Combating eutrophication in coastal areas at risk for oil spills

In this study we evaluate the profitability of nutrient abatement measures in eutrophied coastal areas exposed to a risk of frequent oil spills. The case studied is the Gulf of Finland, which forms part of the Baltic Sea. We present a dynamic model that integrates land loads of nitrogen and phosphor...

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Bibliographic Details
Published in:Annals of operations research 2014-08, Vol.219 (1), p.101-121
Main Authors: Hyytiäinen, Kari, Huhtala, Anni
Format: Article
Language:English
Subjects:
Agriculture
Business and Management
Coastal areas
Coastal zone management
Coasts
Combinatorics
Computer simulation
Control
Costs
Damage
Ecosystems
Environmental aspects
Environmental economics
Environmental impact
Eutrophication
International agreements
Methods
Monte Carlo simulation
Nutrient removal
Nutrients
Oil spills
Operations research
Operations Research/Decision Theory
Pollution
Probability
Profitability
Risk
Studies
Theory of Computation
Uncertainty
Water quality
Watershed management
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Summary:In this study we evaluate the profitability of nutrient abatement measures in eutrophied coastal areas exposed to a risk of frequent oil spills. The case studied is the Gulf of Finland, which forms part of the Baltic Sea. We present a dynamic model that integrates land loads of nitrogen and phosphorus, cost of nutrient abatement measures in agriculture, nutrient dynamics in the sea basins adjoining the Finnish coast, exogenous risk of oil spills, and recreational value of the sea, which faces environmental damage of uncertain magnitude and duration. Monte Carlo simulation is applied to evaluate the profitability of nutrient abatement measures carried out unilaterally by Finland or as a joint effort by Estonia, Finland and Russia. We demonstrate that a high exogenous risk of oil damage may render investments in nutrient abatement economically infeasible. On the other hand, several components of the model entail uncertainties owing to the scarcity of data and our limited understanding of the relationship between the ecological processes involved and the values people place on natural resources. For example, the uncertainties related to the curvature of the value function outweigh the uncertainties connected with the oil spills and their potential consequences.
ISSN:0254-5330
1572-9338
DOI:10.1007/s10479-011-0879-2