Nutrient Reductions to the Baltic Sea: Ecology, Costs and Benefits

The environmental conditions of the Baltic Sea have been of concern for approximately the last three decades. In spite of this concern, the Sea is far from being in good ecological condition. One important reason may be the lack of an overview of costs and benefits associated with the pollution reductions needed for the restoration of the Sea. The purpose of this study is to present the costs and benefits from reductions in the loads of nitrogen and phosphorus to the Baltic Sea. In order to obtain such estimates, interdisciplinary co-operation among researchers from economics, geography, marine biology and ecology has been carried out. The preliminary outcome from this joint research effort indicates that the total benefits of a 50% reduction in the load of nitrogen and phosphorus are about as large as the associated total costs: slightly more than SKr 30 000 million per year. The estimates also indicate that all Baltic Sea countries except Estonia, Latvia, Lithuania and Poland will obtain net gains from a program implementing a cost-effective allocation of measures. This program mainly involves various changes in agricultural practice, construction of sewage treatment plants, and wetland restoration. However, many critical assumptions underlie these results, which should therefore be interpreted with caution.