Download ppt - 05 October, 2006 Environmental Futures Ltd. 1 Economic impact of nature conservation management Rob Tinch Environmental Futures Ltd

05 October, 200605 October, 2006 Environmental Futures Ltd.Environmental Futures Ltd. 11

Economic impact of nature Economic impact of nature conservation management conservation management

Rob TinchRob Tinch

Environmental Futures Ltd.Environmental Futures Ltd.

05 October 200605 October 2006 Environmental Futures Ltd.Environmental Futures Ltd. 22

OutlineOutline

Reminder of EEA contextReminder of EEA context Brief discussion of conceptual and Brief discussion of conceptual and

methodological issuesmethodological issues Small, random assortment of evidenceSmall, random assortment of evidence A few suggestions / questionsA few suggestions / questions


EEA ContextEEA Context

Is it feasible to measure, given Is it feasible to measure, given existing models and data?existing models and data?


Strands of EEA contextStrands of EEA context

Valuation of economic damage due to loss of Valuation of economic damage due to loss of biodiversity; alternatively assessing the economic value biodiversity; alternatively assessing the economic value of maintaining biodiversity through conservation policy; of maintaining biodiversity through conservation policy;

Review of cost-effectiveness of (alternative) biodiversity Review of cost-effectiveness of (alternative) biodiversity conservation policies and instruments; conservation policies and instruments;

Economic impact (gained income, jobs) of Economic impact (gained income, jobs) of biodiversity conservation management;biodiversity conservation management;

Developing SEBI2010 indicators. Developing SEBI2010 indicators. Not included: assessing the implications for biodiversity Not included: assessing the implications for biodiversity

of expanding economic activity (drivers).of expanding economic activity (drivers).


Background text Background text

Expenditures and fiscal advantages on Expenditures and fiscal advantages on biodiversity management biodiversity management economic activities economic activities yield income and create jobsyield income and create jobs

Relevant to Lisbon agendaRelevant to Lisbon agenda Not widely investigated Not widely investigated

Inventory / assessment on a case study basis Inventory / assessment on a case study basis Test the feasibility of a wider approachTest the feasibility of a wider approach. .


Concepts and MethodsConcepts and Methods


Economic and SocialEconomic and Social

Economic benefits:Economic benefits: from ecosystem services, provision from ecosystem services, provision of food and timber products, activities such as tourism, of food and timber products, activities such as tourism, training and education, and the direct sale of products. training and education, and the direct sale of products. This can lead to significant local income and This can lead to significant local income and employment gains as well as wider regional employment gains as well as wider regional development benefitsdevelopment benefits..

Social benefits: Social benefits: broader employment and broader employment and diversification opportunities for local people leading diversification opportunities for local people leading to greater economic stabilityto greater economic stability and improved living and improved living conditions; strengthened sense of place and social conditions; strengthened sense of place and social identity; safeguarded cultural/natural heritage; more identity; safeguarded cultural/natural heritage; more opportunity for environmental education and leisure, opportunity for environmental education and leisure, health and amenity.health and amenity.


Economic and Social IIEconomic and Social II

Overlapping definitions: double counting?Overlapping definitions: double counting? Focus on distribution not efficiencyFocus on distribution not efficiency

Economic value via services and valuationEconomic value via services and valuation jobs / expenditure not a good proxyjobs / expenditure not a good proxy

• e.g. digging and filling in holes...e.g. digging and filling in holes... dangerous if confusion on jobs and valuedangerous if confusion on jobs and value

• ““the focus in the EU seems to be rather on the the focus in the EU seems to be rather on the economic and social objectives... than on the economic and social objectives... than on the environmental pillar”environmental pillar”


Focus on social benefitsFocus on social benefits

Remote rural areas:Remote rural areas: few alternative jobs few alternative jobs little scope for diversificationlittle scope for diversification

Supplementary income opportunities where Supplementary income opportunities where conservation part of a pattern of pluri-activity conservation part of a pattern of pluri-activity

Tourism: secondary employment opportunities Tourism: secondary employment opportunities larger economic impact than land managementlarger economic impact than land management social or general economic?social or general economic?

Keeps ecologists off the streets...Keeps ecologists off the streets...


Key measuresKey measures

Direct jobs from nature conservationDirect jobs from nature conservation Indirect jobs in tourismIndirect jobs in tourism Jobs in industries supported by services Jobs in industries supported by services

fisheries; forestry; low input agriculturefisheries; forestry; low input agriculture Social focus (economics covered)Social focus (economics covered)

location specificlocation specific more than just jobs / income (indicators??)more than just jobs / income (indicators??) where are the boundaries?where are the boundaries?


Basic approachesBasic approaches

Econometric models (e.g. expenditure/jobs Econometric models (e.g. expenditure/jobs panel data): panel data): attempt to identify effects of multiple statistical attempt to identify effects of multiple statistical

relationshipsrelationships do not account for underlying economy-wide do not account for underlying economy-wide

structure. structure. Simulation models (e.g. input-output, social Simulation models (e.g. input-output, social

accounting matrices)accounting matrices) snapshot of economy-wide linkages snapshot of economy-wide linkages hold these constant when estimating the effects of hold these constant when estimating the effects of

subsequent changes.subsequent changes.


EvidenceEvidence

(quickly and randomly selected)(quickly and randomly selected)


Employment Creation and Employment Creation and Environmental Policy (PPRA 2000)Environmental Policy (PPRA 2000) Research in three broad categories:Research in three broad categories:

macro effects of environmental policies on macro effects of environmental policies on competitiveness and consequent levels of competitiveness and consequent levels of employmentemployment

sector specific studiessector specific studies assessment of what skills are required to fill assessment of what skills are required to fill

potential new jobs in sustainable industries.potential new jobs in sustainable industries.


Literature evidenceLiterature evidence No evidence that environmental policy has No evidence that environmental policy has

damaged the competitiveness of any country damaged the competitiveness of any country Most models predict positive employment Most models predict positive employment

impacts (variety of different assumptions, model impacts (variety of different assumptions, model types, world regions) types, world regions)

Environmentally sensitive agricultureEnvironmentally sensitive agriculture and and forestry is generally thought to be more labour forestry is generally thought to be more labour intensive intensive

The creation of better habitats and rural The creation of better habitats and rural environments also offers spin off employment in environments also offers spin off employment in the tourism sector the tourism sector


Promoting the Socio-Economic Promoting the Socio-Economic Benefits of Natura 2000 (IEEP 2002)Benefits of Natura 2000 (IEEP 2002)

EU: around 125,000 jobs via nature protection EU: around 125,000 jobs via nature protection related activities in 1999 (ECOTEC, 2001).related activities in 1999 (ECOTEC, 2001).

3 to 5 FTE jobs created directly by Natura 2000 3 to 5 FTE jobs created directly by Natura 2000 site related activities = 1 more job by impact of site related activities = 1 more job by impact of revenue from site related activities revenue from site related activities

If site prime reason for tourist visit, one job for If site prime reason for tourist visit, one job for site-related activities can support 4–6 additional site-related activities can support 4–6 additional jobs through tourist expenditure. jobs through tourist expenditure.

Smaller areas suffer more leakage of benefits so Smaller areas suffer more leakage of benefits so have a smaller multiplier effect.have a smaller multiplier effect. correct level of aggregation to avoid double-counting?correct level of aggregation to avoid double-counting?


Getzner and Jungmeier (2002)Getzner and Jungmeier (2002) Regional economic impact of Natura 2000 Regional economic impact of Natura 2000

conservation sites in Austria conservation sites in Austria Establishment of Natura 2000 conservation Establishment of Natura 2000 conservation

areas leads to at least small positive economic areas leads to at least small positive economic implications (local and regional value added, implications (local and regional value added, increased employment) increased employment)

In single cases of land use conflicts, there might In single cases of land use conflicts, there might also be negative economic effects.also be negative economic effects.

Main regional development opportunities are in Main regional development opportunities are in the fields of tourism; and to a smaller extent in the fields of tourism; and to a smaller extent in agriculture, forestry, hunting and fisheries. agriculture, forestry, hunting and fisheries.


Agricultural paymentsAgricultural payments

Single farm payments: cut UK agriculture labour Single farm payments: cut UK agriculture labour 3-7 %3-7 % In addition to a continuing declining trend In addition to a continuing declining trend Industries supplying agriculture or dependent on its Industries supplying agriculture or dependent on its

output: 1-2% fall in employment. output: 1-2% fall in employment. Increased opportunities for employment in higher Increased opportunities for employment in higher

value added or other land based enterprises.value added or other land based enterprises. Stewardship schemes – research to be Stewardship schemes – research to be

commissioned by Defra 2006/7commissioned by Defra 2006/7 How to split impacts between conservation, How to split impacts between conservation,

agricultural support, removing distortion of CAP?agricultural support, removing distortion of CAP?


Suggestions / QuestionsSuggestions / Questions

for further discussionfor further discussion


Supporting actions (IEEP)Supporting actions (IEEP)

Benefits not independent of management:Benefits not independent of management: Conservation sites, benefits, values need integrated Conservation sites, benefits, values need integrated

into local, rural, regional, national development plansinto local, rural, regional, national development plans Ensure inclusion of conservation sites in tourist Ensure inclusion of conservation sites in tourist

information (often overlooked)information (often overlooked) Investment in information centres, tourist Investment in information centres, tourist

accommodation, walking and cycling paths.accommodation, walking and cycling paths.

How should we account for this in measuring How should we account for this in measuring benefits of conservation spending?benefits of conservation spending?


What about volunteers?What about volunteers?

RSPB: over 20,000 volunteers RSPB: over 20,000 volunteers BTCV: 130,000 volunteers each yearBTCV: 130,000 volunteers each year Wildlife Trusts: more than 24,000 active Wildlife Trusts: more than 24,000 active

volunteers volunteers Similar picture in Europe?Similar picture in Europe? Volunteers benefit from volunteering Volunteers benefit from volunteering Important part of social sustainabilityImportant part of social sustainability


Benefits transfer approach?Benefits transfer approach?

Economic value studies used for transferEconomic value studies used for transfer Do same for employment / economic Do same for employment / economic

multiplier studies?multiplier studies? fits with case-study approachfits with case-study approach measure site-specific variablesmeasure site-specific variables

• area, accessibility, catchment, diversity, facilities, area, accessibility, catchment, diversity, facilities, publicity, support...publicity, support...

meta-analysis for transfermeta-analysis for transfer could this fit with rapid / remote assessment at could this fit with rapid / remote assessment at

EU level?EU level?


Economic valuation?Economic valuation?

““Rather than focusing on income and Rather than focusing on income and expenditure ... measures of cost of the sector, expenditure ... measures of cost of the sector, WTP gives some idea of the benefits ... to WTP gives some idea of the benefits ... to society” (Foster et al, “The Price of Virtue”)society” (Foster et al, “The Price of Virtue”)

Consider pros/cons of translating social and Consider pros/cons of translating social and employment impacts into monetary terms: why employment impacts into monetary terms: why not just use shadow wages?not just use shadow wages?

What about other social benefits What about other social benefits not not covered by covered by jobs or income?jobs or income?


Dynamics?Dynamics?

Need to consider dynamics?Need to consider dynamics? changing economies (at different scales)changing economies (at different scales) ecosystem dynamicsecosystem dynamics climate changeclimate change implications for nature conservationimplications for nature conservation

What are the implications for assessment What are the implications for assessment of social benefits of nature conservation?of social benefits of nature conservation?


ConclusionsConclusions

Feasible to assess at EU level?Feasible to assess at EU level? probablyprobably

Worth funding a lit review / feasibility study?Worth funding a lit review / feasibility study? yesyes

Great care needed to keep concepts and Great care needed to keep concepts and methods clear:methods clear: what is being countedwhat is being counted where are risks of double countingwhere are risks of double counting what is not covered at allwhat is not covered at all