Natural Capital: Counting it in!
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Transcript of Natural Capital: Counting it in!
Western Philippines University
NATURAL CAPITAL: COUNTING IT IN!
Allaine T. BaacoWestern Philippines University
Puerto Princesa Campus
Western Philippines University
Western Philippines University
Overview of presentation Understanding the environment Defining economic valuation SEEA Framework Significance of economic valuation of natural
resources in the National Income Accounting
Western Philippines University
Western Philippines UniversityWestern Philippines University
Environment
Composed of different ecosystems.
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Ecosystems
A dynamic interaction of plants, animals, microorganisms community and the nonliving physical environment as one unit.
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Ecosystems Services
Benefits people obtain from ecosystems.
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Ecosystem BenefitsWestern Philippines University
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Economic Values of the Environment
Why?
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IN A WORLD WHERE MONEY TALKS, ENVIRONMENT MUST HAVE A “VOICE” SO THAT IT CAN
BE HEARD.
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VOICE
,$, £, ¥, €
(ECONOMIC)
~ VALUE
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We consider environmental valuationWestern Philippines University
Resource Allocation Decisions• Efficient choice in the
use of scarce resources
Resource Pricing• Services• Damaging impacts
Distributional Impacts• Gainers• Losers
Awareness Raising• Losses• Opportunities
Measure opportunities from the environmental changes
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Definition
Economic valuation techniques re-defines the previous conception of nature as a complex web of inter-related and ever-changing relationships into an image of nature as a provider of measurable services.
Western Philippines University
Western Philippines University
Definition
Economic valuation can generate estimates of the value of ecosystem services in monetary terms.
Western Philippines University
Western Philippines University
Monetary valuation of Ecosystem services Monetary valuation via markets, particularly
provisioning services, are traded in markets and Monetary valuation via surrogate markets for services not traded in the market, particularly the regulating and support services
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In Accounting…Western Philippines University
STOCKS(Natural capital)
FLOWS(Ecosystems & abiotic services) VALUE
(Goods & Services)
VALUE(Maintaining ecological function)
MISSING
VALUE(Nature as nature)
MISSING
Figure modified from the natural capital protocol.
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Methodology:
The SEEA Expanding the Systems of National Accounts
(SNA) to the environment contains the internationally agreed standard
concepts, definitions, classifications, accounting rules and tables for producing internationally comparable statistics on the environment and its relationship with the economy.
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Environmental Services and human well-being:Ecosystems & Biodiversity
Servicee.g. wood that is harvested
Capacity(function)
e.g. growth of biomass
e.g.
photosynthesis
Biophysical Structure or process(functioning)
e.g. wood supply for furniture
Benefit(s)
Human well-being
Value
e.g. value of wood used for furniture
Cascade Diagram, modified from Haines-Young and Potschin)
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Western Philippines University
Environmental Services: Provisioning services: the
products that can be extracted from or harvested in ecosystems
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Environmental Services: Regulating Services: regulation of
ecological, hydrological and climate processes
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Environmental Services: Cultural services: the non-material benefits
from ecosystems (e.g. recreation, education and research)
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Environmental Services: Support services: Ecosystem services that
are necessary for the production of all other ecosystem services. Some examples include, production of atmospheric oxygen, and provisioning of habitat.
Western Philippines University
Western Philippines University
Linking Services to Values
Provisioning Services
Ecosystem
Regulating Services
Cultural Services
Support Services
Direct use values
Indirect use Values
Option Values
Non-use Values
Total Economic Value
Step 1. Specification of boundaries and system to be valued..
Step 2. Assessment of ecosystem services in bio-physical terms
Step 3. Valuation using monetary or other indicators..
Step 4. Aggregation of the different values
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Ecosystem services and valuing methods:SERVICE VALUE INDICATORTimber Opportunity cost
Non-Timber Forest Products Market value of products
Biodiversity Pharmaceutical genetic material
Carbon sequestration and Carbon Stock Social Cost of Carbon
Water Supply Resource Charge
Water Purification Averting Expenditure Method
Soil protection Replacement of forest for soil retention
Ecotourism/Recreational Value Travel Cost Method
Oxygen Production Cost of Hospital Oxygen
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Economic valuation enables
agencies to respond more effectively to an unavoidable cost of economic
development and growth
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Natural inputs(raw materials)
Economic Activity
ENVIRONMENTAL ASSETS(Capital stocks, Environmental Quality)
Residuals (emissions,
waste)Ameneties,
Health & Safety
Outputs Inputs
IncomeGoods/Services
LaborCapital
Resouces
Service Function
Resource Function
Sunk Function
PoliciesMeasuresOpportunities
TaxesSubsidiesRegulations
InvestmentsResearchInnovationTradeEducation & Training
Economic Opportunities & Policy Responses
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Maraming Salamat po!
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References:Baaco, A. T. , J. M. Javier, H. G. Lagan, B. Montaño, and R. Sariego. 2015.
Economic Values of Mount Mantalingahan Protected Landscape.Briones, N. D., A. T. Baaco, J. M. Javier, R. G. Dolorosa and S. Tabayag. 2016.
Biodiversity values of Rasa Island Wildlife Sanctuary.Cambridge Conservation Initiative. 2016. Biodiversity at the Heart of Accounting
for Natural Capital: the Key to CredibilityDvarskas, Anthony. 2013. SEEA and the Green Economy. United Statistics
Division. July 3, 2013.European Union. 2013. Mapping and assessment of ecosystems services: An
analytical framework for ecosystem assessment under Action 5 of EU Biodiversity Strategy to 2020. Discussion paper – Final. April 2013.
Natural Capital Coalition. 2016. Natural Capital Protocol.
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References:SEEA CF 2012.
System of Environmental-Economic Accounting 2012 – Central Framework. Ed. United Nations, European Union, Food and Agriculture Organization of the United Nations, International Monetary Fund, Organisation for Economic Co-operation and Development and The World Bank. ISBN: 987-92-1-161563-0