Economic value of the nutrient retention function of restored floodplain wetlands in the Elbe River basin

This paper presents an application of an indirect method, the alternative or replacement cost method to value a regulatory ecosystem service: the retention of river nutrient loads by floodplain wetlands. The paper presents a cost-minimisation model for nutrient abatement measures for the River Elbe. The model is applied to estimate the shadow price of phosphate and nitrogen nutrient retention services by restored floodplains. It is shown that the shadow price of restored floodplain area is a function of the nutrient load reduction target for the river basin. The scope of the floodplain restoration projects is shown to have a lesser impact on the estimated shadow price.