Transcript Document

The Economics of Ecosystems & Biodiversity
Session 1:
Conceptual Frameworks
TEEB Training
The Economics of Ecosystems & Biodiversity
A summary of some of the various different frameworks for assessing
and valuing ecosystems and biodiversity
Sources: Wittmer, H. and Gundimeda, H. (eds), 2010.TEEB. In Local and Regional Policy and Management Earthscan, London Pp. 43
TEEB Training
The Economics of Ecosystems & Biodiversity
Conceptual Frameworks; Drawing
distinctions
Whether they target:
•
•
•
Purely monetary values: TEV
Non-monetary values: KBA and CNC
Combination of the above: MA and SLA
2) Whether or not distributional issues are considered
- A decision maker is likely to want to know not
just the overall picture but also what the option
means for specific stakeholders at multiple
scales
FRAMEWORKS
Sustainable livelihoods
approach
1)
Total Economic Value
Millennium Ecosystem
Assessment
The distinction between frameworks can be
made on:
Critical Nature
Approach
Key Biodiversity Approach
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Socio-Ecological Approaches
The Millennium Ecosystem Assessment (MA)
 Launched in 2001 by UNEP to assess the
consequences of ecosystem change for human
well-being and the action needed
 Highlights the benefits or ‘usefulness’ of
ecosystem services for humans and for policy
makers to improve planning and management
 It is an important piece of work that presents the
impacts of human activities on ecosystems around
the world
©Millennium Ecosystems Assessment
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An example of the Ecosystem Service
Approach (under the MA)
A good example of where the ecosystem service
approach under the MA framework has been applied
is the assessment of marine ecosystems in the UK
Here an economic analysis was conducted, and the
high values identified resulted in the designation of
marine protected areas
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Ecological Approaches
Conceptual Frameworks: Ecological Approaches
 Ecological approaches prioritize ecological values (rather than economic
values for example)
 The following two ecological approaches are useful for assessing the
expected changes in flow of ecosystem services:
1. Critical Natural Capital (CNC) approach
 Provides a system of prioritizing conservation and environmental
protection. It is the general term for the stock of natural resources
 “Critical” natural capital differs from other types of natural capital because
it performs important and irreplaceable ecosystems services that cannot be
substituted
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The Economics of Ecosystems & Biodiversity
Ecological Approaches
Continued…
2. Key Biodiversity Areas (KBA) approach
 A rapid assessment methodology that identifies
local areas which are globally important for species
conservation
• Areas are classified using simple and
standardized criteria that address the
strategically important issues of vulnerability and
irreplaceability
 Existing initiatives include Birdlife International’s
“Important Bird Areas” program in collaboration with
IUCN and other prioritization instruments such as
WWF ‘Global 200’
©www.123rf.com/Anton Balzah
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An example of CNC Approach
 Decisions made to restore salmon habitats in
the USA rather than convert the area for
industrial use
 Direct costs and benefits
• Showed that the restoration option did not
break even
• Critical nature of this area for salmon
restoration made this option a bargain
©www.123rf.com/Witold Krasowski
 Industry could be located elsewhere,
whereas salmon habitat must be situated
where freshwater meets tidal salt water
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Developmental Approaches
 Ecosystem change can have different
impacts on individuals and society
 Any policy change can leave some people
worse off than others
 Developmental frameworks provide a
better understanding of the impact of
policies on local livelihoods
 These frameworks are useful for assessing
distributional impacts of different policy
options
©uncsd2012.org
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Developmental Approaches
Continued…
Sustainable Livelihoods Approach
 SLA looks at how an individual, household or a community
secures its well-being over time.
 ‘livelihood’ is made up of capabilities, the assets (stores,
resources, claims and access) and activities required for dayto-day living.
 In this framework assets include natural, economic, human,
social
 Allows decision makers to define policy options connected to
ecosystem services in terms of how they affect local
livelihoods
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Developmental Approaches
Continued…
Capabilities Approach
 Advocates that people have the freedom to choose the
various things he or she may value doing
 Capabilities in this context therefore stresses the ability
of people to provide for their individual needs and
desires
 The UN have included CA insights in their analysis in
the form of the Human Development Index (HDI)
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Developmental Approaches
Continued…
Entitlements Approach
 Focuses on individuals entitlements to goods and services that affect
their livelihoods
 Any Individual who owns both: (i) tangible assets- such as land etc.
and (ii) intangible assets- such as knowledge and skills etc. are
referred to as individual ‘endowments’. With these endowments you
are given a set of ‘entitlements’
 Entitlements are determined not only by stocks of capital, but by
market conditions. An example is in the case of famines where
devastating effects on livelihoods
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Economic Approaches
Total Economic Value (TEV)
 The TEV framework is concerned with the eventual impacts on human
well-being
 Almost exclusively focuses more on economic endpoints that can if
needed, be measured in monetary terms
 This framework presents categories of ecosystem benefits, which fit into a
standard economic frame of reference
 It’s strength is that all benefits that humans obtain from nature and even
the value of nature in its own right (intrinsic value) can be captured by one
of the subcategories used in this approach
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Economic Approaches
Continued…
TEV categories of value
 The TEV of an environmental asset is the sum of these different value
categories:
- Direct use value: the value derived from the direct extraction of resources
or the direct interaction with the ecosystem
- Indirect use values: values that support economic activity
- Option use values: preserving biodiversity so that its direct and indirect
use values can consumed in the future
- Non-use values: values that refer to conservation for its own sake
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An example of the TEV Approach
Value of Belize coastal ecosystems
 TEV assessed the average annual contribution
of reef-and mangrove-associated tourism to the
national economy of Belize.
 Tourism Contributing an estimated US$150
million to US 196 $ million to Belize’s
economy in 2007
 Reefs and mangroves have proven beneficial
in protecting coastal properties from erosion,
estimated around US$231 million to US$347
million in avoided costs per year
 Belizean NGOs and local groups have now
used these results to advocate tougher fishing
regulations and pressure the government to
change existing mangrove legislation
©Grida Arendal
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Group Exercise 1
Plans to Drain The Nakivubo Swamp, Kampala
 In pairs using the case study
example of the Nakivubo Swamp,
Kampala, Uganda (see handout for
more information) – suggest ways,
using the different frameworks that
have been presented to you, of how
you may approach this particular
policy issue so that you may come
up with some possible solutions.
©Grida Arendal
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