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Economic valuation and EBM ppt - Susanne Menzel

Economic valuation and EBM
An interdisciplinary approach to support reasonable decision making about the use of oceans and coastal regions
Aim EBM
Maintain and/or restore ecosystems at states that….
….support human well-being for present and future generations
Characteristics of tool to support EBM
Integrate knowledge about human and ecological systems. Such as….
human activities  ecological components
human activities  to human well-being
ecological components interact




Role of economic valuation
Economic value: expected utility or expected positive effect on well-being of certain amount of good/service (at certain time & space)
Economic valuation: observation of behavior/decision that reflects economic values
Economic valuation of “nature�: the traditional approach
Costanza et al.
Flow of services of a given ecosystem type per area and time (e.g. wetland  flow of services $14,785 ha-1yr-1)
Termed: value of ecosystem services approach (VES)
Based on the idea of: “functions are basis for services�

Criticism of VES
All services summed up for a given area
 risk of double counting; trade-offs not considered
System of “functions� and “services� =vague
E.g.: If functions are the basis for services…
… what is the functional basis for the “service� beauty?
State of ecosystems and scarcity of services do not matter for their economic value
 “unrealistic�
Static: human activities do not effect flow of services
Feedbacks not considered

Recent developments
“two activities – two ecological states� approaches
Examples: 2 activities: timber production vs. hydrological power use, 2 ecological states: conservation vs. conversion (forest) (Guo et al. 2000)
“one activity - multiple ecological states�
Example: diving, ecological states described by gradients of visibility and biodiversity (Wielgus et al. 2002)

What lacks….
approach based on “activities� instead of “services�*
Multi activity and multiple ecological stages approach…..
….treating ecological “quality� as multidimensional
Dynamic approach: that allows us to consider effects of human activities on ecosystem states


* the definition of services will be one of the results of the research instead of an input (what ecological element is important for what human activity at what levels)
The new approach -characteristics-
Consideration of
benefits from several human activities within a region
effects from human activities on ecological components
interactions within the ecological system
feedback from change in ecosystem configuration on benefits from human activities

 Can not be a purely economic valuation; has to be an interdisciplinary approach
The approach -definitions-
System configuration: composition of ecological elements
Ecological elements: definable entity of the natural environment: e.g. species; they appear in different abundances, production rates or densities
Activity: conducted by humans to sustain their lives, fulfill their needs or obtain yields; they appear in different intensities


The approach -aim-


Find a combination of intensities of activities in a region which is overall beneficial for/supporting the group of people we are interested in
The approach -methods-
economic valuation methods
Hedonic pricing
Contingent valuation
Travel cost
….
Ecological modeling methods
I do not have a clue
Simulation to integrate results of disciplinary methods
As much clue as in ecological modeling
The approach -steps in application-
Definition of
ecosystem type(s) and
spatial limits
Conceptual linkage of ecological and human dimension
Identifying human activities depending on and affecting ecological components
Identifying ecological components affected by human activities
(based on different sources of knowledge e.g. user conflicts)
Conceptual framework
The approach -steps in application-
Empirical investigation of economic values [prices, WTP, yields] or activity levels (if prices are fixed)
Empirical investigation of other possibly explanatory factors for prices/activity levels/yields
Analysis of economic data: identify to what extent differences in yields/WTP/activity levels are attributable to ecosystem configuration
The approach -steps in application-
Ecologic analysis: direct and indirect effects of different human activities at different intensity levels on ecological elements
Final analysis: Simulation of different management options in terms of benefits in different sectors and expected benefits in next “round� (as result of feedback of ecological configuration change on benefits)

Study case
Kelp forest, large scale: California current, fine scale: Monterey Bay
Conceptual framework – human activity related to kelp forest and effects on ecological elements
study case - 2 conceptual framework
Study case - 3 Empirical investigation of economic values….
… for different activities at different ecosystem configurations
Diving activity
Commercial fishing
Recreational fishing


Challenges obtaining human use data
Must be comparable in dimensions:
economic value
and
space
time

Benefits from activities – make different dimensions comparable
diving:
Number of dives X (price + add. WTP)

recreational fishing:
Fishing hours X (price+ add. WTP)

commercial fishing:
ex-vessel prices X landings - (costs gas + equipment)
Study case - 3 Empirical investigation of economic values
empirical entities to measure economic values:
Diving: price (equipment, tank filling, boat) (plus additional WTP, e.g. expressed in willingness to invest time; alternative activity level (when prices are fixed)
Commercial fishing: landed values, fishing effort
Recreational fishing: see diving
4. other factors to explain variation in human activity levels/net revenues
Example:
number of dives in certain place as function of
density of kelp,
diversity of fish species,
probability to see big individuals,
availability of substitute sites (and substitute activities!),
accessibility of site,
other attractive objects for diving (e.g. wrecks),
human population density, surge or currents
Etc.
 data needs!!!! Depend on specific aim of study! Help needed!
5. Analysis – hedonic functions
Regression: how much variation of activity level/net revenue can be explained by ecosystem configuration considering other important factors. = attributable to ecosystem configuration or specific ecological elements

6. ecologic analysis
Link to ecologists
7. Final analysis: Simulation of different management options
Needs to be done….
Many open questions….
The approach -assumptions-
Ecosystem configuration affects how much benefits/yields humans obtain from certain activities
Human activities (can) affect ecological elements
Ecological feedback leads to effects on not directly by human activities affected ecological elements
Human activities can appear at so high intensities that the ecosystem configuration is affected in a way overall non-beneficial for humans
The approach -ethical dimension-
anthropocentric approach – as we refer to human well-being
Avoid to use terms like “ecosystem quality�, “degradation� or services as they are value laden and hard to define
















(Banzhaf & Boyed 2005, Pearce 1998, Toman 1998, Costanza et al. 1997, etc.)
























species I
species III
Activity IV
Activity I
Human need I
+
-
+
Human need II
Human need III
Activity III
Activity II
-
-
species II
-
-
-
+
0
0/-
-
-
+
-
Activity III
+
+


















or: must be linkable to ecological data













1981-2004 (annual or by wave: 1-6)
 dunno
 whole US
 species caught
Angler trips
information reported by NMFS on species caught by recreational fishers: http://www.st.nmfs.gov/st1/recreational/queries/index.html.
Recre-ational fishing

1980-2006
(monthly or wave?)
17 counties of California
Whole California

Same as Report of CA F&G on rec fish
“catch values�:
angler hours, number of anglers; fish examined [A], reported [B] 1=dead, 2=alive; number, weight, length [mean and per hour]
example
Summarize RecFIN MRFSS Sample Data
Version 2
Recre-ational fishing
2005
6 districts:
(more detailed info page 2ff)
Whole California
  Groups and species:
Taxonomic super group; Taxonomic group: or user defined species group (quasi species level)
Number of angler trips (from man made structures, beaches & banks, commercial passenger fishing vessels, private and rental boats)
Report to the CA F&G commission - California recreational fisheries survey 2005 Annual Review (2006)
Recre-ational fishing
2005/2006 (snapshot)
Varies substantially(specific GPS loc to only about of island)
From Monterey Bay to San Diego
(only what costumers want to see)
WTP for full day/half day diving
Diving survey
Diving
Time/ temp. resolution
Spatial resolution
Geografical area
Ecological info
WTP/prices/yields/ revenues
source
Activity



Beginning 1917
Depends…
California and Mexico
Abalone and
spiny lobster
Varies: poundage, value of
landings
Fish bulletin
Comm.
Fishing
1993-2003
(monthly)
2 states
Baja
California and
Baja
California Sur
Species
(e.g. abalone
and spiny
lobster)
Poundage and value of landings
(example)
Anuario estadístico
de pesca 2003 de
comisión nacional
de acuacultura y
pesca (Mex)
Comm.
Fishing
1991-2003
8 CI +
5 counties
Southern CA
(SB to SD)
Red sea urchin
Exvessel value determined from price*pounds for each receipt
DFG – sea urchin fishery tables
Comm.
Fishing
2000-2005
11 areas
Lat. 38.18 – 39.59
Northern California catch
(pounds)
1970-2005
non
California
Value in $, pounds and number
of permits for whole California
2003-2005
5 counties
Sou CA, 5
Ports. Nor CA
Halfmoon Bay
to SD



Red sea urchin
Pounds catch
LBS/RCPT ?


DFG – sea urchin
fishery report
2006


Comm.
Fishing
2001-2004
9 different ports
California (port
Eureka to San
Diego)
Fish species,
molluscs,
plants and
worms
Poundage and value of landings
DFG
Comm.
Fishing
Time
(temp. res)
Spatial
resolution
Geografical area
Ecological info
WTP/prices/yields/revenues
source
activity
Monterey Bay Nat. Mar. Sanct. Final Kelp Management Report (2000)
Direct kelp
harvest





















Economic valuation and EBM
An interdisciplinary approach to support reasonable decision making about the use of oceans and coastal regions
Aim EBM
Maintain and/or restore ecosystems at states that….
….support human well-being for present and future generations
Characteristics of tool to support EBM
Integrate knowledge about human and ecological systems. Such as….
human activities  ecological components
human activities  to human well-being
ecological components interact




Role of economic valuation
Economic value: expected utility or expected positive effect on well-being of certain amount of good/service (at certain time & space)
Economic valuation: observation of behavior/decision that reflects economic values
Economic valuation of “nature�: the traditional approach
Costanza et al.
Flow of services of a given ecosystem type per area and time (e.g. wetland  flow of services $14,785 ha-1yr-1)
Termed: value of ecosystem services approach (VES)
Based on the idea of: “functions are basis for services�

Criticism of VES
All services summed up for a given area
 risk of double counting; trade-offs not considered
System of “functions� and “services� =vague
E.g.: If functions are the basis for services…
… what is the functional basis for the “service� beauty?
State of ecosystems and scarcity of services do not matter for their economic value
 “unrealistic�
Static: human activities do not effect flow of services
Feedbacks not considered

Recent developments
“two activities – two ecological states� approaches
Examples: 2 activities: timber production vs. hydrological power use, 2 ecological states: conservation vs. conversion (forest) (Guo et al. 2000)
“one activity - multiple ecological states�
Example: diving, ecological states described by gradients of visibility and biodiversity (Wielgus et al. 2002)

What lacks….
approach based on “activities� instead of “services�*
Multi activity and multiple ecological stages approach…..
….treating ecological “quality� as multidimensional
Dynamic approach: that allows us to consider effects of human activities on ecosystem states


* the definition of services will be one of the results of the research instead of an input (what ecological element is important for what human activity at what levels)
The new approach -characteristics-
Consideration of
benefits from several human activities within a region
effects from human activities on ecological components
interactions within the ecological system
feedback from change in ecosystem configuration on benefits from human activities

 Can not be a purely economic valuation; has to be an interdisciplinary approach
The approach -definitions-
System configuration: composition of ecological elements
Ecological elements: definable entity of the natural environment: e.g. species; they appear in different abundances, production rates or densities
Activity: conducted by humans to sustain their lives, fulfill their needs or obtain yields; they appear in different intensities


The approach -aim-


Find a combination of intensities of activities in a region which is overall beneficial for/supporting the group of people we are interested in
The approach -methods-
economic valuation methods
Hedonic pricing
Contingent valuation
Travel cost
….
Ecological modeling methods
I do not have a clue
Simulation to integrate results of disciplinary methods
As much clue as in ecological modeling
The approach -steps in application-
Definition of
ecosystem type(s) and
spatial limits
Conceptual linkage of ecological and human dimension
Identifying human activities depending on and affecting ecological components
Identifying ecological components affected by human activities
(based on different sources of knowledge e.g. user conflicts)
Conceptual framework
The approach -steps in application-
Empirical investigation of economic values [prices, WTP, yields] or activity levels (if prices are fixed)
Empirical investigation of other possibly explanatory factors for prices/activity levels/yields
Analysis of economic data: identify to what extent differences in yields/WTP/activity levels are attributable to ecosystem configuration
The approach -steps in application-
Ecologic analysis: direct and indirect effects of different human activities at different intensity levels on ecological elements
Final analysis: Simulation of different management options in terms of benefits in different sectors and expected benefits in next “round� (as result of feedback of ecological configuration change on benefits)

Study case
Kelp forest, large scale: California current, fine scale: Monterey Bay
Conceptual framework – human activity related to kelp forest and effects on ecological elements
study case - 2 conceptual framework
Study case - 3 Empirical investigation of economic values….
… for different activities at different ecosystem configurations
Diving activity
Commercial fishing
Recreational fishing


Challenges obtaining human use data
Must be comparable in dimensions:
economic value
and
space
time

Benefits from activities – make different dimensions comparable
diving:
Number of dives X (price + add. WTP)

recreational fishing:
Fishing hours X (price+ add. WTP)

commercial fishing:
ex-vessel prices X landings - (costs gas + equipment)
Study case - 3 Empirical investigation of economic values
empirical entities to measure economic values:
Diving: price (equipment, tank filling, boat) (plus additional WTP, e.g. expressed in willingness to invest time; alternative activity level (when prices are fixed)
Commercial fishing: landed values, fishing effort
Recreational fishing: see diving
4. other factors to explain variation in human activity levels/net revenues
Example:
number of dives in certain place as function of
density of kelp,
diversity of fish species,
probability to see big individuals,
availability of substitute sites (and substitute activities!),
accessibility of site,
other attractive objects for diving (e.g. wrecks),
human population density, surge or currents
Etc.
 data needs!!!! Depend on specific aim of study! Help needed!
5. Analysis – hedonic functions
Regression: how much variation of activity level/net revenue can be explained by ecosystem configuration considering other important factors. = attributable to ecosystem configuration or specific ecological elements

6. ecologic analysis
Link to ecologists
7. Final analysis: Simulation of different management options
Needs to be done….
Many open questions….
The approach -assumptions-
Ecosystem configuration affects how much benefits/yields humans obtain from certain activities
Human activities (can) affect ecological elements
Ecological feedback leads to effects on not directly by human activities affected ecological elements
Human activities can appear at so high intensities that the ecosystem configuration is affected in a way overall non-beneficial for humans
The approach -ethical dimension-
anthropocentric approach – as we refer to human well-being
Avoid to use terms like “ecosystem quality�, “degradation� or services as they are value laden and hard to define




Beginning 1917
Depends…
California and Mexico
Abalone and
spiny lobster
Varies: poundage, value of
landings
Fish bulletin
Comm.
Fishing
1993-2003
(monthly)
2 states
Baja
California and
Baja
California Sur
Species
(e.g. abalone
and spiny
lobster)
Poundage and value of landings
(example)
Anuario estadístico
de pesca 2003 de
comisión nacional
de acuacultura y
pesca (Mex)
Comm.
Fishing
1991-2003
8 CI +
5 counties
Southern CA
(SB to SD)
Red sea urchin
Exvessel value determined from price*pounds for each receipt
DFG – sea urchin fishery tables
Comm.
Fishing
2000-2005
11 areas
Lat. 38.18 – 39.59
Northern California catch
(pounds)
1970-2005
non
California
Value in $, pounds and number
of permits for whole California
2003-2005
5 counties
Sou CA, 5
Ports. Nor CA
Halfmoon Bay
to SD



Red sea urchin
Pounds catch
LBS/RCPT ?


DFG – sea urchin
fishery report
2006


Comm.
Fishing
2001-2004
9 different ports
California (port
Eureka to San
Diego)
Fish species,
molluscs,
plants and
worms
Poundage and value of landings
DFG
Comm.
Fishing
Time
(temp. res)
Spatial
resolution
Geografical area
Ecological info
WTP/prices/yields/revenues
source
activity
1916-1994

1987-1999
Non

15 kelp beds
Whole CA

MBNMS
Macrocystis
Nereocystis
n.a.
Metric tons harvested kelp (wet)

Metric tons harvested kelp (wet)

Monterey Bay Nat. Mar. Sanct. Final Kelp Management Report (2000)
Direct kelp
harvest
Economic valuation and EBM
An interdisciplinary approach to support reasonable decision making about the use of oceans and coastal regions
Aim EBM
Maintain and/or restore ecosystems at states that….
….support human well-being for present and future generations
Characteristics of tool to support EBM
Integrate knowledge about human and ecological systems. Such as….
human activities  ecological components
human activities  to human well-being
ecological components interact




Role of economic valuation
Economic value: expected utility or expected positive effect on well-being of certain amount of good/service (at certain time & space)
Economic valuation: observation of behavior/decision that reflects economic values
Economic valuation of “nature�: the traditional approach
Costanza et al.
Flow of services of a given ecosystem type per area and time (e.g. wetland  flow of services $14,785 ha-1yr-1)
Termed: value of ecosystem services approach (VES)
Based on the idea of: “functions are basis for services�

Criticism of VES
All services summed up for a given area
 risk of double counting; trade-offs not considered
System of “functions� and “services� =vague
E.g.: If functions are the basis for services…
… what is the functional basis for the “service� beauty?
State of ecosystems and scarcity of services do not matter for their economic value
 “unrealistic�
Static: human activities do not affect flow of services
Feedbacks not considered

Recent developments
“two activities – two ecological states� approaches
Examples: 2 activities: timber production vs. hydrological power use, 2 ecological states: conservation vs. conversion (forest) (Guo et al. 2000)
“one activity - multiple ecological states�
Example: diving, ecological states described by gradients of visibility and biodiversity (Wielgus et al. 2002)

What lacks….
approach based on “activities� instead of “services�*
Multi activity and multiple ecological stages approach…..
….treating ecological “quality� as multidimensional
Dynamic approach: that allows us to consider effects of human activities on ecosystem states


* the definition of services will be one of the results of the research instead of an input (what ecological element is important for what human activity at what levels)
The new approach -characteristics-
Consideration of
benefits from several human activities within a region
effects from human activities on ecological components
interactions within the ecological system
feedback from change in ecosystem configuration on benefits from human activities

 Can not be a purely economic valuation; has to be an interdisciplinary approach
The approach -definitions-
System configuration: composition of ecological elements
Ecological elements: definable entity of the natural environment: e.g. species; they appear in different abundances, production rates or densities
Activity: conducted by humans to sustain their lives, fulfill their needs or obtain yields; they appear in different intensities


The approach -aim-


Find a combination of intensities of activities in a region which is overall beneficial for/supporting the group of people we are interested in
The approach -methods-
economic valuation methods
Hedonic pricing
Contingent valuation
Travel cost
….
Ecological modeling methods
I do not have a clue
Simulation to integrate results of disciplinary methods
As much clue as in ecological modeling
The approach -steps in application-
Definition of
ecosystem type(s) and
spatial limits
Conceptual linkage of ecological and human dimension
Identifying human activities depending on and affecting ecological components
Identifying ecological components affected by human activities
(based on different sources of knowledge e.g. user conflicts)
Conceptual framework
The approach -steps in application-
Empirical investigation of economic values [prices, WTP, yields] or activity levels (if prices are fixed)
Empirical investigation of other possibly explanatory factors for prices/activity levels/yields
Analysis of economic data: identify to what extent differences in yields/WTP/activity levels are attributable to ecosystem configuration
The approach -steps in application-
Ecologic analysis: direct and indirect effects of different human activities at different intensity levels on ecological elements
Final analysis: Simulation of different management options in terms of benefits in different sectors and expected benefits in next “round� (as result of feedback of ecological configuration change on benefits)

Study case
Kelp forest, large scale: California current, fine scale: Monterey Bay
Conceptual framework – human activity related to kelp forest and effects on ecological elements
study case - 2 conceptual framework
Study case - 3 Empirical investigation of economic values….
… for different activities at different ecosystem configurations
Diving activity
Commercial fishing
Recreational fishing


Challenges obtaining human use data
Must be comparable in dimensions:
economic value
and
space
time

Benefits from activities – make different dimensions comparable
diving:
Number of dives X (price + add. WTP)

recreational fishing:
Fishing hours X (price+ add. WTP)

commercial fishing:
ex-vessel prices X landings - (costs gas + equipment)
Study case - 3 Empirical investigation of economic values
empirical entities to measure economic values:
Diving: price (equipment, tank filling, boat) (plus additional WTP, e.g. expressed in willingness to invest time; alternative activity level (when prices are fixed)
Commercial fishing: landed values, fishing effort
Recreational fishing: see diving
4. other factors to explain variation in human activity levels/net revenues
Example:
number of dives in certain place as function of
density of kelp,
diversity of fish species,
probability to see big individuals,
availability of substitute sites (and substitute activities!),
accessibility of site,
other attractive objects for diving (e.g. wrecks),
human population density, surge or currents
Etc.
 data needs!!!! Depend on specific aim of study! Help needed!
5. Analysis – hedonic functions
Regression: how much variation of activity level/net revenue can be explained by ecosystem configuration considering other important factors. = attributable to ecosystem configuration or specific ecological elements

6. ecologic analysis
Link to ecologists
7. Final analysis: Simulation of different management options
Needs to be done….
Many open questions….
The approach -assumptions-
Ecosystem configuration affects how much benefits/yields humans obtain from certain activities
Human activities (can) affect ecological elements
Ecological feedback leads to effects on not directly by human activities affected ecological elements
Human activities can appear at so high intensities that the ecosystem configuration is affected in a way overall non-beneficial for humans
The approach -ethical dimension-
anthropocentric approach – as we refer to human well-being
Avoid to use terms like “ecosystem quality�, “degradation� or services as they are value laden and hard to define




(Banzhaf & Boyed 2005, Pearce 1998, Toman 1998, Costanza et al. 1997, etc.)






1981-2004 (annual or by wave: 1-6)
 dunno
 whole US
 species caught
Angler trips
information reported by NMFS on species caught by recreational fishers: http://www.st.nmfs.gov/st1/recreational/queries/index.html.
Recre-ational fishing

1980-2006
(monthly or wave?)
17 counties of California
Whole California

Same as Report of CA F&G on rec fish
“catch values�:
angler hours, number of anglers; fish examined [A], reported [B] 1=dead, 2=alive; number, weight, length [mean and per hour]
example
Summarize RecFIN MRFSS Sample Data
Version 2
Recre-ational fishing
2005
6 districts:
(more detailed info page 2ff)
Whole California
Groups and species:
Taxonomic super group; Taxo-nomic group: or user defined species group
Number of angler trips (from man made structures, beaches & banks, commercial passenger fishing vessels, private and rental boats)
Report to the CA F&G commission - California recreational fisheries survey 2005 Annual Review (2006)
Recre-ational fishing
2005/2006 (snapshot)
Varies substantially(specific GPS loc to only about of island)
From Monterey Bay to San Diego
(only what costumers want to see)
WTP for full day/half day diving
Diving survey
Diving
Time/ temp. resolution
Spatial resolution
Geografical area
Ecological info
WTP/prices/yields/ revenues
source
Activity



Beginning 1917
Depends…
California and Mexico
Abalone and
spiny lobster
Varies: poundage, value of
landings
Fish bulletin
Comm.
Fishing
1993-2003
(monthly)
2 states
Baja
California and
Baja
California Sur
Species
(e.g. abalone
and spiny
lobster)
Poundage and value of landings
(example)
Anuario estadístico
de pesca 2003 de
comisión nacional
de acuacultura y
pesca (Mex)
Comm.
Fishing
1991-2003
8 CI +
5 counties
Southern CA
(SB to SD)
Red sea urchin
Exvessel value determined from
price*pounds for each receipt
DFG – sea urchin
fishery tables
Comm.
Fishing
2000-2005
11 areas
Lat. 38.18 – 39.59
Northern California catch
(pounds)
1970-2005
non
California
Value in $, pounds and number
of permits for whole California
2003-2005
5 counties
Sou CA, 5
Ports. Nor CA
Halfmoon Bay
to SD



Red sea urchin
Pounds catch
LBS/RCPT ?


DFG – sea urchin
fishery report
2006


Comm.
Fishing
2001-2004
9 different ports
California (port
Eureka to San
Diego)
Fish species,
molluscs,
plants and
worms
Poundage and value of landings
DFG
Comm.
Fishing
Time
(temp. res)
Spatial
resolution
Geografical area
Ecological info
WTP/prices/yields/revenues
source
activity
1916-1994

1987-1999
Non

15 kelp beds
Whole CA

MBNMS
Macrocystis
Nereocystis
n.a.
Metric tons harvested kelp (wet)

Metric tons harvested kelp (wet)

Monterey Bay Nat. Mar. Sanct. Final Kelp Management Report (2000)
Direct kelp
harvest
Economic valuation and EBM
An interdisciplinary approach to support reasonable decision making about the use of oceans and coastal regions
Content
Introduction: Aim EBM + Economic Valuation so far (yellow)
The new approach (blue)
Study case: kelp forest California current (pink)
Aim EBM
Maintain and/or restore ecosystems at states that….
….support human well-being for present and future generations
Characteristics of tool to support EBM
Integrate knowledge about human and ecological systems. Such as….
human activities  ecological components
human activities  to human well-being
ecological components interact




Role of economic valuation
Economic value: expected utility or expected positive effect on well-being of certain amount of good/service (at certain time & space)
Economic valuation: observation of behavior/decision that reflects economic values
Economic valuation of “nature�: the traditional approach
Costanza et al.
Flow of services of a given ecosystem type per area and time (e.g. wetland  flow of services $14,785 ha-1yr-1)
Termed: value of ecosystem services approach (VES)
Based on the idea of: “functions are basis for services�

Criticism of VES
All services summed up for a given area
 risk of double counting; trade-offs not considered
System of “functions� and “services� =vague
E.g.: If functions are the basis for services…
… what is the functional basis for the “service� beauty?
State of ecosystems and scarcity of services do not matter for their economic value
 “unrealistic�
Static: human activities do not affect flow of services
Feedbacks not considered

Recent developments
“two activities – two ecological states� approaches
Examples: 2 activities: timber production vs. hydrological power use, 2 ecological states: conservation vs. conversion (forest) (Guo et al. 2000)
“one activity - multiple ecological states�
Example: diving, ecological states described by gradients of visibility and biodiversity (Wielgus et al. 2002)

What lacks….
approach based on “activities� instead of “services�*
Multi activity and multiple ecological stages approach…..
….treating ecological “quality� as multidimensional
Dynamic approach: that allows us to consider effects of human activities on ecosystem states


* the definition of services will be one of the results of the research instead of an input (what ecological element is important for what human activity at what levels)
The new approach -characteristics-
Consideration of
benefits from several human activities within a region
effects from human activities on ecological components
interactions within the ecological system
feedback from change in ecosystem configuration on benefits from human activities

 Can not be a purely economic valuation; has to be an interdisciplinary approach
The approach -definitions-
System configuration: composition of ecological elements
Ecological elements: definable entity of the natural environment: e.g. species; they appear in different abundances, production rates or densities
Activity: conducted by humans to sustain their lives, fulfill their needs or obtain yields; they appear in different intensities


The approach -aim-


Find a combination of intensities of activities in a region which is overall beneficial for/supporting the group of people we are interested in
The approach -methods-
economic valuation methods
Hedonic pricing
Contingent valuation
Travel cost
….
Ecological modeling methods
I do not have a clue
Simulation to integrate results of disciplinary methods
As much clue as in ecological modeling
The approach -steps in application-
Definition of
ecosystem type(s) and
spatial limits
Conceptual linkage of ecological and human dimension
Identifying human activities depending on and affecting ecological components
Identifying ecological components affected by human activities
(based on different sources of knowledge e.g. user conflicts)
Conceptual framework
The approach -steps in application-
Empirical investigation of economic values [prices, WTP, yields] or activity levels (if prices are fixed)
Empirical investigation of other possibly explanatory factors for prices/activity levels/yields
Analysis of economic data: identify to what extent differences in yields/WTP/activity levels are attributable to ecosystem configuration
The approach -steps in application-
Ecologic analysis: direct and indirect effects of different human activities at different intensity levels on ecological elements
Final analysis: Simulation of different management options in terms of benefits in different sectors and expected benefits in next “round� (as result of feedback of ecological configuration change on benefits)

Study case
Kelp forest, large scale: California current, fine scale: Monterey Bay
Conceptual framework – human activity related to kelp forest and effects on ecological elements
study case - 2 conceptual framework
Study case - 3 Empirical investigation of economic values….
… for different activities at different ecosystem configurations
Diving activity
Commercial fishing
Recreational fishing


Challenges obtaining human use data
Must be comparable in dimensions:
economic value
and
space
time

Benefits from activities – make different dimensions comparable
diving:
Number of dives X (price + add. WTP)

recreational fishing:
Fishing hours X (price + add. WTP)

commercial fishing:
ex-vessel prices X landings - (costs gas + equipment)
Study case - 3 Empirical investigation of economic values
empirical entities to measure economic values:
Diving: price (equipment, tank filling, boat) (plus additional WTP, e.g. expressed in willingness to invest time; alternative activity level (when prices are fixed)
Commercial fishing: landed values, fishing effort
Recreational fishing: see diving
4. other factors to explain variation in human activity levels/net revenues
Example:
number of dives in certain place as function of
density of kelp,
diversity of fish species,
probability to see big individuals,
availability of substitute sites (and substitute activities!),
accessibility of site,
other attractive objects for diving (e.g. wrecks),
human population density, surge or currents
Etc.
 data needs!!!! Depend on specific aim of study! Help needed!
5. Analysis – hedonic functions
Regression: how much variation of activity level/net revenue can be explained by ecosystem configuration considering other important factors. = attributable to ecosystem configuration or specific ecological elements

6. ecologic analysis
Link to ecologists
7. Final analysis: Simulation of different management options
Needs to be done….
Many open questions….
The approach -assumptions-
Ecosystem configuration affects how much benefits/yields humans obtain from certain activities
Human activities (can) affect ecological elements
Ecological feedback leads to effects on not directly by human activities affected ecological elements
Human activities can appear at so high intensities that the ecosystem configuration is affected in a way overall non-beneficial for humans












1981-2004 (annual or by wave: 1-6)
 dunno
 whole US
 species caught
Angler trips
information reported by NMFS on species caught by recreational fishers: http://www.st.nmfs.gov/st1/recreational/queries/index.html.
Recre-ational fishing

1980-2006
(monthly or wave?)
17 counties of California
Whole California

Same as Report of CA F&G on rec fish
“catch values�:
angler hours, number of anglers; fish examined [A], reported [B] 1=dead, 2=alive; number, weight, length [mean and per hour]
example
Summarize RecFIN MRFSS Sample Data
Version 2
Recre-ational fishing
2005
6 districts:
(more detailed info page 2ff)
Whole California
Groups and species:
Taxonomic super group; Taxo-nomic group: or user defined species group
Number of angler trips (from man made structures, beaches & banks, commercial passenger fishing vessels, private and rental boats)
Report to the CA F&G commission - California recreational fisheries survey 2005 Annual Review (2006)
Recre-ational fishing
2005/2006 (snapshot)
Varies substantially(specific GPS loc to only about of island)
From Monterey Bay to San Diego
(only what costumers want to see)
WTP for full day/half day diving
Diving survey
Diving
Time/ temp. resolution
Spatial resolution
Geografical area
Ecological info
WTP/prices/yields/ revenues
source
Activity

 

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by Carrie Kappel last modified 12-10-2006 16:51
 

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