Emma Donnelly
Putting a dollar value on clean water
SES graduate recognized for excellence in environmental economics research
As a graduate student in Loyola’s School of Environmental Sustainability (SES), Emma Donnelly examined the economic impacts of environmental cleanup efforts in some of the most polluted areas in the Great Lakes. This May, she received the Outstanding Master’s Thesis Award from the Northeastern Agricultural Resource Economics Association (NAREA) for her research. Her graduate advisor, Richard “Max” Melstrom, PhD, received the NAREA Outstanding Master’s Thesis Advisor Award.
Emma Donnelly conducts research on the value of clean water and healthy aquatic ecosystems.
Donnelly completed the five-year accelerated bachelor’s/master’s program at Loyola in 2023. She earned a BA in environmental policy with a minor in environmental economics and an MS in environmental science and sustainability. As a graduate student, her interests in environmental policy and water quality led her to study restoration projects in Great Lakes Areas of Concern, portions of the lakes where pollution from industries, agriculture, and other activities had caused severe environmental degradation.
The U.S.-Canada Great Lakes Water Quality Agreement established the Areas of Concern in 1987, designating 43 highly contaminated sites as priority areas for restoration. Government agencies developed plans to remove containments, improve water quality, and restore access to beneficial uses such as fishing and recreation at the sites. Cleanup efforts are now complete in 16 areas, and work continues in the remaining sites.
Donnelly’s research focused on two Areas of Concern on the southwestern coast of Lake Michigan: the Waukegan Harbor, where remediation actions are complete, and the Milwaukee Estuary, where cleanup is ongoing. With Melstrom’s guidance, Donnelly examined the economic benefits of restoration work compared with the costs.
To estimate the value of the improvements, she evaluated changes in home values and residents’ reported willingness to pay to live near the cleanup sites. In both locations, the research indicated that willingness to pay to live near the Area of Concern increased after the cleanup, suggesting that people value water quality restoration.
In the Milwaukee study, households closest to the water saw the most significant economic benefits, and homeowners benefited more than renters. In the Waukegan study, the financial benefits only emerged after most of the cleanup was complete, suggesting residents value full restoration more than incremental improvements.
Overall, Donnelly concluded that there were substantial economic benefits in both communities.
“The major takeaway from my research on Great Lakes Areas of Concern is that while it is costly to restore the conditions of these areas, the economic benefits do, in fact, outweigh the cost,” she said. “This is an important finding because water quality restoration offers numerous benefits to study, including improved conditions for wildlife, revitalization of local economies, and the development of recreational and commercial activities,” she said.
Donnelly continues to study the economic value of natural resources at Purdue University in Indiana, where she recently completed her first year as a doctoral student in agricultural economics. She works as a research assistant at Purdue and is collaborating with Melstrom on a project evaluating the potential economic impacts of allowing people to hunt sandhill cranes in Indiana. After graduate school, Donnelly aims to pursue a career in academia.
“My journey to this PhD program in agricultural economics was profoundly shaped by my time at Loyola,” she said. “The guidance of my thesis advisor, Max Melstrom, solidified my interest in environmental economics and inspired me to pursue a PhD and contribute to this field.”
Donnelly noted that determining the full value of a healthy environment can help communities and resource managers make better decisions about investments in environmental restoration efforts. She looks forward to continuing to provide valuable information that will guide policymakers in implementing programs that maximize benefits to people and the natural world.
Donnelly completed the five-year accelerated bachelor’s/master’s program at Loyola in 2023. She earned a BA in environmental policy with a minor in environmental economics and an MS in environmental science and sustainability. As a graduate student, her interests in environmental policy and water quality led her to study restoration projects in Great Lakes Areas of Concern, portions of the lakes where pollution from industries, agriculture, and other activities had caused severe environmental degradation.
The U.S.-Canada Great Lakes Water Quality Agreement established the Areas of Concern in 1987, designating 43 highly contaminated sites as priority areas for restoration. Government agencies developed plans to remove containments, improve water quality, and restore access to beneficial uses such as fishing and recreation at the sites. Cleanup efforts are now complete in 16 areas, and work continues in the remaining sites.
Donnelly’s research focused on two Areas of Concern on the southwestern coast of Lake Michigan: the Waukegan Harbor, where remediation actions are complete, and the Milwaukee Estuary, where cleanup is ongoing. With Melstrom’s guidance, Donnelly examined the economic benefits of restoration work compared with the costs.
To estimate the value of the improvements, she evaluated changes in home values and residents’ reported willingness to pay to live near the cleanup sites. In both locations, the research indicated that willingness to pay to live near the Area of Concern increased after the cleanup, suggesting that people value water quality restoration.
In the Milwaukee study, households closest to the water saw the most significant economic benefits, and homeowners benefited more than renters. In the Waukegan study, the financial benefits only emerged after most of the cleanup was complete, suggesting residents value full restoration more than incremental improvements.
Overall, Donnelly concluded that there were substantial economic benefits in both communities.
“The major takeaway from my research on Great Lakes Areas of Concern is that while it is costly to restore the conditions of these areas, the economic benefits do, in fact, outweigh the cost,” she said. “This is an important finding because water quality restoration offers numerous benefits to study, including improved conditions for wildlife, revitalization of local economies, and the development of recreational and commercial activities,” she said.
Donnelly continues to study the economic value of natural resources at Purdue University in Indiana, where she recently completed her first year as a doctoral student in agricultural economics. She works as a research assistant at Purdue and is collaborating with Melstrom on a project evaluating the potential economic impacts of allowing people to hunt sandhill cranes in Indiana. After graduate school, Donnelly aims to pursue a career in academia.
“My journey to this PhD program in agricultural economics was profoundly shaped by my time at Loyola,” she said. “The guidance of my thesis advisor, Max Melstrom, solidified my interest in environmental economics and inspired me to pursue a PhD and contribute to this field.”
Donnelly noted that determining the full value of a healthy environment can help communities and resource managers make better decisions about investments in environmental restoration efforts. She looks forward to continuing to provide valuable information that will guide policymakers in implementing programs that maximize benefits to people and the natural world.