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Cost based approaches opportunity cost cost of alternatives/ substitute goods replacement cost method Non-economic valuation methods focus groups, in-depth groups citizens' Juries health-based valuation approaches Q-methodology Delphi surveys, systematic reviews INTEGRATING ECOSYSTEM AND BIODIVERSITY VALUES INTO POLICY ASSESSMENT These approaches consider the costs in relation to provision of environmental goods and services and only provide ‘proxy’ values. Examples of cost-based approaches are those that infer a value of a natural resource by how much it costs to replace or restore it after it has been damaged. This method considers the value forgone in order to protect, enhance or create a particular environmental asset (e.g. opportunity cost of agricultural production lost if land is retained as forest). This approach considers the cost of providing a substitute good that has a similar function to the environmental good. for example, wetlands that provide flood protection may be valued on the basis of the cost of building man-made defences of equal effectiveness. Given that wetlands provide a range of ecosystem services, this costing would be a minimum estimate of the value of a wetland. This technique looks at the cost of replacing or restoring a damaged asset to its original state and uses this cost as a measure of the benefit of restoration. The approach is widely used because it is often easy to find estimates of such costs. Description focus groups aim to discover the positions of participants regarding, and/or explore how participants interact when discussing, a predefined issue or set of related issues. In-depth groups are similar in some respects, but they may meet on several occasions, and are much less closely facilitated, with the greater emphasis being on how the group creates discourse on the topic. citizens‟ juries are designed to obtain carefully considered public opinion on a particular issue or set of social choices. A sample of citizens is given the opportunity to consider evidence from experts and other stakeholders and they then hold group discussion on the issue at hand The approaches measure health-related outcomes in terms of the combined impact on the length and quality of life. for example, a quality-adjusted life year (QALy) combines two key dimensions of health outcomes: the degree of improvement/deterioration in health and the time interval over which this occurs, including any increase/ decrease in the duration of life itself. This methodology aims to identify typical ways in which people think about environmental (or other) issues. While Q-methodology can potentially capture any kind of value, the process is not explicitly focused on ‘quantifying’ or distilling these values. Instead it is concerned with how individuals understand, think and feel about environmental problems and their possible solutions. The intention of Delphi surveys and systematic reviews is to produce summaries of expert opinion or scientific evidence relating to particular questions. Delphi relies largely on expert opinion, while systematic review attempts to maximise reliance on objective data. Delphi and systematic review are not methods of valuation but, rather, means of summarising knowledge (which may be an important stage of other valuation methods). <strong>TEEB</strong> for NATIoNAL AND INTErNATIoNAL PoLIcy MAKErs - chAPTEr 4: PAGE 35 Depends on the existence of relevant markets for the ecosystem service in question. Examples include man-made defences being used as proxy for wetlands storm protection; expenditure on water filtration as proxy for value of water pollution damages. Ecosystem services valued All ecosystem services. All ecosystem services. All ecosystem services. All ecosystem services. All ecosystem services.
ANNEx 2: sTAGEs of A PoLIcy AssEssMENT, ProPosED AcTIoNs AND WAys To ADDrEss BIoDIvErsITy (UNEP 2009B) Stages A. Understanding the policy context B. Determining the focus c. Assessing the impacts D. Developing policy recommendations INTEGRATING ECOSYSTEM AND BIODIVERSITY VALUES INTO POLICY ASSESSMENT Actions proposed A1. Identify the purpose of the IA A2. review the proposed policy and context A3. Identify participants and stakeholders A4. Identify and review available information B1. Develop a conceptual framework B2. Identify priority sustainability issues c1-3. Identify criteria relevant to the main issues, develop EsE indicators and determine the baseline c4. Identify policy options including most likely option c5. Analyse impacts using appropriate tools and techniques D1. finalise assessment of trade-offs and draw conclusion D2. Develop policy recommendations How to address biodiversity and related aspects 0. Define the purpose, main objectives and sectoral focus. Define objectives in terms of ex-ante assessment and influencing decision-makers to maximise positive outcomes on biodiversity and other sustainability issues. 1. Identify environmental and biodiversity oriented policy objectives, commitments or agreements relevant for the study focus (area, commodity). Understand the policy process that is being assessed. 2. Identify relevant stakeholders and biodiversity specialists, and ensure they are involved in the study. 3. Identify and make an overview of relevant (biodiversity and trade-related) documents for the country / region concerned. 4. Make a summary of key issues and create a conceptual framework. Include critical biodiversity components and ecosystem services, social and economic issues and cause-effect chains. 5. Identify the main sustainability issues (related to problems and opportunities) as associated with the conceptual framework.. 6. Identify objectives or criteria and associate indicators to assess baselines and trends. Assessment of trends should be done using selected indicators. Define the status and trends of the most important indicators for the focal sectors of the assessment. scenarios can be developed for expected changes. This is followed by a causality analysis to identify specific drivers of change and explaining possible outcomes for biodiversity and ecosystem services. 7. Identify policy options for which to assess impacts. There may be three policy options: baseline, existing policy measures (subject of the assessment) and proposed positive policy. 8. Analyse the impacts of defined policy options on biodiversity, as well as social and economic indicators. Assess the likely impacts of policy options with the baseline scenario. If possible, quantify expected (positive or negative) changes in biodiversity and ecosystem services. 9. Draw conclusions as regards the most desirable and realistic policy options. consider alternative trade policy options to maximise overall positive sustainability outcomes. These are preferred over policy measures for mitigation or compensation of impacts on biodiversity and ecosystem services 10. Define policy recommendations in line with the assessment results. consider the most effective mechanisms for communicating results, using stakeholder input. <strong>TEEB</strong> for NATIoNAL AND INTErNATIoNAL PoLIcy MAKErs - chAPTEr 4: PAGE 36
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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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2.3.4 BASE POLICIES ON GOOD GOVERNA
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2.4 FRAMEWORK AND GUIDING PRINCIPLE
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REfERENCES FRAMEWORK AND GUIDING PR
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THE ECONOMICS OF ECOSYSTEMS AND BIO
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STRENGTHENING INDICATORS AND ACCOUN
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3.1 STRENGTHENING INDICATORS AND AC
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CERTIFICATION OF SUSTAINABLE FISHER
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REWARDING BENEFITS THROUGH PAYMENTS
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While certification systems can sig
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5.6 REWARDING BENEFITS THROUGH PAYM
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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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T H E E C O N O M I C S O F E C O S
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