Economic Feasibility of a Wetland Certification Program in the Canadian Prairies

Environ Manage. 2025 Jun;75(6):1460-1471. doi: 10.1007/s00267-025-02150-0. Epub 2025 Apr 25.

Abstract

This paper assesses the economic feasibility of a novel market-based instrument for wetland conservation-a certification scheme for agricultural products. Using a stated preference survey involving wheat flour purchase decisions, we estimate that consumers are willing to pay 25%-29% more for wheat flour produced on fields with restored wetlands. These consumer price premiums translate to a 11%-12% increase in the prices received by producers after accounting for supply chain costs. Producer benefits of adopting the wetland certification scheme generally outweigh the wetland restoration costs for a typical Saskatchewan field, but the change in profits is minimal. The results suggest that this voluntary wetland certification scheme may be a useful addition to the wetland conservation policy toolbox, but will face barriers to producer adoption.

Keywords: Certification program; Choice experiment; Consumer demand; Producer costs; Wetlands.

MeSH terms

  • Agriculture* / economics
  • Canada
  • Certification* / economics
  • Conservation of Natural Resources* / economics
  • Conservation of Natural Resources* / methods
  • Feasibility Studies
  • Wetlands*