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Chapter 9: The economic costs of conservation response options for climate change Presentation Details: Slides: 22 Duration: 00:17:55 Filename: G:\Documents and Settings from C\My Documents\Rich\NISL\Climate_Change\Powerpoint presentations\Chapter9.Anthony Letsoalo - The costs of conservation responses to climate change.ppt Presenter Details: Name: Anthony Letsoalo Title: Mr Email: [email protected] Bio: Anthony is an agricultural economist who specializes in environmental and resource economics. He is currently employed as a researcher by the CSIR. His interests include economy-wide models, economics of biodiversity, economics of land use options and linkage between trade and environment. Slide 1: The economic costs of conservation response options to climate change: the case of the Cape Floristic Region Duration: 00:00:22 Published by Articulate™ Presenter www.ArticulateGlobal.com The economic costs of conservation response options to climate change: the case of the Cape Floristic Region Presented by Anthony Letsoalo CSIR Environmentek Notes: Slide 2: Outline Duration: 00:00:55 Published by Articulate™ Presenter www.ArticulateGlobal.com Outline 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 Notes: This is a study undertaken to assess the real costs of planning options for conservation in the Western Cape. A brief outline of the contents of this talk are as follows: Aim and objectives of the economic analysis The types of response options available A quick revision of the concept of cost-benefit analysis Determinants of cost of a PAN (Protected Area Network) Types of cost incurred in conservation. Attractiveness of incentive to private landowners (since it was determined that a large percentage of essential land for conservation was under private title). The types of incentives offered to landowners, and their responses to these incentives. An introduction to the study area, which is the Cape Floristic Region in the Western Cape. Published by Articulate™ Presenter www.ArticulateGlobal.com The total costs associated with an expanded protected area network The benefits of an expanded protected area network Slide 3: Aim & objectives Duration: 00:00:19 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 Notes: The aim of the study was toe evaluate the costs and benefits of a range of adaptation options and response to climate change in the CFR. Following on from this, the objectives were to develop the cost function for a range of adaptation options, and to assess the benefits that are likely to accrue from each of these different conservation options. Published by Articulate™ Presenter www.ArticulateGlobal.com Slide 4: Response options to climate change Duration: 00:00:44 Response options to climate change 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 Notes: The response options for adaptation to climate change include no response at all, in which case species may well be lost due to changing climatic conditions. Another option is land acquisition for new reserves, although this is likely to be both expensive and politically challenging. An alternative to purchase would be matrix management, with conservation occurring on privately-owned land. Failing that, ex-situ conservation of species in areas outside of the wild (such as gene banking, botanical gardens and zoos) is a viable option for species preservation, but not ecosystem maintenance. Translocation of species or assisted dispersal to areas of higher suitability after climate change might be some sort of middle ground between these options. Slide 5: Total cost (TC) versus total economic value (TEV) Duration: 00:00:34 Published by Articulate™ Presenter www.ArticulateGlobal.com 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 Notes: A quick comparison of the net costs of options and their total economic value. The net cost of an option is determined from the estimated direct costs and the direct benefits of the option. These direct costs include cost of new land acquisition, translocation, and all of the various ex-situ conservation options. Total economic value, on the other hand, includes both use and non-use values of species resources (ideally including such intangibles as ecosystem operation and intrinsic species value – which are inevitably almost impossible to ascertain or price). Slide 6: The components of total economic value Duration: 00:01:04 Published by Articulate™ Presenter www.ArticulateGlobal.com Notes: The total economic value can therefore be divided into use and non-use options. The use values are obviously more easily assessed, particularly the direct use values, for which a market value can be provided from those industries already in the area. Indirect use values are more challenging, incorporating biological support to other industries, and the physical benefits of intact ecosystems (or, conversely, the economic costs of fixing damaged ecosystems). The non-use values are much more challenging to assess, since they incorporate many intangible values, such as the bequest value (the value of preserving resources for the use of future generations), and the existence value (the value from knowledge that the resource will continue to exist – especially for threatened and endangered species). Other non-use values are the option value (preservation for future direct and indirect use), and quasi-option values (such as the expected new information to be obtained from an untapped system). Clearly, the assessment of the total economic value of an ecosystem is challenging in the extreme. Slide 7: Determinants of cost of PAN Duration: 00:00:56 Published by Articulate™ Presenter www.ArticulateGlobal.com 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) Notes: Many factors determine the cost of setting up and running protected area networks. First amongst these is size – whilst larger protected areas are obviously more expensive, the unit cost tends to drop because of the easier functioning of the whole. The vegetation type and dominant habitat class are important factors as well, since open biomes are more expensive to manage. This is on account of their accessibility – the more people that impact on a biomes, the more expense involved in maintaining it. The extent of land transformation obviously has associated costs, since highly transformed land typically requires high restoration costs, and even though the land may be cheap to purchase, the total acquisition costs are driven up. Finally, the land use in the surrounding area is important, because of edge effects on the PAN. Thus, the engagement of neighboring communities in the conservation process through community based natural resource management is essential. Slide 8: Study Area Duration: 00:00:46 Published by Articulate™ Presenter www.ArticulateGlobal.com Study Area Notes: The area considered for this study was the Cape Floristic Region in the Western Cape. A biodiversity priority area is defined as an area with high species richness which is suffering from loss of biodiversity due to land use change and development initiatives. Of all the biodiversity priority areas shown, the CFR has the highest endemicity, and at least in terms of the lowland renosterveld, the highest rate of habitat loss in South Africa. For the purposes of this study, the entire biodiversity of the biome was not considered, but rather 316 species of Proteaceae were used as indicator species, particularly since the effects of climate change on these species have been mapped by Greg Hughes of the South African National Biodiversity Institute. Slide 9: Habitat classes and associated management requirements Duration: 00:01:04 Published by Articulate™ Presenter www.ArticulateGlobal.com 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 Notes: The management costs of an area tend to vary, depending largely on the vegetation type, but also on several factors associated with both climate and species richness. Coastal habitats such as dune pioneer vegetation tend to have a high invasive potential, and are highly susceptible to wildfires, driving management cost up. Prescribed burning is usually necessary, although the costs associated with this are only moderate, but the fine nature of the vegetation, and the difficulty of access to many parts mean that ecological monitoring costs are high. Lowland vegetation types such as the lowland fynbos and renosterveld have only moderate fire control and ecological monitoring costs, but are still highly susceptible to invasives, which is typically expensive to control. The forest and thicket and wet mountain fynbos biomes are typically moderate in terms of management costs, since they are less impacted by human practices, and both dry mountain fynbos and karoo have very low management costs. In the case of the Karoo, this is largely because of the sparse, slow-growing nature of the vegetation. Slide 10: Methods Duration: 00:00:34 Published by Articulate™ Presenter www.ArticulateGlobal.com 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 Notes: The assessment of costs was carried out initially through a literature review of the national and international studies on adaptation costs. This was followed by interviews with experts on ex-situ conservation in order to assess the costs and challenges of this method of preservation. The total costs were derived through a simple process of multiplying the costs of a process with the quantity required for a given procedure. The benefits of these processes were also assessed, including the avoided ecological damage (ie: the saving made by avoiding having to repair or work around a damaged ecosystem). Slide 11: Types of cost Duration: 00:01:04 Published by Articulate™ Presenter www.ArticulateGlobal.com 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. Notes: A quick assessment of the types of cost that have to be considered when looking at the total economic value of conservation options. The first type of cost is that of land acquisition. This involves the buying of land, and of course, the cost of the land differs according to the use to which it has historically and is currently being put. Operating costs for a protected area network are highly variable, and include salaries, field allowances, equipment, transport and maintenance costs. It also includes provisions for senior field staff and research staff, who necessarily command higher salaries or consultancy fees. The capital requirements apply only to new reserves, and include all manner of infrastructure, as well as the costs of rehabilitation of newly-purchased land. Finally, the costs of ex-situ conservation include the costs of both gene banking and seed banking. No assessment of botanical gardens or zoos were made, because it is unlikely that these are options that can readily be embarked upon at this late date, and established institutions do not have much capacity to expand. Slide 12: Once-off costs of acquiring different habitat types Duration: 00:00:59 Published by Articulate™ Presenter www.ArticulateGlobal.com Notes: The purchase costs of coastal areas are far and away the highest of all land types, due to the attractiveness of the area for human settlement (most particularly holiday homes). The average cost is over US$ 900 per hectare, which is more than double the purchase costs of the lowland areas that are typically considered prime territory for farming. In comparison, the forest and wet mountain fynbos are relatively cheap to buy, less than 200 and less than 100 US$ per hectare respectively, and both the Karoo and wet mountain fynbos are less than US$50 per hectare. It is important to remember both coastal and lowland areas also have a high alien invasion potential, which means that management and rehabilitation costs fro these areas are considerably higher than for many others – but at the same time, it is these areas that are largely under the greatest threat of complete transformation. Slide 13: Operating cost per various park sizes Duration: 00:00:42 Published by Articulate™ Presenter www.ArticulateGlobal.com Notes: This graph shows the relationship between the operating costs per km2(X-axis) and the park size. From the graph it can be seen that smaller areas clearly have a higher operating cost compared with larger areas. This is due to economies of scale, which carry over into many facets of park management, Furthermore, areas within larger parks are often more inaccessible, which means that there is less human impact and therefore less management required for these areas. Ecological monitoring is essential in smaller parks, since change can occur very rapidly over a small area, whilst the concomitant costs are greatly reduced for larger parks. Thus there is a need to identify optimal park size. Slide 14: Capital requirement per park size Duration: 00:00:43 Published by Articulate™ Presenter www.ArticulateGlobal.com Notes: In a similar manner, the capital requirements are much higher for smaller parks, (4 1km2 parks will require 16km of fencing, whilst 1 4km2 park will only require 8km of fencing). This economy of scale carries over into many of the capital requirements, since such management aspects as environmental monitoring (which requires a large amount of equipment) are also reduced. Once again, some decision on the optimal size for a reserve must be decided on, based on the capital costs. Slide 15: Cost of gene/ seed banking Duration: 00:01:05 Published by Articulate™ Presenter www.ArticulateGlobal.com 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 Notes: Gene and seed banking are possibly less expensive in the long run, but should only be resorted to as a final option, since the biodiversity conserved no longer interacts with the environment, and the entire ecosystem may collapse. The costs for this process are as follows: The average cost of recording and collecting a species for seed banking are approximately R1230, with an associated cost of R10 per seedling for those species re-established in the wilderness or plantations. Gene banking is considerably cheaper, with a consumable cost of R150 per species, but the genetic fingerprinting process is somewhat more expensive, at R200 per fingerprint. However, the start-up costs of genetic fingerprinting are relatively high, with an ultracentrifuge weighing in at R422 000, a -80°C freezer costing R80 000, and a DNA bank manager costing on average R70 000. This means that gene banking must be seen as essential before it is embarked upon, and requires very long term funding. Slide 16: Providing incentives to private landowners Duration: 00:00:54 Published by Articulate™ Presenter www.ArticulateGlobal.com 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 35 should bear the costs for the conservation of renosterveld on the property. Notes: One possible alternative to buying land would be to persuade private landowners to conserve biodiversity on their own land. This could be achieved through offering landowners incentives to do so, and an initial study to assess the responses of landowners to this suggestion met with a good response, with 92.5% of the landowners agreeing that incentives might persuade them to engage in conservation. Furthermore, 87% of them thought that conservation of plants and animals outside the bounds of reserves should be the responsibility of private landowners, although nearly 8% disagreed with this. Interestingly, though, whilst they thought they should be responsible for conservation, more than half of the landowners also thought that some branch of governance should bear the costs of conserving renosterveld fragments on their land. This issue was more divided than most, however, with fully 35% saying the costs should not be borne by government. Slide 17: Types of incentives Duration: 00:01:01 Published by Articulate™ Presenter www.ArticulateGlobal.com 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 Notes: This study then assessed what manner of incentives people thought would best persuade landowners to engage in conservation. Top rated amongst the options were monetary recompense, in the form of assistance with fencing and land management, assistance with alien vegetation clearing (which legislation considers the onus of the landowner), and rates relief for land conserved. Grants or subsidies for conservation followed shortly after these. The least popular options included free access to WCNCB parks and discounts at their resorts, as well as advice on the procedure for legal compliance. Community recognition was rated lowest of all options. The remaining options all weighed in at less than 50% popularity, and could be considered should the more popular options not be feasible. Slide 18: Land required in extended PAN Duration: 00:01:19 Published by Articulate™ Presenter www.ArticulateGlobal.com 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 Notes: An assessment of the amount of land which would be required to adequately protect all proteas threatened by climate change showed a total area of more than 430 000 hectares. However, of this land, nearly 132 600 is already in type 2 formal reserves, leaving a shortfall of almost 300 000 hectares. 44 561 hectares of this is already conserved within conservancies, and a further 342 hectares in the core of the Kogelberg Biosphere reserve, leaving 252 000 hectares still required. The biosphere reserve is typified by a buffer area in which minimal impact activities are engaged, including conservation, so another 5152 ha is conserved in this area. Thus, the final area required is 247 639 ha. The state owns just over 6 000 ha of this, and could feasibly grant it as conservation areas. However, 241 500ha of the required total (just over half) falls within the bounds of privately-owned land. Clearly, this means that climate change protection for the proteas must necessarily engage with landowners in some form, and on a large scale. Slide 19: Total costs of expanding protected area network Duration: 00:01:44 Published by Articulate™ Presenter www.ArticulateGlobal.com 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$) 95,282 93,228 24 36 880 33 36 1,173 7,276 200.47 36 7,217 1.63 36 59 405,883,905 Notes: The total costs of expanding the protected area network are considerable. The basics for the protected area network would be a new reserve system based on the 6182 hectares of state-owned land, which has in principle agreed to donate the land for free. Capital costs and operating costs for this land would be relatively low, but clearing aliens off the land is likely to be an expensive and time-consuming affair, weighing in at over 10 million US$. The reserve would then be connected by a matrix of contractual reserves on private land, allowing for gene flow, and movement corridors for the species under consideration. This area is by far the bulk of the expanded protected area network, and establishment of contractual reserves is estimated to cost as much as 240 000 dollars, with another 780 000 dollars set aside for annual monitoring. However, once again the alien control and removal costs are likely to be the bulk of the damage, weighing in at a snip under 394 million US$! Furthermore, the conservation policy needs to take into account those species which are predicted to go extinct, and therefore can only be preserved through gene and seed banking. The total costs for this process (there are no initial capital requirements because SANBI already has a gene bank in operation) are approximately 95 000 dollars – a fraction of the cost of setting up and running the reserve and conservation matrix. In total, then, this theoretical process would cost nearly 406 million dollars, which is considerably more than the Western Cape is likely to assign to a conservation budget in the near future. Published by Articulate™ Presenter www.ArticulateGlobal.com Slide 20: Benefits associated with different adaptation options Duration: 00:00:57 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 Notes: So, what are the benefits of the different conservation options presented? Assuming the proteas are a suitable indicator species, we can expect to see extinction of approximately 10% of the species despite all conservation efforts, and gene or seed banking is the only viable option for these species. 181 of the proteas are likely to adapt to climate change, or will manage to survive in situ despite changing climatic conditions. For the 81 partial dispersers, which need to migrate to deal with climate change, the expanded protection area and matrix is necessary for survival. As for the 18 obligate dispersers, it is unclear what adaptation options they have. They are likely to survive by moving to more suitable areas, but it is unclear to what extent their movement will be impeded by the current levels of anthropogenic transformation of the land. Published by Articulate™ Presenter www.ArticulateGlobal.com Slide 21: Test yourself Duration: 00:00:05 Advance mode: By user Check your understanding of Chapter 9 PASS MARK 80% Please do not proceed further until you have PASSED Chapter 9: test yourself Notes: Slide 22: Links to other chapters Duration: 00:00:05 Published by Articulate™ Presenter www.ArticulateGlobal.com Links to other chapters 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. Notes: Published by Articulate™ Presenter www.ArticulateGlobal.com