Oyster Economics: Simulated Costs, Returns, and Nonmarket Ecosystem Benefits of Commercial Bottom Reefs, Off-Bottom Aquaculture, Living Shorelines, and Restored Reefs

We simulate potential costs, market returns, and nonmarket ecosystem benefits for commercial bottom oyster reefs, off-bottom oyster aquaculture, oyster-based living shorelines, and (non-harvested) restored oysters reefs. Results indicate that the range of benefits accruing from commercial bottom reefs and non-harvest restored reefs may be less variable than off-bottom aquaculture and living shorelines. On average, bottom reefs, off-bottom aquaculture, and restored reefs are expected to yield positive net benefits, whereas net benefits of living shorelines are highly variable are more likely to yield negative net benefits, except for under the most optimistic assumptions. Bottom reefs and restored reefs have lower per-unit costs and lower benefits, whereas off-bottom aquaculture has higher per-unit costs, but also higher per-unit revenues; living shorelines have higher upfront construction costs and highly variable nonmarket benefits. Bottom reef and off-bottom aquaculture benefits are driven by market revenues, whereas restored reef and living shoreline benefits are driven by nonmarket ecosystem services.