environment Agency has
the agricultural, property and infrastructure damage-
                                formulated a selective approach to flood alleviation and
avoided benefits of such defences. The benefit-cost ratio
                                not a strategy that will provide an area-wide uniform level
of the latter items was calculated at 0.98 (National
                                of protection. A number of communities and business sites
Rivers Authority 1992). However, even if only a con-
                                are currently at high risk from flooding (so called
servative measure of WTP for the recreational and
                                ‘‘undefended areas’’) as levels of protection vary across the
environmental benefits of flood prevention is considered
                                area. The Broadland area is the subject of an experiment in
the benefit-cost ratio increases substantially to 1.94,
                                terms of flooding alleviation scheme funding. A joint
indicating that the benefits of a flood alleviation strategy
                                public and private funding initiative (PPP/PFI) has been
are almost twice the associated costs. The results,
                                launched that provides public funding over a 20-year
including findings from the CV study, were submitted to
                                period, which will be spent by a private consortium
the relevant Ministry of Agriculture, Food and Fisheries
                                (Turner et al. 2003).
as part of an application of central government funding
support for the proposed flood alleviation strategy.
Following lengthy consideration of this application, in
1997 the Environment Agency announced that it had
                                     Conclusions and policy implications
received conditional approval for a programme for
‘‘bank strengthening and erosion protection’’ (Environ-
ment Agency 1997). The actual scheme has been taken      The Broads wetland area is a multiple-use resource under
forward since 2000 on the basis of a long-term private/    heavy and sustained environmental pressure and subject
public partnership scheme (between the EA and relevant     to dynamic ecosystem change. The DP-S-I-R organising
government support ministries and a private engineering    framework was successfully used to scope the magnitude
firm consortium).                        and significance of the environmental change problems


                                                                  97
                                               Reg Environ Change (2004) 4:86–99
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