PowerPoint-presentatie

1
Valuation of nature in political decision
making Experience in the Netherlands
Dr.ir. E.C.M. Ruijgrok, 09/2002
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Nature and Acidification

• Acidification abatement leads to increased
  nature quality
• To include this benefit in Cost Benefit
  Analysis
• Nature must be valued in monetary terms.

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Key questions 1. What is socio-economic
valuation? - how do different views on nature
determine valuation? 2. Why economic valuation
of nature? - what is the role of valuation in
political decisions? 3. How to determine the
economic value of nature related to
acidification abatement? - how much experience
do we have in the Netherlands?
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What is the value of nature? This depends on
your view!
Views on nature
Valuation

• Hands- off
• Classical
• Nature development
• Co-evolution
• Functional

Do not value
Ecological Valuation
Both socio-economic and ecological valuation
Financial valuation
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Socio-economic value Welfare for humans, by
production-, regulation-, information- and
non-use functions
Financial value Income for humans
The financial value of not exploited nature
areas is very small or even zero!
Ecological value Welfare for plants and animals
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Why valuation of nature?

• In general
• To make the trade off between economic and
  ecological
• interests more balanced
• In todays political context
• To complete Cost Benefit Analyses in such a way
  that
• they can support investments in nature
• they can prevent damage to nature

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• Cost Benefit Analyses
• Important role in national en regional
  infrastructural
• works
• The role of the Enviromental Impact Assessment
  is
• reduced
• Nature is not included in CBAs
• The position of nature is deteriorating

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• Including nature in CBA
• Some pitfalls
• Is nature valued financially of
  socio-economically?
• Are all functions of nature included?
• Do not replace intrinsic valuation by economic
  valuation
• make them complementary!

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How to determine the economic value of nature
related to acidification abatement?
In all kinds of ecosystem functions
Can unaffected nature perform this function
better?
Overlap?
Out functions affected by acidification
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Functions affected by acidification

• CO2 fixation
• Nitrogen storage
• Aluminium binding
• Binding heavy metals
• Recreational perception
• Non-use

Different functions, different valuation methods
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A combination of valuation methods
Total economic value
Use value
Non-use value
Direct use value
Option/ Quasi- option value
Bequest value
Indirect use value
Existence value
Production value
Information value
Regulation value
Contingent Valuation
Damage cost avoided Abatement costs
Contingent Valuation Hedonic Pricing Travel Cost
Market Analysis
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• Socio-economic valuation
• Importance
• Material and immaterial welfare
• Representation of social preferences
• Willingness to pay as measurement

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Dutch experience with valuation (1973-2002)
Source Historical overview of Dutch valuation
studies
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Platform for Economic Valuation of Nature Aim
to strengthen the position of nature, landscape,
cultural heritage and environment in the public
decision making process
Network of specialists Learn from experience in
other countries

http//www.fsd.nl/naturevaluation.