Economic Valuation of Forest Ecosystem Services: Methodology and Monetary Estimates

By using ad hoc value transfer protocols, this paper offers a methodological contribution and provides accurate per hectare estimates of the economic value of some selected ecosystem services for all forest biomes in the world, identified following the Millennium Ecosystem Assessment taxonomy MEA. The research also estimates potential total economic losses from policy inaction in year 2050. Final results show that total losses are significant. The total figure is €78 billion, the greatest losses coming from North America and Mexico, followed by Africa, Russia and some Asiatic countries. Most of this loss is attributable to provisioning services and carbon sequestration, while only a minor part is due to loss of cultural services. In terms of biomes the greatest losses are from boreal and warm mixed forests, followed by tropical forests. These results may be surprising to some who argue that it is the loss of tropical forests, particularly the Amazon, that is the most significant. A detailed analysis, shows, however, that this is not the case. The best estimates point to greater losses in areas where use and non-use values are highest, which includes North America.Forest, Ecosystem Services, Biodiversity, Valuation, Value Transfer

The Costs of Climate Change: A Study of Cholera in Tanzania

Increased temperatures and changes in rainfall patterns as a result of climate change are widely recognized to entail potentially serious consequences for human health, including an increased risk of diarrheal diseases. This study integrates historical data on temperature and rainfall with the burden of disease from cholera in Tanzania and uses socioeconomic data to control for the impacts of general development on the risk of cholera. The results show a significant relationship between temperature and the incidence of cholera. For a 1 degree Celsius temperature increase the initial relative risk of cholera increases by 15 to 29 percent. Based on the modeling results, we project the number and costs of additional cases of cholera that can be attributed to climate change by 2030 in Tanzania for a 1 and 2 degree increase in temperatures, respectively. The total costs of cholera attributable to climate change are shown to be in the range of 0.32 to 1.4 percent of GDP in Tanzania 2030. The results provide useful insights into national-level estimates of the implications of climate change on the health sector and offer information which can feed into both national and international debates on financing and planning adaptation

The economics of noise pollution

This thesis investigates the problems posed by the existence of noise pollution with the use of economic concepts. The analysis is conducted at various levels of abstraction and includes the opening up cf some new fields of investigation, as well as tidying up and bringing together some previous work. The thesis is divided into six chapters. Chapter one introduces the subject and indicates the approach that is going to be taken in the subsequent chapters. Chapter two analyses the consequences for an optimum town of pollution such as noise. The necessary and sufficient conditions for an optimum are obtained and discussed. There are some comparative static results and the question of decentralisation is examined. Finally some simulation results are presented. The work in this chapter is perhaps least specific to noise pollution and would apply to any spatially distributed non-accumulating pollution. Chapter three examines the measurement of noise costs to households and compares two different approaches to the problem. Chapter four discusses the control cf noise levels in the context of the economic analysis cf Externalities and Public Ears, and emphasises some of the difficulties in obtaining optimum noise charges. Chapter five summarises the existing empirical work and adds some new results

Chapter 17 - Economics of adaptation

This chapter assesses the literature on the economics of climate change adaptation, building on the Fourth Assessment Report (AR4) and the increasing role that economic considerations are playing in adaptation decisionmaking and policy. AR4 provided a limited assessment of the costs and benefits of adaptation, based on narrow and fragmented sectoral and regional literature (Adger et al, 2007). Substantial advances have been made in the economics of climate change adaptation after AR4

A Policy Maker’s Guide to Designing Payments for Ecosystem Services

Over the past five years, there has been increasing interest around the globe in payment schemes for the provision of ecosystem services, such as water purification, carbon sequestration, flood control, etc. Written for an Asian Development Bank project in China, this report provides a user-friendly guide to designing payments for the provision of ecosystem services. Part I explains the different types of ecosystem services, different ways of assessing their value, and why they are traditionally under-protected by law and policy. This is followed by an analysis of when payments for services are a preferable approach to other policy instruments. Part II explains the design issues underlying payments for services. These include identification of the service as well as potential buyers and sellers, the level of service needed, payment timing, payment type, and risk allocation. Part II contains a detailed analysis of the different types of payment mechanisms, ranging from general subsidy and certification to mitigation and offset payments. Part III explores the challenges to designing a payment scheme. These include the ability to monitor service provision, secure property rights, perverse incentives, supporting institutions, and poverty alleviation

A CRITICAL REVIEW of COST-BENEFIT ANALYSIS for CLIMATE CHANGE ADAPTATION in CITIES

his study systematically reviews the scientific literature (n=56) on cost-benefit analysis (CBA) of adaptation measures in cities and similar urban environments. The review is conducted to assess existing or proposed actions for dealing with impacts of drought, heat waves, sea-level rise, and pluvial and fluvial flooding. It includes over 30 measures related to structural, services, technological, informational and ecosystem-based approaches. The main findings demonstrate that CBA of adaptation measures across urban environments must contend with numerous long-term socioeconomic and climate change uncertainties. Subsequently, this has led to inconsistencies in valuation frameworks related to, for example, planning horizons, discount rates, non-market considerations and future scenarios. Results also indicate a clear gap in the literature on the economic valuation of adaptation measures in the Global South. Furthermore, few studies integrate equity dimensions while planning for adaptation. Extensions of CBA to account for key uncertainties will help policy makers to allocate (often scarce) resources more efficiently and limit the likelihood of maladaptation. Further inclusion of the magnitude and distributional effects of non-market impacts and greater civil society engagement in policy dialogues will also be vital for promoting just and equitable measures that balance adaptation alongside other policy goals such as mitigation, economic development, health and well-being. © 2019 World Scientific Publishing Company.The authors are grateful for support received from the Horizon 2020 RESIN project (EC-H2020, grant agreement No. 653522). Additionally, this work is also supported by the Basque Government through the BERC 2018-2021 program and by the Spanish Ministry of Economy and Competitiveness MINECO through the BC3 Mar a de Maeztu excellence accreditation MDM-2017-0714. The authors would also like to thank the referee of the journal, whose detailed comments have led to major changes that have improved the paper

COVID-19 and climate change challenges or opportunities for economic recovery

The paper reviews the impact that COVID-19 has had on the ambitions of countries to meet the Paris Accord of reducing emissions to keep global temperature increases to below 2 ºC in this century. It notes that as nations recover from the crises, if no additional measures are taken, emissions of greenhouse gases will rise again and return to their old pathway as they did after previous crises. The paper proposes actions in the short and medium terms to build back differently this time and help meet the global climate challenge. © 2021, Universitat de Valencia. All rights reserved

Accounting for the effects of employment, equity, and risk aversion in cost-benefit analysis: An application to an adaptation project

This paper sets out to explore to what extent integrating employment effects, equity, and risk aversion within cost-benefit analysis (CBA) affect the economic appraisal of a climate change adaptation project designed to protect against flood risk in a region of Bilbao (Basque Country, Spain). Four CBAs are conducted: (i) a standard CBA; (ii) a standard CBA considering equity; (iii) a standard CBA considering equity and employment; and (iv) a standard CBA considering equity, employment and risk aversion. All CBAs are conducted using a time frame of 2014- 2080 and considering a 100-year return period under a middle of the road emission scenario (RCP4.5). A sensitivity analysis is also undertaken. Results suggest that the economic efficiency of the adaptation investment is contingent on what types of considerations are included within CBA. Integrating elements of employment, equity and risk aversion can strengthen or weaken the case for action (leading to higher or lower net-present values) and (depending on the discount rate chosen) may even be the deciding factor for determining whether a particular action should be carried out or not (whether the net-present value is positive or negative). © The Author(s), 2021.Acknowledgments: The funding for this work was provided by the European Commission 7th Framework Programme ECONADAPT project on the “Economics of climate change adaptation in Europe” under the grant agreement No. 603906. This research is also supported by the Basque Government through the BERC 2018-2021 program and by Spanish Ministry of Economy and Competitiveness MINECO through BC3 María de Maeztu excellence accreditation MDM-2017-0714

Covid, the Environment and Food Systems: Contain, Cope and Rebuild Better

The objective of this paper is to analyse impacts of COVID-19 on the nexus of food systems, the environment and sustainable development and propose ways for governments and international agencies to mitigate impacts in the short and medium term. It covers the historic period from early 2020 to early 2021 and also makes an assessment on future prospects. Although evidence is collected from all around the world, the focus is primarily on developing countries. The methods used are a review of the announced actions and preliminary findings in the academic and grey literature as well as on reliable websites from global and international institutions. By October 2020, governments around the world had invested about $12 trillion to counteract the economic effects of COVID-19. This investment could contribute to progress on the SDGs and global climate targets insofar as it was invested within a framework that supports both socio-economic recovery and sustainability. Initial analysis indicates that investments for economic recovery did not sufficiently address food security and sustainability, concentrating instead on immediate economic risk management. The global sustainable development agenda must promote the resilience and sustainability of food systems through policies and measures that: i) account for environmental thresholds and trade-offs; ii) promote food security and healthy diets; iii) enhance and protect rural livelihoods; and iv) address the inequalities and injustices that have emerged and will prevail during a post-COVID transition. National stimulus programs and the actions of international agencies must be assessed and monitored to deliver multiple benefits simultaneously and guide building back better. © Copyright © 2021 Markandya, Salcone, Hussain, Mueller and Thambi.This paper is the product of a UNEP project to investigate the links between COVID, the agri-food system and the environment. The authors acknowledge the contribution of all those working to understand the ramifications of this pandemic and their efforts to determine solutions for the welfare of our communities and environment. Special thanks are extended for comments and suggestions provided by: Doreen L. Robinson, Chief for Wildlife, UNEP Ecosystems Division; Sirini Withana, Economic and Trade Policy Unit, UNEP Economy Division; James Lomax, Food Systems and Agriculture Adviser, UNEP Ecosystems Division; Susan Mutebi-Richards, Gender Reviewer, Gender and Safeguards Unit, Policy and Programme Division; Jian Liu, Chief Scientist and Director, UNEP Science Division; Edward Barbier, University Distinguished Professor in the Department of Economics, Colorado State University, Senior Scholar in the School of Global Environmental Sustainability; Peter May, Professor titular CPDA/UFRRJ. Thanks are also due to three referees from the journal who made many suggestions that improved the paper. The FAO recommends four measures to ensure supply of agricultural inputs: reduce farmer income uncertainty; support digitization of input markets; ease movement restrictions for procuring ag inputs; maintain government support for investment in ag inputs (Food and Agriculture Organization of the United Nations, 2020g). Some countries have heeded this advice. In India, the national relief package includes the provision of 300 billion rupees ($4.5 billion) of additional emergency working capital funding for small and marginal farmers to meet post-harvest spring (Rabi) and current autumn (Kharif) requirements. Several countries, including Angola, Haiti, Kyrgyzstan, Liberia and Senegal, are providing similar financial assistance, supported in part by agencies like the World Bank to address the reduction in access to finance among farmers (World Bank, 2020b)

The Economic Impacts of Biodiversity Policy for Improving the Climate Regulating Services Provided by EU Natura 2000 Habitats

22 p.We adopted the state-of-the-art methodologies to quantify the total carbon stocked by Natura 2000 habitats as well as to project the future changes of carbon stocks influenced by alternative policy options for the management of Natura 2000 habitats by 2020. Our results show that the N2K network currently stores around 9.6 billion tonnes of Carbon, equivalent to 35 billion tonnes of CO2, which is estimated to be worth between €607 billion and €1,130 billion (stock value in 2010), depending on the price attached to a ton of carbon. Of the different ecosystems the forest habitats contain the highest carbon value in the network, ranging between €318 and €610 billion in 2010. Furthermore, our results also show that in the future these carbon values can be increased. A policy scenario (Policy ON), where full Protected Area coverage (terrestrial PAs + fuller MPAs) with a move to full favourable conservation status is estimated to generate a gain of at least a total of 1.71-2.86% by 2020 compared to a policy inaction scenario (Policy OFF), where no additional action is taken to conserve the current Natura 2000 sites over the next decade