Valuing marine ecosystem services and benefits. Mel Austen

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1 Valuing marine ecosystem services and benefits Mel Austen

2 Valuing marine ecosystem services and benefits Why do we need valuation? Setting the scene ecosystem services, assessment frameworks, valuation Application of ecosystem services approach Marine ecosystem valuation and examples Challenges Examples of valuation of marine ecosystems to support policy across the EU Research needs

3 Current and emerging pressures are multiple and interacting Tourism & Leisure Transport Concerns Outbreaks Invasives Changes in productivity Energy Devices Discharges Exploitation of living resources Environmental Changes (including climate change)

4 Valuation of ecosystem services and benefits to support: EU policies Commercial/Regulation/Management licencing planning for conflicting uses Environment environmental protection EU Maritime Policy EU Marine Strategy Framework Directive IMO Convention on Ballast Water Management Biodiversity Strategy Marine Planning Directive Invasive Alien Species Strategy (forthcoming) Common Fisheries Policy

5 What do ecosystems do for people? Biodiversity and natural resources Ecosystem processes and functions Ecosystem services Ecosystem benefits and values

6 Evolving frameworks and classifications Millenium Ecosystem Assessment Ecosystem service typology Framework for application Ecosystem services distinguished from ecosystem benefits including distinction of ES and intermediate ES Fisher et al, Boyd and Bahnhof Environmental (abiotic) vs ecosystem services (e.g. Atkins et al) Incorporating DPSIR (e.g. Atkins et al) Application to policy refinement of framework and typology International EU National e.g. UK TEEB UN SEEA CICES National Ecosystem Assessment Natural Capital Committee National Ecosystem Assessment Follow on

7 PROVISIONING 1a: Food provision - Wild capture sea food 1b: Food provision - Farmed sea food 2a: Biotic raw material - Genetic resources 2b: Biotic raw material - Medicinal resources 2c: Biotic raw material - Ornamental resources VECTORS ecosystem services typology REGULATING 3: Air purification 4: Climate regulation 5: Disturbance prevention and moderation 6: Regulation of water flows 7: Waste treatment and assimilation 8: Coastal erosion prevention 9: Biological Control (checks & balances) HABITAT 10: Migratory and nursery habitat 11: Gene pool protection CULTURAL 12: Leisure, recreation and tourism 13: Aesthetic experience 14: Inspiration for culture, art and design 15: Cultural heritage 16: Cultural diversity 17: Spiritual experience 18: Information for cognitive development Hattam et al. Marine ecosystem services: linking indicators to their classification. Ecol. Indicators (In press)

8 Ecosystem service frameworks Management/ restoration Ecosystems & Biodiversity Institutions & human judgments determining (the use of) services Feedback between value perception and use of ecosystem services Biophysical structure or process (e.g. nutrient cycling or Net Primary Productivity) Function* (e.g. slow water passage, biomass) (inc. abiotic components) * Subset of biophysical structure or process providing the service Service (e.g. floodprotection, waste treatment) Human wellbeing (socio-cultural context) Benefit(s) (e.g. food, fuel, tourism etc) (econ) Value (e.g. WTP for protection or products) Modified from TEEB: The Economics of Ecosystems and Biodiversity (2010)

9 Ecosystem service frameworks EEA Common International Classification of Ecosystem Services (CICES) Biophysical structure or process (e.g. nutrient cycling or Net Primary Productivity) Limit pressures via policy action Function* (e.g. slow water passage, biomass) Service (e.g. floodprotection, waste treatment) Benefit(s) (e.g. food, fuel, tourism etc) (econ) Value (e.g. WTP for protection or products) Sum of pressures Haines-Young, R. and Potschin, M. (2013a): Common International Classification of Ecosystem Services (CICES): Consultation on Version 4, August-December EEA Framework Contract No EEA/IEA/09/003.

10 Overall National Ecosystem Assessment Conceptual Framework Drivers of Change (Direct and Indirect) Demographic, economic, socio-political, technological and behavioural Management practices Environmental changes Human wellbeing: Economic value Health value Shared (social) value Good(s)* Ecosystem services Ecosystems Air, land, water and all living things *Note that the term good(s) includes all use and non-use, material and non-material benefits from ecosystems that have value for people.

11 Dogger Bank ecosystem services under differing VECTORS scenarios SL. Garrard, C. Hattam, A. Böhnke-Henrichs, D. Burdon, J. Atkins, M. Austen The EC MSFD calls for an ecosystem approach to marine management The Dogger Bank contributes to wellbeing by providing ecosystem services (ES) ES assessment to inform ecosystem-based management Trends in ES Implications of Vectors scenarios for Dogger Bank A2 Abandonment of CFP: more destructive fishing practices 15% cover of windfarms Increased oil and gas exploration 0.8 o C SST increase Lessons learnt: B1 Precautionary approach to MSY 50% cover of windfarms = no take zone Reduced oil and gas exploration 0.3 o C SST increase Assessment based on indicators Literature review Modelling approach Expert judgement Food provision (example) Fish/ shellfish populations: Quality of the fishery: Biomass Abundance Species compositin Age profile Length profile Fishing mortality % affected by disease Data limitation restrict ES assessment; more indicator specific data needed Results help prioritize research and monitoring Interdisciplinary teams are essential for ES assessment A2 B1

12 Value = importance? Economic values assume that individuals are rational and have well-defined and stable preferences over alternative outcomes, which are revealed through actual or stated choices. based on utilitarianism and assume substitutability defined in terms of the trade-offs that individuals are willing to make, given the constraints they face. Community-based values based on the assumption that individuals make choices based on what they think is good for society as a whole rather than what is good for them as individuals. Attitude or judgment-based values Values based on constructed preferences Bio-ecological values Energy-based values US Environmental Protection Agency, 2009

13 Valuation: Approaches and Methodologies Revealed preference Market values, travel cost, hedonic pricing

14 Direct market valuation: Production function Production function approaches Estimates contribution of an ecosystem service to a final commodity Improvement in resource base or environmental quality, i.e. enhanced ecosystem services, lowers costs and prices or increases quantity of goods Requires knowledge of relationships between ecosystems services and valued end points Applicable to regulating and supporting services Value? Photo: Keith Hiscock Ecosystem service

15 Valuation: Approaches and Methodologies Revealed preference Market values, travel cost, hedonic pricing Stated preference Contingent valuation, contingent behaviour, choice experiments

16 Valuation of Ecosystem Benefits from the Dogger Bank T. Börger, C. Hattam, D. Burdon, J. Atkins, M. Austen The Dogger Bank is facing various pressures from fisheries, wind farm development and aggregate extraction. To comply with the EC Habitats Directive and Marine Strategy Framework Directive, the Dogger Bank SAC requires management to achieve the protection objectives. Method and Results UK-wide choice experiment survey (N=1,022 households) Unit: Willingness to pay (WTP) to secure ecosystem service change Outcomes can inform management planning and decision making Dogger Bank management targets Change in species diversity Protection area for porpoises, seals and seabirds Reduction of risk of invasive species

17 Dogger Bank Method: Survey all beneficiaries of a set of ecosystem services Respondents make choices and reveal their preferences Results: Value of particular services (Willingness to pay) Tradeoff between particular services Profile of groups that profit more or less from ecosystem service change

18 Valuation of Ecosystem Benefits from the Dogger Bank T. Börger, C. Hattam, D. Burdon, J. Atkins, M. Austen The Dogger Bank is facing various pressures from fisheries, wind farm development and aggregate extraction. To comply with the EC Habitats Directive and Marine Strategy Framework Directive, the Dogger Bank SAC requires management to achieve the protection objectives. Method and Results UK-wide choice experiment survey (N=1,022 households) Unit: Willingness to pay (WTP) to secure ecosystem service change Outcomes can inform management planning and decision making Dogger Bank management targets Change in species diversity Protection area for porpoises, seals and seabirds Reduction of risk of invasive species Economic valuation of impacts WTP ( ) per UK household 4,22 Species +10% 7,97 Species +25% 23,96 30,34 25,31 Protected Protected area +25% area +50% Restricted spread of invasive species Economic valuation can quantify the welfare impacts of policy-induced ecosystem change to inform management planning and decision-making.

19 Valuation: Approaches and Methodologies Revealed preference Market values, travel cost, hedonic pricing Stated preference Contingent valuation, contingent behaviour, choice experiments Benefit transfer Adapt values derived from existing studies to some other context Measures of attitudes, preferences, and intentions Surveys, narratives, focus groups, behavioural observation Civic valuation Referenda, citizen jury

20 Deliberative Valuation and the Dogger Bank A. Delaney, D. Degnbol, M. Hadjimichael, C. Hattam, T. Börger, J. Atkins, D. Burdon, M. Austen Methods Workshop designed as citizens jury 20 members of the public 4 expert witnesses 2 rounds of deliberation Did not aim for consensus Alternative to monetary valuation of ecosystem services In-depth exploration of opinions Conflicts and dilemmas in management of DB Prioritisation of uses/ ecosystem services of DB Results Conservation a priority, with caveats balance intrinsic value of DB with economic demands Fishing prioritised over windfarm construction historical legitimacy and information imbalance Sustainability and balance is important Influence of witnesses apparent Availability of evidence affected discussions Supports development of management plan for the Dogger Bank csac Complements ecosystem service valuation in support of ecosystem approach to marine management, as required by MSFD

21 Valuation: some challenges Values are dynamic Responsive to environmental change and human pressures; Tempered by uncertainty; Spatio-temporally variable; Social and historical context Values are simplistic Inter-relationships of different ecosystem services; Feedbacks in systems; Non-linearities in systems Are all ecosystem services substitutable? Whose values count and who does the valuing? What is being valued? Stocks of resources (natural capital) or flows from these?

22 Some spatial considerations city city

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24 Policy/management use examples MSFD socio-economic analysis MS challenged by limited amount of socio-economic data available within the timeframe required to undertake MSFD assessment very little new research provided for this phase. Only five MS opted to apply an Ecosystem Services Framework to look at costs of degradation Considerable uncertainty about the level of existing knowledge on the extent to which changes in ecosystem state translate into changes of ecosystem services provision WFD Disproportionate costs to reach good ecological status

25 Some research needs Ecosystem services natural science perspective Biodiversity structure-function-services-benefits relationships Spatial and temporal dimensions Increase use of natural science in valuation Biodiversity and natural resources Ecosystem processes and functions Ecosystem services Natural science Ecosystem benefits and values Social science

26 Research needs Research needs Ecosystem services natural science perspective Biodiversity structure-function-services-benefits relationships Spatial and temporal dimensions Increase use of natural science in valuation Apply lessons learned from fisheries economics to broader marine ecosystem service valuation Spatio-temporal scales Modelling Photo: G. Newman Marine cultural ecosystem services and benefits Understand, quantify and value Evaluate use of valuation in policy making Develop mechanisms to improve use of valuation in decision making

27 Research needs Valuation research needs Addressing limitations and uncertainties Monetary valuation of marine ecosystem services Uncertainty in marine vs terrestrial application of public stated preference Transferability of valuation methodologies from terrestrial to marine Lack of data Sensitivity Context dependence Non-monetary valuation of marine ecosystem services Development of discursive valuation Understanding and distinction of societal values (general public) vs those of informed stakeholder Health benefit (and cost) values

28 Research needs Spatial and temporal dimensions of valuation Valuation of ecosystem benefits (EB) temporal stability error/variability of value systems relationship of current economic context and EB values geographic/cultural heterogeneity of EB value systems use in benefit transfer spatial delimitation of value (mobile natural assets!) valuation across international borders use of discounting during temporal variability Research to address issues concerning ecosystem thresholds and tipping points within EB valuation

29 Research needs Modelling Modelling natural science using and developing ecosystem models (system models) to quantify and project ES changes Develop system modelling approaches to include ES and EB values to retain complexity of interactions (e.g. Atlantis type modelling platforms) Linking natural science models with economic and social science models: Develop a broader ES bioeconomic modelling approach: perhaps tackle provisioning/regulating/cultural services with different modelling approaches Adapt models to requirements/perceptions of decision makers develop user friendly modelling Develop decision support approaches MCA, INVEST, Atlantis

30 Research needs Marine Ecosystem accounting Marine ecosystems as natural capital within a natural capital portfolio; marine ecosystem services as capital within a portfolio management approach Payment for ecosystem services (PES vs valuation) Life cycle analysis, evidence to support decisions e.g. of commercial companies marketing fish for marine renewable energy development

31 Some conclusions Valuation is needed to support policy, industry, management/regulation, environmental protection Ecosystem service typologies exist for the marine environment these probably need to be adapted to the context in which they are applied We should continue to marinise terrestrial ecosystem service frameworks, valuation methods and natural capital (green/blue) accounting There are still many research and data needs Interdisciplinary research linking natural and social science is essential, we need to build capacity

32 Zen & the Art of Ecosystem Services

33 Some conclusions Valuation is needed to support policy, industry, management/regulation, environmental protection Ecosystem service typologies exist for the marine environment these probably need to be adapted to the context in which they are applied We should continue to marinise terrestrial ecosystem service frameworks and valuation methods There are still many research and data needs Interdisciplinary research linking natural and social science is essential, we need to build capacity Rome wasn t built in a day

34 Thank you