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Program Program 1) Class progress1) Class progress
2) Readings in economic valuation2) Readings in economic valuation
- NAS Article- NAS Article
3) Example – Wetlands (functions & values) 3) Example – Wetlands (functions & values)
4) Example – Open Space 4) Example – Open Space
5) Last Class Expectations 5) Last Class Expectations
Meaning of value & Use of Economic Meaning of value & Use of Economic valuation in Environmental Policy (valuation in Environmental Policy (NAS) NAS)
___________________________________ ___________________________________
How do we value ecosystems and natural How do we value ecosystems and natural
resources?resources?
- all values are anthropocentric- all values are anthropocentric
- nonhuman species have value in - nonhuman species have value in
themselvesthemselves
Meaning of value & Use of Economic Meaning of value & Use of Economic valuation in Environmental Policy valuation in Environmental Policy
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- - values of ecosystem & their services values of ecosystem & their services
are are inherently anthropocentricinherently anthropocentric
-- Used the Millennium Ecosystem AssessmentUsed the Millennium Ecosystem Assessment
(ecosystems services to human well-being)(ecosystems services to human well-being)
-- used broad definition of the term economic used broad definition of the term economic
valuation – commercial and non commercial valuation – commercial and non commercial
valuesvalues
Meaning of value & Use of Economic Meaning of value & Use of Economic valuation in Environmental Policy valuation in Environmental Policy
___________________________________ ___________________________________
- - Role of valuation in policyRole of valuation in policy
-- importance of quantifyingimportance of quantifying
Meaning of value & Use of Economic Meaning of value & Use of Economic valuation in Environmental Policy valuation in Environmental Policy
___________________________________ ___________________________________
- - NAS report based on the NAS report based on the
millennium Ecosystem millennium Ecosystem
AssessmentAssessment
- Broad overview of economic - Broad overview of economic
valuationvaluation
Meaning of value & Use of Economic Meaning of value & Use of Economic valuation in Environmental Policy valuation in Environmental Policy
___________________________________ ___________________________________ Economic valuationEconomic valuation
- Based on Total economic value framework- Based on Total economic value framework
- wide variety of values- wide variety of values
-Willingness to pay – WTP-Willingness to pay – WTP
-discounting (capture timing of CBA,-discounting (capture timing of CBA,
means of weighing the utility of future means of weighing the utility of future
generations differently from that of generations differently from that of
present generations (Utility present generations (Utility
discounting)discounting)
Meaning of value & Use of Economic Meaning of value & Use of Economic valuation in Environmental Policy valuation in Environmental Policy
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-- Role of Economic valuation Role of Economic valuation
-- Widespread agreement that ecosystems Widespread agreement that ecosystems
have a have a value, value,
- Values as inherently anthropocentric- Values as inherently anthropocentric
- Types- Types
instrumental value – usefulnessinstrumental value – usefulness
intrinsic value – independent of any intrinsic value – independent of any
contributioncontribution
Meaning of value & Use of Economic Meaning of value & Use of Economic valuation in Environmental Policy valuation in Environmental Policy
___________________________________ ___________________________________ Some terms and concepts Some terms and concepts
instrumental value – value derived from its role as instrumental value – value derived from its role as a means toward an end other than itself a means toward an end other than itself
Anthropocentricism – assumes only humans Anthropocentricism – assumes only humans assign value assign value
Biocentrism values – assume that certain things Biocentrism values – assume that certain things have value even if no human beings think so.have value even if no human beings think so.
Meaning of value & Use of Economic Meaning of value & Use of Economic valuation in Environmental Policy valuation in Environmental Policy
___________________________________ ___________________________________ Some terms and concepts Some terms and concepts
Examples: Snail Darter vs. Dam. Who won?Examples: Snail Darter vs. Dam. Who won?
Existence value – ability to preserve something, by Existence value – ability to preserve something, by the existence alone, has utility.the existence alone, has utility.
Utilitarian values stem from the ability to provide Utilitarian values stem from the ability to provide “welfare” to humans.“welfare” to humans.
Meaning of value & Use of Economic Meaning of value & Use of Economic valuation in Environmental Policy valuation in Environmental Policy
___________________________________ ___________________________________ Some terms and concepts Some terms and concepts
Is there a right for others living creatures to exist?Is there a right for others living creatures to exist?
KANT – Philosopher wrote on intrinsic values:KANT – Philosopher wrote on intrinsic values:
humans are rational and thus only humans have humans are rational and thus only humans have intrinsic value and rights, He argued that rights intrinsic value and rights, He argued that rights should extend to nonhumans. should extend to nonhumans.
Meaning of value & Use of Economic Meaning of value & Use of Economic valuation in Environmental Policy valuation in Environmental Policy
___________________________________ ___________________________________ Some terms and concepts Some terms and concepts
Economic approach to valuation is an Economic approach to valuation is an anthropocentric approach based on utilitarian anthropocentric approach based on utilitarian principles. principles.
Not based on non-anthropocentric values, Not based on non-anthropocentric values, biocentrism values and intrinsic values biocentrism values and intrinsic values
Meaning of value & Use of Economic Meaning of value & Use of Economic valuation in Environmental Policy valuation in Environmental Policy
___________________________________ ___________________________________ Quantifying ValuesQuantifying Values
- not necessarily quantification of that value- not necessarily quantification of that value
- Some object, intrinsic value folks, to - Some object, intrinsic value folks, to measuring natural resources. Can you put a measuring natural resources. Can you put a price on human life or wilderness?price on human life or wilderness?
Meaning of value & Use of Economic Meaning of value & Use of Economic valuation in Environmental Policy valuation in Environmental Policy
___________________________________ ___________________________________ When does quantification help?When does quantification help?
1) informing policy decisions in which trade-offs 1) informing policy decisions in which trade-offs are considered.are considered.
2) providing damage estimates for natural 2) providing damage estimates for natural resource damage assessment resource damage assessment
3) incorporating environmental assets and 3) incorporating environmental assets and services into national income accounts. services into national income accounts.
Meaning of value & Use of Economic Meaning of value & Use of Economic valuation in Environmental Policy valuation in Environmental Policy
___________________________________ ___________________________________ When does quantification help?When does quantification help?
System is based on a core economic principle that System is based on a core economic principle that individuals are willing to trade the goods being individuals are willing to trade the goods being valued for something else that can also be valued for something else that can also be quantified by the dollar metricquantified by the dollar metric
Meaning of value & Use of Economic Meaning of value & Use of Economic valuation in Environmental Policy valuation in Environmental Policy
______________________________________________________________________Cost Benefit AnalysisCost Benefit Analysis
- All costs and benefits be considered.- All costs and benefits be considered.
- intrinsic- intrinsic
- economic welfare- economic welfare
- Constraints - Constraints
- justice & fairness not violated- justice & fairness not violated
- populations do not fall below - populations do not fall below critical ecosystems critical ecosystems
- uncertainties not too great - uncertainties not too great
Meaning of value & Use of Economic Meaning of value & Use of Economic valuation in Environmental Policy valuation in Environmental Policy
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BCA – Policy (Executive orders)BCA – Policy (Executive orders)
Back and forth, strict to more Back and forth, strict to more currently are much weaker to include currently are much weaker to include simply that benefits must justify the simply that benefits must justify the costs. (BCA included in decisions but costs. (BCA included in decisions but not required). not required).
Meaning of value & Use of Economic Meaning of value & Use of Economic valuation in Environmental Policy valuation in Environmental Policy
______________________________________________________________________FrameworkFramework
1) Quantification is the change in value of 1) Quantification is the change in value of the ecosystem services. Translating the the ecosystem services. Translating the physical characteristics into a common physical characteristics into a common metric.metric.
2) Scope: inclusion or exclusion, by choice 2) Scope: inclusion or exclusion, by choice or necessity, of certain ecosystem functions or necessity, of certain ecosystem functions or services and/or type of ecosystem or services and/or type of ecosystem services.services.
Meaning of value & Use of Economic Meaning of value & Use of Economic valuation in Environmental Policy valuation in Environmental Policy
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Spatial – geographic extent of the Spatial – geographic extent of the relevant ecosystems. relevant ecosystems.
Definition of the relevant populationsDefinition of the relevant populations
(stakeholders), Oil spill – communities (stakeholders), Oil spill – communities impacted. impacted.
Meaning of value & Use of Economic Meaning of value & Use of Economic valuation in Environmental Policy valuation in Environmental Policy
______________________________________________________________________
Classification of Total Economic ValuesClassification of Total Economic Values
DirectDirect Indirect Indirect ExistenceExistence____________________________________________________________________Trans.Trans. Flood controlFlood control Wild PlacesWild PlacesRecreationRecreation Storm Protect.Storm Protect. Cultural Cultural
Meaning of value & Use of Economic Meaning of value & Use of Economic valuation in Environmental Policy valuation in Environmental Policy
______________________________________________________________________
Consumptive UsesConsumptive Uses
Non Consumptive UsesNon Consumptive Uses
Property rights are determined collectively by Property rights are determined collectively by society. The willingness to pay theory is based on society. The willingness to pay theory is based on these property rights.these property rights.
Meaning of value & Use of Economic Meaning of value & Use of Economic valuation in Environmental Policy valuation in Environmental Policy
______________________________________________________________________
Discounting Discounting
Uncertainty and the use of statisticsUncertainty and the use of statistics
Jim Powell, David D’Amore, Ralph Thompson, Terry Brock,Pete Huberth, Bruce Bigelow, and M. Todd Walter
List of Riverine Wetlands Functions
Hydrologic1. Channel Meander Belt Integrity2. Dynamic Flood Water Retention
Biogeochemical3. Nutrient Spiraling and Organic Carbon Export4. Particulate Retention5. Removal of Imported Elements and Compounds
Habitat6. Maintenance of In-Channel Aquatic Biota7. Presence of Coarse Wood Structure8. Maintenance of Riparian Vegetation.9. Maintenance of Connectivity and Interspersion
Are the parts of the resource greater than or equal to the whole?
Wetland FunctionsWetland FunctionsHydrologic: Hydrologic: 1)) Soil Profile Integrity Soil Profile Integrity2) 2) Characteristic Soil Thermal RegimeCharacteristic Soil Thermal Regime3) 3) Surface & Near Surface h20 StorageSurface & Near Surface h20 Storage
Biogeochemical:Biogeochemical:4)4) Organic Carbon Export Organic Carbon Export5) 5) Cycling of Elements CompoundsCycling of Elements Compounds
1)1)Maintenance of Characteristic Plant Maintenance of Characteristic Plant CommunitiesCommunities
Habitat:Habitat: 7) Main. of Characteristic Habitat StructureMain. of Characteristic Habitat Structure8) 8) Interspersion and ConnectivityInterspersion and Connectivity
Alaska Wetland Assessment Project
Variables for Flat/ slope Complexes Variables for Flat/ slope Complexes
1. Adjacent Land Use (Vadjuse)1. Adjacent Land Use (Vadjuse) 9. Shrubs (Vshurb)9. Shrubs (Vshurb)
2. Animal Sign (Vasign)2. Animal Sign (Vasign) 10. Organic Horizons (Voh)10. Organic Horizons (Voh)
3.3. Aquic Moisture Regime (Vaquic)Aquic Moisture Regime (Vaquic) 11. Mosses, Lichens, & Liverworts 11. Mosses, Lichens, & Liverworts
4. Native Plants (Vnplants)4. Native Plants (Vnplants) 12. Herb(Vherb)12. Herb(Vherb)
5. Distant Land Use (Vdistantuse)5. Distant Land Use (Vdistantuse) 13. Surface Water Storage (Vsurwat)13. Surface Water Storage (Vsurwat)
6. Static Surface Water Storage (Vsurwat)14. Total Vegetation Cover 6. Static Surface Water Storage (Vsurwat)14. Total Vegetation Cover (Vtotcov)(Vtotcov)
7. Land Use of Assess. Area (Vwetuse)7. Land Use of Assess. Area (Vwetuse) 15. Vegetation Strata (Vstrata)15. Vegetation Strata (Vstrata)
8. Macro/Micro Topography (Vmicro)8. Macro/Micro Topography (Vmicro) 16. Water Connections 16. Water Connections (Vwatcon)(Vwatcon)
• Slope Riverine Proximal Functions
1) Dynamic Flood Water Retention Capacity= (Vfreq + Vcwslope + Vsoilperm + Vmicro+ Vvegcov +Vstore)
/ 6
2) Subsurface Water Retention Capacity= (Vsource + (Vacro + Vsoilperm +Vdecomp)/ 3 + Vmicro +
Vadjuse) / 4
3) Nutrient Cycling = (Vadjuse + Vsurwat + Vvegcov +(Vsource + Vsubout) / 2 + (Vacro + Vredox+ Vdecomp) / 3) / 5
4) Organic Carbon Export= (Vsource + (Vacro + Vsoilperm +Vdecomp +
Vredox + Vegcov) / 4+Vsubout) / 35) Integrity of the Root Zone
= (Vsource +Vsurwat + Vacro + (Vredox +Vsoilperm) / 2) / 4
6) Maintenance of Wildlife Habitat Structure= (Vvegcov + Vadjuse +Vwetuse + (Vsurwat+ Vmicro) / 2 + Vstrata + (Vgaps + Vcwslope) 2) / 6
7) Maintenance of Plants= (Vwetuse + Vvegcov + Vsource + Vtreeba+ (Vsurwat + Vacro) / 2 +(Vredox + Vsoilperm) / 2) / 6
Historical Values of Open Space Historical Values of Open Space
__________________________________________________________________________________________
Our relationship with open space and parks Our relationship with open space and parks
has existed in western and eastern thought has existed in western and eastern thought
and in religion since ancient times. We find and in religion since ancient times. We find
it in our religious and spiritual writings.it in our religious and spiritual writings.
Historical Values of Open Space Historical Values of Open Space
__________________________________________________________________________________________
Our relationship with open space and parks Our relationship with open space and parks
has existed in western and eastern thought has existed in western and eastern thought
and in religion since ancient times. We find and in religion since ancient times. We find
it in our religious and spiritual writings.it in our religious and spiritual writings.
Values
Philosophical “Thousands of tired, nerve-shaken,
over-civilized people are beginning to find out that going to the mountains is going home; that wildness is necessity; that mountain parks and reservations are useful not only as fountains of timber and irrigating rivers, but as fountains of life. In every walk with nature one receives far more than he seeks.”
John Muir
Values
Western Thought
• God gave us dominion over all, (including nature)
Genesis
Bible
Asian Thought
• Man is on an equal plane with nature
LaoTzu
Chinese
Values
Spiritual and Religious
“If God so precisely and carefully and lovingly and amazingly constructed a mind-boggling habitat for his creatures, then it would be natural for him to want them to explore it, to measure it, to investigate it, to appreciate it, to be inspired by it-and ultimately, and most importantly, to find Him through it.”
Lee Strobel (Minister, Speaker)
Values
PhilosophicalOpen spaces are also to be utilized for healing (emotional, psychological, and spiritual), finding oneself and our connection to the world in which they are a part (we are not islands unto ourselves…our decisions affect other people), their purpose in life, slowing down from the rat-race of society and renewal
Michael CrotteauAlaskan True North Expeditions
Values
Spirituality
“The diverse ways we answer the heart’s longing to be connected with the largeness of life”
Parker Palmer
Quaker educator and writer
Daily struggle between the practical and spiritual – open space speaks to the spiritual and the future.
-moderate greed with generosity
-private ambition with civic ambition
-care for others as much as we care about the future
-think about future generations as much as we think about ours.
Opportunities &
Importance of Measurement
- Past 200 years, the U.S. has led the world based on two powerful systems for adaptation:
•Free market and Democracy
Opportunities &
Importance of Measurement
Today• Midst of information revolution
• Rate of change is increasing drastically
• Lip service at least to learning organizations
Key is feedback
– Feedback for cultural system is based on traditional values very closely linked to community survival
– Information is feedback to explore cause and effect as an enlightened path for making choices and affecting progress
– Feedback for the free market is the sum of choices of consumers ( the wisdom of crowds)
– Feedback for democracy is the sum of choices of voters ( more wisdom of crowds)
OpportunitiesBenefits Better Understood
- Physical health
- Psychological health
- Recreation needs
- Habitat
- Affordable Family Recreation
- Creates Community
- Spiritual Health
Engaging
Citizens
Getting Things
Done
Measuring
Results
1 34
2
1. Community Problem Solving
3. Citizens Reaching for Results
4. Communities Governing for Results
2.Organizations managing
Community Context
OpportunitiesRelatively new Approaches
Traditional Valuation
Example: Proximate Principle
- incremental property taxes paid by adjacent landowners has shown in studies to retire debt of acquisition cost of park land (Boston).
OpportunitiesLWV
- Budget Survey
Consistently ranks natural parks high use
Opportunities
Revised CBJ Comp Plan
- Chapter on Sustainability
Implementing actions
- Indicators
Revised CBJ Parks Plan
Sustainability Indicators
1995 CBJ Comprehensive Plan
26 Key Sustainability Indicators
Four Dimensions of Sustainability
Social/Ethical
Political/Governmental
Ecological
Economic
50 Suggested Data Sets
2007 CBJ PR Draft Comp. Plan
Chapter 5 - Sustainability
- Identify sustainability indicators
- Use traditional and long term
- use them (operationalize)
- use them for monitoring change
environmental
public policy
technological
socio-cultural
economic
sustainable sustainable
communitiescommunities
The Five Domains of Sustainable Development
Questions ?
Valuing Parks & Nature: Community Connections & the Experience of Place
Questions