climate change economics panel - sutinen

8/15/2019 Climate Change Economics Panel - Sutinen

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University of Rhode Island

Clim ate Change: Implications for the Socioeconomics &

Governance of Large Marine Ecosystems

Jon G Su tinenDepartment of Environmental & Natural

Resource EconomicsUniversity of Rhode Island




• How society prepares for & responds to thechallenges of climate change will depend on– The system that governs humans’ interactions

with marine ecosystems• This governance system has not performed

well to date

– Currently being restructured• E.g., Ocean Action Plans in US & Canada

Perspective




Status & Trends of Marine Ecosystems

• Global– ‘Coastal & marine environmental degradation

not only continues but has intensified.’

• Marine pollution• Overexploitation of living marine resources• Coastal habitat loss

– Major threats ‘still exist, despite national and international actions to address these

problems .’

Source: UNEP. 2002. Global Environment Outlook 3




The Issues

• Why do we find ourselves with degradedecosystems?

• How do we mitigate the degradation &improve the status of marine ecosystems?

• What are the governance challenges uniqueto climate change?

• What is needed to adapt to climate changesin marine ecosystems?




EconomicDrivers

Legal/PoliticalDrivers

SocialDrivers

Human Uses of Marine Ecosystems

Markets

Government

Civil Society

Governance Mechanisms




Markets

• Principal drivers of – Excessive extraction of resources– Disposal of pollutants

– Habitat alteration• Market prices ‘Do not tell the ecological

truth’– Prices do not reflect the full cost of products

made from ecosystem resources




Market driven impacts

• Oil and gasproduction– Spills

– Discharges• Drilling byproducts

• Shipping &

transportation– Spills– Waste discharges




Market driven impacts

• Coastal development– Population concentration in

coastal areas• 25% in Canada

• 55% in US

– Waste water discharge

– Alterations of coastal land

• Agriculture– Nutrient runoff

• Nitrogen & phosphorus




Ancillary Cause:Government

• Jurisdictions

– Incongruent with ecosystem boundaries in some cases• Policies & regulations

– Developed separately to date• Not integrated

• Fragmented, disjointed, ineffective, counter-productive• Political dynamics

– Lack of ‘political will’– Political interference, such as ‘End runs’

• NW Atlantic local, regional, national, international organizations– Two countries, many states, provinces, tribal, & local authorities– Regional fishery management councils & commissions– NAFO, NASCO, Gulf of Maine Council on the Marine Environment




Institutions and Arrangements of

Civil Society

• Social norms & networks (social capital)– Influence public policy & societal behavior patterns– Incompatible social norms & conflicts among interest groups

impede ecosystem protection efforts• Civil Organizations (NGOs)

– Manifestations of social capital

– NW Atlantic NGOs include• Atlantic Coastal Action Program (ACAP)– 14 watershed/estuary-based local organizations throughout

Atlantic Canada

• WWF-Canada, Conservation Law Foundation, The OceanConservancy




Dealing with Governance Challenges

• Correcting & mitigating market failures– Design or reform markets to ‘tell the ecological truth’• Calculate ecological costs

– Economists & natural resource scientists

• Calculate the costs of pollution, habitat destruction,overexploitation, etc• Incorporate ecological costs into market prices

– Shift taxes & subsidies to work in ecological benign ways• Reduce income & property taxes in exchange for

• Adding taxes on environmentally damaging activities• User charges & other forms of sustainable financing

– Cap-and-trade programs





• Correcting & mitigating government weaknesses– Harmonize policies & regulations– Combat shortsighted effects

• Harmonize the interests of political leaders, agency managers, &resource users with the goal of sustainable development

– Avoid decoupled costs & benefits• Sustainable financing

– E.g., apply the user (beneficiary) pays principle

– Neutralize ‘special interests’





• Institutions & arrangements of civil society– Build & strengthen social capital for sustainable

development

• Active involvement of NGOs• Partnerships between government and civicorganizations

• Devolve some rights & responsibilities to NGOs– E.g., monitoring, habitat rehabilitation projects




EconomicDrivers

Legal/PoliticalDrivers

SocialDrivers

Human Uses of Marine Ecosystems

Markets

Government

Civil Society

Governance Mechanisms




Available online atwww.iwlearn.net/abt_iwlearn/pns/learning/b2-2lme/riworkshop

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climate change economics panel - sutinen

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