Andalusia forest ecosystems environmental assets

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1 Madrid, October 5-6, 2016 Hotel Rafael Atocha. Calle Méndez Alvaro, 30 Andalusia forest ecosystems environmental assets Pablo Campos Consejo Superior de Investigaciones Científicas (CSIC) j p g f ( ) pablo.campos@csic.es

2 CONTENT National and ecosystem background Objective Capital and income concepts Agroforestry accounting system Andalusia forest ecosystems Results Final comments

3 GOVERNMENT ACCOUNTS BACKGROUND [Standard] d d] System of National Accounts [SNA 2008] [Standard] System of Environmental Economic Accounting 2012 Central lframework k[seea-cf] [Draft Guidelines ] System of Environmental Economic Accounting 2012 Experimental lecosystem Accounting [SEEA-EEA] European Commission et al. (2009) United Nations et al. (2014a,b)

4 ACADEMIC BACKGROUND Agroforestry Accounting System (AAS) Simulated Exchange Value (SEV) Campos (2015) Caparrós et al. (2016 eds.)

5 OBJECTIVE To value Andalusia forest ecosystems products environmental assets by applying AAS, SEV and non market valuation methods.

6 Agroforestry Accounting System (AAS) Source:Campos(2015) Production account Total cost Total cost GFCF Total product Intermediate produt consumption Final product consumption Opening capital (Co) External investment Capital account Entries (Ce) Total cost O Final product GFCF CeoGFCF EWPu NOM= TP TC Final product GWPF Ceo GWPF Destructions External Withdrawals (Cw) Otras Cwu Closing capital (Cc) Cr = Cc + Cw Co Ce Abreviations. GFCF: gross fixed capital formation (own account durable investment on constructions, equipements, trees plantations, ti etc.); GWPF: gross work in progress formation (woody natural growth, etc.); Cwu: inventory withdrawals of woody vegetation harvested and game captured; EWPu: Opening environmental work in progress used as intermediate consumption; NOM: the net operating margin is the operating capital income measured as balancing item of production account. Cr: The capital revaluation is the balancing item of the capital account.

7 Environmental income, resource rent and asset concepts Source: Campos (2015) Environmental income (EI) is defined as a nature economic rent embeded in ecosystem total income (TI). EI is measured as a residual value after having been paid labour cost (LC) and a normal manufactured capital income (MCI): EI = TI LC MCI. Resource rent (RR) is the nature contribution to generate ecosystem total income. We measure resource rent as environmental work in progress used up (EWPu)plus environmental income: RR = EWPu + EI. Environmental asset (EA) is the net present value of ffuture resource rent streams and being the discounting rate (r) a subjective election. For simplicity, assuming steady state: EA = RR/r.

8 CAPITAL CLASIFICATIONS Ecosystem total capital = Environmental Asset + Manufactured Capital: C = EA + MC. Ecosystem environmental assets are nature production factors of total income: TI F ( LC, MC, EA) Environmental asset = Work in Progress + Fixed Capital: EA = EWP + EFC. Environmental Fixed Capital = Land + Biological Resources: EFC = FCl + FCbr.

9 Figure 1. Andalusia forest ecosystems main trees species. Source: Caparrós et al. (2016: Figure 2, p. 503).

10 Fi 4 M d i t l i fa d l i f t t Figure 4. Mapped environmental income of Andalusia forest ecosystems (2010: /ha). Source: Caparrós et al. (2016: Figure 44, p. 582).

11 Table 2. Andalusia forest opening capital by single products and activities (2010: /ha). Class Environmental asset Manufactured capital Sub-total Total Landowner Government Total Landowner Government Total Lando wner Gover nment Timber Corck Firewood Pine cone and chestnut Acorns Grass Silviculture Other forestry Forestry 1, , , ,238.4 Hunting Residential services Private amenities 3, , , ,272.6 Public recreation 1, , , ,404.1 Mushroom Carbon Landscape 1, , , ,125.5 Biodiversity Water Total 4.544, , ,0 461,4 104,3 565, , , ,7 Source: Caparrós et al. (2016: Table 46, p. 544).

12 FINAL COMMENTS The economic value of environmental asset depends on the opening value of the stock of environmental production in progress and the future discount of the stream of environmental incomes. Environmental income is a residual value of total income after being paid labor and manufactured capital services. The condition of being the price a weight ratio to satisfy the consumption of people in the exchange, the value of the change of asset derived from variations in the quantity and price can generate an environmental assets revaluation of the opposite sign to the variation in the period of the amount of the physical environmental product. Finally, the persistence over time of the integrity of biophysical ecosystem functions is the relevant point of view for nature conservation.

13 ACKNOWLEDGEMENTS The authors would like to thank the Junta of Andalucía for its assistance with funding and fieldwork for the project Income and Capital of the Silvopastoral of Andalusia (Renta y Capital de los Montes de Andalucía - RECAMAN) through the Environment and Wt Water Agency (Agencia de Mdi Medio Ambiente y Agua - AMAyA). Luis Guzmán, Isabel Martín and Samuel Gómez contributed to the coordination of data collection by hired technicians on the farms and the surveys of private Silvopastoral farms owners in the RECAMAN project. Despite the valuable cooperation received from these individuals and institutions, the authors are solely responsible for the views and limitations of this study

14 REFERENCES Campos P., Cuentas agroforestales: Retos de la medición ió de la renta total social ilde los montes de Andalucía. In: Economía y selviculturas de los montes de Andalucía (Campos P., Díaz-Balteiro L., eds). Memorias científicas de RECAMAN. Volumen 1. Memoria 1.1. Editorial CSIC, Madrid, pp Campos, P., Caparrós, A., Oviedo, J.L., Ovando, P., Álvarez-Farizo, B., Díaz-Balteiro, L., Juan Carranza, Beguería, S., Díaz, M., Herruzo, A.C., Martínez-Peña, F., Soliño, M., Álvarez, A., Martínez- Jáuregui, M., Pasalodos-Tato, M., de Frutos, P., Aldea, J., Almazán, Concepción,.D., Mesa, B., Romero, C., Serrano-Notivoli, R., Fernández, C., Torres-Porras, J. and Montero, G., Bidi Bridging the gap between national and ecosystem accounting (in preparation). Caparrós A, Campos P, Beguería S, Carranza J et al., Renta total social y capital georreferenciados e e e de los sistemas sste forestales oestaesde Andalucía. a. In: Valoración ación de los servicios públicos y la renta total social de los sistemas forestales de Andalucía. Memorias científicas de RECAMAN. Volumen 5. Memoria 5.4; Campos P, Caparrós A (eds). pp: Editorial CSIC, Madrid, Spain.

15 European Commission, International Monetary Fund, Organization for Economic Co-operation and Development, United Nations and World Bank, System of National Accounts 2008 [SNA 2008)]. United Nations, European Union, Food and Agriculture Organization p g g of the United Nations, International Monetary Fund, Organization for Economic Cooperation and Development, World Bank, 2014a. System of Environmental Economic Accounting 2012 Central Framework [SEEA- CF]. UN, New York,). United Nations, European Commission, Food and Agriculture Organization of the United Nations, Organization for Economic Cooperation and Development, World Bank, 2014b. System of Environmental Economic Accounting 2012 Experimental Ecosystem Accounting. United Nations, New York.

16 THANKS

17 CONTENT Background

April 2, RECAMAN: Manufactured and environmental total incomes of Andalusian forest

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