Economic Valuation and Economic Valuation and Protected Areas.Protected Areas.

Venetia Hargreaves-AllenVenetia Hargreaves-Allen

Imperial College LondonImperial College LondonConservation Strategy FundConservation Strategy Fund

Economic Valuation Economic Valuation and Protected Areas.and Protected Areas.

Outline.Outline.

•Types of economic studiesTypes of economic studies

•Principles of economic valuationPrinciples of economic valuation

•Uses of economic valuationUses of economic valuation

•Research in BelizeResearch in Belize

Types of economic study.Types of economic study.

• Economic valuationEconomic valuationbeyond financial analysisbeyond financial analysis

$ value of net values$ value of net values

• Economic impact analysisEconomic impact analysis$ value income & employment impacts,$ value income & employment impacts,

Market value basedMarket value based

• Cost benefit analysisCost benefit analysisFor future policies, projects and For future policies, projects and

investmentsinvestments

Key concepts in economic Key concepts in economic valuation.valuation.

• Consumer surplusConsumer surplus

• Producer surplusProducer surplus

• MultipliersMultipliers

• Economic incentivesEconomic incentives

• Willingness to pay or acceptWillingness to pay or accept

• Total economic value =Total economic value =

Direct use + indirect use + non use Direct use + indirect use + non use values.values.

Increasingly difficult to measure

Benefits of Protected Areas.Benefits of Protected Areas.

Use ValuesUse Values

• Marketable Marketable productsproducts

• Recreation/tourismRecreation/tourism

• Ecosystem servicesEcosystem services

• ResearchResearch

• EducationEducation

• Option ValuesOption Values

Non-Use ValuesNon-Use Values

• Bequest Bequest

• Existence valueExistence value

• SpiritualSpiritual

• Cultural / historicalCultural / historical

• Intrinsic valueIntrinsic value

Valuation methods.Valuation methods.• Market or shadow pricesMarket or shadow prices

• Effect on productionEffect on production• Replacement costReplacement cost• Damages avoidedDamages avoided

Revealed Preference.Revealed Preference.• Travel cost methodTravel cost method• Hedonic pricing (houses)Hedonic pricing (houses)

Stated Preference.Stated Preference.• Contingent valuationContingent valuation• Choice modellingChoice modelling

How can you use valuation?How can you use valuation?

Help raise revenues and sustainable Help raise revenues and sustainable financing:financing:

• Raise stakeholder, policy maker & Raise stakeholder, policy maker & donor awarenessdonor awareness

• Justify additional investmentJustify additional investment

• Identify more / equitable sources of Identify more / equitable sources of fundingfunding

• Inform damage assessmentsInform damage assessments

Economic studies can enhance Economic studies can enhance management; management;

• Baseline indicators to judge policy Baseline indicators to judge policy impacts or management goalsimpacts or management goals

• Understanding incentives faced by Understanding incentives faced by illegal resource usersillegal resource users

• Understand trade-offs implicit in Understand trade-offs implicit in decisionsdecisions

• Information for cost-benefit analysis Information for cost-benefit analysis

• Full cost accountingFull cost accounting

How can you use How can you use valuation?valuation?

Affecting management;Affecting management;

• Influencing legislationInfluencing legislation

• Designing interventions (taxes, regulations, Designing interventions (taxes, regulations, incentives) incentives)

• Maximise benefits through targeted Maximise benefits through targeted management based on whole range of values management based on whole range of values

• Identify marginalised stakeholders to targetIdentify marginalised stakeholders to target

• Appropriate price setting / controlling visitor Appropriate price setting / controlling visitor numbersnumbers

My research interests.My research interests.

• Benefits AND costs generated by Benefits AND costs generated by marine reservesmarine reserves

• How these are distributedHow these are distributed• How this will affect management How this will affect management

goalsgoals• How to encourage resource How to encourage resource

conserving behaviourconserving behaviour• How to maximise long term benefitsHow to maximise long term benefits

My research plans.My research plans.

Economic analysis of a marine reserve Economic analysis of a marine reserve as a case study:as a case study:

1) Economic value of Gladden spit1) Economic value of Gladden spit2) Economic impact of Gladden spit2) Economic impact of Gladden spit

Global study:Global study:3) Management questionnaire3) Management questionnaire

Marine Managed Area Marine Managed Area Science.Science. • Ecological and economic studiesEcological and economic studies• 4 case study countries4 case study countries• 10 projects in Belize 10 projects in Belize • People involvedPeople involved• Outputs – workshop, filmOutputs – workshop, film• Methods and protocols will be sharedMethods and protocols will be shared• Link with WRI economic valuationLink with WRI economic valuation

Economic valuation at Economic valuation at Gladden Spit.Gladden Spit.

Two major objectives;Two major objectives;

1)1) Calculate the current economic Calculate the current economic value of goods and services derived value of goods and services derived from a marine reserve.from a marine reserve.

2)2) Exploring the effects of potential Exploring the effects of potential scenarios on future economic scenarios on future economic values.values.

Values to be measured at Values to be measured at Gladden SpitGladden Spit

Five major areas: gross and net values.Five major areas: gross and net values.

1)1) Tourist valuesTourist values

2)2) Tour operator producer surplusTour operator producer surplus

3)3) Fisher producer surplusFisher producer surplus

4)4) Community valuesCommunity values

5)5) Coastal protection valuesCoastal protection values

Economic impact of Gladden Economic impact of Gladden spit.spit.

• $ value of income and employment $ value of income and employment benefitsbenefits

• fishing, tourism, research and fishing, tourism, research and managementmanagement

• Identify winners and losersIdentify winners and losers

• Examine user incentivesExamine user incentives

Global MPA management Global MPA management surveysurvey..

On-line survey to examine global On-line survey to examine global patternspatterns

• Economic costs generated by the MPAEconomic costs generated by the MPA• Economic benefits generated by the MPA Economic benefits generated by the MPA • Fiscal initiatives / measures employedFiscal initiatives / measures employed• Indicators of MPA success Indicators of MPA success • Factors associated with MPA success Factors associated with MPA success

Contact details: please help!Contact details: please help!

Acknowledgements.Acknowledgements.

• Conservation International and Conservation International and Conservation Strategy FundConservation Strategy Fund

• Friends of NatureFriends of Nature

• Fisheries departmentFisheries department

• UK governmentUK government

• My supervisorsMy supervisors

Contact me: Contact me: vhargreavesallen@gmail.comvhargreavesallen@gmail.com. .