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The economic costs of
conservation response options to
climate change: the case of the
Cape Floristic Region
Presented by
Anthony Letsoalo
CSIR Environmentek
Outline
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Aim and objectives of the economic analysis
Response options analyzed
Concept of cost-benefit analysis
Determinants of cost of PAN (Protected Area
Network)
Types of cost incurred in conservation
Attractiveness of incentive to private landowners
Types of incentives to private landowners
Cape Floristic Region as the study area
Results on the cost of expanded PAN
The benefits of expanded PAN
Aim & objectives
Aim
- To evaluate cost and benefits of a range of
adaptation options
Objectives
- To develop cost function for a range of adaptation
options
- To establish the benefits associated with different
options
Response options to climate change
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No response – loss of species might occur.
Land acquisition – for new reserve
Matrix management – conservation of private land.
Ex-situ conservation – preservation in gene/ seed
banks, botanical gardens, zoo.
Translocation – assisted dispersal
Total cost (TC) versus total economic
value (TEV)



Net cost of each option will be determined from
estimated direct costs and direct benefits of the
option.
Direct costs include cost of new land acquisition,
translocation and ex-situ conservation
Total economic value include both use and non-use
values of species resource
The components
of total economic
value
Determinants of cost of PAN
1. Size
- An increase in PAN results in lower cost
2. Vegetation type and dominant habitat class
- Open biomes are expensive to manage because of
accessibility.
3. Extent of land transformation
- Higher transformation on the land results in higher
restoration cost, thereby making land expensive to
acquire.
4. Surrounding land uses
- Involvement of the surrounding communities in
conservation is important (CBNRM)
Study Area
Habitat classes and associated management
requirements
Management requirements
Habitat class
Primary BHU
Represented
Control of
invasives
Wildfire
control
Prescribed
burning
Ecological
monitoring
requirements
Coastal
Dune pioneer, Fynbos/Thicket mosaic,
Strandveld
High
High
Medium
High
Lowland
Sandplain Fynbos, Limestone Fynbos,
Grassy Fynbos, Fynbos/Renosterveld
mosaic, Coastal Renosterveld, Inland
Renosterveld
High
Medium
Medium
Medium
Forest and
thicket
Afromontante Forest, Indian Ocean
Forest, Mesic Succulent Thicket
Medium
Medium
Medium
Medium
Wet Mountain
Fynbos
Mountain complex
Medium
Medium
Medium
Medium
Dry Mountain
Fynbos
Inland Renosterveld, Mountain Complex
Low
Low
Low
Low
Karoo
Vygieveld, Broken Veld, Xeric Succulent
Thicket
Low
Low
Low
Low
Methods




Literature review of national and international
studies on adaptation costs
Interview experts in ex-situ conservation
Apply quantity times price approach to derive total
cost
Identify the benefits – avoided ecological damage
Types of cost
1.
Land acquisition
Involves buying of land
Cost of land differs according to land use
2. Operating cost
include salaries, field allowances, equipment, transport and
maintenance costs and includes provisions for senior field
and research staff (Martin, 2003)
3. Capital requirement
This applies only to new-reserves
Include infrastructure, fencing, etc.
4. Cost of ex-situ conservation
Cost of gene banking
Cost of seed banking

NB: the costs depend on the response option chosen.
Once-off costs of acquiring different habitat
types
Forest and thicket
Karoo
Wet mountain fynbos
Dry mountain fynbos
Lowland
Coastal
0
200
400
600
Cost per hectare (US$)
800
1000
Operating cost per various park sizes
Operating costs per km2 per year
120 000
100 000
80 000
60 000
40 000
20 000
-
Park Size (km2)
Capital requirement per park size
600 000
Capital costs (US$/km2)
500 000
400 000
300 000
200 000
100 000
-
Park size (km2)
Cost of gene/ seed banking
Seed Banking costs
Average recording & collecting costs (per species)
Cost to re-establish plants in plantation (per plant)
R1 230
R 10
The Cost of Gene Banking
Consumable cost per DNA extraction (per species)
Genetic fingerprinting for plants (per fingerprint)
Start-up Cost
Ultracentrifuge
-80°C freezer
DNA bank “manager”
R 150
R 200
R572 000
R422 000
R 80 000
R 70 000
Providing incentives to private landowners
Statement from questionnaire
Agree Unsure Disagree
Offering landowners incentives is a good idea
92.5
2.5
87.5
5
57.5
7.5
5
for promoting conservation on private land.
Protection of plants/animals outside reserves
7.5
should be the responsibility of private
landowners.
CNC or another government organisation
should bear the costs for the conservation
of renosterveld on the property.
35
Types of incentives
Incentive
Percentage of
respondents
1. Assistance with fencing and land management
2. Assistance with alien vegetation clearing
3. Rates relief for land conserved
4. Grants or subsidies for conservation
5. Tax deductions
6. Access to scientific advice
7. Tourism incentives
8. Law enforcement
9. Access to farm planning and management support
10. Assistance with fire management
11. Free access to all WCNCB parks and reserves
12. Discounts for accommodation at WCNCB resorts
13. Advice on legal compliance procedure
14. Public/community recognition
72.5
67.5
67.5
65
47.5
45
40
32.5
32.5
30
27.5
27.5
17.5
15
Frequency
29
27
27
26
19
18
16
13
13
12
11
11
7
6
Land required in extended PAN
Description
Area(ha)
% of total
area required
Required to protect all proteas threatened by climate change
430 364
100
Required area already protected in Type 2 reserves
Remaining area required
132 578
297 785
30.81
69.19
Area required that is already protected in conservancies
Remaining area required
44 651
253 135
14.99
58.82
Required area already within the Kogelberg Biosphere Core
Remaining area required
342
252 791
00.08
58.74
Required area protected within biosphere reserve buffer zones
Remaining area required
OF THIS
Area still to be protected that falls within state-owned land
Area still to be protected that falls within private land
5 152
247 639
01.20
57.54
6 182
241 457
02.50
97.50
Total costs of expanding protected area
network
Costs per ha
New reserve system
Land acqusition
Capital cost
Operating cost
Alien species removal
Matrix management
Establing contractual reserves
Annual monitoring
Alien species removal
No of hectares
6,182
6,182
6,182
6,182
Total cost (US$)
10,880,076
655,228
140,386
10,084,461
241,457
241,457
394,901,272
240,000
781,081
393,880,191
10,599
2,271
1,631
3.23
1,631
Costs per species
No of species
Gene banking
Start-up cost
Consumable cost per DNA
extraction per species
Genetic fingerprinting for plants per
fingerprint
Seed banking
Average recording & collection
costs per species
Cost to re-establish plants in a
plantation/ botanical garden costs
per plant
Total cost
Total cost (US$)
95,282
93,228
24
36
880
33
36
1,173
7,276
200.47
36
7,217
1.63
36
59
405,883,905
Benefits associated with different adaptation
options
Proteaceae to be
conserved
Number of
species
No hopers
36
Persisters
181
Partial dispersers
81
Obligate dispersers 18
Method
Gene/seed banks
Will adapt to climate change
New PA and matrix management
??
Source: Greg Hughes, SANBI
Check your understanding of
Chapter 9
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Chapter 9: test yourself
Chapter
Chapter
Chapter
Chapter
Chapter
Chapter
Chapter
1
2
3
4
5
6
7
The evidence for anthropogenic climate change
Global Climate Models
Climate change scenarios for Africa
Biodiversity response to past climates
Adaptations of biodiversity to climate change
Approaches to niche-based modelling
Ecosystem change under climate change
Chapter 8 Implications for strategic conservation planning
Chapter 9 Economic costs of conservation responses
I hope that you enjoyed this course on climate
change and conservation planning. If you have any
queries or suggestions, please email James Reeler.