An Economic Assessment of the Sonoran Desert Conservation Plan

Riparian corridors supply many environmental and aesthetic services in the arid and semi-arid regions world wide. Riparian ecosystems provide water filtering, bank stabilizing, flood mitigating benefits, and habitat for native birds, bats, fish, and other wildlife. The juxtaposition of lush herbaceous and treed areas with upland desert also makes these corridors an aesthetic resource. In Arizona, urban homeowners are one of the primary "consumers" of the riparian corridor. Recent research demonstrates that riparian corridors are capitalized into nearby home values. Specific to this research, urban and suburban homebuyers are willing to pay high premiums to live near sections of riparian corridors that support dense, species rich, and perennial-waterdependent habitat. In this study we calculate the estimated increases in property values and property tax revenues associated with proximity to healthy urban riparian corridors. These property premiums are then compared to the estimated costs of water leases necessary to support water-dependent habitats as detailed in the Sonoran Desert Conservation Plan (SDCP). The plan aims to protect open space in the Sonoran Desert in southern Arizona, specifically in Pima County. The property premiums are estimated at between $126.54M (Million) and $253.08M and generate an estimated $1.23M-$2.46M per annum in incremental property tax revenues; whereas, the annual cost of water leases to support the vegetation is $0.54M. This partial economic analysis demonstrates that urban riparian habitat preservation and restoration with the allocation of renewable water supplies can be financially * Ph.D. candidate Arid Lands Resource Sciences, The University of Arizona. AREC, Rm. 319, Chavez Bldg., P.O. Box 210023, The University of Arizona, Tucson, AZ 857210023. rbark@email.arizona.edu. * Professor, Department of Agricultural and Resource Economics, The University of Arizona. ". This material is based upon work supported by SAHRA (Sustainability of semiArid Hydrology and Riparian Areas) under the STC Program of the National Science Foundation, Agreement No. EAR-9876800. Any opinions, findings, and conclusions or recommendations expressed in this material are those of the authors and do not necessarily reflect the views of SAHRA or of the National Science Foundation. NATURAL RESOURCES JOURNAL self-supporting. In addition, the estimated property price premiums indicate potential benefits to modifying current wellspacing rules in Arizona.