Resilience of Socio-Hydrological Systems in Canadian Prairies to Agricultural Drainage: Policy Analysis and Modelling Approach

Extensive agricultural drainage of lakes and wetlands in the Canadian Prairies has led to benefits for agricultural production, but has had a substantial influence on hydrological regimes and wetland extent. There is need for the potential impacts of current policy in changing the socio-hydrological resilience of prairie wetland basins in response to agricultural drainage to be examined. Whilst wetland drainage can increase agricultural productivity, it can also reduce stocks of natural capital and decrease ecosystem services, such as pollutant retention, habitat for waterfowls, carbon sequestration, and downstream flood attenuation. Effective policies that balance drainage benefits and negative externalities have to consider pricing. This is explored here using the Cold Regions Hydrological Model for hydrological simulations and the Inclusive Wealth approach for modelling in support of cost-benefit analysis. Inclusive wealth aggregates the value of natural, human, and technological assets used to produce social welfare. A shadow price, defined as the marginal change in social value for a marginal change in the current stock quantity, is used to valuate assets that contribute to social welfare. The shadow price of each asset is estimated by taking into account the social and economic benefits and external losses of wetland services caused by wetland drainage. The coupled model was applied to the Smith Creek Research Basin in south-eastern Saskatchewan, Canada where wetland drainage has caused major alterations of the hydrological regime including increased peak flows, discharge volumes and duration of streamflow. Changes in depressional storage in wetlands was used to calculate the corresponding changes of inclusive wealth over a 30-year period under the impacts from the limitation proposed in the Agricultural Water Management Strategy of Saskatchewan. The adjusted societal values of drainage demonstrate the dynamics between changes in hydrological conditions of wetland basins and social welfare, which help to evaluate potential impacts of the current policy on the resilience and sustainability of socio-hydrological systems. The results also help determine effective goals for management to maximize the societal benefits of drainage and minimize its negative impacts on ecosystem functions.