Using Ecosystem Service Values to Inform Coastal Policy Decisions: A California Experiment with Lessons for Alaska Steve Colt University of Alaska Anchorage steve.colt@uaa.alaska.edu Institute of Social and Economic Research ACRC Juneau 19 April 2012 Outline • • • • Quiz Context California valuation exercise Southeast Alaska ecosystem services examples • So what? Quiz: What SE Alaska tourism sub-industry generated $16 million in revenue from one activity in 2006? Helicopter-based dog mushing excursions, Juneau Context • Ecosystem services have value • Knowledge of ES values can inform better management and development (Kaveira) • Knowledge of ES values can inform shared understanding of the value of place (Chapin) • Tourism and harvest are obvious ways to monetize and (perhaps) to nurture ES values. (90% Alaskans support salmon habitat) California valuation exercise • CA Ocean Protection Council • At OPC request, National Center for Ecological Analysis and Synthesis assembled a team of economists, ecologists, mappers, lawyers, and policy makers California valuation exercise • Objective: provide spatially explicit and policyrelevant values for ecosystem services generated in coastal regions in California • Analogue: “avoided externalities” of solar PV and solar thermal power projects • Applications: permitting, budgeting, mitigation schemes, offsets, ??? California exercise objectives • CA OPC wanted a balance sheet or menu of ES values • How much is one acre of salt marsh worth? • If we’re going to build roads, housing, or malls on coastal ecosystem areas (such as marshes), we should know what we’re losing The matrix: before lit search marshes PROVISIONING food --capture fisheries --aquaculture --wild plant and animal products fiber genetic resources biochemicals, natural medicines, pharmaceuticals ornamental resources human habitation human navigation energy (for human use) REGULATING air quality regulation climate regulation erosion regulation water purification, waste treatment disease regulation pest regulation pollination (and seed dispersal) natural hazard regulation freshwater storage and retention gas regulation CULTURAL cultural diversity spiritual and religious values knowledge systems educational values inspiration aesthetic values social relations sense of place cultural heritage values recreation and ecotourism SUPPORTING photosynthesis primary production nutrient cycling water cycling BUNDLED ATTRIBUTES Item: Habitat and refugia beach lagoon and mud flats salt ponds estuaries rocky intertidal kelp rocky reefs shell reefs seagrass inner shelf outer shelves, edges, slopes seamounts and middeep sea ocean and central ridges gyres deep sea vents The matrix: after marshes beach mud flats lagoon and salt ponds estuaries rocky intertidal kelp inner shelf outer shelves, edges, slopes NOTE 7 40-55 9 NOTE 7 NOTE 9 rocky reefs shell reefs NOTE 7 NOTE 7 seagrass PROVISIONING food --capture fisheries 55 - 81 --aquaculture --wild plant and animal products 26 fiber genetic resources biochemicals, natural medicines, pharmaceuticals ornamental resources human habitation human navigation energy (for human use) REGULATING air quality regulation climate regulation NOTE 1 erosion regulation 31,131 water purification, waste treatment NOTE 4 disease regulation NOTE 9 pest regulation pollination (and seed dispersal) natural hazard regulation 278 - 332 NOTE 7 NOTE 7 52 freshwater storage and retention gas regulation 22 CULTURAL 41-45 45 48 (NOTE 9) NOTE 10 843-2,165 69 cultural diversity spiritual and religious values knowledge systems educational values inspiration aesthetic values social relations sense of place cultural heritage values 27 16,946 (NOTE 2) recreation and ecotourism NOTE 4 17 NOTE 7 NOTE 7 8 - 346 NOTE 7 NOTE 7 SUPPORTING photosynthesis primary production 1,102 - 1,833 11,188 (NOTE 8) nutrient cycling water cycling BUNDLED ATTRIBUTES Item: Habitat and refugia 56 (NOTE 1) 36,000 83,000 (NOTE 2) NOTE 3 NOTE 4 421 - 817 (NOTE 5) 77 - 415 NOTE 6 seamounts and mid-ocean deep sea and ridges central gyres deep sea vents California exercise: Results 1. Very few papers provide spatially explicit values for coastal ecosystem services 2. Many spatially explicit values are for an unspecified “bundle” of services 3. Where they do exist the values vary widely Studies valuing marine ecosystem services worldwide (searched 100s of articles, found 35 that “worked”) per year (flow) spatially explicit: per unit area (acre, hectare) person-related: per person per household per user (angler, visitor, party, respondent) other: per unit of resource (fish) per aggregate resource (coastline, bay, species in a region) per business enterprise per residential property per use one-time (asset value??) 4 unclear, aggregate 2 1 8 3 2 3 2 3 1 1 1 2 1 unclear, aggregate Total: 1 35 Selected Economic Values of Marine Ecosystems Worldwide 2008US$/ha/yr Service Category Estuary Beach CULTURAL Cultural heritage values 17 Recreation and ecotourism 8 - 346 27 16,946 Selected Economic Values of Marine Ecosystems Worldwide 2008US$/ha/yr Service Category Estuary Beach SUPPORTING Habitat and refugia 77 - 415 - Primary production - Water cycling 450 400 350 300 250 200 150 100 50 0 estuary habitat Southeast Alaska example: valuation of saltwater charter sport fishing Ginny Fay, Darcy Dugan, Steve Colt Institute of Social and Economic Research University of Alaska Anchorage UAA-CNF Climate Symposium May 5, 2011 Registered charter fishing vessels 1983-2004 1,400 1,200 Registered Vessels 1,000 800 600 400 200 0 1983 1985 1987 1989 1991 1993 Years 1995 1997 1999 2001 2003 Data • AK Fish & Game – Quantity (fishing effort by area fished) • Interviews & Web – Price information • Business licenses & Web – associated reality checks Method • Aggregate the number of clients and/or boathours within each ADF&G statistical area. • Allocate the revenue “from” each ADFG stat. area to its most logical community – (many-to-one relationship) Results: Total SE AK: 143,000 clients 37,560 trips $73.5 million gross revenue Example of specificity Variation in revenue per square km Revenue per square km, by stat area average = $2,023 160,000 140,000 120,000 100,000 80,000 60,000 40,000 20,000 1 11 21 31 41 51 61 71 81 91 101 111 121 131 141 151 161 171 181 191 201 211 221 231 - Lorenz curve of total revenue 80,000,000 Cumulative revenue, $ 70,000,000 60,000,000 50,000,000 40,000,000 30,000,000 20,000,000 10,000,000 - 5,000 10,000 15,000 20,000 25,000 30,000 35,000 40,000 Cumulative area, square km Lorenz curve total clients 160,000 Cumulative clients 140,000 120,000 100,000 80,000 60,000 40,000 20,000 0 - 5,000 10,000 15,000 20,000 25,000 30,000 35,000 40,000 Cumulative area, square km Highest revenue per square km: Logbook Areas 101451 and 101452 averaged together $49,294 per square km So what? • Very large variation in measured ES values per square km • Reflects different ways of thinking about “the benefits people obtain from ecosystems” Eco nomics Eco logy So what? Bob Weeden, AK Fish & Game 1987 “I do not advocate turning away from economic valuation” “Nor do I advocate embracing porcupines too warmly” References • • • N. Raheema, , , S. Coltb, , E. Fleishmanc, m, 1, , J. Talberthd, , P. Swedeene, , K.J. Boylef, , M. Ruddg, , R.D. Lopezh, 2, , D. Crockeri, , D. Bohanj, , T. O'Higginsk, , C. Willerl, , R.M. Boumansm, . 2012. Application of non-market valuation to California's coastal policy decisions. Marine Policy. Available online 23 February 2012. http://dx.doi.org/10.1016/j.marpol.2012.01.005 Fay, G.; Dugan, D.; Fay-Hiltner, I.; Wilson, M.; Colt, S. 2007. Testing a methodology for estimating the economic significance of saltwater charter fishing in Southeast Alaska. Anchorage: ISER. http://www.iser.uaa.alaska.edu/Publications/EconSE_Saltwater_Charter_Fish_070 530.pdf Weeden, R. 1987. On Wooden Nickels, Trojan Horses, and Lonely Drummers. Alaska Fish & Game May-June.