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The economic value of nature?
Pricing habitats and species
- Possibilities and constraints
Ivan Olsson and Stefan Jendteg
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@UC_4LIFE
Cost-Benefit Workshop
Outline
- An introduction to ecosystem services and cost-benefit analyses (CBA)
- The Fyledalen case study
- Methods used
- Cost estimates
- Benefit estimates
- Preliminary results
- Problems encountered:
Biodiversity
Species without commercial values
Habitats without recreational values (mires, he he …?)
Robustness of variables used by CBA´s
- Workshop exercise
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Introduction
Unio crassus filtering water, reducing nutrients
Ecosystem services = goods and service provided by the ecosystem (beneficial for us).
1) Providing/producing (eg goods; food, timber)
2) Regulating (eg pollination, predators regulating herbivores)
3) Supporting (eg hydrological cycle, transport of nutrients…)
4) Cultural (eg recreational, hunting, angling)
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Threats …
The impact of canalizing; increase in extreme flooding events, nutrient transport, loss of diversity etc
Sources responsible for loss of ecosystem services:
Habitat destruction (eg pollution, the impact of invasive species)
Fragmentation (eg alteration of habitats resulting in loss of connectivity)
- Loss of mechanisms driving ecosystems (pacific salmon as a “nutrient carrier”)
- Loss of biodiversity and genetic diversity
Are traditional “ecological variables” (eg extinction rates, levels of pollutions, diversity index)
- powerful enough for changing the negative trends (human behavior)?
In cases they are not…
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How about Cost-Benefit Analyses, CBA´s ?
The CBA as an additional (stronger?) tool describing, in monetary terms:
- the negative effects of having non-functional ecosystems
- the positive effects of having functional ecosystems
…Pricing and valuing ecosystem services by CBA´s may create an economic motivation
for its protection… and for restoring habitats and re-introduction of species…
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The Case study in Fyledalen
Post-LIFE-conditions
- Poor water quality, habitats
- Poor aquatic biodiversity
Objectives
Improved water quality
Increased biodiversity
To learn a lot…
To disseminate a lot
The Baltic perspective
Recreation, post-hoc
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The value of a mussel?
As a pedagogue, indicator and symbol
- but also as a threatened “species”
and filter feeder…
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Methods
Transforming responding variables (objectives) into monetary values (SEK)
before and after implementation of actions:
P-reduction, per kg = 1 023 SEK
N-reduction, per kg = 31 SEK
Water quality
Biodiversity ???
Salmonids, 108 SEK per kg
Other species, 9 SEK per individual
Fish production
Mussel filtering
Filtering/storage capacity 0.1 – 1.2 g P per mussel (?)
Recreation
Willingness to pay amongst visitors, but no fee
(350 SEK per visit)
Knowledge gained ???
Dissemination, catalyst effect ???
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CBA Results - Recreation
50% of RV
Accumulated costs vs benefits (SEK)
Recreation Value (RV)
Costs
10% of RV
2012
2014
2016
2018
2020
2022
2024
Action costs c. 6MSEK
Benefits: Willingness to pay 350 SEK per visit, annually 20 000 visits in Fyledalen
Willingness to pay for Action costs (50% of RV), 175 SEK ? – Balance 2015
Willingness to pay for Action costs (10% of RV), 35 SEK ? – Balance 2023
The study (questionnaire) will be repeated the following years for
“new” RV and accurate “willingness to pay” numbers for actions…
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Accumulated costs vs benefits (SEK)
CBA Predicted Results - Water quality
Tot reduction
Costs
P-reduction
N-reduction
P-Mussels
2012
2014
2016
2018
2020
2022
2024
Action costs c. 6MSEK
Benefits: P-reduction (range: -20 to 80 kg per month [1023 SEK per kg]) by floodplain actions
N-reduction (range: 100 to 300 kg per month [31 SEK per kg]) by floodplain actions
P-reduction by mussels (range 0.1 to 1.2 g per individual and year). Population
density will level out 2030 (Carrying capacity 3 M)
Benefits will balance costs 2021 ?
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CBA Predicted Results - Fish
Accumulated costs vs benefits (SEK)
Costs
Salmonids
other fish sp
2012
2014
2016
2018
2020
2022
2024
Time (YEARS)
Action costs c. 6MSEK
Benefits: Fish, annual production (range: 200 – 10000, 9 SEK/fish):
Benefits: Salmonids, annual production (range: 100 – 250 kg, 108 SEK/kg)
Benefits will balance costs 2070
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Accumulated costs vs benefits (SEK)
CBA Costs vs benefits, predicted (total)
Costs
Benefits, total
2012
2014
2016
2018
2020
Benefits = (recreation + water quality improvements + increased fish production)
balance project costs by 2018…
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Conclusions
Possible to value:
Costs
Improvements of recreation value +++
Improvements in water quality ++
Increased fish production +
Not possible to value(?):
Biodiversity
Dissemination
Gained knowledge
We were able to predict the time for when benefits balanced costs
We were able to estimate the benefits of having Unio crassus re-introduced
Robustness of variables/predictions(?), validation through monitoring
(before-after-impact-control-design)
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Future LIFE-projects?
Each proposal containing concrete conservation actions must also include an action
aimed to assess the socio-economic impact of the project actions on the local
economy and population, as well as on the ecosystem functions"
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THANKS
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Workshop exercise
Thematic (rivers and lakes, wetlands/bogs, grasslands, forest) groups?:
The tasks:
1) Define potential ecosystem services that are influenced by your project actions
2) Quantify, in monetary terms, ecosystem services (benefits) affected by your
project actions (optimal €/unit).
3) Define positive impacts on ecosystem services, not possible to quantify in
monetary terms. Why isn't it possible?
4) When should we use the concept of ecosystem services and
cost- benefit analyses? Why?
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