Ecological-Economic Context

​This work evaluates the economic value of water in the Conemaugh, Loyalhanna, and Youghiogheny watersheds of the Laurel Highlands. 

Government agencies, local citizens, and the funding community can use this information to weigh the economic benefits of conservation and restoration and/or broader policies designed to produce water quality and quantity improvements in the region. 

Key Findings

We estimated a wealth of economic benefits, including recreation benefits, avoided costs, and other non-market values associated with the key water resource management actions highlighted below: 

1. Restoring 878 miles of AMD-damaged streams in the study region could add: 

• $16.8 million a year in recreational fishing benefits 

• Up to $765 million in increased property values

2. Improving water quality across regional watersheds to bring increased value to recreation (and new participants):

•  844,000 recreational fishing days/year in the Loyalhanna-Conemaugh and Youghiogheny watersheds bring in $31.7 million in regional spending and $41.9 million in net economic benefit (how much they value the experience) to anglers 

• Improved water quality could bring in an additional $1.1 million in value to participants in water-based recreation

3. Establishing 100-foot natural buffers on 176 impaired stream miles in the region could bring: 

• Annual net benefits totaling $2.9 million, including benefits from enhanced nutrient retention, carbon storage, and recreation 

• One-time net benefit totals $2.1 million and includes enhanced aesthetic value along streamside properties

​4. Future Costs: 30,000+ acres of forest and agricultural land may be lost to natural gas well pads in the next 10 years, leading to: 

• $2.7 million/year in lost agricultural production

• Damages to water filtration, habitat & biodiversity, recreation, and carbon storage of up to $57.4 million/year by 2030

Recommendations

Below are identified cost-effective actions to inform the next round of strategy and funding prioritization around water quality conservation and restoration: 

• Prioritize Funding for AMD Treatment Systems

  • Compare the costs of continued operation and maintenance for passive treatment systems with recurring ecosystem service benefits 

  • Site-specific characteristics can lead to higher-than-average ecosystem service benefits 

• Consider Ecosystem Service Values in Energy Permitting

  • Require an ecosystem services impact assessment for each new natural gas well and any surface disturbance associated with coal and gravel mining

  • Set impact fees for industry use to compensate for watersheds' incurred costs

  • Determine potential sources of the additional water demand required for unconventional natural gas drilling in regional watersheds by 2030

• Focus on Water Quality when Promoting Outdoor Recreation

  • Management actions should be initiated to improve degraded water quality that is threatening the resilience of regional watersheds, and to ensure the continued protection of those that are health and resilient

• Require Cost-Benefit Analyses for Riparian Buffer Projects 

  • State-wide, regional, and local programs should incorporate ecosystem service benefits into consideration of compensation levels for conserved riparian acres

  • Explore compensation schemes between downstream municipalities and upstream landowners

• Foster Regional Collaboration on Sewage Data and Water Quality Monitoring

  • Commission research to fill data gaps on the number, location, and degree of failure of on-lot septic systems in the region

Resources

• Infographic on the Laurel Highlands 

• Technical Report on ecosystem services in the Loyalhanna-Conemaugh Watersheds

• Executive Summary detailing key findings