Cost Effectiveness and Incremental Cost Analyses Workshop:
IWR-Planning Suite Student Exercises October 2006


Bussey Lake is a 213-acre backwater located on the Upper Mississippi River, lower Pool 10, near Guttenberg, Iowa (see map below). The project was selected for habitat restoration under the Upper Mississippi River System Environmental Management Program. Sedimentation had made the lake considerably shallower over a period of years and an important recreational fishery was threatened by the shallow water depths, low levels of dissolved oxygen, and an over-abundance of aquatic vegetation. Bluegill and largemouth bass were both considered as indicator species; bluegill was selected. Corps managers developed four management measures to improve the habitat for bluegill: aeration, substrate improvement, 5 scales of aquatic plant harvesting (varying amounts of area harvested), and 7 scales of dredging (varying amounts of material removed). Average annual equivalent costs were calculated for each management measure and scale using a 50-year project life. Costs included initial and operation and maintenance costs. Average annual habitat units for bluegill were calculated for each management measure and scale to estimate the habitat improvement over the without project condition for the 50-year project life (Source: Bussey Lake: Demonstration Study of Incremental Analysis in Environmental Planning, IWR Report 93-R-16).

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