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REFORMING SUBSIDIES Box 6.3: Knock-on impacts of intensive agriculture: coastal ‘dead zones’ continue to spread Fertiliser run-off and fossil fuel use deprive massive areas of the ocean of any or enough oxygen, killing large swathes of sea life and causing hundreds of millions of dollars in damage (Juncosa 2008). Expanding coastal dead zones caused by nutrient run-off not only spell trouble for biodiversity but also threaten the commercial fisheries of many nations. Dead zones form seasonally in economically vital ecosystems worldwide, including the Gulf of Mexico and Chesapeake Bay. Agricultural run-off sparks many of these die-offs; increased use of nitrogen fertilisers has doubled the number of lifeless pockets every decade since the 1960s, resulting in 405 dead zones now dotting coastlines globally. The map below splits the sites into documented hypoxic areas, areas of concern and systems in recovery. <strong>TEEB</strong> FOR NATIONAL AND INTERNATIONAL POLICY MAKERS - CHAPTER 6: PAGE 13 Source: WRI 2009
Box 6.4: The EU Common Agricultural Policy (CAP) and its impacts on biodiversity The CAP has stimulated important structural shifts in farming, investments and technological developments, which has led to resulted in widespread agricultural intensification in the EU. This intensification has had well-documented impacts on biodiversity, including birds, since the 1970s. According to the Pan-European Common Bird Monitoring Scheme (2007), the farmland bird index (an indicator of the health of European farmland ecosystems) has declined by almost 50% in the last 25 years. Non-crop plants and invertebrates have also declined massively, mainly due to fertiliser and pesticide use. Many of the remaining species-rich agricultural habitats are rare or much reduced. A high proportion of rare and vulnerable species of EU importance are associated with these threatened semi-natural habitats and agricultural landscapes. Many of these habitats and high nature value farming systems, if not threatened by intensification, are at risk of abandonment as they are typically of marginal economic value. These depend on CAP payments designed to support farming in disadvantaged areas or to support environmentally beneficial practices (see also Box 6.5). Extensive farming systems with high agricultural biodiversity are often located on marginal land (i.e. land that would be taken out of production first when production-inducing subsidies were removed). Stopping production would have negative effects on biodiversity with subsequent losses of related ecosystem services (OECD 2000c). The close links between biodiversity and extensive farming on marginal land raises a twofold policy challenge: • to keep these marginal lands under production and preserve traditional practices; • to take out of production those infra-marginal lands that could deliver significant positive impacts for biodiversity if converted into natural habitats. REFORMING SUBSIDIES This observation does not imply support for productioninducing support in general. It simply recognises the fact that subsidy reduction or removal is not enough, in isolation, to meet the challenge of maintaining biodiversity-rich extensive farming systems (see Chapters 5, 7 and 8 for additional policy tools which can be used to preserve ecosystems and biodiversity associated with agriculture). As with other subsidies, production-increasing support is more environmentally harmful than support which is ‘decoupled’ from production. Since the 1990s, spurred on by the Uruguay Agreement on Agriculture, many OECD countries have increasingly re-designed their support policies in favour of more decoupled measures which are exempt from the Agreement’s disciplines under the so-called ‘Green Box’ (see example in Box 6.5). <strong>TEEB</strong> FOR NATIONAL AND INTERNATIONAL POLICY MAKERS - CHAPTER 6: PAGE 14 Copyright: André Künzelmann / UFZ
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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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Endnotes STRENGTHENING INDICATORS A
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Chapter 4: Integrating ecosystem an
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INTEGRATING ECOSYSTEM AND BIODIVERS
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4.1 INTEGRATING ECOSYSTEM AND BIODI
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Endnotes INTEGRATING ECOSYSTEM AND
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Economic valuation methods INTEGRAT
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ANNEx 2: sTAGEs of A PoLIcy AssEssM
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Chapter 5: Rewarding benefits throu
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REWARDING BENEFITS THROUGH PAYMENTS
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5.1 REWARDING BENEFITS THROUGH PAYM
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REGULATORY BASELINES AND ADDITIONAL
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5.2 REWARDING BENEFITS THROUGH PAYM
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could have adverse consequences for
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Page 253 and 254: 44 http://www.mekongtourism.org/sit
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Page 293 and 294: REFORMING SUBSIDIES Social impacts
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Page 297 and 298: REFERENCES Agnew, D.J.; Pearce, J.;
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Page 303 and 304: Key Messages of Chapter 7 Rewarding
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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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