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In managing water quality in U.S. estuaries, as well as throughout ocean and coastal governance, there is an increasing call for economic research to communicate the values of environmental resources to local communities, policy makers, and other stakeholders. Watershed managers implement economic studies to: 1) better communicate the value of estuarine resources to the wider community, 2) determine the most cost-effective management actions, and 3) compare the costs and benefits of actions to improve water quality. In order to better understand how economic studies are applied and their usefulness in coastal management, we interviewed managers from six National Estuary Programs (NEPs) and two watershed organizations that have undertaken economic studies, focusing on the lessons learned from the use of those studies.  Economic studies can provide insights to managers and stakeholders about the implications of management actions or lack of action. Although economic research can offer a common language and framework, estimating economic values of policy changes to estuaries is a complex process requiring careful implementation in terms of methodology and scale as well as in the presentation and application of findings (Pendleton 2010). The findings from our interviews highlight the utility and limitations of economic analyses for coastal management and may help coastal managers to determine the most appropriate economic approaches to suit their needs and to avoid some of the pitfalls faced by other managers in conducting and communicating economic analyses. Additionally, our findings may help economists understand the needs of estuary managers, and help them better provide economic research that can contribute effectively to coastal management.

The Application and Usefulness of Economic Analyses for Water Quality Management in Coastal Areas