Transcript EEA biodiversity economic workshop - Christie 2006

Economic valuation of biodiversity
in a policy context: problems and
best practice
Dr Mike Christie
Institute of Rural Sciences
University of Wales Aberystwyth
Paper presented to the EEA workshop on ‘Biodiversity and Economics’
5 October 2006
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Overview
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TEV and TSV
Methods
Case study: valuing biodiversity in the UK
Problems
Best practice
Future research needs
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Total
Economic
Value
&
Total Systems
Value
Source: Bateman and
Adger (2001)
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Valuation methods
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Market prices:
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Revealed preference:
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Travel cost; Hedonic pricing.
Stated preference:
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Observed market value; productivity approaches; cost-based methods
(replacement costs).
Contingent valuation; Choice experiments
SP-RP approaches:
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Contingent behaviour; RUM TCM
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Case study: Valuing biodiversity on
UK farmland
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Methods: Choice experiments, contingent valuation,
valuation workshops & benefits transfer.
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Sample: 800 residents – Cambridgeshire and
Northumberland.
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Innovative features:
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Use ecologists to help define biodiversity attributes +
generate scenarios;
20 minute PowerPoint presentation to inform public.
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How do ecologist view biodiversity?
BIODIVERSITY CONCEPTS
ECOLOGICAL CONCEPTS
Keystone
species
Umbrella
species
Flagship
species
Habitat
(species interactions)
Ecosystem
function
ANTHROPOCENTRIC CONCEPTS
Ecosystem
Health
Ecosystem processes
Endangered
species
Rare
species
Rare, unfamiliar
species of wildlife
Charismatic
species
Cuteness
Familiar
species
Locally
important
species
Familiar species of wildlife
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Choice experiment attributes and
levels
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Familiar species of wildlife
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Rare, unfamiliar species of wildlife
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Continued decline (SQ)
Restoration
Creation
Ecosystem services
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Continued decline (SQ)
Slow down decline
Recover to stable populations
Habitat (species interactions)
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Continued decline (SQ)
Rare
Rare and Common
Continued decline (SQ)
With human impact
All services
Tax (7 levels)
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Example of choice task
POLICY
OPTION
A
POLICY
OPTION
B
(Biodiversity degradation
will continue)
Familiar species of
wildlife
Rare familiar species protected
Rare familiar species
protected
Continued decline in the
populations of familiar species
Rare, unfamiliar species
of wildlife
Recovery of rare species to nonthreatened status
Continued decline in the
populations of rare, unfamiliar
species
Continued decline in the
populations of rare, unfamiliar
species
Habitat restoration
Wildlife habitats will continue
to be degraded and lost
Wildlife habitats will continue
to be degraded and lost
Continued decline in the
functioning of ecosystem
processes
Only ecosystem services that
have a direct impact on
humans, e.g. flood defence are
restored.
Continued decline in the
functioning of ecosystem
processes
You will pay an extra
£80.00
tax annually over a 5 year period
You will pay an extra
£20.00
tax annually over a 5 year period
Your tax bill will not be
increased
Habitat (species
interaction)
Ecosystem process
Annual tax increase
DO NOTHING
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Research conclusions
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Is there evidence that people value biodiversity?
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Only 15% of CE respondent chose ‘Do nothing’
What aspects of biodiversity do people most value?
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CE provides evidence that people care about:
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Common and rare familiar species,
Rare unfamiliar species (but not a ‘slow down in decline’),
Habitat restoration and re-creation,
Ecosystem services which have direct impact on humans (but not
those which do not affect humans)
People care about biodiversity, but are largely indifferent
about how biodiversity outcomes are achieved!
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Research conclusions
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Is it possible to value complex goods such as
biodiversity?
Yes, but is challenging
 Requires careful design (expert reviews, public FG)
and information presentation
 The way experts and the public view biodiversity is
different, therefore need to ‘translate’ expert views
for study.
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Problems for biodiversity valuation
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Ecologists don’t fully understand the
complexities of biodiversity / ecosystems;
Poor public understanding of biodiversity
concepts;
‘Constructed’ preferences
Public versus expert preferences
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Problems for biodiversity valuation
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Aggregation:
Distance decay;
 Double counting;
 Passive use values.
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Cost
Good studies require significant resources
 Benefits transfer?
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Best practice
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Incorporate sound ecological knowledge into
design;
Extensive piloting to ensure biodiversity
descriptions are meaningfully to public;
Respondents need to be fully informed and
reflective – requires adequate funding;
Use of workshops to help validate results;
Explore heterogeneity of values;
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Future research needs
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Aspects of biodiversity requiring more attention
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Total systems values
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Scope / scarcity / extinction (irreversibility) issues
Passive use values
Biodiversity components:
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Social, cultural values
Infrastructure ‘glue’ values
protected areas-, farmland-, urban- biodiversity
Landscape level
Genetic level
Aggregation issues
Benefits transfer
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