course on biod, module 1. lesson 4 what is the value of eco
TRANSCRIPT
-
8/14/2019 Course on BioD, Module 1. Lesson 4 What is the Value of Eco
1/31
A course for PlannersDecision-Makers
M1L4S1
Prepared by Micael Junkov 2008/09
EPU/Danidas Environmental Programme The Biodiversity Component
Biodiversity
Module 1: Setting the stage for biodiversity
Lesson 4: What is the value of ecosystem services?
NRE
-
8/14/2019 Course on BioD, Module 1. Lesson 4 What is the Value of Eco
2/31
Module 1: Setting the stageLesson 4: What is the value of ecosystem services?
What have we seen in Lessons 1 to 3of relevance to the value of biodiversity
and ecosystem services
Sustainable development is an almost universallyaccepted goal
Environmentally sustainable developmentrequires that critical resource stocks andecological functions are safeguarded
Maintaining the flow of ecosystem servicesrequires intact systems which retain theirstructure and diversity
M1L4S2
-
8/14/2019 Course on BioD, Module 1. Lesson 4 What is the Value of Eco
3/31
Module 1: Setting the stageLesson 4: What is the value of ecosystem services?
A functional definition of capital in general is "astock that yields a f low of valuable goods or
services into the future Biodiversity is important because it supports
ecosystem processes and the provision ofservices vital to our society and human well-
being
All our activities, including the global economy,are made possible thanks to the diversity ofservices that nature provides
M1L4S3
What have we seen in Lessons 1 to 3of relevance to
the value of ecosystem services
-
8/14/2019 Course on BioD, Module 1. Lesson 4 What is the Value of Eco
4/31
Module 1: Setting the stageLesson 4: What is the value of ecosystem services?
The value of things
M1L4S41EC & GFEM. 2008.
Not all that is very usefulcommands a high value(water, for example) andnot everything that has ahigh value is very useful(such as a diamond)
Adam SmithsWealth of Nations (1776)(Paraphrased by TEEB 1)
-
8/14/2019 Course on BioD, Module 1. Lesson 4 What is the Value of Eco
5/31
Module 1: Setting the stageLesson 4: What is the value of ecosystem services?
Land use transitions versus GDP
M1L4S5Modified from Foley et al., 2005.
Pre-settlement
Frontier
Natural ecosystems
Naturalecosystems
Frontierclearings
Subsi-stence
Intensi-fying
Subsistenceagriculture& small-
scalefarms
Intensive
Restoration/rehabilitation
Intensiveagriculture
Protected/recreational
Proportion
in
thela
ndscape
100%
0%
Time (stages in land use transitions)
Future
Urban
0
10
20
30
40
50
60
70
Global GDPin trillionof US$(1990)
20071700Year
1900
-
8/14/2019 Course on BioD, Module 1. Lesson 4 What is the Value of Eco
6/31
Module 1: Setting the stageLesson 4: What is the value of ecosystem services?
Changing paradigms
The ecosystem services paradigm has enhancedour understanding of how the naturalenvironment matters to human societies
Societys most fundamental assets include:
natural; physical; human; social; andintellectual capital
M1L4S6
However Despite growing recognition of the importance
of ecosystem functions and services, they areoften taken for granted and overlooked inplanning and decision-making
-
8/14/2019 Course on BioD, Module 1. Lesson 4 What is the Value of Eco
7/31
Module 1: Setting the stageLesson 4: What is the value of ecosystem services?
What are ecosystem services?
BioD underpins ecosystem services M1L3S7
What is Biodiversity ?Setting the stage for biodiversity
ProvisioningServices
Products obtainedfrom ecosystems
Food Fresh water Fuelwood Fibre Biochemicals Genetic
resources
Regulating Services
Benefits obtained fromregulation of ecosystem
processes
Climate regulation
Pest regulation Runoff regulation Water purification Pollination Mitigate erosion Mitigate tsunamis
Cultural Services
Non-materialbenefits obtained from
ecosystems
Spiritual & religious
Recreation &ecotourism
Aesthetic & inspirational Educational Cultural heritage Existence values
Supporting Services
Services necessary for the production of all other ecosystem services
Soil Nutrient Primary Provision Oxygenformation cycling production of habitat production
Biodiversity: Life on Earth
Modified from Pereira, H.M. and Cooper, H.D. 2006.
-
8/14/2019 Course on BioD, Module 1. Lesson 4 What is the Value of Eco
8/31
Module 1: Setting the stageLesson 4: What is the value of ecosystem services?
A closer look at examples of ecosystemfunctions, processes, and flow of services
Function Process Service
Pro
visioningFood Conversion of solar
energy into edible plantsand animals
Farming/aquaculture(small/large scale)
Fodder and fertiliser
Hunting, fishing, gatheringof fruits, etc.
Regulati
ng
Gas Role of ecosystems inbio-geochemical cycles
UVb-protection by O3
Maintain good air quality
Climate Influence of land cover
and biol. mediatedprocesses on climate
Influence on climate (e.g.
temperature, wind, rainfall,rainfall intensity)
Mitigatedisturbances
Ecosystem structurewhich reduces impacts
Storm/tsunami protection(e.g. coral reefs, mangroves)
Flood mitigation (e.g. by
forests and wetlands)M1L4S8From: De Groot et al. 2002.
-
8/14/2019 Course on BioD, Module 1. Lesson 4 What is the Value of Eco
9/31
Module 1: Setting the stageLesson 4: What is the value of ecosystem services?
Function Process Service
Regulating
Pollination Role of biota inmovement of pollen
Pollination of wild plantspecies
Pollination of cropsWastetreatment
Role of vegetation &biota in removal orbreakdown ofnutrients andcompounds
Pollution control /detoxification
Filtering of dust particles
Mitigate noise
Biologicalcontrol
Population controlthrough trophic-dynamic relations
Control of pests and diseases
Reduction in crop damage
M1L4S9
A closer look at examples of ecosystemfunctions, processes, and flow of services
From: De Groot et al. 2002.
-
8/14/2019 Course on BioD, Module 1. Lesson 4 What is the Value of Eco
10/31
Module 1: Setting the stageLesson 4: What is the value of ecosystem services?
Total Economic Value
M1L4S10
Use Value Non-Use Value
Modified from Spurgeon, 2002.
Extractive:
ForestWildlifeFishAgricultural
ForageMedicalGeneticEnergyWater supplyWater transportNon-extractive:
RecreationLandscapeResearchEducation
Shorelineprotection
Storm protectionSediment
regulation
Nutrient retentionWater quality
maintenanceExternal support of
fish/habitatGroundwater
dischargeMicroclimatic
stabilizationCarbon sink
Decreasing ease of valuation
Value of theoption tomaintain
future use of:
Direct Use IndirectUse OptionValue Quasi-Option BequestValue ExistenceValue
Goods/servicesthat can beconsumeddirectly
Functions/servicesenjoyeddirectly
Value arising fromexpected newinformation fromavoiding irrever-
sible loss of:
Value arisingfrom leavingassets to
futuregenerations
Value arising fromknowledge ofcontinuedexistence
Biologicaland genetic
diversityUniquenessHeritage
HabitatSpecies
d l hh h l f
-
8/14/2019 Course on BioD, Module 1. Lesson 4 What is the Value of Eco
11/31
Module 1: Setting the stageLesson 4: What is the value of ecosystem services?
Valuing a single ecosystem service
M1L4S11
In 1996 New York City invested US$1 - US$1.5billion in natural capital expecting savings ofUS$6 US$8 billion over 10 year
This means an expected Internal Rate ofReturn of 90-170% in a payback period of 4 7
years
How on Earth did that come about?
Chichilnisky G & Heal G. 1998.
M d l 1 S tti th tL 4 Wh t i th l f t i ?
-
8/14/2019 Course on BioD, Module 1. Lesson 4 What is the Value of Eco
12/31
Module 1: Setting the stageLesson 4: What is the value of ecosystem services?
Valuing a single ecosystem service
M1L4S12
Watersheds 5,000 km2
Before high qualitywater, now housingdevelopment and
runoff from roads andagriculture a threat
In 1996 NYC twooptions:
1)Filtration system$2-6 billion +
$300 million p.a.
2)Protect watersheds
From NRC, 2004.
M d l 1 S tti th tL 4 Wh t i th l f t i ?
-
8/14/2019 Course on BioD, Module 1. Lesson 4 What is the Value of Eco
13/31
Module 1: Setting the stageLesson 4: What is the value of ecosystem services?
Valuing a single ecosystem service
M1L4S13
1997 WatershedMemorandum
Agreement
Federal, state, local
authorities, and NGOs NYC spend $250
million during 10-yearbuying undevelopedland (willing sellers)
NYC Investment plan Thorough monitoring
includes status offreshwater biodiversity
From NRC, 2004.
Module 1: Setting the stageLesson 4: What is the value of ecosystem services?
-
8/14/2019 Course on BioD, Module 1. Lesson 4 What is the Value of Eco
14/31
Module 1: Setting the stageLesson 4: What is the value of ecosystem services?
Valuing a single ecosystem service
M1L4S14
New York Citys water supply
Despite regulations and comprehensive frameworkuncertainties exists in sustaining long-term high qualitydrinking water
Provision through natural processes rather than humanengineering offered estimate of value of restoringecosystem service
Replacement costs for natural processes providing cleanwater estimated to $2-6 billion ($4,000 to $12,000 per
hectare)
Relative specific policy question meant that currentlyavailable economic methods of ecosystem service
valuation was sufficient to provide an estimate
From NRC, 2004.
-
8/14/2019 Course on BioD, Module 1. Lesson 4 What is the Value of Eco
15/31
Module 1: Setting the stageLesson 4: What is the value of ecosystem services?
-
8/14/2019 Course on BioD, Module 1. Lesson 4 What is the Value of Eco
16/31
Module 1: Setting the stageLesson 4: What is the value of ecosystem services?
Valuing a single ecosystem service
M1L4S16
Pollination
More than 200,000 plant species worldwide depend onanimal pollination to produce seeds
Pollinators include in their ranks about 1,200 species ofvertebrates and at least 200,000 species of insects
Pollinators affect 35% of the worlds crop production,increasing output of 87 of the leading food crops
worldwide
The status of pollinators is or should be a matter of greatconcern particularly since reports of apparent pollinatordeclines around the world over the past decade has led to a
brewing international pollinator crisis.
Despite the utter centrality of pollination to terrestrial life,
there is an extraordinary deficiency of dependable data onpollinator populations in general
From NRC, 2004.
Module 1: Setting the stageLesson 4: What is the value of ecosystem services?
-
8/14/2019 Course on BioD, Module 1. Lesson 4 What is the Value of Eco
17/31
Module 1: Setting the stageLesson 4: What is the value of ecosystem services?
Valuing a single ecosystem service
M1L4S17
Pollination
In the US the honeybee alonefacilitates production of over90 crops and amount to more than $15 billion per year.1
According to a French/German study published 20092:
Economic value of insect pollination for the world
agriculture in 2005 was 153 billion (i.e. 9.5% of the totalvalue of the world agricultural food production).
Vegetables and fruits were the leading crop categories invalue of insect pollination with about 50 billion each,followed by edible oil crops, stimulants, nuts and spices.
Pollinator disappearance would translate into a consumersurplus loss estimated between 190 to 310 billion.
Although this valuation clearly demonstrates the economicimportance of insect pollinators, it does not take intoaccount the strategic responses of the markets.
1Berenbaum MR, 2007.2Gallai et al. 2009.
Module 1: Setting the stageLesson 4: What is the value of ecosystem services?
-
8/14/2019 Course on BioD, Module 1. Lesson 4 What is the Value of Eco
18/31
Module 1: Setting the stageLesson 4: What is the value of ecosystem services?
The value of everything
What is the value of natures life supportservices?
Some 30 + ecosystem services referred to inscientific literature
In 1997 an international team of economistvalued 17 services from 16 ecosystems including:
Wetlands
Forests Grasslands
Estuaries
Other marine and terrestrial ecosystems
M1L4S18
Multiple services in multiple ecosystems
Costanza et al., 1997.
Module 1: Setting the stageLesson 4: What is the value of ecosystem services?
-
8/14/2019 Course on BioD, Module 1. Lesson 4 What is the Value of Eco
19/31
Module 1: Setting the stageLesson 4: What is the value of ecosystem services?
M1L4S19
ServiceCategory
Ecosystem Services
ProvisioningWater supply Raw materials
Food production Genetic resources
Regulating
Waste treatment Climate
Disturbances Erosion
Gas Biological control
Water PollinationCultural Cultural values Recreation
Supporting
Nutrient cycling Soil formation
Habitat
The value of everythingMultiple services in multiple ecosystems
Costanza et al., 1997.
Module 1: Setting the stageLesson 4: What is the value of ecosystem services?
-
8/14/2019 Course on BioD, Module 1. Lesson 4 What is the Value of Eco
20/31
g gy
M1L4S20
The value of everythingHow did they do it?
Estimated productivity of a hectare (ha) for eachecosystem type for each service and awillingness to pay estimate for the service
Multiplying these estimates generated a per havalue of the ecosystem service for eachecosystem type
Summed all services to establish a value per ha
for each ecosystem type Finally, multiplied this per-ha value by the
number of ha of each ecosystem type andsummed across ecosystem types to derive the
total value of ecosystem servicesCostanza et al., 1997.
Module 1: Setting the stageLesson 4: What is the value of ecosystem services?
-
8/14/2019 Course on BioD, Module 1. Lesson 4 What is the Value of Eco
21/31
g gy
M1L4S21
The value of everythingThe bottom line
In 1994 the value of ecosystem services for theplanet ranged from $16 trillion to $54 trillion,with a mean estimate of $33 trillion. This valuewas notably higher than the value of global GDP
(Gross Domestic Product) at the time ($18trillion) i.e. almost twice the size.
GlobalEcosystem Services
(2 x global GNP)
GlobalGross National Product
(GNP)
Costanza et al., 1997.
Module 1: Setting the stageLesson 4: What is the value of ecosystem services?
-
8/14/2019 Course on BioD, Module 1. Lesson 4 What is the Value of Eco
22/31
g gy
M1L4S22
The value of everythingWhat did people say?
Meaningless exercise since the true value ofecosystem services is infinite given that oureconomies would soon collapse without them
Environment
Society
Economy
Simple multiplication of a physical quantity byunit value cannot be done in natural systemssince they do not follow linear relationships
The approach assumes that ecosystem service
production is scale-free In one sense, it was a correct approach towards
complete accounting. However, presentunderstanding and methods is unlikely to
accomplish it anytime soon
Sustainable
Development
Module 1: Setting the stageLesson 4: What is the value of ecosystem services?
-
8/14/2019 Course on BioD, Module 1. Lesson 4 What is the Value of Eco
23/31 M1L4S23
Conclusions
The valuation of ecosystem services is anevolving discipline which requires theintegration of ecology and natural sciences witheconomy.
Examples of approaches and interdisciplinarystudies that provide such integration indicatesuccessful beginnings
The ability to generate useful information about
the value of ecosystem services varies widely forcase studies 1
For some policy questions, enough is knownabout ecosystem service valuation to help in
decision-making.1NRC, 2004.
Module 1: Setting the stageLesson 4: What is the value of ecosystem services?
-
8/14/2019 Course on BioD, Module 1. Lesson 4 What is the Value of Eco
24/31
M1L4S24
1. Insufficient ecological knowledge/information toestimate:
i. The quantity of ecosystem services produced; orii. How ecosystem service production would change
under alternative scenarios
2. Existing economic methods may be unable to
generate reliable and uncontroversial estimatesof value for the provision of various levels ofecosystem services
3. Lack of integration of ecological and economic
analysis.
Conclusions
Our constraints in supporting decision-makingwith reliable ecosystem values may arise from:
1NRC, 2004.
Module 1: Setting the stageLesson 4: What is the value of ecosystem services?
-
8/14/2019 Course on BioD, Module 1. Lesson 4 What is the Value of Eco
25/31
M1L4S25
Studies that focus on valuing a single ecosystem serviceshow promise of delivering results that can informimportant policy decisions
Even when the goal of a valuation exercise is focused on asingle ecosystem service, a workable understanding of the
functioning of large parts or possibly the entire ecosystemmay be required
Valuation of a single ecosystem service is easier thanvaluating multiple services. However, the interconnectionsamong services may make it necessary to expand the scope
of the analysis. Ecosystem processes are often spatially linked, especially in
aquatic ecosystems
The value of ecosystem services depends on underlyingconditions.
Conclusions
1NRC, 2004.
Module 1: Setting the stageLesson 4: What is the value of ecosystem services?
-
8/14/2019 Course on BioD, Module 1. Lesson 4 What is the Value of Eco
26/31
M1L4S26
Recommendations 1
There is no perfect answer to questions about theproper scale and scope of analysis in ecosystemservices valuation.
Estimates of value should be placed in context.
Concerted efforts should be made to overcomeexisting institutional barriers that prevent ready andeffective collaboration among ecologists andeconomists regarding the valuation of terrestrial,
freshwater and marine ecosystem services. Existing and future interdisciplinary programs
aimed at integrated environmental analysis shouldbe encouraged and supported.
1NRC, 2004.
Module 1: Setting the stageLesson 4: What is the value of ecosystem services?
-
8/14/2019 Course on BioD, Module 1. Lesson 4 What is the Value of Eco
27/31
Value of ecosystem services:Case Studies 1
M1L4S27
Single ecosystem service Providing clean drinking water (p. 132)
Drinking water from ground water (p. 137)
Valuation of fish production provided by coastal
wetlands and estuaries (p. 141) Provision of flood control services (p. 143)
Valuing multiple ecosystem services
Fish production, irrigation waters, navigation,flood control, and clean drinking water (p. 146)
Upstream vs. downstream water use (p. 149)
Food production, recreational fishing, andprovision of drinking water from lakes (p. 151)
1NRC, 2004.
Module 1: Setting the stageLesson 4: What is the value of ecosystem services?
-
8/14/2019 Course on BioD, Module 1. Lesson 4 What is the Value of Eco
28/31
M1L4S28
Valuing ecosystems Oil spill (p. 154)
Restoration of water resources (p. 156)
Multiple services in multiple ecosystems (p. 159)
Value of ecosystem services:Case Studies 1
1NRC, 2004.
Module 1: Setting the stageLesson 4: What is the value of ecosystem services?
-
8/14/2019 Course on BioD, Module 1. Lesson 4 What is the Value of Eco
29/31
ReferencesBerenbaum MR. 2007. The Birds and the BeesHow Pollinators Help
Maintain Healthy Ecosystems. Testimony before the US House ofRepresentatives, 26 June 2007.
Chichilnisky G & Heal G. 1998. Economic returns from the biosphere.Nature 391 (6668), pp. 629-630.
Costanza R, dArge R, de Groot R, Fabes S, Grano M, Hannon B, Limburg
K, Naeem S, ONeil RV,Pareulo J, Raskin R, Sulton P and van der BeltM. 1997. The value of the worlds ecosystem services and naturalcapital. Nature 387: 254-260.
De Groot RS, Wilson MA & Boumans RMJ. 2002.A typology for theclassification, description and valuation of ecosystem functions, goodsand services. Ecological Economics 41:393-408.
EC. 2008. The economics of ecosystems & biodiversity. An interimreport. European Commission and the Germans FederalEnvironment Ministry.
M1L4S29
Module 1: Setting the stageLesson 4: What is the value of ecosystem services?
-
8/14/2019 Course on BioD, Module 1. Lesson 4 What is the Value of Eco
30/31
ReferencesFoley JA, Defries R, Asner GP, Barford C, Bonan G, Carpenter SR, Chapin
FS, Coe MT, Daily GC, Gibbs HK, Helkowski JH, Holloway T, HowardEA, Kucharik CJ, Monfreda C, Patz JA, Prentice IC, Ramankutty N,and Snyder PK. 2005. Global consequences of land use. Science309:570-574, 22 July 2005.
Gallai N, Salles J-M, Settele J, Vaissiere, BE. 2009. Economic valuation ofthe vulnerability of world agriculture confronted with pollinatordecline. Ecological Economics 68 (3), pp. 810-821.
NRC. 2004. Valuing Ecosystem Services: Toward Better EnvironmentalDecision-Making. National Research Council. Water Science andTechnology Board. National Academies Press. Washington, D.C.
OECD. 2002. Handbook of biodiversity valuation. A guide for policy
makers. Paris.Pereira, H.M. and Cooper, H.D. 2006. Towards the global monitoring of
biodiversity change. TRENDS in Ecology and Evolution. Vol. 21, No. 3,March 2006.
Spurgeon, 2002. Rehabilitation, conservation and sustainable utilizationof mangroves in Egypt. FAO, Cairo.
M1L4S30
-
8/14/2019 Course on BioD, Module 1. Lesson 4 What is the Value of Eco
31/31
M1L4S31
Thank you!