Bridging the science-policy-practice divide:

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6 Νοε 2013 (πριν από 3 χρόνια και 9 μήνες)

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Bridging the science
-
policy
-
practice divide:

Making a case for land degradation through valuation of
ecosystem services

UNCCD 2nd Scientific Conference

Economic assessment of desertification, sustainable land management and

resilience of arid, semi
-
arid and dry sub
-
humid areas

9
-
12 April 2013
-

Bonn, Germany


DAY
2


WED 5.1: Economics of Land Degradation (ELD) initiative

Session outline


Why such an initiative?


The ELD approach


Links to complementary initiatives


Identified knowledge and practice gaps


Organisational structure and the three ELD working groups


Stacey Noel (ELD working group leader on options and pathways for action)


Makiko Yashiro (UNEP) representing
Pushpam

Kumar, ELD working group leader
on scenarios


Panel discussion


Mark
Schauer

(ELD Secretariat, GIZ)


Richard Thomas (ELD Scientific coordinator, UNU
-
INWEH)


Emma Quillérou (ELD Scientific coordination, UNU
-
INWEH)


Stacey Noel (SEI, ELD working group leader on options and pathways for action)


Ephraim
Nkonya

(IFPRI, ELD scientific partner)


Simone
Quatrini

(Global Mechanism of the UNCCD)

Why such an initiative?


ELD movie



Not much action so far

despite well
-
known technical solutions,
hence economic approach



Three types of problems faced by land managers that economics
can help solve:


Decide which option benefits the most to society as a whole (
eg

Development
vs

Conservation
)


set “fairer” compensation levels and reduce social unrest
(redistribution from winners to losers)


assess further opportunities for development and set up new
markets

The ELD approach


Cost
-
benefit analysis


based on the total economic value


of ecosystem services derived from land


to compare the costs of action to the benefits from action



If benefits > costs, we should take action


Categorisation of economic values:

Total Economic Value framework

Total Economic Value

of Land and Land
-
based services

Use Value

Non
-
Use Value

Direct

Use Value

Indirect

Use Value

Stewardship
Value

Bequest
Value

Existence
Value

Option

Value

Categorisation of ecosystems services:

Millennium Ecosystem Assessment framework


The economic value of an ecosystem is the sum of economic values
derived from individual services flows


Provisioning services, e.g.
food, timber and fresh water


Regulating services, e.g. pollution reduction


Cultural services, e.g.
aesthetic and spiritual
values


Supporting services, e.g. soil formation and nutrient
cycling*


A framework which excludes the value of natural resource
stocks

for
future benefits (so far)


If the flow of services is maintained but the stock decreases over
time, then the system will not be sustainable in the long run!


Stock value can be estimated by complementary methods, e.g.
green accounting

* Risk of double
-
counting

Examples of valuation of ecosystem services

for improved land management


Provisioning services


Estimation of
costs of soil erosion (productivity loss,
replacement costs and participatory contingent
valuation) for investment in erosion reduction


Regulating services


Estimation of non
-
agricultural and non
-
timber
values
to set up carbon payments


Estimation of
costs of pollution to set up payments
for maintenance


Cultural services


Estimation of
recreational values to develop the
tourism industry


Estimation
of aesthetic
and spiritual
values to protect
cultural and spiritual assets


Combining the two frameworks:

Millennium Ecosystem Assessment and Total Economic
Value

Components of Total
Economic
Value

Provisioning
services

Regulating
services

Cultural
services

Supporting
services*

Use value

Direct use









Indirect use









Non
-
Use
value

Option









Existence
(Bequest)









* Risk of double
-
counting

Intuitively, our objective is to ‘sum’ all the ticks to derive the total
economic value of land services

Cost of inaction or benefits from action

Fully functioning (restored) land

(100% crop yields /timber /biodiversity/…)

Fully degraded land, no economic activity

(0% crop yields /timber /biodiversity/…)

Action 2

3

70%

100%

0%

2

Action 1

Cost of inaction = benefits from action

only

if action means 100% land restoration (action 1)


Cost of inaction > benefits from action otherwise (action 2)

Land under consideration

1

40%

Decision
-
making framework

A given piece of land, for a
given legal, political and
economic context

Alternative livelihoods
(economic activities)

Improved productivity

Do nothing

(business as usual)

Starting point:

3 options for
action:

Estimate total
economic value
of economic
costs and
benefits:

Net economic

benefit from

Alternative livelihoods

Net economic

benefit from

Improved productivity

Net economic

benefit from

business as usual

Choose option with greatest net economic benefit for action (or inaction)

and adapt legal, political and economic context

to enable adoption of chosen option

Links to complementary initiatives


Micro
-
economics approaches based on the
total economic value

of
ecosystem
services
(multiple geographical levels)


Cost of actions
vs

cost of inaction


Stern Review on Climate Change


The Economics of Ecosystems and Biodiversity (TEEB)


UK National Ecosystem Assessment (UK NEA)


Germany Centre for Development Research (
ZEF)’s

Economics of Land
Degradation research project


Cost of actions
vs

benefits from action


Offering Sustainable Land Use Options (OSLO) consortium


Currently considered for the Economics of Land Degradation (ELD) initiative


Macro
-
economics approaches (mostly national level):


System of Environmental
-
Economic Accounting (SEEA)
:
describing stocks
and changes in stocks of environmental assets


Wealth Accounting and the Valuation of Ecosystem Services (WAVES)
:
natural capital and ecosystem accounting for national accounts

Identified gaps

Technological

1.
Overall costs/benefits of different land
management interventions (trade offs
with focus on livestock and rangelands)

2.
Understanding of drivers of changes
(case studies)

3.
Relationship between population
density and land degradation

4.
Identify system tipping points for land
degradation

Environmental evaluation

5.
Lack of harmonized methodology
(scales, discount rate)

6.
Lack of information on social costs of
land degradation

7.
Lack of information on mapping
ecosystem services

8.
Lack of information on non
-
market
values of ecosystem services

9.
Lack of robust low cost methods
applicable by affected countries in
short term

10.
Limited understanding of value of
ecosystem services to local livelihoods

10+. Lack of consideration of stock
evolutions as well as flows

Policy gaps

11.
Lack of plausible scenarios

12.
Lack of monitoring and evaluation for
total ecosystem assessments

13.
How can policies promote sustainable
land management

Institutional and private sector

14.
Lack of incentives for sustainable land
management

15.
Greater interdisciplinary approaches
(incentives)

16.
Lack of (appropriate) knowledge
management

ELD initiative organisational structure

ELD working group on data and methodology


Leader:
Bob
Costanza
, Australian National University



Objectives

1.
assess both existing data, knowledge and methods to identify
good methodological practices

2.
design an integrated tool for assessment for policy
-
makers which
will use scenarios and options for action established by the other
two working groups


ELD working group on options and pathways for action


Leader:
Stacey Noel
, Stockholm Environment Institute



OBJECTIVE OF ELD
: to enable decision
-
makers in politics and business
to take the necessary measures



UNDERSTAND BETTER HOW LAND USERS TAKE DECISIONS



TARGET AUDIENCES


Political and Local Decision
-
Makers


Private Sector


Scientific communities

ELD working group on options and pathways for action


Engagement of stakeholders



Initial meetings with national policymakers and private sector
through regional and/or national meetings



Deeper interactions during case study work



Presentation of final result through diverse methods


Personal interaction with government decision makers


Training courses for decision
-
makers and practitioners


Policy briefs, website and other outreach materials


Participation in regional and international conferences

ELD working group on economic evaluation of options
(scenarios)


(see dedicated presentation)


Expected working group contributions to each of the ELD
output reports

Working group


Data and
Methodology”

Working group

“Options
and
pathways for
action”

Working group

“Economic
evaluation of
options (scenarios)”

Report to Scientific
Communities

+++

++

+

Report to Decision
Makers

+

++

+++

Report to the
Private Sector


+

++

+++

Take home message


Economics can be used for improved decision
-
making


in relation to land management


for increased political stability and economic growth



Most importantly,
we need your inputs!


existing case studies


new inputs and participants to provide content for the ELD
reports


additional funding for case studies


Please come and join us

http://eld
-
initiative.org
/