Renewable and Nonrenewable Resource Theory Applied to Coastal Agriculture, Forest, Wetland, and Fishery Linkages

Abstract

This paper addresses tradeoffs in wetland development using a framework that integrates economic theory of renewable and nonrenewable resources. The theory treats wetland development as use of a nonrenewable resource, while wetland preservation protects critical fishery habitat. The framework recognizes that wetland quality may vary for either development or fisheries. An illustrative application assesses tradeoffs in converting pocosin wetlands to agriculture rather than maintaining wetlands to protect salinity in estuarine nursery areas. Results reveal the marginal value of salinity protection may be substantial, while location may affect a wetland's value to an estuarine shrimp fishery. Comparisons between agricultural and forestry landuses show that ecological links may cause wetland values to depend upon the land-use chosen for the developed state. Future assessments of other development may reveal additional impacts through impacts on salinity.