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situation. Indeed, there are many ‘win-win’ options identified
in the report that improve the well-being of the poor
whilst reducing the loss of biodiversity and ecosystem
services. Valuing the potential benefits of different
resource use strategies can help identify such opportunities
(see Box 10.17).
RESPONDING TO THE VALUE OF NATURE
10.4.2 SETTING INCENTIVES IN LINE
WITH THE DISTRIBUTION OF
NATURE’S BENEFITS
Biodiversity is concentrated in specific areas and hotspots.
However, the collapse of ecosystem services
Box 10.17: Comparing impacts of resource use strategies across user groups in Indonesia
Faced with rapid degradation of Leuser National Park, its Scientific Director commissioned a valuation
study to compare the impact of different ecosystem management strategies on the province’s potential
for economic development until 2030.
The study estimated that conservation and selective use of the forest would provide the highest return
for the region over the long term (US$ 9.1-9.5 billion, using a 4% discount rate). Continued deforestation
would cause the degradation of ecosystem services and generate a lower overall economic return for the
province (US$ 7 billion).
The monetary difference between the deforestation and conservation options amounted to US$ 2.5 billion
over a period of 30 years. Most of this would have to be borne by local communities who benefited from forest
conservation (mainly through water supply, non-timber forest products, flood prevention, tourism and agricultural
production). According to this study, they would lose US$ 2 billion out of their share (US$ 5.3 billion) of
ecosystem services available under the conservation scenario. This corresponds to a loss of 41%.
The valuation exercise clearly demonstrated that logging the tropical forest not only worked against overall
economic growth and development but also produced a negative impact on hundreds of rural forest dwelling
communities compared to the limited private gain by a few logging companies.
Source: adapted from van Beukering et al. 2003
TEEB FOR NATIONAL AND INTERNATIONAL POLICY MAKERS - CHAPTER 10: PAGE 22