Prof. Dr. Hans Hurni, University of Bern/ Switzerland on his research in Ethiopia.
This week's case-study:
Case Study 4 and 7: Sierra Leone / World Crop
Simple cost-benefit analysis:
De Groot, R.S., J. Blignaut, S. Van Der Ploeg, J. Aronson, T. Elmqvist, and J. Farley. 2013. "Benefits of Investing in Ecosystem Restoration." Conservation Biology 27:1286-1293.
A bit more advanced:
Birol, E., P. Koundouri and Y. Kountouris (2010). "Assessing the economic viability of alternative water resources in water-scarce regions: Combining economic valuation, cost-benefit analysis and discounting." Ecological Economics 69(4): 839-847.
Next week we will simulate a cost-benefit-analysis for your chosen ecosystem. This economic method is a decision-making tool that will enable you to make a comparison between two scenarios:
1. the scenario that you explored in Assignment 2
2. a new scenario that you will create
The assignment is due on April 12, 2014.
Over the next few weeks, we will develop a cost-benefit-analysis for your ecosystem. Cost-benefit analysis is a tool that helps decision makers assess whether or not a project is worth undertaking. The first step is assessing of the current situation, the costs and the benefits. We have begun doing that in the previous assignments. Now, we need to conceptualize a scenario that is different from what we have already worked on. The ELD goal is to prevent or reverse land degradation while improving the livelihood of people. Our new land scenario should reflect those goals.
Valuation methods provide us with more information on values and costs, thereby enabling us to make decisions. The range and impact of those choices may vary: should a piece of land be turned into a National Park? Should the private sector be allowed to use build a factory on it? Will a paradigm shift in agricultural methods help to inhibit land degradation? How can the livelihood of the people who live off of the fruits of land be improved? In order to make these choices, we have to come up with specific scenarios: land use patterns, stakeholders, costs and benefits.
Economics provides us with the methods we need to value ecosystem services. They have varied approaches: some measure using replacement or repair costs while others refer to personal preference (what people both say and demonstrate). Benefit Transfer draws from other cases to make a comparison. This week we will be exploring evaluation methods and their effectiveness. We will apply them to the cases we are working on.
This week's case-study:
List of online repositories and resources:
Bishop, J. and Allen, J., 1989. The on-site cost of soil erosion in Mali. Environment Working Paper No. 21. The World Bank, Washington D.C. http://www-wds.worldbank.org/external/default/WDSContentServer/WDSP/IB/1989/11/01/000009265_3960928152005/Rendered/PDF/multi_page.pdf
Alfsen, K.H., De Franco, M.A., Glomsrød, S. and Johnsen, T., 1996. The cost of soil erosion in Nicaragua. Ecological Economics. 16(2): 129-145. http://www.sciencedirect.com/science/article/pii/0921800995000836
King, D.A. and Sinden, J.A., 1988. Influence of soil conservation on farm land values. Land Economics. 64(3): 242-255. http://www.jstor.org/stable/3146248
Travel cost method:
Navrud, S. and Mungatana, E.D. Environmental valuation in developing countries: The recreational value of wildlife viewing. Ecological Economics. 11: 135-151 . http://www.sciencedirect.com/science/article/pii/0921800994900248
Contingent Valuation method:
Ngugi, G.W., Newton, L.E. and Muasya, A.M., 2011. The contribution of forest products to dryland household economy: The case of Kiang’ombe hill forest, Kenya. Ethnobotany Research and Applications. 9: 163-180. http://lib-ojs3.lib.sfu.ca:8114/index.php/era/article/view/197/320
Do, T.N., 2007. Impacts of dykes on wetland values in Vietnam’s Mekong River Delta: A case study in the Plain of Reeds (PhD Thesis). Economy and Environment Program for Southeast Asia, Singapore. http://web.idrc.ca/uploads/user-S/12114357241ThangNamDoRR.pdf
Blamey, J., Rolfe, J., Bennett, J. and Morrison M. 2000. Valuing remnant vegetation in Central Queensland using choice modelling. The Australian Journal of Agriculture and Resource Economics. 44(3): 439-456.
ELD Initiative http://eld-initiative.org/
UK National Ecosystem Assessment http://uknea.unep-wcmc.org/,
List of online repositories and resources :
Toolkits for valuation and assessment:
Earth Economics http://www.esvaluation.org
GLUES http://www.ufz.de/index.php?en=20766; http://geoportal.glues.geo.tu-dresden.de/
MIMES http://www.ebmtools.org/mimes.html; http://www.afordablefutures.com/services/mimes
IVM Institute for Environmental Studies http://www.ivm.vu.nl/en/Organisation/departments/spatial-analysis-decision-support/research-themes/Mapping-and-modelling-ecosystem-services/index.asp
PBL group http://www.pbl.nl/en/dossiers/modelsanddata
The economics of land degradation provides you with a set of tools that enable you to value ecosystem services. Hannes Etter, Scientific expert of the ELD initiative, will talk about three preselected evaluation methods. He will elaborate on three case studies in which non-demand-curve approaches, travel cost, and benefit transfer methods have been used.
Hannes Etter is responsible for the scientific coordination within the ELD-network, including a broad range of case studies and partners from different institutions. Previous to his life in the ELD-Initiative, Hannes supported the Institute for Environmental and Human Security of the United Nations University, focusing on food security and rural development in West Africa in the WASCAL project.
Hannes Etter holds a Diploma in Geography. Throughout his studies he worked in southern Africa and southeast Asia, with a strong focus on rural development and community land use management and planning.
In Assignment 2 you identified non-marketed ecosystem services. In Assignment 3 you will select a valuation method appropriate to the case chosen. The assignment is due on March 29, 2014.
Total economic value is one of the most common frameworks for environmental valuation. This framework is anthropocentric because it is based on how society values these goods and services. This perspective is based on the use of utility as a measure of preference.
In this course, we are looking at various methods used for calculating the total economic values. There are three types of valuation methods: