‘Exchange-Value’ Accounting for Ecosystem Services
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Transcript of ‘Exchange-Value’ Accounting for Ecosystem Services
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‘Exchange-Value’ Accounting for Ecosystem ServicesMark Eigenraam14 November 2013, Prepared for London Group on Environmental Accounting19th Meeting, London
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A brief history…
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Vegetation policy - “Net Gain”
2002
2013
2007
2005
2012
• Native Vegetation Credit Register• BushBroker
OFFSETS
• BushTenderINVESTMENT
http://www.dse.vic.gov.au/land-management/victorias-native-vegetation-management-a-framework-for-action
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A brief history…
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Vegetation type, extent and condition mapping
2002
2013
2007
2005
2010
http://mapshare2.dse.vic.gov.au/MapShare2EXT/imf.jsp?site=bim
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A brief history…
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ecoMarkets• Payments for multiple ecosystem services
EnSym• Environmental modelling
2002
2013
2007
2005
2012
https://ensym.dse.vic.gov.au/cms/
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More recently…
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Victorian Environmental Partnerships
2002
2013
2007
2005
2012
http://www.depi.vic.gov.au/environment-and-wildlife/environmental-partnerships
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Offset reform
2002
2013
2007
2005
2012
http://www.depi.vic.gov.au/environment-and-wildlife/biodiversity/native-vegetation
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Victorian Experimental-Ecosystem Accounts
“establish internationally recognisable environmental accounts that improve the way we allocate resources”
(Environmental Partnerships: Priority 8, 2012)
2002
2013
2007
2005
2012
https://ensym.dse.vic.gov.au/cms/index.php?option=com_content&view=article&id=60&Itemid=71
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Current context
• What does it mean for business, government and the economy?
– Bookable assets – marginal agricultural land– Government resource allocation to the management of land for
environmental and agriculture purposes etc– Environmental markets – opportunities for investment
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ASSET
ASSET
ASSET
SEEA Central Framework (CF)
1. 2. 3.
http://unstats.un.org/unsd/envaccounting/seearev/
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Spreadsheets & charts7.16 Economic demonstrated stock of timber, Physical
7.17 Value of timber resources, Monetary
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ASSET
Services
Services
Services
SEEA Ecosystem Accounts
Services
Victorian approach to Ecosystem Accounts
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Victorian Ecosystem accounting concepts
InterFlows (input)
InterFlows (output)
ECOSYSTEM
EcosystemServices (output)
Inputs/Residuals
ECOSYSTEMECONOMY/
SOCIETYIntra flowsIntra flows
Eigenraam et al., 2012
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Gross Ecosystem Product (GEP)
*) Eigenraam et al., 2012
Step Gross Domestic Product (GDP) Gross Ecosystem Product (GEP)*
1 Estimate the Gross Output of various economic activities
Estimate the Gross Ecosystem Output (clean air, water, etc) from an ecosystem asset (sum of ecosystem services and inter flows)
2 Determine the intermediate consumption, i.e., the cost of material, supplies and services used to produce goods or services
Determine the inputs (inter-flows) to the asset, i.e., pollination, habitat, water, nutrients used to produce Gross Ecosystem Output
3 Deduct intermediate consumption from Gross Output to obtain the Gross Value Added (summed for all businesses is GDP)
Deduct inputs from Gross Ecosystem Output to obtain the Gross Ecosystem Product
4 Deduct depreciation from Gross Value Add to obtain Net Value Added
Deduct depreciation (degradation) from Gross Ecosystem Product to obtain Net Ecosystem Product
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Gross Ecosystem Product
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Inter flows (3.5 t/y nutrients)
FORESTInter flows
(2.5 t/y nutrients)
Intra flows
Inter flows (3.5 t/y nutrients) FOREST
Inter flows(1 t/y nutrients)
Intra flows
The ecosystem (FOREST) is improved to process more nutrients
GEP = 2.5 t/y
GEP = 1 t/y
Change GEP = 1.5 t/yEcosystem Service
- Clean water
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International Conference "Global Implementation Programme for the SEEA“, 17-19 June 2013, New York, USA
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International Conference "Global Implementation Programme for the SEEA“, 17-19 June 2013, New York, USA
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ABS – Statistical Areas Level 4
International Conference "Global Implementation Programme for the SEEA“, 17-19 June 2013, New York, USA
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Environmental Benefits Index (EBI)
Agr
icul
ture
Fore
stry
Aqu
acul
ture
Use
of b
uilt
up a
nd re
late
d ar
eas
Land
use
d fo
r mai
nten
ance
and
re
stor
atio
n of
env
ironm
enta
l fu
nctio
ns
Oth
er u
ses
of la
nd
Land
not
in u
se
Total
Annual EBI Flow to 30 June 2010
271,304,904 271,304,904
Increase in EBI flow due to:
Improved management 35,855,034 35,855,034 Reclassification 270,155,361 270,155,361 Reduction in EBI flow due to:
Natural losses (84,838) (84,838) Reclassification (270,155,361) (270,155,361) Annual EBI Flow to 30 June 2015
1,064,706 306,010,395 307,075,101
Change in annual flow 35,770,196
Table 14. Ecosystem service flow account, by land use, 2010 and 2015 (predicted)
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Corangamite Catchment Management Authority: Terrestrial vegetation type by area and average vegetation condition, 1750 and 2005
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