Optimising the production of goods and services by Mediterranean forests in a context of global changes. Component 2

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1 Optimising the production of goods and services by Mediterranean forests in a context of global changes Component 2 Assess the socio-economic value of goods and services provided by Mediterranean forest ecosystems, to support effective decision-making and strengthen actions to support the sustainable management of these ecosystems Regional workshop Tunis, 2-5 June 2014

2 FFEM Component 2 Methods and tools for socio-economic assessment of goods and services provided by Mediterranean forest ecosystems Total Economic Value and national forest accounts Regional workshop Tunis, 2-5 June 2014 Nicolas ROBERT

3 Outline Introduction to the economics of ecosystem services Total economic value Goals General layout National forest accounts Goals Approaches Resource accounts (SEEA-Central Framework) Ecosystem (SEEA-Experimental Ecosystem Accounting) Two structures: assets and flows 3

4 1. The economics of ecosystem services Economic values: an anthropocentric perspective BIOPHYSICAL STRUCTURE or PROCESSES (e.g. woodland, net primary productivity, decomposition, nutrient cycling) Limit pressure via policy strategies & actions plans + sustainable adaptive management NATURAL PRESSURES ECOSYSTEM FUNCTIONS (capacities) (e.g. slow water flow, generate biomass, improve water & soil quality, provide pleasant space) SERVICES (Contribution to human well being) (e.g. flood protection, harvestable products, good quality water, recreation) VALUES (Quantification of the benefit) (e.g. market or hedonic value; willingness to pay for forest protection, forestation, wildlife observation, products, good quality water; travel cost to a touristic site) ANTHROPOGENIC PRESSURES Perceptions, needs, behaviour in a geographical, temporal, socioeconomic, political, cultural context ECOSYSTEMS & BIODIVERSITY Feedbacks HUMAN PERSPECTIVE 4

5 2. Total economic value Broaden the view of decision makers Ecological Water, soil, health protection... Biospheric Climate regulation, biodiversity protection... Social Ecotourism, recreation, sports, hunting... Amenities Spiritual, cultural, historical... Resources Timber, fuelwood, non-timber products... The national/regional economy uses goods and services produced by ecosystems 5

6 2. Total economic value Total Economic Value of forests Estimating welfare provided by ecosystems Identify public and private values (traded or not) Comprehensive overview in & outside the forest sector USE VALUES TOTAL ECONOMIC VALUE (TEV) NON-USE VALUES Direct use value Indirect use value Option value Altruistic value Bequest value Existence value Direct consumption products Ecosystem functions Direct or indirect future use values Value for the enjoyment of other people Value for future generations Value derived from the existence of the resource Timber, recreation, hunting Water regulation, carbon sequestration Biodiversity, preserved habitat Recreational opportunities enhanced for other people Habitats, avoid irreversible changes Endangered species 6

7 3. National forest accounts National forest accounts Objective: to help national/regional decision makers take decisions when the environment is at stake NB: forests already in national accounts, but limited view Produce estimates and indicators similar to the ones they are used to Forest accounts Developed as part of the environmental satellite accounts Marketed and non-marketed products Services and other values 7

8 3. National forest accounts Forest in environmental accounts Two perspectives in the System of Environmental-Economic Accounting (SEEA) resource based: Collection of individual components e.g., forest land and timber SEEA CF ecosystem based: Forests = ecosystems providing a multiplicity of services that benefit the society = forest assets. In line with ongoing initiatives mapping ESs SEEA EEA 8

9 3. National forest accounts Frameworks for forest accounts Land cover types Scope of the ecosystem based forest account Forest land Scope of the resource based forest account Urban land Agricultural land Forest land Forest land Urban land Agricultural land Urban land Agricultural land Individual resources Ecosystems

10 3. National forest accounts Asset Accounts Resource resource by resource Cultivated timber resources Type of timber resource Natural timber resources Available for wood supply Not available for wood supply Monetary units Type of timber resources Cultivated timber resources Natural timber resources Available for wood supply Opening stock of timber resources Additions to stock Natural growth Reclassifications Total additions to stock Reductions in stock Removals Natural losses Catastrophic losses Reclassifications Total reductions in stock Closing stock of timber resources Cultivated: management practices constitute a process of economic production Natural: where the previous does not apply. Not AFWS: due to physical, economic or regulatory reasons 10

11 3. National forest accounts Asset Accounts ecosystem forest asset (forest ecosystem unit) Opening condition Improvements in conditions Reduction in condition Closing condition Changes in ecosystem condition Vegetation Biodiversity Soil Water Carbon Monetary units Opening stock Additions to stock Regeneration-natural Regeneration. human Total additions to stock Reductions in stock Extraction and harvest Catastrophic losses Total reductions in stock Revaluations Closing stock of ecosystem assets EAU or LCEU 11

12 Products Products 3. National forest accounts Flow Accounts resource Economic activities: suppliers PHYSICAL UNITS: flow of materials and products / flow of ES MONETARY UNITS: aggregated value Economic activities: intermediate and final consumers 12

13 3. National forest accounts Flow Accounts ecosystem Type of ecosystem services (by CICES) Provisioning services Regulating services Cultural services Provisioning services Regulating services Cultural services Services Generation of ecosystem services Suppliers Enterprises Households Government Rest of the world Total Use of ecosystem services Consumers Enterprises Households Government Rest of the world Total 13

14 3. National forest accounts Forest accounts in practice MAPPING AND ASSESSING THE FOREST AREA AT THE COUNTRY LEVEL FOREST ASSETS/RESOURCES - Location - Extent - Condition FLOW OF FOREST ECOSYSTEM SERVICES - Provisioning - Regulating - Cultural DEFINITION OF THE POLICY QUESTION THAT THE ACCOUNTS HAVE TO ANSWER BENEFITS PROVIDED BY FORESTS - MARKET forest benefits - CONTRIBUTION to other sectors - NON-MARKET benefits Source: Varela et al