The economic value of nature?

1. @UC_4LIFE The economic value of nature? Pricing habitats and species - Possibilities and constraints Ivan Olsson and Stefan Jendteg WWW.UCFORLIFE.SE

2. @UC_4LIFE Cost-Benefit Workshop Outline • An introductiontoecosystem services and cost-benefit analyses (CBA) • The Fyledalen case study • Methods used • Cost estimates • Benefit estimates • Preliminary results • Problems encountered: Biodiversity Species without commercial values Habitats without recreational values (mires, he he …?) Robustness of variables used by CBA´s - Workshop exercise WWW.UCFORLIFE.SE

3. @UC_4LIFE Introduction Unio crassus filtering water, reducing nutrients Ecosystem services = goods and service provided by the ecosystem (beneficial for us). 1) Providing/producing (eg goods; food, timber) 2) Regulating (eg pollination, predators regulating herbivores) 3) Supporting (eg hydrological cycle, transport of nutrients…) 4) Cultural (eg recreational, hunting, angling) WWW.UCFORLIFE.SE

4. @UC_4LIFE Threats … The impact of canalizing; increase in extreme flooding events, nutrient transport, loss of diversity etc Sources responsible for loss of ecosystem services: Habitat destruction (eg pollution, the impact of invasive species) Fragmentation (eg alteration of habitats resulting in loss of connectivity) - Loss of mechanisms driving ecosystems (pacific salmon as a “nutrient carrier”) - Loss of biodiversity and genetic diversity Are traditional “ecological variables” (eg extinction rates, levels of pollutions, diversity index) - powerful enough for changing the negative trends (human behavior)? In cases they are not… WWW.UCFORLIFE.SE

5. @UC_4LIFE How about Cost-Benefit Analyses, CBA´s ? The CBA as an additional (stronger?) tool describing, in monetary terms: • the negative effects of having non-functional ecosystems - the positive effects of having functional ecosystems …Pricing and valuing ecosystem services by CBA´s may create an economic motivation for its protection… and for restoring habitats and re-introduction of species… WWW.UCFORLIFE.SE

6. @UC_4LIFE The Case study in Fyledalen Post-LIFE-conditions • Poor water quality, habitats • Poor aquatic biodiversity Objectives Improved water quality Increased biodiversity To learn a lot… To disseminate a lot Recreation, post-hoc The Baltic perspective WWW.UCFORLIFE.SE

7. @UC_4LIFE The value of a mussel? As a pedagogue, indicator and symbol - but also as a threatened “species” and filter feeder… WWW.UCFORLIFE.SE

8. @UC_4LIFE Methods Transforming responding variables (objectives) into monetary values (SEK) before and after implementation of actions: P-reduction, per kg = 1 023 SEK N-reduction, per kg = 31 SEK Water quality Biodiversity ??? Salmonids, 108 SEK per kg Other species, 9 SEK per individual Fish production Mussel filtering Filtering/storage capacity 0.1 – 1.2 g P per mussel (?) Recreation Willingness to pay amongst visitors, but no fee (350 SEK per visit) Knowledge gained ??? Dissemination, catalyst effect ??? WWW.UCFORLIFE.SE

9. @UC_4LIFE CBA Results - Recreation Recreation Value (RV) 50% of RV Costs 10% of RV Accumulated costs vs benefits (SEK) 2012 2014 2016 2018 2020 2022 2024 Action costs c. 6MSEK Benefits: Willingness to pay 350 SEK per visit, annually 20 000 visits in Fyledalen Willingness to pay for Action costs (50% of RV), 175 SEK ? – Balance 2015 Willingness to pay for Action costs (10% of RV), 35 SEK ? – Balance 2023 The study (questionnaire) will be repeated the following years for “new” RV and accurate “willingness to pay” numbers for actions… WWW.UCFORLIFE.SE

10. @UC_4LIFE CBA Predicted Results - Water quality Tot reduction P-reduction Costs N-reduction Accumulated costs vs benefits (SEK) P-Mussels 2012 2014 2016 2018 2020 2022 2024 Action costs c. 6MSEK Benefits: P-reduction (range: -20 to 80 kg per month [1023 SEK per kg]) by floodplain actions N-reduction (range: 100 to 300 kg per month [31 SEK per kg]) by floodplain actions P-reduction by mussels (range 0.1 to 1.2 g per individual and year). Population density will level out 2030 (Carrying capacity 3 M) Benefits will balance costs 2021 ? WWW.UCFORLIFE.SE

11. @UC_4LIFE CBA Predicted Results - Fish Action costs c. 6MSEK Benefits: Fish, annual production (range: 200 – 10000, 9 SEK/fish): Benefits: Salmonids, annual production (range: 100 – 250 kg, 108 SEK/kg) Benefits will balance costs 2070 WWW.UCFORLIFE.SE

12. @UC_4LIFE CBA Costs vs benefits, predicted (total) Costs Benefits, total Accumulated costs vs benefits (SEK) 2012 2014 2016 2018 2020 Benefits = (recreation + water quality improvements + increased fish production) balance project costs by 2018… WWW.UCFORLIFE.SE

13. @UC_4LIFE Conclusions Possible to value: Costs Improvements of recreation value +++ Improvements in water quality ++ Increased fish production + Not possible to value(?): Biodiversity Dissemination Gained knowledge We were able to predict the time for when benefits balanced costs We were able to estimate the benefits of having Unio crassus re-introduced Robustness of variables/predictions(?), validation through monitoring (before-after-impact-control-design) WWW.UCFORLIFE.SE

14. @UC_4LIFE Future LIFE-projects? Each proposal containing concrete conservation actions must also include an action aimed to assess the socio-economic impact of the project actions on the local economy and population, as well as on the ecosystem functions" WWW.UCFORLIFE.SE

15. @UC_4LIFE THANKS WWW.UCFORLIFE.SE

16. @UC_4LIFE Workshop exercise Thematic (rivers and lakes, wetlands/bogs, grasslands, forest) groups?: The tasks: 1) Define potential ecosystem services that are influenced by your project actions 2) Quantify, in monetary terms, ecosystem services (benefits) affected by your project actions (optimal €/unit). 3) Define positive impacts on ecosystem services, not possible to quantify in monetary terms. Why isn't it possible? 4) When should we use the concept of ecosystem services and cost- benefit analyses? Why? WWW.UCFORLIFE.SE