The Economics of The Global Loss of Biological Diversity Brussels Workshop March 2008 Patrick ten Brink of IEEP

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The Economics of The Global Loss of Biological Diversity Brussels Workshop March 2008 Patrick ten Brink of IEEP. This was a contribution to a workshop to debate what can be said in what terms on the …

The Economics of The Global Loss of Biological Diversity Brussels Workshop March 2008 Patrick ten Brink of IEEP. This was a contribution to a workshop to debate what can be said in what terms on the value of biodiversity loss and what role there is for economic values.

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  • 1. The Economics of the Global Loss of Biological Diversity 5 & 6 March 2008 Brussels Session B2 Measuring Benefits from Ecosystem Services – Integrating Monetary and Non-Monetary Estimates (5 March 14:00) Patrick ten Brink IEEP Ptenbrink@ieep.eu www.ieep.eu Thanks for inputs from Marianne Kettunen (IEEP) Aline Chiabai (FEEM) Ingo Braeuer (Ecologic) Leon Braat (Alterra)
  • 2. Measuring Benefits of Ecosystem services: The Benefits Pyramid What can be said in what terms and what was explored? Non-Specified Monetary: eg avoided water Benefits purification costs, tourist value Increasing up the benefits Monetary Value pyramid Quantitative: eg number people benefiting from wood from forests Quantitative Review of Effects Type of benefits; health, social, income, wellbeing Qualitative Review Knowledge gaps Full range of ecosystem services from biodiversity The “known- unknowns” and “unknown-unknowns”
  • 3. The Benefits Pyramid – distinguishing types of ecosystem service Do we have more information Non-Specified on one type of service than Benefits another at the monetary M level? Would a greater monetary value for one set of services Qt necessarily mean that this service offers greater value? Ql What is the implication where this is not the case – for how to use monetary data in All combination with other data ? Provisioning Regulating Cultural Supporting
  • 4. What monetary evidence can we base the message of the “value of biodiversity loss” on? Supporting Provisioning Regulating Cultural Overall Number of 3 34 40 55 132 valuation studies Typical focus Soil Food, fibre, Water Recreation of valuation – formation fuel regulation and eco- nature of ESS tourisms Typical focus Global Europe North Europe Northern of valuation - America hemisphere region Source: ongoing work within the COPI database. To what extent do the monetary valuations on their own provide a complete & representative picture of Ecosystem services & their contribution to wealth & wellbeing?
  • 5. Interest and evidence Level of information Level of press/interest Quantitative / qualitative Monetary There are different audiences, and different messages are needed for each. Different types of messages have different power and different reach. The overall aim is to get the message across to the (range of) key audiences – in a manner that is representative of the facts and that engages interest. Hence, we need to work out how best to combine monetary and non-monetary information.
  • 6. How can one represent the monetary and non-monetary benefits? Who is interested in what & how can they best be combined? Key objectives- understanding, representativeness, and getting the message across The single global number Politicians, media, Ranges general public Local / national numbers Partial aggregations Economists; 1 locality, 1 service numbers local politicians M Indexes (eg living planet index) Indices (eg species richness) People/population (share) affected Species at risk, endangered Scientists Qt Risk assessments Policy analysts Loss of forest cover (ha) Aggregates and cases Surveys Story lines / uniqueness / Ql indispensible Hotspots All Maps Critical thresholds All What do you see perceptions What quantitative measures can Stakeholder as important? give an indication of value? What other measures are valuable? How can they best be combined?
  • 7. How do we address the following issues ? How should one combine information on biophyisical terms with monetary estimates Risks and Scientific Uncertainty Substitutability (or lack of) and irreversibility Linear vs non-linear changes That some costs are unknown Some costs only have an effect in future generations Inherent biases in the economic valuation system? eg greater focus & ease of analysis for commodity prices related valuations (re Review contribution) Biases in the application of valuation - certain priorities and not others? eg global issues focus rather than local? (re Review contribution) Gaps – how can we work with the gaps before we fill them? eg Indigenous knowledge (re Review contribution) What other issues are important for you ?
  • 8. Key questions to discuss in this session How should one combine information on biophyisical terms with monetary estimates ? What measures should be used? How does one deal with specific issues noted earlier? What other issues are critical to take into account? In short, what should be an appropriate balance of information to communicate the biodiversity loss message? In CBD COP9 Bonn ? In a full assessment of the value of biodiversity loss?