1. UNCCD 2nd Scientific Conference 2013 - Bonn
Economic assessment of the
financial effects of (not) adopting
land management measures
Luuk Fleskens
University of Leeds
l.fleskens@leeds.ac.uk

2. UNCCD 2nd Scientific Conference 2013 - Bonn
Financial effects of land management
- ON-SITE WITH (Action)
- OFF-SITE
COST BENEFIT
(n.a.)
WITHOUT (Inaction)

3. UNCCD 2nd Scientific Conference 2013 - Bonn
Benefits without intervention (I)
productivity
time

4. UNCCD 2nd Scientific Conference 2013 - Bonn
Benefits without intervention (II)
Managing catastrophic shifts
Vegetation
composition
(dominance of)
the herbaceous
layer

5. UNCCD 2nd Scientific Conference 2013 - Bonn
Costs of intervention (I)
Variable input quantities (environmental factors)
e.g. as a function of
slope
Variable price of inputs (market/transport factors)
Varies in landscape
due to topography,
transport type,
infrastructure, etc.

6. UNCCD 2nd Scientific Conference 2013 - Bonn
Costs of intervention (II)
Labour opportunity costs
Posthumus and de Graaff, 2005. Land Degradation & Development 16: 1-11.

7. UNCCD 2nd Scientific Conference 2013 - Bonn
Benefits with intervention (I)
productivity
time

8. UNCCD 2nd Scientific Conference 2013 - Bonn
Benefits with intervention (II): timing
Change in the discounting horizon:
𝑡=20
𝑚𝑎𝑥 𝑡 𝑗, 1
𝑁𝑃𝑉 𝑇𝑇𝑀=𝑗 = ∗ 𝑁𝑃𝑉 𝑇𝑇𝑀=20
1.1 𝑡
𝑡=1
Variations relative to the standard period: 15 – 33 years
100%
Financial viability (% applicable area)
75%
50%
25%
0%
0 10 20 30 40
Time to maximum vegetation (years)

9. UNCCD 2nd Scientific Conference 2013 - Bonn
Plans for economic analysis CASCADE
Within study sites: a variety of degradation states
and land management strategies. We will:
• Develop a tool for cost-benefit analyses linked to
soil-water-plant model (WP6); special attention
to the optimum timing (non-action, early action, late action)
of measures that prevent degradation processes.
• Evaluate model results; interviews with land
users, community focus groups and experts.
Group meetings with regional and national
policy makers.

10. UNCCD 2nd Scientific Conference 2013 - Bonn
Timing of action and responses near catastrophic shifts
Kefi et al (2013). Oikos (in press)

11. UNCCD 2nd Scientific Conference 2013 - Bonn
Epilogue
How to communicate and co-develop knowledge with stakeholders?
What role for economic valuation?