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SURF nature

SURF nature. The Welsh Environment: Understanding the connections with the economy November 3 rd 2011: Parc Hotel, Cardiff. A simple plan. Welsh economic progress and environmental connections? Welsh environmental/ecological change and economic connections? Neither question easy to answer.

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SURF nature

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  1. SURF nature The Welsh Environment: Understanding the connections with the economy November 3rd 2011: Parc Hotel, Cardiff

  2. A simple plan.... • Welsh economic progress and environmental connections? • Welsh environmental/ecological change and economic connections? • Neither question easy to answer

  3. What we really need ? A4: Environment to economy transactions: output of economic good per unit of environmental good – effects of environmental goods on economic activity – effect of global warming on fishing A2: Economy environment transactions: output of environmental good per unit of economic good A3: Environment to environment transactions: effects of changes in environmental goods on other environmental goods - SO2 on water quality A1: Economy to economy transactions (increases in demand for one good create additional demands for other goods

  4. How do we measure regional economic progress? Gross value added Welfare; whose? What is included? What is excluded? Use of natural capital? Use of eco-systems?

  5. Reporting environmental information alongside GVA Environmental accounts SD indicators Apples and pears

  6. Environmental Satellite Accounts • Environmental Satellite Accounts – demands that economic activity places on the environment • Partial ESA now available for Wales – physical flows/resource productivity • But still apples and pears…

  7. Coverage of experimental ESA for Wales Natural resources Monetary accounts Physical flows

  8. Adjusting GVA for use of environmental goods and services • Green GVA • Genuine Progress Indicator • Index of Sustainable Economic welfare

  9. Wales: Trends in ISEW and GVA per Capita 1990-2005 (£2005/head)

  10. Conclusion Some progress in term of linking economic progress in Wales to environmental effects Other research aims to examine how projects majoring on environmental and ecological improvement impact the economy

  11. Improving the environment: economic connections • Large investments in Wales to improve services derived from natural environment • how far is it possible to explicitly measure the economic outcomes connected to such projects? • projects working with the built & natural environment might influence elements of the regional economy & have economic impacts in terms of GVA and employment improvements • Tourism example

  12. + partners 1eme Nature and Sports Euro’Meet + …

  13. projects aimed at improving the environment might then…… • support local employment directly and indirectly • improve skills supply side for tourism • safeguard existing tourism revenues, stopping leakages • extend the season; • change the distribution of visitor types: perhaps encouraging more staying visitors; • Resident benefits; housing markets….business location

  14. Scale of economic benefits linked to environmental interventions….. • gross spending of project monies and related employment incomes in reference areas; direction of spending i.e. how far is project-related spending tied to employment, and what are monies spent on • what is levered tourism spending spent on • where spending is on goods and services, then what proportion of these bought within local economy?

  15. Tools to assess linkages • Welsh Input-Output tables (Environment Agency Wales) • Welsh Tourism Satellite Accounts (TSA)

  16. SPLASH: exploring the economic effects of the water recreation challenge fund for Wales

  17. Splash • Splash is the water recreation challenge fund for Wales • Assistance available for projects that secure new or improved public access to Wales’ rivers, lakes, canals, reservoirs, and coastal waters for recreational and educational activities. • Welsh Assembly Government offered up to 100% grants to projects which help people to enjoy the water resources. 

  18. Indirect regional economy effects of SPLASH activity

  19. Tourism effects? • SPL2 - Llandysul Paddlers: watersports facility, environmental improvement, training facility, expectation of increase in watersport users on reference water from 9,000 to 16,000; land excavation, plans and project supervision etc.

  20. Assume in Llandysul Paddlers if just 50% increase in the number of users relates to additional day trips then an additional 3,500 day trips is estimated to account for around £84,000 of direct gross spending on Welsh goods and services, and around £73,000 of regional gross value added (direct and indirect). What might these projected increases in visitation mean in economic terms?

  21. Conclusion • More important to understand connections between economic changes and environment and vice versa • Series of tools in development in Wales to assist • How changes in the environment/ecology affect the economy? • Much work to be done!

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