Putting an economic value on kunanyi / Mt Wellington. Professor John Tisdell University of Tasmania

Transcription

1 Putting an economic value on kunanyi / Mt Wellington Professor John Tisdell University of Tasmania

2 Direct use: Market prices

3 Direct Use: Tourism Hobart/

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5 Direct values Outputs that can be consumed or processed directly, such as timber, fodder, fuel, non-timber forest products, meat, medicines, wild foods, etc. USE VALUES Indirect values Ecological services, such as flood control, regulation of water flows and supplies, nutrient retention, climate regulation, etc. Option values Premium placed on maintaining resources and landscapes for future possible direct and indirect uses, some of which may not be known now. NON-USE VALUES Existence values Intrinsic value of resources and landscapes, irrespective of its use such as cultural, aesthetic, bequest significance, etc.

6 Revealed Preference Methods Cost- Based Methods Stated Preference Methods Market Prices Market Prices Surrogate Market Approaches Travel Costs Hedonic Pricing Replacement Costs Cost of providing substitute Services Damage Cost Avoided Contingent Valuation Conjoint Analysis Choice Experiments

7 Revealed Preference Methods Cost- Based Methods Stated Preference Methods Surrogate Market Approaches Travel Costs Hedonic Pricing

8 Surrogate Market Approaches Travel cost Hobart/

9 Travel cost

10 Surrogate Market Approaches Hedonic Pricing

11 Revealed Preference Methods Cost- Based Methods Stated Preference Methods Replacement Costs Cost of providing substitute Services Damage Cost Avoided

12 Production function: replacement cost Cost of replacing the ecosystem services of localised climate regulation; fresh water supplies, control of invasive species; watershed protection

13 Revealed Preference Methods Cost- Based Methods Stated Preference Methods Contingent Valuation Conjoint Analysis Choice Experiments

14 Non-use values: Stated methods Choice modelling From: The Effects of Experience on Preferences: Theory and Empirics for Environmental Public Goods Am J Agric Econ. 2014;97(1): doi: /ajae/aau087 Am J Agric Econ The Author (2014). Published by Oxford University Press on behalf of the Agricultural and Applied Economics Association. All rights reserved. For permissions, please journals.permissions@oup.com

15 Existence values

16 Intergenerational values

17 Placing a monetary value of ecosystem services Ecosystems have ecological, socio-cultural and economic values Placing an economic value on ecosystems services has arguably the following benefits: I. Tool to raise awareness and convey the relative importance of ecosystems to society. II. Provides a guide to understanding user preferences and the value current generations place on ecosystems. III. Provides a mechanism for incentivising protection and generating expenditure on their conservation and sustainable use. IV. Allows for possible inclusion in economic performance metrics national accounts. V. Encourages efficient use of available funds to preserve ecosystems.

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19 Commercial value: Volvo Sponsorship Turn the Tide on Plastic Photo by Seventh Frame

20 Commercial value of associating business with the protection of kunanyi / Mt Wellington?

21 Pitfalls in placing a monetary value on ecosystem services The possible pitfalls in valuing ecosystem services include: I. Some systems are too complex to be valued and as a result may not be taken into account, yet may in fact be II. III. IV. the most valuable. General society may not have sufficient information to make an accurate estimate of ecosystem values (revealed methods). Intergenerational values are often not or poorly taken into consideration. Uncertainty of consequences in the physical and social sciences application of the precautionary principle.

22 Existence values Megafauna

23 Lichen: Bunodophoron notatum RAAPe5od8rVDJwkczTupdC- PvJU%3D&sa=X&ved=0ahUKEwjAn9r-9szbAhUCfrwKHfYNCfQQ9QEIOjAE#imgrc=DFHzqCz-kQZDAM:

24 Intergenerational values.. In a system developed largely for the industrial era of 20 year machine lives. Discounting the future Three year cycle of governance

25 The alternative: Ecological Economics Approach

26 The alternative: Ecological Economics Approach ZIeEA482Q86Wfvjac8umXB1sA0%3D&sa =X&ved=0ahUKEwiVvsGGt8_bAhWCEpQKHdqTA2kQ9QEIOzAG#imgrc=esZxshxT-07taM:

27 Anthropocene: The era of Homo sapien and its strange behaviours