Relevance of Environmental Economic Assessments in Coastal Zones:

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Nov 6, 2013 (4 years and 1 month ago)

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Relevance of Environmental Economic
Assessments in Coastal Zones:
an Ecosystem Services Based Approach
Paulo A.L.D. Nunes
University Ca’ Foscari of Venice
Fondazione Eni Enrico Mattei
Euro Mediterranean Center on Climate Change
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Contents
Ecosystem services and human wellbeing
Millennium Ecosystem Assessment (United Nations)
The Economics of Ecosystems and Biodiversity (TEEB)
Integrating ecology and economics
[An operational perspective and illustration of the methodology]
Reflection, and challenges.
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Biodiversity, ecosystems,
ecosystems services and
human well-being are
linked
Ecosystem services:
ecosystems provide vital
goods and services of
value to people
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Millennium Ecosystem Assessment (MEA)
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Source: MEA (2005), adapted.
Coastal and marine systems
EEZ ecosystems goods and services
MEA: conceptual framework
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In short:
Marine ecosystems, EEZ and, ultimately biodiversity, provide a
wide array of goods and services of value to people
Provision of ecosystem services often is not factored into
important decisions that affect ecosystems
Distortions in decision-making damage the provision of
ecosystem services making human society and the environment
poorer
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However…
Individual firms are not rewarded for protecting environmental
quality necessary for sustained provision of ecosystem services
and conserving biodiversity
Unless society fixes this imbalance and begins to properly
account for the value of nature we are unlikely to see
fundamental change necessary to sustain ecosystem services
and conserve biodiversity
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TEEB: Stern like review on biodiversity
COP9, May 2008, Bonn
– FEEM - Nunes & Markandya has
been the study leader of the review
contract with DG Environment,
Review on the economics of
biodiversity loss – phase 1
(scoping) – Economic analysis and
synthesis - a project under the
Framework contract for economic
analysis ENV.G.1/FRA/2006/0073
– FEEM – Nunes & Markandya has
been the study leader of the
European Environment Agency
project on scaling up biodiversity
values.
– FEEM – Nunes and Markandya has
been partner of the consortium
COPI - The Cost of Policy Inaction
(COPI): the case of not meeting the
2010 biodiversity target,
ENV.G.1/ETU/2007/0044(4)
Now phase 2 (2008-2010)
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The Economist, 15th October 2008
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(1) Incentives
(2) Actions
Ecological
production
functions
(6) Valuation
(3) Non-
anthropocentric
approaches
Other
considerations
Benefits
and costs
Decisions by firms
and individuals
Policy
decisions
Ecosystems
Ecosystem
services
(7) Economic
efficiency
(5) Biophysical
tradeoffs
(4)
Integrating ecology and economics:
a research agenda for valuing ecosystem services
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All in all…
It is clear that different valuation perspectives
can be distinguished
based on the above considerations.
This means that different angles on the value, and valuation, of
ecosystem services and biodiversity conservation may in fact
based on different perspectives.
This does not mean that one is right and the other is wrong.
Evidently, it is crucial to know which perspective is being adopted.
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Economic valuation exercise: an operational
perspective
Impacts of climate change (DRIVER)
Biophysical/directSocio-economic/indirect
e.g. increased
global
temperature, sea
level rise
e.g. decreased provisioning
of ecosystem goods and
services (EGS)
e.g. impacts on
fishing, tourism,
timber industries,
consumer utility.
e.g. economy-
wide impacts
Socio-economic analysis
Microeconomic/disaggregated dataMacroeconomic/aggregated data
Partial equilibrium analysis
General equilibrium analysis
Specific economic valuation tools in use
Non-Market
valuation methods
Market valuation
methods
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Spectrum of impacts of climate change
Biophysical/directSocio-economic/indirect
e.g. increased
global
temperature, sea
level rise
e.g. decreased provisioning
of ecosystem goods and
services (EGS)
e.g. impacts on
fishing, tourism,
timber industries,
consumer utility.
e.g. economy-
wide impacts
Socio-economic analysis
Microeconomic/disaggregated dataMacroeconomic/aggregated data
Partial equilibrium analysis
General equilibrium analysis
Specific economic valuation tools in use
Non-Market
valuation methods
Market valuation
methods
Economic valuation exercise: an operational
perspective
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Spectrum of impacts of climate change
Biophysical/directSocio-economic/indirect
e.g. increased
global
temperature, sea
level rise
e.g. decreased provisioning
of ecosystem goods and
services (EGS)
e.g. impacts on
fishing, tourism,
timber industries,
consumer utility.
e.g. economy-
wide impacts
Socio-economic analysis
Microeconomic/disaggregated dataMacroeconomic/aggregated data
Partial equilibrium analysis
General equilibrium analysis
Specific economic valuation tools in use
Non-Market
valuation methods
Market valuation
methods
Market priced data
+
Economic valuation exercise: an operational
perspective
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Marine
ecosystem goods
and services
Market priced
benefits
Un-priced
benefits
Fisheries
products
CO2
Recreation
Passive use values
Non fisheries
products
Provisioning
services
Regulating
services
Cultural
services
Market price
analysis
Damage cost
Assessments
Meta analysis
Reflection: Building of an Hybrid Valuation Framework
that is operative to the policy decision maker
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Economic valuation perspective

Biology

• description of the
system (e.g. indicators)
• identification of threats



Economics

• economic valuation
• economic policy
theory

Law


• general international
legal regime
implementation and
control at regional and
sectorial level


Scenarios
formulation
Policy
instruments
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Campo S. Maria Formosa
30122 Venezia - Italy
tel +39 | 041 | 27 11 400
fax +39 | 041 | 27 11 461
web http://www.feem.it
Contact:
pnunes@unive.it
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Marine
ecosystem goods
and services
Market priced
benefits
Un-priced
benefits
Fisheries
products
CO2
Recreation
Passive use values
Non fisheries
products
Provisioning
services
Regulating
services
Cultural
services
Market price
analysis
Damage cost
Assessments
Meta analysis
Reflection: Building of an Hybrid Valuation Framework
that is operative to the policy decision maker
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Economic reasons for economic valuation
Cost-benefit analysis and policy formulation.
Ecosystem damage assessment and legal claims.
Country/corporation environmental accounting.
Proper pricing.