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Soil EcoSystem Services: Economic Issues

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(1)

Soil EcoSystem Services: Economic Issues

Mette Termansen,

Department of Environmental Science, Aarhus University, DK

Unai Pascual,

Department of Land Economics, Cambridge University, UK

(2)

Soil EcoSystem Services: Economic Issues

Ecosystem services concept describes the interelationship between human well-being and ecosystems.

Popularised through the Millennium Ecosystem Assessment (MA) 2003 Provisioning – Regulating – Cultural

The Economics of Ecosystems and Biodiversity (TEEB) is the follow up on the MA to demonstrate value and to inform policy to enabling value capture.

Supporting

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Soil EcoSystem Services: Economic Issues

EcoFINDERS contributes to both aspect of economic analysis (i.e. demonstration (A) and capture (B))

A) The economic value of Soil Ecosystem Services Forms of value

Need for policy intervention?

B) Economic aspects of soil conservation policy design Would voluntary payment schemes work?

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A) The Economic Value of Soil Ecosystem Services

Soil Biodiversity and Ecosystem Services have economic value if they are scarce resources

A ressource is scarce if a reduction is associated with an opportunity costs.

In order to increase the ressource with one additional unit one must give up a certain amount of something else.

Ignoring values of natural resources means that policy choices are misinformed and society less well off

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A) The Economic Value of Soil Ecosystem Services

Economic Value

Use Value

Direct Indirect

Option Value

Philantropic

Non-use value

Existence

Consumptive Non- consumptive

Bequest Altruism

Food Recreation Pollination Resilience eg.

(6)

A) The Economic Value of Soil Ecosystem Services

Indirect use value / option value Disease control (regulating)

Indirect use value / option value Water flow regulation (resilience

towards drought)

Non-consumptive use value Carbon sequestration (regulating)

Indirect use value /option value Nutrient cycling (Soil fertility)

(supporting)

Eco. Value Classification MA Classification

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Implications of the mismatch between the various typologies Risk of double counting of values

Choice of Valuation Methodology Choice of policy instruments

A) The Economic Value of Soil Ecosystem Services

(8)

B) Economic aspects of soil conservation policy design

The approach taken in EcoFINDERS:

Policy experiment with land managers

i) Description of hypothetical soil conservation schemes as a

combination of a collection of conservation measures and regulatory characteristics.

ii) Choice or Ranking experiments to collect data on land managers responses to alternative conservation schemes

iii) Development of response model

iv) Evaluation of alternative designs in terms of adoption and costs

(9)

EcoFINDERS project:

A) Improve the economic models for valuing soil ecosystem services and testing the case for intervention

B) Analyse the scope for voluntary conservation policy schemes.

Soil EcoSystem Services: Economic Issues

Referencer

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