ENVIRONMENTAL VALUATION DATABASES Koenraad Van Landeghem Principal Economist NSW Department of Environment and Climate Change 1 “Don’t you just have those numbers that you can pull out of a drawer?” Waste Policy Officer 2 Overview 1. Valuation databases 2. Envalue 3. EVRI 4. Evaluation of EVRI 5. Challenges for EVRI 6. Challenges for DECC 3 VALUATION DATABASES Usefulness & Purpose: Consistent reporting of environmental valuation studies Broadening access to environmental valuations (data poor field) Identifying studies relevant to user’s policy area Facilitating benefits transfer 4 Desirable criteria for Valuation Databases Contains “local” estimates Ease of use (useability and access) Comprehensive Details about the change being valued, including the characteristics of the natural resource and the base level of environmental quality Information about the socio-demographics of the population at the site and their environmental preferences Details about the extent of the market: how far away from the site were respondents identified who still valued the natural resource? Detailed reporting of the study results A thorough assessment and reporting of the validity of the study, including discussion of any methodological issues Details about the precision of value estimates so that reliability can be assessed Information that can be used to ascertain whether a conservative value estimate was produced for the study. Allows transfer of functional relationships additional to values [Adapted from Morrison, 2001 & Lantz & Slaney, 2005, etc.] 5 Environmental Valuation Databases - Overview Name of Database Web Host Purpose of the Database Regions Covered Search function Topic areas No of studies Ecosystem Services Database Gund Institute for Ecological Economics, USA Economic values of ecosystem services International Both free text and guided search options 300 + Review of Externality Data European Commission Externalities produced from policies that have sustainable development at their core International Both free text and guided search options Industry; location; pollutant; receptor; quality of study; valuation method. 1200+ New Zealand Non-market Valuation Database Lincoln University (New Zealand) Non-market valuation studies that have been undertaken in New Zealand New Zealand Multiple guided search options Valuation Method; date of study; environmental theme; author; type of paper. 100 + ValuebaseSwe Beijer International Institute of Ecological Economics, and the Swedish EPA Survey of empirical economic valuation studies on environmental change in Sweden Sweden Microsoft Excel Built environment; water & air quality; forests; fish; natural lands; agriculture. 171 Beneficial use Values database University of California, Davis Economic values for beneficial uses of water resources North America Microsoft Access Beneficial uses of water by the Californian State Water Board, USA. 131 Envalue NSW Department of Environment & Climate Change Promote greater access to and use of environmental values in decision-making International Guided search only Air, Water & Land quality; Noise; radiation; natural areas; amenity. 400+ Environmental Valuation Reference Inventory EVRI Environment Canada Assist economists to use benefits transfer to value environmental services International Both free text and guided search Environmental service, asset or stressor; location; development status; economic measure 1900+ 6 Name of Database Web Host Purpose of the Database Regions Covered Search function Topic areas No of studies Review of Externality Data European Commission To assist capturing the effect of externalities produced from new policies that have sustainable development as their core concern. International Both free text and guided search options Industry; location; pollutant; receptor; quality of study; valuation method. 1200+ 7 8 Name of Database New Zealand Nonmarket Valuation Database Web Host Lincoln University (New Zealand) Purpose of the Database To help researchers identify nonmarket valuation studies that have been undertaken in New Zealand. Regions Covered New Zealand Search functions Topic areas Multiple guided search options Valuation Method; date of study; environmental theme; author; type of paper. No of studies 100 + 9 10 Name of Database ValuebaseSwe Web Host Beijer International Institute of Ecological Economics, and the Swedish EPA Purpose of the Database To provide a survey of empirical economic valuation studies on environmental change in Sweden. Regions Covered Search functions Sweden Microsoft Excel Topic areas Built environment; water quality; forests; air quality; fish; natural lands; agriculture. No of studies 171 http://www.beijer.kva.se/valuebase.htm 11 12 Name of Database Beneficial use Values database Web Host Purpose of the Database Regions Covered Search functions Topic areas University of California, Davis To provide an educational and informational tool to those interested in documenting the economic values for beneficial uses of water resources North America Microsoft Access Beneficial uses of water by the Californian State Water Board, USA. No of studies 131 13 Valuation Databases - alternatives Name of Database Web Host Purpose of the Database Regions Covered Search function Topic areas No of studies EconLit American Economics Association Compiled to display abstracts from 30 years of economic literature (not valuation specific) International Free text Studies relevant to Economics (including valuation of environment) 400,000+ (general) 1600+ (environment) EconPapers Department of Business, Economics, Statistics and Informatics (Örebro University) Data provided by RePEc (Research Papers in Economics) to enhance the dissemination of research in economics International Free text & guided search by author and type of paper. General Economics articles (including environmental & resource economics) 545,000+ (general economics) Biodiversity Economics International Union for the Conservation of Nature (IUCN) & World Wildlife Fund (WWF) To encourage and assist the use of economics in support of biodiversity conservation and sustainable development. International Free text & Guided search option Concepts in valuing biodiversity; actual valuations; valuation methods; indicators; EIA & SEA. 276 + Environmental Valuation & Cost Benefit News The Cost Benefit Group LLC (private consultants) To promote the incorporation of environmental values into decision-making International (mainly USA) Free-text and guided (environmental medium, location, contaminant, and type of study) Environmental and Natural Resource economics 12,000 14 15 What is Envalue? Internet database of valuation studies on environment and health: http://www.environment.nsw.gov.au/envalue/ Currently, ~ 400 study records or study summaries that can be easily searched Envalue design facilitates benefits transfer, which is the transfer of values from “study site” to policy site”. - Design of records facilitates matching; quality checks; selecting values - Structured search allows for quick location of studies Free site – no subscription required 16 Envalue Records Records are broken into categories and sub-categories called fields where data and information is entered: - Basic scope of the study Key Results: currency, year, values Annotated Bibliography: Reference Valuation technique Socio-economic characteristics Environmental Good / Service measured Comments / summary Evaluation of the study 17 Envalue 18 Envalue - Information Reported 19 Envalue Information Reported (continued) 20 Envalue - Problems encountered • Cost of software upgrades • Cost of uploading additional studies • Last update (3 articles) in 2006 • Studies becoming out-dated as a result of the above DECC was looking for an alternative way to provide a similar service to Australians… 21 Environmental Valuation Reference Inventory (EVRI) EVRI Sponsors: 22 What is EVRI? Internet Infobase of valuation studies on environment and health: http//www.evri.ca Currently, ~ 1,900 study records or study summaries that can be easily searched EVRI design facilitates benefits transfer, which is the transfer of values from “study site” to policy site”. - Design of records facilitates matching; quality checks; selecting values - Search engines allows for quick location of studies Free site to U.S., U.K., France, Canada and Australia Bilingual site 23 DECC external promotion of EVRI Promote greater Australian use of EVRI - DECC Media Release Advertisements in various e-newsletters, AARES, DECC etc Group e-mails to distribution list Links to EVRI from websites, e.g. libraries, Govt Departments Conferences: distribute EVRI posters and flyers Link from ‘Envalue’ entry-page Increase Australian content: - Encouraging Australian authors to up-load their articles to EVRI - DECC evaluation will identify potential for increased relevance to Australian users List of relevant Australian literature sent to Environment Canada for consideration 24 25 EVRI Records Records are broken into categories and sub-categories called fields where data and information is entered: - Study Reference Study Area and Population Environmental Focus of Study Study Methods Estimated Values Abstract 26 EVRI Database Breakdown Studies in EVRI by Country* Country EVRI records by category Percentage Environmental Asset Number of Records Water (general) 943 Animals (general) 939 Land (general) 692 Plants 425 Human (health or capital) 335 Air 268 2% Infrastructure/Produced 203 15% Micro-organisms United States 47% United Kingdom 12% Canada 11% Nordic Countries 10% France 3% Australia Non-Member Countries 9 *More than one category may have been identified for each record. As of March 31, 2007 As of March 2007 27 28 29 EVRI – information reported 30 EVRI – information reported (cont’d) 31 EVRI – information reported (cont’d) 32 Evaluation of EVRI and Envalue DECC’s activities: 1. Literature Review 2. Cost-Benefit Analysis 3. Web-statistics 4. Australian user survey Monthly Visits to EVRI Monthly visits to 'Envalue' minus monthly visits to 'EVRI' 400 400 350 300 300 200 Visits 250 100 200 150 Sep-07 Aug-07 Jul-07 Jun-07 May-07 Apr-07 Mar-07 Feb-07 Jan-07 Dec-06 Nov-06 Oct-06 Sep-06 Aug-06 -100 Jul-06 0 100 50 Monthly Visits to Envalue website minus Monthly visits to EVRI website [NB: visits to ‘EVRI’ just include Australian visitors, whereas visits to ‘Envalue’ also include international visitors] Sep-07 Aug-07 Jul-07 Jun-07 May-07 Apr-07 Mar-07 Feb-07 Jan-07 Dec-06 Nov-06 Oct-06 Sep-06 Aug-06 -200 Jul-06 0 Monthly visits to EVRI website by Australians 33 Evaluation of EVRI (cont’d) Environment Canada’s activities: 1. Independent 3rd Party Review 2. Australian Representative on EC’s Evaluation Committee 3. User perception of EVRI & potential for improvement Member Country (excluding USA): EVRI visits per month US visits to EVRI average about 4000 per month 600 500 Visits 400 Canada 300 United Kingdom France Australia 200 100 0 Sep- Oct- Nov- Dec- Jan- Feb- Mar- Apr- May- Jun- Jul- Aug- Sep06 06 06 06 07 07 07 07 07 07 07 07 07 34 Challenges for EVRI Improved reporting Access to original studies Range of available studies Member countries Objectives of EC - Facilitate benefits transfer - Capture more valuation studies - Keep database content current - Market and distribute to promote benefits transfers in as many countries as possible. 35 Challenges to DECC / Australia More Australian studies - Limitation to Australian Policy relevance - Slow progress in uploading further studies - International Benefits Transfer (limitation?) Cumulative Australian studies in EVRI 50 45 40 35 30 25 20 15 10 5 0 1999 2002 2003 2004 2005 2006 2007 Continued funding 36 Articles Reviewing Valuation Databases 1. Navrud, S., Vagnes, M., (2000), Assessment of EVRI and the Expansion of its Coverage to the EU, Report to the European Comission, DG, XI. 2. Morrison 2001, Non-market Valuation Databases: How Useful Are They?, Economic Analysis and Policy, v. 31, Iss. 1, pp. 33-56 3. Van Lantz & Greg Slaney 2005, An Evaluation of Environmental Valuation Databases around the World, Presented at workshop in Washington entitled “Benefits Transfer and Valuation Databases: Are We Heading in the Right Direction?” 4. White, J., 2005, Envalue and Benefits Transfer in Australia, [Washington workshop]. 5. McComb, Lantz, Nash & Rittmaster, 2006, International valuation databases: Overview, methods and operational issues, Ecological Economics, 60, pp. 461-472 6. Villa, Ceroni, & Krivov, 2007, Intelligent Databases Assist Transparent and Sound Economic Valuation of Ecosystem Services, Environmental Management, Vol. 39 Issue 6, p887-899 37 Valuation Databases • EVRI – http://www.evri.ca • Envalue - http://www.environment.nsw.gov.au/envalue/ • Ecosystem Services Database (ESD) - http://esd.uvm.edu/ • Review of Externality Database (RED) - http://www.red-externalities.net/ • New Zealand Non Market Valuation Database - http://oldlearn.lincoln.ac.nz/markval/ • ValuebaseSwe - http://www.beijer.kva.se/valuebase.htm • Beneficial Use Values Database - http://buvd.ucdavis.edu/buvd/index.htm • EconPapers - http://econpapers.repec.org/ • Biodiversity Economics - http://www.biodiversityeconomics.org/ • Environmental & Cost Benefit Analysis News - http://envirovaluation.org/ 38