YSE Economist Plays Key Role in Newly Finalized Guidance on Accounting for Ecosystem Services

How do proposed projects such as logging or new pipelines affect the benefits people derive from parks, wetlands, forests, and other natural resources? Until now, there have not been any specific federal guidelines directing agencies on how to assess ecosystems impacts. Eli Fenichel, Knobloch Family Professor of Natural Resources Economics at YSE, played a critical role  in a new first-of-its kind guidance finalized by the White House in February, which provides a blueprint to assess how ecosystem services can be enhanced or diminished by federal rules.

Fenichel helped develop the guidance while on leave in 2021 to serve as assistant director for natural resource economics and accounting at the White House Office of Science and Technology Policy (OSTP). The agency, along with the Office of Budget Management (OBM) was tasked by President Biden with modernizing regulatory reviews to incorporate the assessment of natural assets.

“This is an avenue for real change. We’ll have more consistency in rulemaking and regulation around how we think about environmental services. Agencies will take a clearer and more deliberate view of how different rules or different programs create or alter the services people get from the environment and ecosystems,” Fenichel said.

While the value of ecosystems has sometimes been included in federal assessments in the past, there has never been a government wide directive or guidance for all federal agencies to account for costs and benefits of actions that impact natural resources. This omission has led to the “under-valuing and erosion of our natural resources,” said Arati Prabhakar, director of OSTP, and Richard Revesz, administrator for Information and Regulatory Affairs at OMB.

Agencies now must identify direct and indirect impacts on how their proposed actions might affect ecosystem services and establish a no-action baseline and explore alternative options.

Eli Fenichel

Knobloch Family Professor of Natural Resource Economics

More News in Brief

Schmitz featured on CBS Saturday Morning

Oswald Schmitz, the Oastler Professor of Population and Community Ecology, was featured in a CBS Saturday Morning report about how re-introducing wildlife to some areas could help combat climate change.

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Schmitz outdoors giving a CBS News interview

Oswald Schmitz

Oastler Professor of Population and Community Ecology

Heavy Rainfall Linked to Drought in Northeastern U.S.

A recent study led by YSE doctoral student Samuel Jurado uncovered a surprising connection between increased heavy precipitation events and dry soil conditions in the Northeastern United States, revealing that feedback loops, not previously observed in the Northeast, contribute to regional dryness during the summer months.

The study, published in Water Resources Research and co-authored by Jackie Matthes, a researcher at Harvard University,  explores how more frequent heavy rainfall and increased soil dryness can exist simultaneously and intensify summer drought through a process known as land-atmosphere coupling.

“Imagine you have a flowerpot and one cup of water,” explained Jurado.  “Each day for a week, you add a bit of water to keep the soil moist and the flower healthy. Now, imagine you have two cups of water, poured all at once at the beginning of the week, and the pot is left alone. Most of the water overflows or drains out. At the end of the week, the flower that received only one cup of water remains healthy, while the other, despite receiving two cups, may be stressed and dried out. As the climate changes, the Northeast is increasingly resembling the latter flower.”

The study has implications for land management practices, suggesting a need for strategies that enhance soil water retention.

“As water management becomes increasingly challenging for Northeastern U.S. communities, it is crucial to explore how landscapes influence atmospheric conditions, especially as precipitation patterns change and more frequent summer dry periods grow beyond historical experience,” Jurado said.

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looking up from the forest floor at a large metal research tower

Study Explores Climate-Friendly Actions to Reduce Wildfire Risks

To prevent destructive wildfires, the U.S. Forest Service thins forests and places the cuttings, called residue, into piles for burning. However, a recent study led by Jake Barker ’24 MF and a team of researchers projected that a significant amount of carbon dioxide is released during these events, which works against climate-change mitigation goals. The burns are also financially costly.

The residue burns by the Forest Service are being used to prevent catastrophic fires that have been fueled by logging, drought, climate-change, and previous government-mandated fire suppression that have led to the accumulation of debris and dense stands of small trees, which provide fuel for enormous blazes.

The study, published in Frontiers for Global Change, simulated residue burning across western U.S. forests, and estimated that the burns contributed over 1.7 million metric tons of carbon emissions annually. The researchers found that that costs for labor and equipment were also notably higher than had been reported.

The authors suggest that alternatives to burning residues, such as using them for biofuels or burying them to sequester carbon, could help reduce fire risk and carbon emissions. Steep forest terrain makes removing residues for other uses difficult and costly. They recommend the Forest Service seek subsidies to aid in funding infrastructure for climate-friendly alternatives.

“Forests play a big part in natural climate solutions,” Barker said. “We’re demonstrating the opportunity for novel and creative pathways to transform residues into a natural climate solution.”

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forest worker observing a controlled burn in a forest

Forest worker observing a controlled burn. Photo: iStock/AscentXmedia