Caroline Saunders


Published on

Published in: Technology
  • Be the first to comment

  • Be the first to like this

No Downloads
Total Views
On Slideshare
From Embeds
Number of Embeds
Embeds 0
No embeds

No notes for slide

Caroline Saunders

  1. 1. Valuing Biodiversity Professor Caroline Saunders AERU Lincoln University
  2. 2. NZ: young isolated country • Large part of NZ economy is related to land (1/3 GDP are exports, 70% from land) • 1/3 of the land is under conservation estate • Emphasis is on indigenous biodiversity and protecting this from exotic species • Understanding of multifunctionality low • No subsidies for agriculture
  3. 3. What is Biodiversity?- Indigenous versus exotic • In NZ debate around indigenous biodiversity • Controversy that any biodiversity is of value on and around farm land – under 20% of area • Concern re impact of agriculture on water biodiversity and loss of remnant ‘bush’ • How to measure – biodiversity footprinting in infancy – number of species, land area… • Weeds and pests main issue eg: possums, pines
  4. 4. Policies for biodiversity protection • Public ownership - conservation estate (1/3 land) • Recent land tenure reform • QE II covenants – voluntary removal of land in perpetuity from production (small areas) • NPS on protecting biodiversity on private land – voluntary with very limited funds • Pest free NZ – removal of possums, rats, mice, stoats and cats!!! – philanthropy
  5. 5. Value proposition for biodiversity • Citizens - total value - non market valuation (Tbfree, DoC) • Right to operate (Dairy, mining) • Market positioning and premiums (AirNZ, Icebreaker, Zespri) • Eco System services – beneficial planting (erosion control)
  6. 6. Methods to value biodiversity – vary • Reduction in operating expenses – ecosystem services • Saved costs from extreme events • Benefits from increased productivity • Improved market returns from premiums • Non- market valuation techniques
  7. 7. Market access – labelling schemes • Global G.A.P. – conservation management plan • Leaf – Farm Environmental Policy • Zespri – Environmentally friendly production, fantails in orchards are encouraged • Hard to calculate value of these eg ; leaf waitrose
  8. 8. Importance of attributes of NZ food products 100% 80% Don't Know Not Important At All 60% Somewhat Important Neither Important Nor Unimportant 40% Somewhat Important Very Important 20% 0% UK India China UK India China UK India China UK India China UK India China
  9. 9. WTP of attribute as % of product price in China, India and the UK China India UK Dairy Lamb Dairy Lamb Dairy Lamb Safety 74% 44% 73% 77% 16% 18% Welfare 26% 13% 42% 41% 17% 22% Water 16% 12% 19% 26% 3% 7% GHG 25% 14% 38% 39% 7% 7% Biodiversity 22% 15% 27% 42% 6% 6% Foreign Origin 26% 10% -20% - -4% -5% NZ Origin 49% 24% 10% 21% 3% 6% Notes: WTP derived using Krinsky and Robb method.
  10. 10. Biodiversity as ecosystem service • Greening Waipara- 50 wineries in N Canterbury (Pegasus pay and Torlesse vineyards) – financial benefits currently low • Shelterbelts in native species (3% increase in dairy production) • Riparian panting for water quality • Tree planting reduces erosion (NZ$100m + per year)
  11. 11. How to value total benefits - WTP • History of this in policy making and legislation • Used to be contingent valuation now cutting edge is choice modelling • Has had a mixed history especially with contingent valuation but non-market valuation now established technique • Used across range of areas from transport; markets; and environmental valuation
  12. 12. Policy Relevance • First study in the UK on ESA south downs and Somerset levels by MAF to aid funding • Few studies in NZ to inform policy and nervous re large estimates which do not suit policy environment • Working with MPI, DoC Treasury re use of technique especially embedded in policy alternatives
  13. 13. Choice modelling • Looks at a range of ‘attributes’ or outcomes • Elicit WTP by respondents trading off between these outcomes • This improves the accuracy by embedding attributes alongside other outcomes • It gives more detail of preferences
  14. 14. Choice modelling of impacts of irrigation • Assessing WTP for cultural; environmental; social and economic impacts of irrigation • Environmental attributes QMCI biotic index of macro invertebrates • Cultural attribute – culture health index; presence of food; stream health and site status • 3 scenarios modelled (Miller et al 2013)
  15. 15. Results • For environment – WTP $25 in rates for improvement poor to good and $198 from poor to excellent • For cultural WTP $57 to go from poor to above average • To compensate for increase in irrigation $40 m $1364 per hectare (benefit from increased irrigation is around $4,000 per hectare)
  16. 16. NZ native and exotic trees and shrubs
  17. 17. Choice set
  18. 18. Results • Planting Purely native (trees) $120 • Planting mixture of natives and nonnatives (trees) were valued $112 • Yao, R. and Kaval, P. (2009)
  19. 19. Value of possum control • Observable market prices are not available that can reveal what New Zealand farmers are willing to pay for many of the types of benefits that flow from TB-vector control • To estimate values we employed the non-market valuation methodology of choice modeling • This involved conducting an online survey of 6,000 New Zealand farmers • 1,021 responses (17%) with a good representation of farm type, size and location
  20. 20. Choice Experiment • Farmers presented with a series of choice tasks • For each choice task, famers choose between at least two options • Each option is described by a number of characteristics or attributes, which describe management outcomes • Statistical information derived from these choice tasks is modeled to reveal the relative importance of each attribute • By including a monetary attribute in choice tasks, the monetary value of other attributes can be calculated
  21. 21. Current Management Situation Management Alternative A Management Alternative B Long term (>20yr) TB infection rate per year in your area 1 farm per 1‚000 No infections 1 farm per 1‚000 Current TB management levies Same as now Increase by one third Increase by two thirds Long term (>20yr) cost of TB testing of livestock 40% less than current testing cost 60% less than current testing cost 50% less than current testing cost Presence of possums sighted or heard in VRA farms Three to four times a year Once a fortnight Almost Never Low threat on Low threat on Possum threat to Substantial farms‚ farms‚ significant native plants‚ birds damage, increase in improvement in widespread and animals on and threats to pre-1990 most off-farm bush improvement in offoff farm in VRAs levels areas farm bush areas Possum damage on farm to pasture‚ crops‚ trees and gardens in VRAs Selection Same as now 20% increase Slight decrease >>
  22. 22. Key Findings • Strong farmer support for the TbFree programme. Generally, farmers indicate a high level of satisfaction with the performance of the programme • 80% of all farmers think that the value of the benefits of the TbFree programme equals or exceeds what they pay towards the programme • Farmers in VFAs are still willing to pay for benefits that are only enjoyed by farmers in VRAs, but not by as much as VRA farmers • The national value of benefits to farmers from reduction in threat to native plants, birds and animals on and off-farm in VRAs is approx. $1.46 to $3 million more than current levies annually (that is around $40 million)
  23. 23. Valuing conservation benefits from TB-vector control • Pilot method in three habitat-strategic contexts – Kahurangi – Hauhugaroa / Pureroa – Hawkes Bay farmland • This is to be expanded in another study to all of NZ • Survey under construction
  24. 24. Hawkes Bay
  25. 25. Issues with the technique • • • • • • Cost – and limited transfer of results Biases – hypothetical, mental account… Ensure comparison with real policy alternatives Ensure payment vehicle realistic Careful design reduces these biases In fact some studies found people underestimate what they are actually did pay • Complex survey technique
  26. 26. Issues in NZ • • • • • How to characterise different biodiversity areas / types What are the units to be valued (area v species) The impact of distance to urban areas and size of areas How to scale to the policy relevant area How to ensure the outcomes are based on what is achievable • Science to provide relevant measures of the attributes • Complexity biological heterogeneity hard to capture everything • Multi disciplinary research - can biophysical scientists communicate with economists and then the general public
  27. 27. Future research • Calculate and communicate the value proposition from biodiversity – market/ecosystem services/ NMB • Represent ecological complexity in a manner that could enhance benefit transfer of valuation • Research into the relative value of biodiversity compared to other goods and services • Validate results linking with other disciplines and experimental and behavioural economics • Valuation of biodiversity eco-system services • Assess consumer demand for biodiversity
  1. A particular slide catching your eye?

    Clipping is a handy way to collect important slides you want to go back to later.