Economics of Sustainability: A Shellfish that Provisions Invaluable Natural and Ecosystem Services — the oyster and oyster reefs
Ryan Barry (rsbarry@gmail.com)
October 19th, 2022 (Originally Written April 14th, 2022)
Imperfect musings blending the practical, philosophical, and at times provocative on Sustainability, Resilience, Regeneration, Well-being, Cities, Economic & Sustainable Development, Conservation, the Changing Nature of Work, Innovation and other topics relevant to our modern times.
Economics of Sustainability: A Short and Imperfect Critical Analysis
*Note: this analysis is by no means perfect but rather an exploratory and provocative piece of writing and analysis. The hope, that others find an idea or tidbit of inspiration within that they may build further works upon.
In traditional economics, resources are exploited for economic value. Trees cut down, precious soils plowed over and living organisms harvested. Though value is perceived to be created and progress made the impact on the environment, human health, and living ecosystems are often neglected in the name of progress so called. The oyster, a seemingly delicious summertime treat is a source of vast invaluable nutrients and health-boosting benefit as a “source of protein, vitamin D, zinc, iron and copper, vitamin C, phosphorus, niacin and riboflavin” plus “beneficial antioxidants, healthy cholesterol and omega-3 fatty acids” (Gourmet, N.D.). Further, beyond nutritional content as a dietary source healthy oysters can enable weight loss, heart health, blood circulation, bone strength, immunity, and aphrodisiac effects (Gourmet, N.D.). Thus, from an economic perspective consumers are willing to pay their hard earned dollars to purchase harvested oysters. From oyster farming in the wild, to aquaculture-oriented oyster farming, to the tables of restaurants the oyster as an edible food-source creates economic value for communities. Less easily discernable to the untrained-mind are the natural benefits and natural services oysters provide for both the natural ecosystem and humans.
The oyster and the estuaries, marshes, tidal-waters, bays, and other waters which they inhabit are part of the planets natural water filtration system. “When an oyster draws in water, its gills function like microscopic eyelashes, filtering out the suspended pollutants and releasing only clean water back into the sea — up to 50 gallons a day for full-grown adults. Alive, they can help tackle the nitrogen washed off farmland by turning it into gas. Further, their shells provide nesting sites for other creatures, forming the temperate equivalent of tropical coral reefs” (Bourke, 2021).
It’s difficult to economically value natural services like the cleaning of water from oysters, and at times even controversial, though, we can create models that try to do so if it creates beneficial policy and decision making support that helps to preserve and regenerate nature rather than erode, destruct, and extract. Based on estimated costs for various water filtration systems — a large Nanofiltration and Reverse Osmosis System can cost as much as $2m to $4m and filter 300 Gallons per minute (GPM); an Ion exchange (IX) resin system with a capacity of 2000 GPM can run $7m to $10m (Samco, N.D.). In comparison 1 oyster can filter approximately 50 gallons a day (Bourke, 2021). Thus, 57.6k oysters is equivalent to a IX Resin Filtration System assuming the system runs 24/hrs. a day non-stop. The Bourke and Blue Point Brewing Company articles talk to the once abundant New York harbor oyster ecosystem. For illustrative purposes, this paper uses data on the Chesapeake Bay to understand the detrimental impact of oyster ecosystem destruction. The Chesapeake Bay is an estimated 4,480 square miles (Malmquist, 2009) and is home to some 400m oysters as of 2020 (Chesapeake Bay Foundation, N.D.). The oysters are not necessarily evenly distributed over the area of the Bay. Of great concern is the estimated 200m oysters lost since 1999 (Chesapeake Bay Foundation, N.D.). That’s roughly 50% of the Chesapeake Bay oyster population or the equivalent of 3,472 2000 GPM IX Resin Filtration Systems at $7m to $10m each if monetarily evaluated. At the low value ($7m) this loss equates to a loss of $24.3B in filtration systems; high value ($10m), $34.7B. This is only capital equipment investment expense and doesn’t include operation — labor to run, electricity, maintenance, and other Total-Cost to-Operate costs.
Note, the author of this analysis is uncertain of the IX Resin Filtration System being the proper comparative equivalent to oysters but does believe the analysis regardless of exact accuracy can shine light on the oyster depletion issue and its resulting loss of water filtration as a natural service from a theoretical monetization perspective.
“Today, when it comes to appreciating the true value of nature itself, the world is sadly still grappling with the same lesson: how not to fixate so much on making money that you lose sight of the communal whole. Or, alternatively, not to focus so much on harvesting an individual oyster that you lose sight of the health of the reef” (Bourke, 2021). The theoretical water Filtration System — Chesapeake Bay oyster population equivalent valuation denotes the great value to society, to wilderness, to the planet. Being the brevity of this paper we haven’t delved into concepts of “Damage Cost Avoidance” as a form of valuation for oyster beds as the beds provide substantial protection for communities close to waters that are susceptible to damage from tropical storms, hurricanes, and other severe weather. “Shoreline stabilization is the most valuable potential service, although this value varies greatly by [oyster] reef location” (Grabowski, 2012).
Government dollars can stimulate the economy and thus, impact economics. The stimulation can be enhanced or erode the environment. In the recent US Infrastructure Bill (HR 3684) conservation, climate, and perspective beyond traditional economics is observable. Ecosystem restoration for deemed substantially important ecosystems — “more biodiversity, more people, more economic activity, more problems” over 5 years would see the EPA receive $1.8B to invest in some of the country’s most important ecosystems. The $1.8B investment includes $238m of investment to be allocated for the Chesapeake Bay (Male, 2021). The investment at first look seems vast and a step in the proper direction. Though, when compared to the aforementioned loss of filtration system natural services when monetized in a theoretical valuation the low value is 102x; high value 146x more than the investment. In other words the $238m is at the high value is a meager .69%; low value .98% — not even 1% of the water filtration loss from oyster population declines in the Chesapeake Bay.
Other efforts are underway to mitigate the great damage done by modern-economics, humans, and the Anthropocene. But is it enough? Is it fast enough? Is the investment substantial enough? Should we divert investments elsewhere to regenerate the integral, invaluable, and arguably priceless ecosystem services provisioned by nature? “In New York’s Hudson Bay, the Billion Oyster Project is collecting oyster shells from restaurants to recreate reefs for new oysters to thrive” (Bourke, 2021). Prior to being the financial center, New York was the “oyster capital of the world” (Bourke, 2021) — the Billion Oyster Project is a step in a regenerative-direction though perhaps the natural (once oyster capital) and financial center can meet-in-the-middle and create economic solutions for a blue economy, blue economics, green economy, green economics, and a sustainable future.
In early April 2022, Maryland’s General Assembly passed innovative legislation, the Conservation Finance Act (CFA) that defines a “climate and flooding-focus of green infrastructure” and “blue infrastructure — like oyster reefs and seagrass beds” as important infrastructure to the state. An important component of the CFA legislation “allows for private investment in blue and green infrastructure” — creating a meet-in-the-middle environmental-economic solution (Chesapeake Conservancy, 2022).
References:
Bourke, India. (February 25th, 2021). The New Statesman — Consider the Oyster: why economics still has so much to learn from the natural world. Retrieved from https://www.newstatesman.com/business/2021/02/consider-oyster-why-economics-still-has-so-much-learn-natural-world
GourmetFoodStore.com. (N.D.). Oyster Nutrition. Retrieved from https://www.gourmetfoodstore.com/oyster-nutrition-16140
Blue Point Brewing Company. (August 24, 2018). Atlas Obscura — How New York City Became the Oyster Capital of the World for a few brief generations, at least. Retrieved from https://www.atlasobscura.com/articles/oysters-new-york-city-history-blue-point
SAMCO. (September 22, 2017). SAMCO — How Much Does an Industrial Water System Cost?
Retrieved from https://www.samcotech.com/how-much-does-an-industrial-water-treatment-system-cost/
Malmquist, David. (April 24, 2009). Virginia Institute of Marine Science — How big is the Bay?
Retrieved from https://www.vims.edu/bayinfo/faqs/estuary_size.php
Chesapeake Bay Foundation. (N.D.). Eastern Oysters — Learn why oysters are important to the Chesapeake Bay, the history and current state of oyster populations, and why it’s important to restore oyster reefs.
Male, Timothy. (November 8th, 2021). Top 10 for Conservation in the Infrastructure Act.
Retrieved from https://www.linkedin.com/pulse/top-10-conservation-infrastructure-act-timothy-male/?trackingId=PI1juJPJRyiSOhEEbfSaFQ%3D%3D
Grabowski, J.H. et al. (October 01, 2012). BioScience — Economic Valuation of Ecosystem Services Provided by Oyster Reefs. Retrieved from https://academic.oup.com/bioscience/article/62/10/900/238172
Chesapeake Conservancy (April 06, 2012). Conservation Finance Act Passes In the Maryland General Assembly. Retrieved from: https://www.chesapeakeconservancy.org/2022/04/06/conservation-finance-act-passes-in-the-maryland-general-assembly/