When nature meets economy… Johan Van Den Bosch Hoge Kempen National Park ALMERE, 4th of November 2014 © Erwin Christis © Erwin Christis © François Van Bauwel DECISION-MAKER € Partly a language problem ENVIRONMENTALIST DECISION-MAKER € ENVIRONMENTALIST Ecosystems Human wellbeing Ecosystems Ecosystem goods and services Human wellbeing Ecosystem Goods & Services Ecosystem goods and services Productiediensten Regulerend diensten Culturele diensten Ondersteunende diensten Ecosystem Goods & Services Ecosystem goods and services Productiediensten Ecosystem Goods & Services Ecosystem goods and services Productiediensten Regulerend diensten Ecosystem Goods & Services Ecosystem goods and services Productiediensten Regulerend diensten Culturele diensten Ecosystem Goods & Services Ecosystem goods and services Productiediensten Regulerend diensten Culturele diensten Ondersteunende diensten Methods to monetize Non use value. Use value Direct Indirect Legacy Option value Food / Wood / Biomass Recreation Water purification CO2 capture Particle matter capture Market prices Revealed preferences (hedonistic price method; travel cost method) Expressed preferences (contingent valuation.) Replacement cost Avoided costs ‘External’ costs Contingent valuation Methods to monetize Non use value. Use value Direct Indirect Legacy Option value Food / Wood / Biomass Recreation Water purification CO2 capture Particle matter capture Market prices Revealed preferences (hedonistic price method; travel cost method) Expressed preferences (contingent valuation.) Replacement cost Avoided costs ‘External’ costs Contingent valuation Example Direct Use-Value: Impact Recreation & Tourism Hoge Kempen NP Omzet in 2013: 24.5 Miljoen Euro Methods to monetize Non use value. Use value Direct Indirect Legacy Option value Food / Wood / Biomass Recreation Water purification CO2 capture Particle matter capture Market prices Revealed preferences (hedonistic price method; travel cost method) Expressed preferences (contingent valuation.) Replacement cost Avoided costs ‘External’ costs Contingent valuation Example Indirect Use-Value: Avoided Costs waterpurification Water treatment costs: lower with higher % afforestation Euro / 1.000 m³ 35 30 € 17 25 € 27 20 15 10 5 0 0 10 15 20 25 30 35 40 45 50 55 60 65 70 75 80 % Forest Source: own calculated actualization for the year 2010 based on : Ernst C., Protecting the source, Land Conservation and the Future of America’s Drinking Water, 2004 Methods to monetize Non use value. Use value Direct Indirect Legacy Option value Food / Wood / Biomass Recreation Water purification CO2 capture Particle matter capture Market prices Revealed preferences (hedonistic price method; travel cost method) Expressed preferences (contingent valuation.) Replacement cost Avoided costs ‘External’ costs Contingent valuation Example Non-use Value: Willingness-to-pay & Biodiversity Based on the contingent valuation method Bron: B-M. Lopez, 2007, The non economic motives behind the willingness to pay for biodiversity conservation, Biological Conservation. Turnover related to nature HK: € 191,000,000 Jobs related to to nature HK 5,100 Added Value houses nature HK: € 65,672,000 1. Edelherten Extra annual turnover: Extra jobs: € 7.8 million 160 jobs 2. UNESCO world heritage Extra annual turnover: Extra jobs: € 15.5 milion 321 jobs 3 Discussion Points: Lucebert Benjamin Franklin Margeret Thatcher Margeret Thatcher COSTS BENEFITS “I want my money back “ Margeret Thatcher “Willingness to pay” for biodiversity and habitat services Topic WTP / person/year ( €, 2006) Countries Protection endangered species 121 UK, N, D Landscape 58 UK, NL, A, S Marshes 35 UK, A Preservation biodiversity 29 UK, N, D Watercourses 27 UK, N Forests 19 UK, NL, S, N 9 UK, H National parks & natural reserves Nijkamp a.o., 2008, Economic evaluation of biodiversity: a comparative study Benjamin Franklin Three values of an ecosystem Economic value: welfare for people through use and non-use Total value € € Financial value: Income for people Score Intrinsic value: well-being for plant & animal Source: www.fsd/naturevaluation.nl “I believe that the great part of miseries of mankind are brought upon them by false estimates they have made of the value of things.” Benjamin Franklin, 1706-1790 Lucebert DECISION-MAKER € Partly a language problem ENVIRONMENTALIST DECISION-MAKER € ENVIRONMENTALIST DECISION-MAKER € ENVIRONMENTALIST “Alles van waarde is weerloos” (Everything of value is defensless) Lucebert, 1974 Contact: johan@rlkm.be Johan Van Den Bosch Hoge Kempen National Park Thank you !