A Genuine Return on Investment:

The Economic and Societal Well-being

Value of Land Conservation in Canada
Prepared by Mark Anielski, John Thompson and Sara Wilson | february 2014
Executive Summary

How does land conservation contribute to Canada’s economic and societal well-being? This study provides
a business case analysis of the economic, ecological and societal value of conservation programs, with a focus on
the magnitude of economic returns on investment from federal and provincial government conservation funding
initiatives.

Using Ducks Unlimited Canada (DUC) as the basis for this analysis, the report assessed the broadest suite of
societal well-being impacts resulting from the conservation activities of DUC between 2008 and 2012. This
included an analysis of the impacts to the Canadian economy (measured in terms of Gross Domestic Product
(GDP), employment, government revenues, recreation and tourism benefits), ecosystem services (ES) and other
societal well-being impacts.

Measures of performance include the returns to societal well-being for every $1 invested in conservation of wet-
lands and natural areas and a comparison of the jobs created for every $1 million invested in conservation programs
relative to other sectors in the economy. The study also includes an analysis of the return on investment (ROI) to
provincial and federal government dollars invested in DUC’s conservation efforts. Finally the report provides an
accounting for the Societal Well-being Returns on Investment (SW-ROI) for every dollar expended on protecting
wetlands and other natural areas relative to the societal well-being values, both economic and ecological.

Results of the business case analysis for the conservation of lands by DUC between 2008 and 2012 are summarized
below. As of 2012, DUC has secured and maintains roughly 2.54 million hectares of wetlands and natural lands
(uplands) across Canada. In addition, DUC has influenced over 38.9 million hectares of other wetlands and natural
areas in partnership with other conservation organizations, governments, communities and First Nations.

It should be noted that this analysis is a preliminary and partial account of the total societal well-being benefits
of DUC’s conservation efforts. Several ES have yet to be evaluated for wetlands and natural areas.

Economic Benefits
DUC’s expenditures averaged $93.5 million per annum between 2008 and 2012 to secure, restore and maintain
wetlands and other natural lands. These expenditures resulted in several direct economic benefits to Canada’s
economy, including:

S $77.1 million in GDP ($1.06 in GDP per $1 in DUC operating expenditures, less land securement costs)
S 969 person-years of employment (PYE)
S $59.6 million in employment income
S $15.8 million in operating profits for Canadian business
 Recreation and Tourism Benefits
The 2.54 million hectares of wetlands and natural areas secured and managed by DUC contributes to Canada’s
recreation and tourism sector. Benefits include household expenditures on travel, equipment, lodging, food and
other nature-related recreation expenditures. These contribute directly to local, regional, provincial and Canada’s
economy.

An estimated $208.5 million per year is the value of nature-related recreation on the conservation lands secured
by DUC for the benefit of all Canadians.

Employment Benefits
Every $1 million invested in the conservation of lands for habitat, ecological and socio-economic benefits generates
more employment than most comparable sectors in the economies of British Columbia (BC), Alberta (AB), Sask-
atchewan (SK), Manitoba (MB) and Ontario (ON), including the oil and gas extraction industry in AB, the auto-
mobile industry in ON, the agriculture (crops and livestock) industry in SK and the forestry and logging industries
in all provinces.

In ON, $1 million invested in wetland and natural areas conservation by DUC generates an estimated 14.8 person-
years of employment (PYE), which exceeds employment benefits in ON’s agricultural sector (12.1 PYEs per $1
million investment), forestry (8.4 PYEs), automobile manufacturing sector (5.8 PYEs) and mining (0.8 PYEs).

18

16 16.9
14
15.7
14.8
Employment (PYEs) per $1 Million in Investment

12
12.1
10

8
8.4
6

4
5.8

2 0.8

Fishing, Construction Land/Habitat Agriculture Forestry Auto Industry Mining

Hunting, Industry Conservation
Trapping (DUC)

Ontario: Employment per $1 Million in Investment

 In AB, $1 million invested in wetland and natural areas conservation by DUC generates an estimated 12.8 PYEs
of employment per $1 million invested in conservation programs. This exceeds employment benefits for the
agriculture sector (6.5 PYEs per $1 million invested), forestry (6.4 PYEs), mining (2.8 PYEs) and oil and gas
extraction (2.1 PYEs).

20 21.2
18

16

14
Employment (PYEs) per $1 Million in Investment

12
12.8
10

6
6.5 6.4
4

2
2.8
2.1

Fishing, Land/Habitat Agriculture Forestry Mining Oil & Gas

Hunting, Conservation Extraction
Trapping (DUC)

Alberta: Employment per $1 Million in Investment

The Value of Winter Wheat Production on the Prairies

DUC is supportive of winter wheat production in AB, SK and MB. In 2011, 540,486 hectares (1,335,000 acres)
of winter wheat were planted across the Prairie provinces. Based on average net revenues (returns to equity) from
winter wheat production of $79.72/ha ($32.26/acre) in AB in 2011, the estimated total value of winter wheat
production across the prairies in 2011 exceeded $43 million. These values cannot be directly attributable as a
benefit to DUC’s conservation efforts but do contribute an economic and societal benefit.

The Cost of Securing, Enhancing and Maintaining Conservation Lands

Between 2008 and 2012, DUC spent $132.4 million ($26.5 million per annum) to secure 301,220 hectares of
conservation lands for an average cost of $440/ha. These costs included the purchase price and value of donated
titles and conservation easements, the costs associated with management agreements and leases, plus the direct
labour by DUC to secure these lands. Enhancement/restoration costs between 2008 and 2012 totaled $54.1 million
or an average $10.8 million per year. Management or maintenance costs of existing secured wetlands and natural
areas (2.54 million hectares) totaled $48.0 million between 2008 and 2012, or an average annual expense of $9.6 mil-
lion per year. Finally, extension costs associated with retaining existing habitat, including expenditures on influenced
lands shared with other conservation organizations and governments totaled $49.2 million between 2008 and
2012, for an average annualized cost of $9.8 million.

Value of Ecosystem Services

Wetlands and natural areas secured and managed by DUC contribute ES benefits to society. These ES benefits
include carbon capture and storage, water purification, regulation of water flows, erosion prevention, waste and
nutrient filtration, biodiversity and wildlife habitat, pollination, biological control and food.
The total value of these ES associated with DUC’s 2.54 million hectares of wetlands and associated uplands
(forests, grasslands, croplands) is estimated at $4.27 billion per annum. The highest ES values are for wetlands
($3.10 billion or an average of $2,439.42/ha/yr), followed by forests (deciduous, coniferous, mixedwood) at
$808.8 million ($2,223.75/ha/yr), grasslands at $363.9 million ($403.15/ha/yr) and cropland values at $456,355
($213.66/ha/yr). This works out to an average of $1,682.41/ha/yr ($681.11/acre/yr) for the ES values of the
total secured wetland and other land base of DUC.

The key ES values are climate regulation representing 31% of the total ES benefit value, followed by water supply/
filtration (29%), waste treatment and water purification (19%) and pollination (9%).

1% Erosion Prevention
1% Biological Control
2% Food
31% Climate Regulation
2% Maintenance of Genetic Diversity (Carbon Sequestration and Storage)

6% Regulation of Water Flows

9% Pollination

29% Water Supply

19% Waste Treatment

and Water Purification

Total Economic Value to Society

The total economic value (TEV) to society related to DUC’s efforts in securing and maintaining wetlands and
natural areas includes: a) economic benefits to GDP of DUC’s activities ($77.1 million), b) recreation and tourism
benefits ($208.5 million) and c) ES benefits ($4.3 billion). The TEV associated with DUC’s conservation efforts
between 2008 and 2012 averaged $4.55 billion per year.

Value to Government Investment in Land Conservation

Between 2008 and 2012, federal, provincial and municipal governments contributed an average of $15.9 million
to DUC’s conservation efforts and recovered $1.9 million in tax revenues from DUC-related expenditures, for a
net government contribution of $14.0 million per annum. For every $1 in government spending the estimated
total economic value to society (including GDP, recreation benefits and ES benefits) generated is $325.
Returns to Government Taxes from Conservation Expenditures
One dollar of federal and provincial government funding to DUC between 2008 and 2012 generated roughly
$1.82 in income tax, corporate tax and sales tax (GST/PST) revenues to both levels of government. Put another
way, between 2008 and 2012, federal and provincial government funding of DUC averaged $14.3 million per
annum and generated $26.1 million per year in tax revenues to federal and provincial treasuries that can be broken
down as follows:

S $6.8 million in income taxes paid by DUC employees in 2012;

S $14.3 million in income taxes paid by the $59.8 million in employment created in the economy
by DUC expenditures;
S $3.3 million in corporate income taxes paid by business directly impacted by DUC activities, and;

S $1.7 million in sales tax revenues (GST/HST/PST) paid on DUC’s operational goods and services
expenditures.

On balance, Ducks Unlimited Canada activities generated substantially greater tax revenues than the government
subsidies provided to DUC.

Societal Well-being Return on Investment (see next page)

A Societal Well-being Return on Investment (SW-ROI) was estimated to account for the comprehensive econo-
mic, social and environmental well-being benefits of conserving and maintaining wetlands and other conservation
lands. Similar to the calculation of a ROI for business performance analysis, the SW-ROI provides investors the
ability to assess relative returns, expressed in monetary terms, for every dollar of land conservation effort. A SW-ROI
of 22 was calculated for the average area of land conserved by DUC, that is, for every $1 invested in the
securement, restoration and regular management of a hectare of wetland and natural land conserved by
DUC, society receives a $22 benefit in terms of economic, ecological and societal well-being.

Future Accounting for Returns to Natural Capital Asset Investments

This study establishes a precedent for assessing the business case for the economic, ecological and societal well-
being value to governments and society from investments in conservation programs that secure, enhance and
maintain wetlands and other natural areas. This study is a starting point for better human, social and natural capital
asset accounting and management by conservation organizations in Canada. The study provides a benchmark for
how conservation organizations, governments and business can begin to account for the conservation of lands as
investments in natural capital assets on their respective balance sheets.

The results of the analysis should be considered incomplete in so far as not all ES and societal well-being benefits
from wetlands could be evaluated. Future accounts of the societal well-being value of conserving these natural
assets will be necessary to verify the quality, quantity and monetary value of these assets. This should include reg-
ular assessments of the ecological state of the conserved lands, including assessment of degradation or impairment
of the ecosystem functions of wetlands and natural areas.
average annual Societal Return on Investment
from Ducks Unlimited Canada’s Conservation Work
governments
provincial

government
canadian

governments
municipal

canadian
other

donations
and easement
grants, land

fundraising
canadian

government
u.S. federal

other u.s.
$6.3 $8.0 $1.6 $1.4 $23.4 $20.4 $20.4 $15.6
million million million million million million million million

$26.1 million in
tax revenues on
employment income
and business profits
recycled back to
federal/provincial
governments

land purchasing $20.9 million

land maintenance
EXPENDITURES and operating costs $72.6 million
$93.5 MILLION

For every
$1 invested
and tourism
recreation
nature-related

services
ecosystem

gdp

in land con-
servation by
profits
business

employment

DUC, society
enjoys $22 in $208.5 $4.27 $77.1
well-being million billion million

benefits. $15.8 $59.6

million million,
salaries
total economic value to society:
$4.55 BILLION/YEAR
969
jobs
Ducks Unlimited Canada conserves, restores and manages wetlands and associated habitats
for North America’s waterfowl. These habitats also benefit other wildlife and people.