Socio-economic valuation of ecosystem services: Spanish National Ecosystem Assessment

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1 Socio-economic valuation of ecosystem services: Spanish National Ecosystem Assessment Natural Capital Summit Madrid 5 October, 2016 Fernando Santos-Martin, Marina García-Llorente, Pedro Zorrilla, Cristina Quintas, Berta Martín-López, Javier Benayas, Carlos Montes

2 Overview WHAT SNEA is the first analysis done on the state and trends of biodiversity and ecosystems of Spain and its contribution to our human wellbeing. WHO More than 60 researchers from 20 institutions, Ministries and Regional Governments, International advisory board, Stakeholders involved: NGOs, enterprises, general population. SNEA HOW Data bases, Cartographic information, Literature review, Expert panels, Focus groups, Workshops, Interviews, Questionnaires WHEN Launched in 2009 in Spain by Spanish Ministry of Agriculture, Food and Environment and Biodiversity Foundation in collaboration with Autonomous University of Madrid

3 Objectives and Framework SNEA Framework SNEA stands as an instrument for laying the foundation for a new generation of environmental policy in Spain, focusing on the relationships between natural capital and human wellbeing. SNEA represents the first attempt at the national level to understand the complex interactions between nature and society in our country.

4 SNEA Timeline ( )

5 Integrated assessment: Biophysical, Social and Economic dimensions

6 Potential policy implications SNEA provides evidence on the status and trends of ecosystems condition with potential policy implication at different levels. But more structural changes are required in the Spanish institutional framework to reach 2020 Biodiversity International targets. Spanish Biodiversity Strategy ( ) EU Biodiversity Strategy ( ) Intergovernmental Platform on Biodiversity & Ecosystem Services

7 Action 5 of the EU 2020 Biodiversity Strategy

8 What we have done 14 types of ecosystems assessed by different teams of experts 22 ecosystem services from: 6 direct and 6 indirect drivers of change:

9 Key findings from Biophysical assessment Freshwater and marine ecosystems are under the most critical pressure Between 40% and 68% of species assessed are threatened Degradation or unsustainable use of 45% of the evaluated services 63 % 87 % 29 %

10 Key findings from Socio-economic valuation of ecosystem services

11 Conceptual framework Economic valuation of priority ES taking into account the different types of services and the various methodologies to estimate use and non-use values. ECOSYSTEMS AND BIODIVERSITY NATURAL CAPITAL Provisioning Regulating Cultural ES TYPES Direct use Indirect use Direct use (not extractive) Existence (non use) VALUE (In economic terms) MARKET BASED DECLARED PREFERENCES MARKET BASED DECLARED PREFERENCES METHODOLOGY

12 12 ES valued using three main methodologies Provisioning Regulaing Cultural

13 Meta-analysis methods Diagnosis of existing information (150 scientific publications) in economic terms of ES (649 estimations) in Spain and understand what factors affects those values.

14 Meta-analysis methods ECONOMIC VALUES BY INDIVIDUAL ECOSYSTEM SERVICES N Mean value ( 2012/yr/ha) Min. Value ( 2012/yr/ha) Max. Value ( 2012/yr/ha) PROVISIONING Food > REGULATING Climate regulation > Natural hazards Water depuration Erosion control Biological control CULTURAL Aesthetic Tourism and recreational Satisfaction for conservation

15 Market based methods Provisioning Regulaing Cultural

16 Market based methods Spatially represent economic valuation of selected ecosystem services using available official data. Permanent crops Economic value of Agricultural production ( /ha/yr) Arable crops Horticultural

17 Market based methods Application of results: Spatial relation between economic and ecological units Ebro delta Dehesas Extremeñas Doñana wetlands

18 Market based methods Other ES mapped and valued in economic terms ( /Ha/yr) using market based methods Water provisioning Water depuration Natural hazards (fires) Recreational activities

19 Stated preferences methods Provisioning Regulaing Cultural

20 Stated preferences methods Estimate the economic value of ES invisible in conventional markets using on-line questionnaires on willingness to pay for ES. 800 valid questionnaires Representative of the Spanish population Sampling error <5% Characterized sample: rural vs. urban, sex, age, education level, income...

21 Stated preferences methods Economic value: willingness to pay (WTP) for service Services WTP Max. Min. (euros/home/y r) Water quality Biodiversity conservation Gene pool Local ecological knowledge Erosion control WTP for water quality services Social concern of water quality Kilometers WTP agua Deterioro del agua

22 Synthesis of ES values

23 Available results from SNEA

24 Conclusions SNEA addresses the process of economic valuation of ES supported and complemented by a robust analysis of the biophysical dimension. It is the first nationwide economic assessment, with a mixed variety of methods which also capture services outside conventional markets and include social and cultural aspects, for both use and non-use values. The results allow us to spatially represent the economic value for 12 ES using different methodologies. Significant differences have been found among different methodologies. We have identified which are the main factors (socio-economic and motivational variables) influencing the economic value of ES in Spain.

25 Available information Biophysical assessment Final Report Pgs. Synthesis Report 303 Pgs. Synthesis of key findings 90 Pgs. Socio-economic valuation Final Report +200 Pgs. Synthesis of key findings 70 Pgs.

26 Communication materials SNEA Website SNEA Newsletters (11) 3 per year Videos Knowledge for Action (5) Main concepts SNEA Facebook (ecomilenio.espana) Educational materials Ecosystems (14) Experts interviews

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