UNCCD 2nd Scientific Conference    Economic assessment of desertification, sustainable land management and              re...
Session outline•   Why such an initiative?•   The ELD approach•   Links to complementary initiatives•   Identified knowled...
Why such an initiative?• ELD movie• Not much action so far despite well-known technical solutions,  hence economic approac...
The ELD approach•   Cost-benefit analysis•   based on the total economic value•   of ecosystem services derived from land•...
Categorisation of economic values:                Total Economic Value framework                                 Total Eco...
Categorisation of ecosystems services:        Millennium Ecosystem Assessment framework• The economic value of an ecosyste...
Examples of valuation of ecosystem services               for improved land management• Provisioning services   – Estimati...
Combining the two frameworks:   Millennium Ecosystem Assessment and Total Economic                         Value   Compone...
Cost of inaction or benefits from action100%                                     Fully functioning (restored) land        ...
Decision-making framework                                          A given piece of land, for aStarting point:            ...
Links to complementary initiatives• Micro-economics approaches based on the total economic value of ecosystem  services (m...
Identified gapsTechnological                                          9.    Lack of robust low cost methods    1. Overall ...
ELD initiative organisational structure
ELD working group on data and methodology• Leader: Bob Costanza, Australian National University• Objectives  1. assess bot...
ELD working group on options and pathways for action• Leader: Stacey Noel, Stockholm Environment Institute• OBJECTIVE OF E...
ELD working group on options and pathways for action• Engagement of stakeholders   – Initial meetings with national policy...
ELD working group on economic evaluation of options                       (scenarios)• (see dedicated presentation)
Expected working group contributions to each of the ELD                       output reports                              ...
Take home message• Economics can be used for improved decision-making• in relation to land management• for increased polit...
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Richard THOMAS, Mark SCHAUER "Economics of Land Degradation (ELD) Initiative - Bridging the science-policy-practice divide - Making a case for tackling land degradation through valuation of ecosystem servicesence eld-session_unu-inweh

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  • Photos: Ethiopia and Rwanda, Emmanuelle Quillérou
  • Continuum of land states between fully functioning and fully degraded land, and the relationship between the costs of land degradation and the potential benefits from land restoration.Arrow 1 corresponds to the costs of land degradationArrow 2 corresponds to the potential benefits of land restorationArrow 3 corresponds to the effective benefits from land restoration
  • Richard THOMAS, Mark SCHAUER "Economics of Land Degradation (ELD) Initiative - Bridging the science-policy-practice divide - Making a case for tackling land degradation through valuation of ecosystem servicesence eld-session_unu-inweh

    1. 1. UNCCD 2nd Scientific Conference Economic assessment of desertification, sustainable land management and resilience of arid, semi-arid and dry sub-humid areas 9-12 April 2013 - Bonn, Germany DAY 2 – WED 5.1: Economics of Land Degradation (ELD) initiative Bridging the science-policy-practice divide:Making a case for land degradation through valuation of ecosystem services
    2. 2. Session outline• Why such an initiative?• The ELD approach• Links to complementary initiatives• Identified knowledge and practice gaps• Organisational structure and the three ELD working groups – Stacey Noel (ELD working group leader on options and pathways for action) – Makiko Yashiro (UNEP) representing Pushpam Kumar, ELD working group leader on scenarios• Panel discussion – Mark Schauer (ELD Secretariat, GIZ) – Richard Thomas (ELD Scientific coordinator, UNU-INWEH) – Emma Quillérou (ELD Scientific coordination, UNU-INWEH) – Stacey Noel (SEI, ELD working group leader on options and pathways for action) – Ephraim Nkonya (IFPRI, ELD scientific partner) – Simone Quatrini (Global Mechanism of the UNCCD)
    3. 3. Why such an initiative?• ELD movie• Not much action so far despite well-known technical solutions, hence economic approach• Three types of problems faced by land managers that economics can help solve: – Decide which option benefits the most to society as a whole (eg Development vs Conservation) – set “fairer” compensation levels and reduce social unrest (redistribution from winners to losers) – assess further opportunities for development and set up new markets
    4. 4. The ELD approach• Cost-benefit analysis• based on the total economic value• of ecosystem services derived from land• to compare the costs of action to the benefits from action• If benefits > costs, we should take action
    5. 5. Categorisation of economic values: Total Economic Value framework Total Economic Value of Land and Land-based services Use Value Non-Use Value Direct Indirect Option Existence Bequest StewardshipUse Value Use Value Value Value Value Value
    6. 6. Categorisation of ecosystems services: Millennium Ecosystem Assessment framework• The economic value of an ecosystem is the sum of economic values derived from individual services flows – Provisioning services, e.g. food, timber and fresh water – Regulating services, e.g. pollution reduction – Cultural services, e.g. aesthetic and spiritual values – Supporting services, e.g. soil formation and nutrient cycling*• A framework which excludes the value of natural resource stocks for future benefits (so far) – If the flow of services is maintained but the stock decreases over time, then the system will not be sustainable in the long run! – Stock value can be estimated by complementary methods, e.g. green accounting * Risk of double-counting
    7. 7. Examples of valuation of ecosystem services for improved land management• Provisioning services – Estimation of costs of soil erosion (productivity loss, replacement costs and participatory contingent valuation) for investment in erosion reduction• Regulating services – Estimation of non-agricultural and non-timber values to set up carbon payments – Estimation of costs of pollution to set up payments for maintenance• Cultural services – Estimation of recreational values to develop the tourism industry – Estimation of aesthetic and spiritual values to protect cultural and spiritual assets
    8. 8. Combining the two frameworks: Millennium Ecosystem Assessment and Total Economic Value Components of Total Provisioning Regulating Cultural Supporting Economic Value services services services services* Direct use    Use value Indirect use    Option   Non-Use value Existence  (Bequest)* Risk of double-counting Intuitively, our objective is to ‘sum’ all the ticks to derive the total economic value of land services
    9. 9. Cost of inaction or benefits from action100% Fully functioning (restored) land (100% crop yields /timber /biodiversity/…) Action 170% 1 2 Action 2 340% Land under consideration 0% Fully degraded land, no economic activity (0% crop yields /timber /biodiversity/…) Cost of inaction = benefits from action only if action means 100% land restoration (action 1) Cost of inaction > benefits from action otherwise (action 2)
    10. 10. Decision-making framework A given piece of land, for aStarting point: given legal, political and economic context3 options for Do nothing Alternative livelihoodsaction: Improved productivity (business as usual) (economic activities)Estimate totaleconomic value Net economic Net economic Net economicof economic benefit from benefit from benefit fromcosts and Improved productivity business as usual Alternative livelihoodsbenefits: Choose option with greatest net economic benefit for action (or inaction) and adapt legal, political and economic context to enable adoption of chosen option
    11. 11. Links to complementary initiatives• Micro-economics approaches based on the total economic value of ecosystem services (multiple geographical levels) – Cost of actions vscost of inaction • Stern Review on Climate Change • The Economics of Ecosystems and Biodiversity (TEEB) • UK National Ecosystem Assessment (UK NEA) • Germany Centre for Development Research (ZEF)’s Economics of Land Degradation research project – Cost of actions vsbenefits from action • Offering Sustainable Land Use Options (OSLO) consortium • Currently considered for the Economics of Land Degradation (ELD) initiative• Macro-economics approaches (mostly national level): • System of Environmental-Economic Accounting (SEEA): describing stocks and changes in stocks of environmental assets • Wealth Accounting and the Valuation of Ecosystem Services (WAVES): natural capital and ecosystem accounting for national accounts
    12. 12. Identified gapsTechnological 9. Lack of robust low cost methods 1. Overall costs/benefits of different land applicable by affected countries in management interventions (trade offs short term with focus on livestock and rangelands) 10. Limited understanding of value of 2. Understanding of drivers of changes ecosystem services to local livelihoods (case studies) 10+. Lack of consideration of stock 3. Relationship between population evolutions as well as flows density and land degradation Policy gaps 4. Identify system tipping points for land 11. Lack of plausible scenarios degradation 12. Lack of monitoring and evaluation forEnvironmental evaluation total ecosystem assessments 5. Lack of harmonized methodology 13. How can policies promote sustainable (scales, discount rate) land management 6. Lack of information on social costs of Institutional and private sector land degradation 14. Lack of incentives for sustainable land 7. Lack of information on mapping management ecosystem services 15. Greater interdisciplinary approaches 8. Lack of information on non-market (incentives) values of ecosystem services 16. Lack of (appropriate) knowledge management
    13. 13. ELD initiative organisational structure
    14. 14. ELD working group on data and methodology• Leader: Bob Costanza, Australian National University• Objectives 1. assess both existing data, knowledge and methods to identify good methodological practices 2. design an integrated tool for assessment for policy-makers which will use scenarios and options for action established by the other two working groups
    15. 15. ELD working group on options and pathways for action• Leader: Stacey Noel, Stockholm Environment Institute• OBJECTIVE OF ELD: to enable decision-makers in politics and business to take the necessary measures• UNDERSTAND BETTER HOW LAND USERS TAKE DECISIONS• TARGET AUDIENCES – Political and Local Decision-Makers – Private Sector – Scientific communities
    16. 16. ELD working group on options and pathways for action• Engagement of stakeholders – Initial meetings with national policymakers and private sector through regional and/or national meetings – Deeper interactions during case study work – Presentation of final result through diverse methods • Personal interaction with government decision makers • Training courses for decision-makers and practitioners • Policy briefs, website and other outreach materials • Participation in regional and international conferences
    17. 17. ELD working group on economic evaluation of options (scenarios)• (see dedicated presentation)
    18. 18. Expected working group contributions to each of the ELD output reports Working group Working group Working group “Options and “Economic “Data and pathways for evaluation of Methodology” action” options (scenarios)”Report to Scientific +++ ++ +CommunitiesReport to Decision + ++ +++MakersReport to the + ++ +++Private Sector
    19. 19. Take home message• Economics can be used for improved decision-making• in relation to land management• for increased political stability and economic growth• Most importantly, we need your inputs! – existing case studies – new inputs and participants to provide content for the ELD reports – additional funding for case studies Please come and join us http://eld-initiative.org/

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