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STRENGTHENING INDICATORS AND ACCOUNTING SYSTEMS FOR NATURAL CAPITAL Salafsky, N.; Margoluis, R. and Redford, K.H. (2001) Adaptive management: a tool for conservation practitioners, Biodiversity Support Program, Washington, D.C. Schutyser, F. and Condé, S. (2009) Progress towards the European 2010 target. EEA Report No 4/2009. URL: http://www.eea.europa.eu/ publications/progress-towards-the-european-2010-biodiversitytarget (last access Oct 30, 2009). South Australia’s Strategic Plan (2007) Objective 3 – Attaining Sustainability. URL: http://www.saplan.org.au/content/view/97/ (last access Oct 30, 2009). Stern, N. (2006) The Stern Review on the Economics of Climate Change. Cambridge University Press, Cambridge. Stiglitz, J.E.; Sen, A. and Fitoussi, J.-P. (2009) Report by the Commission on the Measurement of Economic Performance and Social Progress URL: http://www.stiglitz-sen-fitoussi.fr/documents/ rapport_anglais.pdf (last access Oct 30, 2009). ten Brink P.; Miller, C.; Kettunen, M.; Ramsak, K.; Farmer, A.; Hjerp, P. and Anderson, J. (2008) Critical Thresholds – Evaluation and Regional Development. European Environment 18: 81-95. Torras, M. (2000) The Total Economic Value of Amazonian Deforestation 1978-1993. Ecological Economics 33: 283-297 Trumper, K.; Bertzky, M.; Dickson, B.; van der Heijden, G.; Jenkins, M. and Manning, P. (2009) The Natural Fix? The role of ecosystems in climate mitigation. A UNEP rapid response assessment. UNEP-WCMC, Cambridge, UK Tucker, G.M.; Bubb, P.; d.Heer, M.; Miles, L.; Lawrence, A.; van Rijsoort, J.; Bajracharya, S.B.; Nepal, R.C.; Sherchan, R.C. and Chapagain, N. (2005) Guidelines for biodiversity assessment and monitoring for protected areas. King Mahendra Trust for Nature Conservation / UNEP-WCMC, Kathmandu, Nepal / Cambridge, UK. Turner, W.R.; Brandon, K.; Brooks, T.M.; Costanza, R.; da Fonseca, G.A.B. and Portela, R. (2007) Global conservation of biodiversity and ecosystem services. BioScience 57: 868-873. United Nations (1968) A System of National Accounts, Studies in Methods. Series F, No. 2, Rev. 3, New York. United Nations, European Commission, International Monetary Fund, Organisation for Economic Co-operation and Development and World Bank (2003) Integrated Environmental and Economic Accounting (SEEA 2003). URL: http://unstats.un.org/unsd/env Accounting/ seea2003.pdf (last access Oct 30, 2009). United Nations, European Commission, International Monetary Fund, Organisation for Economic Co-operation and Development and World Bank (2008). System of National Accounts (SNA 2008). URL: http://unstats.un.org/unsd/nationalaccount/SNA2008.pdf (last access Oct 30, 2009). UNDP – United Nations Development Program (2002) RBM in UNDP: Selecting Indicators, Signposts in Development. URL: http://www.undp.org/cpr/iasc/content/docs/MandE/UNDP_RBM_ Selecting_indicators.pdf (last access Oct 30, 2009). UNEP-WCMC (2009) International Expert Workshop on the 2010 Biodiversity Indicators and Post-2010 Indicator Development. UNEP- WCMC, Cambridge, UK. http://www.cbd.int/doc/meetings/ ind/emind-02/official/emind-02-0709-10-workshop-report-en.pdf (last access Oct 30, 2009). van Beukering, P.J.H.; Cesar, H.J.S. and Janssen, M.A. (2003) Economic valuation of the Leuser National Park on Sumatra, Indonesia. Ecological Economics 44: 43-62. Weber, J.-L. (2007) Implementation of land and ecosystem accounts at the European Environment Agency. Ecological Economics 61 (4): 695-707. Weber, J.-L. (2008) Land and ecosystem accounts in the SEEA revision. Position paper for the UN London Group meeting, Brussels, 29 September-3 October 2008. World Bank (2006) Where Is the Wealth of Nations? Measuring Capital for the 21st Century, The World Bank, Washington D.C. URL: http://siteresources.worldbank.org/INTEEI/214578- 1110886258964/20748034/All.pdf (last access Oct 30, 2009). Worm, B., Barbier, E.B.; Beaumont, N.; Duffy, J.E.; Folke, C.; Halpern, B.S.; Jackson, J.B.C.; Lotze, H.K.; Micheli, F.; Palumbi, S.R.; Sala, E.; Selkoe, K.A.; Stachowicz, J.J. and Watson, R. (2008) Impacts of biodiversity loss on ocean ecosystem services. Science 314: 787-790. Quotes Page 2: Simon Kuznets in 1934, in: Kuznets, S. (1934) National Income, 1929-1932. 73rd US Congress, 2nd session, Senate document no. 124, page 7. Page 2: Simon Kuznets in 1962, in: Kuznets, S. (1962) How To Judge Quality. The New Republic, October 20, 1962. Page 3: Joseph Stiglitz, 2005, in: Foreign Affairs. URL: http://www.foreignaffairs.org/.html (last access Oct 30, 2009). Page 21: Stiglitz-Sen-Fitoussi Report on the Measurement of Economic Performance and Social Progress, 2009. URL: http://www.stiglitz-sen-fitoussi.fr/documents/rapport_anglais.pdf (last access Oct 30, 2009). Page 32: Robert McNamara, President of the World Bank, 1973. URL: http://www.foe.co.uk/community/tools/isew/annex1.html (last access Oct 30, 2009). <strong>TEEB</strong> FOR NATIONAL AND INTERNATIONAL POLICY MAKERS - CHAPTER 3: PAGE 42
STRENGTHENING INDICATORS AND ACCOUNTING SYSTEMS FOR NATURAL CAPITAL ANNEX: COUNTRY-BASED CALCULATIONS OF GDP OF THE POOR Box 3.A1: Country GDP of the Poor Calculations – India Agriculture and allied activities contribute around 16.5% to the GDP, with per capita income of US$ 2,220 (adjusted for purchasing power parity). A large proportion of timber, fuelwood and non-timber forest products are not recorded in the official GDP, so these were added as adjustments. To these tangible benefits we have also included the contribution of ecotourism and biodiversity values and ecological services provided by forest ecosystems, based on estimates from the Green Accounting for Indian States Project (GAISP). The adjusted contribution of agriculture, forestry and fishing to GDP has increased from 16.5% to 19.6%. More specifically: • not all of the contribution of agriculture, forestry and fishing can be attributed to poor people; • we assumed that fuelwood and NTFPs are totally consumed by the poor; • for ecotourism, we assumed that with international tourists, there is a leakage of around 40% out of India and only the remaining 60% is captured by the host country. Of this 60%, part of the income accrues to the government, tour operators, hotels and restaurants (we assumed 50%) and only the remainder goes to the local people. For domestic tourists, we also assume that officially recorded revenue is captured by the formal sector and only the rest accrues to local people; • for bioprospecting, from a strict ‘equity’ perspective, it can be argued that the entire revenue should be captured by locals. However, we assume that locals get a royalty of only 25% and that the rest goes to the bioprospector or to the relevant government and agency. This is a very rough approximation: in practice, local people may often get considerably less than this (see also the section on Access and Benefit Sharing in Chapter 5); • the other ecological services considered are carbon sequestration, flood control, nutrient recycling and water recharge for which the locals directly benefit (except for carbon). Based on this, the per capita GDP accruing to the poor (whom we define as population holding less than 1 hectare of agricultural land, people dependent on forests and the small fishing community) is 260 US$/year. If this income is deducted from GDP, the per capita income available for the rest of the community is 435 US$/year. However, if ecosystems are degraded, the cost may not be equal to the benefits forgone for the following reasons: • the costs can be higher because if local people try to get the same benefits elsewhere, it costs them much more (marginal utility of income generated is always lower than marginal disutility from spending the money); • the marginal utility of a dollar obtained by a poor person is always higher than that of a rich person; • the poor do not have any buffer from degradation of ecosystem services in the form of institutions and financial resources, unlike the rich. For these reasons, a loss of a dollar would hurt poor people more than a dollar to the rich. We therefore need to use equity weighting. We have used the ratio of mean per capita expenditure on food of households at the top of the pyramid to that of the households at the bottom of the pyramid as the equity weight. This data has been taken from a survey by the World Resources Institute (Hammond et al. 2007). <strong>TEEB</strong> FOR NATIONAL AND INTERNATIONAL POLICY MAKERS - CHAPTER 3: PAGE 43
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Part I: The need for action Ch1 The
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ThE EcoNoMIcs of EcosysTEMs AND BIo
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THE GLOBAL BIODIVERSITY CRISIS AND
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1.2 THE GLOBAL BIODIVERSITY CRISIS
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• Enough food could be produced o
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MArINE sysTEMs THE GLOBAL BIODIVERS
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1.2.3 WHAT IS DRIVING THESE LOSSES?
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1.4 THE GLOBAL BIODIVERSITY CRISIS
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EfErENcEs THE GLOBAL BIODIVERSITY C
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THE ECONOMICS OF ECOSYSTEMS AND BIO
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10.1 WHY VALUING ECOSYSTEM SERVICES
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RESPONDING TO THE VALUE OF NATURE B
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10.2.2 BETTER LINKS TO MACRO- ECONO
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10.3 Investing in natural capital s
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as well as the value for money and
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Global National or Regional Local T
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10.4 By taking distributional issue
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has origins and impacts beyond bord
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The ‘Nobel Prize’*-winning econ
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10.5 Biodiversity and ecosystem ser
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Rewarding the provision of services
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Making this a reality will require
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GHK, CE and IEEP - GHK, Cambridge E
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Torras, M. (2000) The Total Economi
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ThE ECoNoMICS of ECoSySTEMS AND BIo
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FRAMEWORK AND GUIDING PRINCIPLES FO
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2.3 FRAMEWORK AND GUIDING PRINCIPLE
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5.1 REWARDING BENEFITS THROUGH PAYM
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REGULATORY BASELINES AND ADDITIONAL
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REWARDING BENEFITS THROUGH PAYMENTS
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could have adverse consequences for
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• some contained an element of te
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• ancillary provisions e.g. possi
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5.4.2 GREENING INTERGOVERNMEN- TAL
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financial flows involved. Building
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considerable patience as such optio
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CERTIFICATION OF SUSTAINABLE FISHER
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While certification systems can sig
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Endnotes REWARDING BENEFITS THROUGH
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44 http://www.mekongtourism.org/sit
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Chapter 6: Reforming Subsidies Chap
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REFORMING SUBSIDIES Key Messages of
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6 Chapter 6 addresses the need for
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6.1.2 HOW BIG ARE EXISTING SUBSIDIE
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6.2 6.2.1 DISTINGUISHING BETWEEN
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through provision of water and ener
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6.3 6.3.1 AGRICULTURE Subsidies to
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Box 6.4: The EU Common Agricultural
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Second, it has to be borne in mind
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• increases the producer price of
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REFORMING SUBSIDIES Box 6.9: Removi
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In the agriculture sector, the pric
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Some consumer energy subsidies may
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6.4 “People who love soft methods
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6.4.2 RESISTANCE TO CHANGE Subsidie
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The multiple policy objectives ofte
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REFORMING SUBSIDIES Social impacts
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The G-20 Heads of State have recent
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REFERENCES Agnew, D.J.; Pearce, J.;
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OECD - Organisation for Economic Co
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Bernd hansjürgens, Christoph Schr
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Key Messages of Chapter 7 Rewarding
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7.1 BASIC PRINCIPLES FoR hALTING oN
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7.2 REGULATING To AvoID DAMAGE: ENv
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y reducing the release of pollutant
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y reducing uncertainties with respe
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This equivalence can involve the sa
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PoTENTIAL BENEFITS oF oFFSETS AND B
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A biodiversity offset should be des
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7.4 SETTING MoRE ACCURATE PRICES: M
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Market-based instruments can be des
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China’s first water use rights sy
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PoTENTIAL CoST SAvINGS ThRoUGh MBIS
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Despite the potential described abo
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Non-market valuation studies can he
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PoLLUTIoN AND oThER DAMAGING ACTIvI
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The 1973 CITES treaty (Convention o
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7.6 MAKING IT hAPPEN - PoLICy MIxES
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has shown the critical need to stre
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Gutman, P. and Davidson, S. (2007)
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· ·· · · · · · · · · ·
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T H E E C O N O M I C S O F E C O S
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