&EFA
     United States
     Environmental Protection
     Agency
A wetland is a
natural area that
is often wet but
may not be wet all
year round.
Wetlands are char-
acterized by their
distinctive  hydrol-
ogy, soils and
plants. Once
regarded as waste-
lands, wetlands
are now recog-
nized as impor-
tant features of the
landscape that
provide numerous
beneficial services
for people and
wildlife. The eco-
nomic value of a
wetland is  an esti-
mate of the impor-
tance, or worth, of
one or more of its
services to society.
Some of these serv-
ices, or functions,
include protecting
and improving
water quality, sup-
porting the fishing
industry, storing
floodwaters and
providing opportu-
nities for educa-
tion and recre-
ation.  If wetlands
are destroyed or
damaged, it can
be difficult or
impossible  to
replace all  of these
functions.
                             Economic  Benefits   of Wetlands
 Wetlands contribute to the national and local economies by producing resources,
 enabling recreational activities and providing other benefits, such as pollution
 control and flood protection. While it can be difficult to calculate the eco-
 nomic value provided by a single wetland, it is possible to evaluate the range
 of services provided by all wetlands and assign a dollar value.  These
 amounts can be impressive.  According to one assessment of natural ecosys-
 tems, the dollar value of wetlands worldwide was estimated to be $14.9 tril-
 lion. (Source: Costanza et al. 1997)  This fact sheet summarizes some of the
 important ways in which wetlands contribute to  the economy.
Drinking Water Quality
Wetlands improve water
quality in rivers and streams.
they are valuable filters for
water that may eventually
become drinking water.
Wetlands improve water
quality in nearby rivers and
streams, and thus have
considerable value as filters
for future drinking water.
When water enters a wet-
land, it slows down and
moves around wetland
plants.  Much of the sus-
pended sediment drops out
and settles to the wetland
floor.  Plant roots and
microorganisms on plant
stems and in the soil
absorb excess nutrients in
the water from fertilizers,
manure, leaking septic tanks and municipal sewage.
While a certain level of nutrients is necessary in
water ecosystems, excess nutrients can cause algae
growth that's harmful to fish and other aquatic life.
A wetland's natural filtration process can remove
excess nutrients before water leaves a wetland, mak-
ing it healthier for drinking, swimming and sup-
porting plants and animals. For example, the
Congaree Bottomland Hardwood Swamp in South
Carolina removes a quantity of pollutants from the
watershed equivalent to that which would be
removed by a $5 million treatment plant. (Source:
EPA832-R-93-005)
Flood  Control

Flood damages in the U.S. average $2 billion each
year, causing significant loss of life and property.
(Source: National Oceanic and Atmospheric
Administration). Wetlands can play a role in reduc-
ing the frequency and intensity of floods by acting
as natural buffers, soaking up and storing a signifi-
cant amount of floodwater. A wetland can typically
store about three-acre feet of water,  or one million
gallons.  An acre-foot is one acre of land, about
three-quarters the size of a football field, covered
one foot deep in water. Three acre-feet describes the
same area of land covered by three feet of water.
Coastal wetlands serve as storm surge protectors
when hurricanes or tropical storms come ashore. In
the Gulf coast area, barrier islands, shoals,  marshes,
forested wetlands and other features of the coastal
landscape can provide a significant and potentially
sustainable buffer from wind wave action and storm
surge generated by tropical storms and hurricanes.
(Source: Working Group for Post-Hurricane
Planning for the Louisiana Coast) After peak flood
flows have passed, wetlands slowly release the stored
waters, reducing property damage downstream or
inland. One reason floods have become more costly
is that over half of the
wetlands in the United
States have been drained
or filled. The loss of more
than 64 million acres of
wetlands in the Upper
Mississippi Basin since the
1780's contributed to high
floodwaters during the
Great Flood of 1993  that
caused billions of dollars
in damage. (Source:
"Flood Damage
Reduction in the Upper
Mississippi River Basin—
An Ecological
                                                     One of the most valuable
                                                     benefits of wetlands is their
                                                     ability to store flood waters.
                                                     Maintaining only 15% of the
                                                     land area of a watershed in
                                                     wetlands can reduce flood-
                                                     ing peaks by as much as
                                                     60%. (Source: The Wetlands
                                                     Initiative, EPA) (See EPA843-
                                                     F-06-001, "Wetlands and
                                                     Flooding.")

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Valuation of
Wetlands

Although wet-
lands provide
important servic-
es to society,
these services are
typically not sold
nor do they have
market value.
Wetland benefits
can be estimated
by several stan-
dard market and
non-market valu-
ation techniques.
The three most
common are
cost-benefit
analysis, cost-
effectiveness
analysis and ben-
efits valuation for
compensation for
environmental
damages. The
techniques can be
applied whether
the change in the
environment is
an improvement
or degradation.
(Source:
"Economic
Valuation of
Environmental
Benefits")
                       Alternative", 2004)  The damage sustained by the
                       Gulf Coast during Hurricane Katrina could have
                       been less severe if more wetlands along the coast and
                       Mississippi delta had been in place.
Cleaning the Water

Because natural wetlands are so effective at remov-
ing pollutants from water that flows through them,
engineers and scientists construct systems that repli-
cate some of the functions of natural wetlands.
                         These constructed treat-
                         ment wetlands use natural
                         processes involving wet-
                         land vegetation, soils and
                         their associated microbial
                         life to improve water
                         quality.  They are often
                         less expensive to  build
                         than traditional waste-
                         water and stormwater
                         treatment options, have
                         low operating and main-
                         tenance expenses and can
                         handle fluctuating water
                         levels.  For example, in
Natural wetlands are effec-
tive at cleaning the water
passing through them.
Wetland plants and soils
absorb much of the excess
nutrients in the water.
Wetlands perform this func-
tion so well that similar sys-
tems are being constructed
to treat wastewater.
                         1990 city managers in
Phoenix, Arizona, needed to improve the perform-
ance of a wastewater treatment plant to meet new
state water quality standards. After learning that
upgrading the plant might cost as much as $635
million, the managers started to look for a more
cost-effective way to  provide final treatment to the
plant's wastewater discharge into the Salt River. A
preliminary study suggested that a constructed wet-
land system would sufficiently clean the discharge
water while supporting high-quality wetland habitat
for birds, including endangered species, and protect-
ing downstream residents from flooding. All these
benefits would be achieved at a lower cost than
retrofitting the existing treatment plant. As a result,
the 12-acreTres  Rios Demonstration Project began
in 1993 with assistance from the Corps of
Engineers, the Bureau of Reclamation and EPA's
Environmental Technology Initiative and now
receives about two million gallons of wastewater per
day.  This project is still flourishing, serving as a
home for thousands of birds and other wildlife.
(Source: City of Phoenix) There are hundreds of
wastewater treatment wetlands operating in the
United States today.  (Source: EPA832-R-93-005)
Fisheries
The Nation's wetlands are vital to fish health and
                                                                                                      Wetlands are essential to
                                                                                                      our multi-billion dollar
                                                                                                      National commercial fishing
                                                                                                      industry. Wetlands have an
                                                                                                      important place in the life
                                                                                                      cycle of 75 percent of the
                                                                                                      fish and shellfish commer-
                                                                                                      cially landed in U.S. waters.
thus to the Nation's multi-
billion dollar fishing
industry. Wetlands pro-
vide an essential link in
the life cycle of 75 percent
of the fish and shellfish
commercially harvested in
the U.S., and up to 90
percent of the recreational
fish catch. Wetlands pro-
vide a consistent food sup-
ply, shelter and nursery
grounds for both marine
and freshwater species.
Landings of crab, shrimp
and salmon were valued at
$1,167 billion in 2004. These species are dependent
on wetlands for  at least part of their life cycles. In
2004 the dockside value of fin fish and shellfish
landed in the United States was $3-7 billion and was
the basis for the $7-2 billion fishery processing busi-
ness. U.S.  consumers spent an estimated $54.4 bil-
lion for fishery products in 2000. (Source: U. S.
Fish and Wildlife Service (USFWS), National
Oceanic and Atmospheric Administration (NOAA),
National Marine Fisheries Service (NMFS))
                                                    Recreation

                                                    Wetlands are often inviting places for popular recre-
                                                    ational activities including hiking, fishing, bird
                                                    watching, photography and hunting.  More than 82
                                                    million Americans took part in these activities in
                                                    2001, spending more than $108 billion on these
                                                    pursuits. (Source: USFWS, Ducks Unlimited). For
                                                    example, over 34 million people went fishing in
                                                    2001, spending an average of $1,046 and 16 days
                                                                            each on the water. Anglers
                                                                            spent $14.7 billion in
                                                                            2001 for fishing trips,  $17
                                                                            billion on equipment and
                                                                            $4 billion for licenses,
                                                                            stamps, tags, land leasing
                                                                            and ownership, member-
                                                                            ship dues, contributions
                                                                            and magazines. The over-
                                                                            all economic impact of
                                                    Wetlands are pleasant            .   .  r . .
                                                    places for recreational activi-  recreational fishing is esti-
                                                                            mated at $116 billion
ties like fishing. They may
provide a place of natural
beauty and solitude that can
be enjoyed by persons of all
ages who may seldom be
exposed to nature.
                                                                            (American Sportfishing
                                                                            Association), and wetlands
                                                                            play a crucial role in the
                                                                            life cycle of up to 90 per-
                                                    cent of the fish caught recreationally.  In 2001,
                                                    approximately 3 million people hunted migratory
                                                    birds, and 6.5 million small mammals that are often

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found in wetlands. They spent more than $2.2 billion, including
$ 111 million paid by migratory bird and large game hunters to
lease hunting areas and blinds, often located on private property
with wetlands. (Source:  U. S. Fish and Wildlife Service) Each
year nearly $200 million in hunters' federal excise taxes are dis-
tributed to state agencies to support wildlife management pro-
grams, the purchase of lands open to hunters and hunter educa-
tion and safety classes. Proceeds from the federal  Duck Stamp, a
required purchase of migratory water fowl hunters, have pur-
chased more than five million acres  of habitat for  the refuge sys-
tem. (Source: Ducks Unlimited) Just watching the wildlife, many
of which depend on wetlands, has become a popular pastime.
More than 66 million people 16 years old and older—31% of all
Americans— fed, photographed and observed wildlife in 2001
and spent $40 billion on their activities. (Source:  U. S. Fish and
Wildlife Service)
Wildlife Habitat

                        Diverse species of mammals, plants,
                        insects, amphibians, reptiles, birds and
                        fish rely on wetlands for food, habitat
                        or shelter.  Wetlands are some of the
                        most biologically productive natural
                        ecosystems in the world, comparable
                        to tropical rain forests or coral reefs in
                        the number and variety of species they
                        support. Although wetlands make up
                        only about 5 percent of the land area
                        of the lower 48 states, more than one-
                        third of threatened and endangered
                        species live only in wetlands. An addi-
                        tional 20% of the country's threatened
                        and endangered species use or inhabit
                        wetlands at some time in their life.
                        Some species must have a wetland in
order to reproduce. Migrating waterfowl rely on wetlands for
resting, eating and breeding areas, leading to increased popula-
tions.  As noted, the appeal of wetlands and the diversity of
plant and animal life they attract contribute to or support many
businesses.  (Source: U.S. Fish and Wildlife Service)
Other Commercial Benefits

Many industries, in addition to the fishing industry, derive bene-
fits or produce products dependent on wetlands.  Part of this
economic value lies in the variety of commercial products they
provide, such as food and energy sources. Rice can be grown in a
wetland during part of the year, and the same area can serve  as a
wildlife habitat for the rest of the year. Some wetland plant
species, such as wild rice and various reeds, can be harvested for
or used to produce specialty foods, medicines,  cosmetics and
decorative items. In many coastal and river delta wetlands, hay-
ing of wetland vegetation is important to livestock producers. In
Europe, reed-growing for building materials is  undergoing a
Many species of wildlife rely
on wetlands for their very
existence. Wetlands provide
mammals, plants, amphib-
ians, reptiles, birds and fish
with food, habitat, breeding
grounds and shelter.  While
the diversity of wetland
wildlife contributes to many
businesses, they are also
inherently wonderful to
observe.
                                                                revival in some countries as people realize the full potential of
                                                                reeds as a roofing material. Aesthetically pleasing, thatched roofs
                                                                are superior insulators to conventional tile roofs, and they have a
                                                                life span of 25-40 years. (Source: Ramsar) Fur-bearing animals,
                                                                such as mink, muskrat and beaver, use wetlands during some
                                                                part  of their life cycle.  Income can be derived from trapping
                                                                these furbearers, either by direct sale of their pelts or by leasing
                                                                wetlands for the fur harvest. The nation's harvest of muskrat
                                                                pelts alone was worth $124 million in 2004.  (Source:  U.S. Fish
                                                                and Wildlife Service) Wetlands also provide employment oppor-
                                                                tunities, including such positions as surveyor or park ranger.
                                                                The  production of raw materials from wetlands provides jobs to
                                                                those employed in the commercial fishing, specialty food and
                                                                cosmetic industries. These are billion dollar industries that
                                                                depend in part on wetlands to flourish.

                                                                In addition to the  many ways wetlands provide economic bene-
                                                                fits, they offer numerous less tangible benefits as well. These
                                                                include providing aesthetic value to residential communities,
                                                                reducing streambank erosion and providing educational opportu-
                                                                nities as an ideal "outdoor classroom."  By nearly any measure
                                                                used, it pays to save wetlands.
Did You Know?
• Although wetlands cover only about 5 percent of the
  land surface in the lower 48 states, they are home to 31
  percent of plant species. (U.S. Fish and Wildlife Service)
• In 2002 Louisiana commercial fish landings exceeded
  1 billion pounds with a dockside value of $343 million
  — approximately 30% of the total catch by weight in the
  lower 49 states. (Source: America's Wetland)
• Rivaling the likes of tropical rainforests and coral reefs,
  wetlands are among the most fertile, productive
  ecosystems in the world. (Source: Ramsar)
• Two thirds of all fish consumed worldwide are
  dependent  on coastal wetlands at some stage in their life
  cycle. (Source: Ramsar)
• Annual fish and seafood production in swamps and
  marshes worldwide has been estimated at an average of
  nine tons per square  kilometer, 259 hectares or 640
  acres. (Source: Ramsar)
• As many as one-half of all North American bird species
  nest or feed in wetlands.
• Five to seven million migratory waterfowl, including the
  endangered whooping crane, use wetlands, i.e. prairie
  potholes, as resting and feeding areas and as an abundant
  food source. (Source: U.S. Fish and Wildlife Service)

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                                                                                         EPA843-F-06-004
                                                                                           Office of Water
                                                                                                May 2006
       erences
On the Internet:
 American Sportfishing Association	www.asafishing.org
 "A New Framework for Planning the Future of Coastal Louisiana after the
 Hurricanes of 2005." Working Group for Post-Hurricane Planning for the
 Louisiana Coast. University of Maryland Center for Environmental Science	www.umces.edu/la-restore
 "Constructed Wetlands for Wastewater Treatment and Wildlife Habitat:
 17 Case Studies." (EPA832-R-93-005) 1993- U.S. Environmental
 Protection Agency, Washington, DC	www.epa.gov/owow/wetlands
 Ducks Unlimited	www.ducks.org
 "Economic Valuation of Environmental Benefits"	www.nemw.org/ERconval.htm
 "Economic Valuation of Wetlands: A Guide for Policy
 Makers and Planners"	www.ramsar.org
 "Flood Damage Reduction in the Upper Mississippi River Basin — An
 Ecological Alternative." 2004. Donald L. Hey, et al. The Wetlands
 Initiative, Chicago, IL	www.wetlands-initiative.org
 "National List of Plant Species that Occur in Wetlands: 1988 National
 Summary." Porter B. Reed for U.S. Fish and Wildlife Service in cooperation
 with the U.S. Army Corps of Engineers,  U.S. Environmental Protection
 Agency, U.S. Soil Conservation Service	www.nwi.fws.gov/bha
 National Marine Fisheries Service	www.nmfs.noaa.gov
 National Oceanic and Atmospheric Administration	www.noaa.gov/floods.html
 "National Survey of Fishing, Hunting and Wildlife-Associated Recreation"	www.fws.gov
 "Status and Trends of Wetlands in the Conterminous
 United States 1998 to 2004	http://wetlandsfws.er.usgs.gov/status_trends/index.html

In Print:
 Constanza, R. R., R. d'Arge, R. de Groot, S. Farber, M. Grasso, B. Hannon, K. Limburg, S. Naeem, R.V. O"Neill,
 J. Paruelo, R.G. Raskin, P. Sutton, and M. van der Belt.  1997-  "The value of the world's ecosystem services and
 natural capital." Nature 387:253-260
          For additional information, visit the U.S. EPA's website (www.epa.gov/owow/wetlands), or call
                             the toll-free Wetlands Helpline at 1-800-832-7828.

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