Economic Instruments for Ecosystem Services in Canada

35,304 views

Published on

Published in: Technology, Economy & Finance
0 Comments
1 Like
Statistics
Notes
  • Be the first to comment

No Downloads
Views
Total views
35,304
On SlideShare
0
From Embeds
0
Number of Embeds
28,305
Actions
Shares
0
Downloads
17
Comments
0
Likes
1
Embeds 0
No embeds

No notes for slide

Economic Instruments for Ecosystem Services in Canada

  1. 1. Economic Instruments for Ecosystem Services in Canada Brandon Schaufele Research Director, Sustainable Prosperity Asst. Professor, Dept. of Economics, University of Ottawa ONES Forum, November 15, 2011
  2. 2. Sustainable Prosperity• National green economy think tank and research network• Promote market-based instruments in order to achieve both economic and environmental goals• Working to build a greener, more competitive economy through policy innovation and markets• Four areas: low carbon economy, sustainable communities, emerging issues, ecosystem service markets Making markets work for the environment
  3. 3. Economic Jargon: Market Failure• Externalities• Incomplete/missing markets• Imperfect information• Public goods• Transaction costs• Property rights• Other issues: misaligned incentives and distortionary subsidies Making markets work for the environment
  4. 4. Policy Options• Command & control regulation• Liability rules• Information provision • Environmental certification • Education/awareness programs • Voluntary programs• Economic instruments • Tax incentives • Payments for ecosystem services • Reverse auctions • Markets/tradable permits Making markets work for the environment
  5. 5. Command & Control – it would be nice... Making markets work for the environment
  6. 6. Blue-green algal blooms in Lake Winnipeg Source: Campbell (2011)Source: canadawater.wordpress.com
  7. 7. Buffer strips:Improve water quality in addition toproviding habitat and sequestering carbonSource: Campbell (2011)
  8. 8. South Nation Phosphorus Offset MarketSource: nation.on.ca
  9. 9. Wide applicability of EIs in Canada Air Pollution 6% Energy Efficiency 6% Biodiversity Provincial Federal Conservation 76% 24% 5% Waste Management 4% Water Pollution 3%• Environment Canada identified more than 150 economic instruments in Canada Making markets work for the environment
  10. 10. Economic Instruments are not Cure-Alls • Require a trade-off between monetary incentives and environmental consequences • May not be optimal if goal is to eliminate pollutant • Social, political, cultural and equity issues • Often best used with other policies Making markets work for the environment
  11. 11. Advancing the Economics of Ecosystems and Biodiversity in Canada: A Survey ofEconomic Instruments for theConservation & Protection of Biodiversity June 2011 http://www.sustainableprosperity.ca/article1431 Making markets work for the environment
  12. 12. Brandon SchaufeleResearch DirectorSustainable Prosperitybschaufele@sustainableprosperity.cawww.sustainableprosperity.ca Making markets work for the environment

×