ABSTRACT
This chapter examines the causes of rapid depletion of forested wetland resources in the United States, and compares historical rates of depletion with what would have optimal from a socioeconomic perspective. The generic methodology was developed in the context of an analysis of alternative renewable resource strategies for forested wetlands. The simulation model of optimal forested wetland use was employed for the purpose of developing empirically-based estimates of the optimal allocation of wetlands between agricultural and forest uses during the fifteen-year period from 1985 to the end of the century. The simulation model could be improved by incorporating distinct environmental externality estimates temporally and across counties, and by providing for a non-linear environmental benefit function. A possible application of the model is to contrast information on actual Federal project construction costs with estimates from the factual and counterfactual simulations of implicit willingness-to-pay for Federal project protection.
