TEEB Training Session 1: Conceptual Frameworks. TEEB Training A summary of some of the various...

The Economics of Ecosystems & BiodiversityThe Economics of Ecosystems & Biodiversity

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Session 1: Conceptual Frameworks


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A summary of some of the various different frameworks for assessing and valuing ecosystems and biodiversity

Sources: Wittmer, H. and Gundimeda, H. (eds), 2010.TEEB. In Local and Regional Policy and Management Earthscan, London Pp. 43


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Conceptual Frameworks; Drawing distinctions

The distinction between frameworks can be made on:

1) Whether they target:• Purely monetary values: TEV• Non-monetary values: KBA and CNC• Combination of the above: MA and SLA

2) Whether or not distributional issues are considered - A decision maker is likely to want to know not

just the overall picture but also what the option means for specific stakeholders at multiple scales

FRAMEWORKS

Total Economic Value

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Critical Nature Approach

Key Biodiversity Approach


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Socio-Ecological ApproachesThe Millennium Ecosystem Assessment (MA)

Launched in 2001 by UNEP to assess the consequences of ecosystem change for human well-being and the action needed

Highlights the benefits or ‘usefulness’ of ecosystem services for humans and for policy makers to improve planning and management

It is an important piece of work that presents the impacts of human activities on ecosystems around the world

©Millennium Ecosystems Assessment


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An example of the Ecosystem Service Approach (under the MA)

A good example of where the ecosystem service approach under the MA framework has been applied is the assessment of marine ecosystems in the UK

Here an economic analysis was conducted, and the high values identified resulted in the designation of marine protected areas


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Ecological Approaches Conceptual Frameworks: Ecological Approaches

Ecological approaches prioritize ecological values (rather than economic values for example)

The following two ecological approaches are useful for assessing the expected changes in flow of ecosystem services:

1. Critical Natural Capital (CNC) approach

Provides a system of prioritizing conservation and environmental protection. It is the general term for the stock of natural resources

“Critical” natural capital differs from other types of natural capital because it performs important and irreplaceable ecosystems services that cannot be substituted


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2. Key Biodiversity Areas (KBA) approach

A rapid assessment methodology that identifies local areas which are globally important for species conservation

• Areas are classified using simple and standardized criteria that address the strategically important issues of vulnerability and irreplaceability

Existing initiatives include Birdlife International’s “Important Bird Areas” program in collaboration with IUCN and other prioritization instruments such as WWF ‘Global 200’

Ecological ApproachesContinued…

©www.123rf.com/Anton Balzah


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An example of CNC Approach

Decisions made to restore salmon habitats in the USA rather than convert the area for industrial use

Direct costs and benefits• Showed that the restoration option did not

break even• Critical nature of this area for salmon

restoration made this option a bargain

Industry could be located elsewhere, whereas salmon habitat must be situated where freshwater meets tidal salt water

©www.123rf.com/Witold Krasowski


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Developmental Approaches Ecosystem change can have different

impacts on individuals and society

Any policy change can leave some people worse off than others

Developmental frameworks provide a better understanding of the impact of policies on local livelihoods

These frameworks are useful for assessing distributional impacts of different policy options

©uncsd2012.org


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Sustainable Livelihoods Approach SLA looks at how an individual, household or a community

secures its well-being over time.

‘livelihood’ is made up of capabilities, the assets (stores, resources, claims and access) and activities required for day-to-day living.

In this framework assets include natural, economic, human, social

Allows decision makers to define policy options connected to ecosystem services in terms of how they affect local livelihoods

Developmental ApproachesContinued…


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Capabilities Approach

Advocates that people have the freedom to choose the various things he or she may value doing

Capabilities in this context therefore stresses the ability of people to provide for their individual needs and desires

The UN have included CA insights in their analysis in the form of the Human Development Index (HDI)


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Entitlements Approach

Focuses on individuals entitlements to goods and services that affect their livelihoods

Any Individual who owns both: (i) tangible assets- such as land etc. and (ii) intangible assets- such as knowledge and skills etc. are referred to as individual ‘endowments’. With these endowments you are given a set of ‘entitlements’

Entitlements are determined not only by stocks of capital, but by market conditions. An example is in the case of famines where devastating effects on livelihoods


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Economic Approaches Total Economic Value (TEV) The TEV framework is concerned with the eventual impacts on human

well-being

Almost exclusively focuses more on economic endpoints that can if needed, be measured in monetary terms

This framework presents categories of ecosystem benefits, which fit into a standard economic frame of reference

It’s strength is that all benefits that humans obtain from nature and even the value of nature in its own right (intrinsic value) can be captured by one of the subcategories used in this approach


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TEV categories of value The TEV of an environmental asset is the sum of these different value

categories:

- Direct use value: the value derived from the direct extraction of resources or the direct interaction with the ecosystem

- Indirect use values: values that support economic activity

- Option use values: preserving biodiversity so that its direct and indirect use values can consumed in the future

- Non-use values: values that refer to conservation for its own sake

Economic ApproachesContinued…


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An example of the TEV ApproachValue of Belize coastal ecosystems

TEV assessed the average annual contribution of reef-and mangrove-associated tourism to the national economy of Belize. Tourism Contributing an estimated US$150

million to US 196 $ million to Belize’s economy in 2007

Reefs and mangroves have proven beneficial in protecting coastal properties from erosion, estimated around US$231 million to US$347 million in avoided costs per year

Belizean NGOs and local groups have now used these results to advocate tougher fishing regulations and pressure the government to change existing mangrove legislation

©Grida Arendal


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Group Exercise 1Plans to Drain The Nakivubo Swamp, Kampala

In pairs using the case study example of the Nakivubo Swamp, Kampala, Uganda (see handout for more information) – suggest ways, using the different frameworks that have been presented to you, of how you may approach this particular policy issue so that you may come up with some possible solutions. ©Grida Arendal

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TEEB Training Session 1: Conceptual Frameworks. TEEB Training A summary of some of the various...

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