Program 1) Class progress 2) Readings in economic valuation - NAS Article 3) Example – Wetlands (functions & values) 4) Example – Open Space 5) Last Class

Program Program 1) Class progress1) Class progress

2) Readings in economic valuation2) Readings in economic valuation

- NAS Article- NAS Article

3) Example – Wetlands (functions & values) 3) Example – Wetlands (functions & values)

4) Example – Open Space 4) Example – Open Space

5) Last Class Expectations 5) Last Class Expectations

Meaning of value & Use of Economic Meaning of value & Use of Economic valuation in Environmental Policy (valuation in Environmental Policy (NAS) NAS)

___________________________________ ___________________________________

How do we value ecosystems and natural How do we value ecosystems and natural

resources?resources?

- all values are anthropocentric- all values are anthropocentric

- nonhuman species have value in - nonhuman species have value in

themselvesthemselves

Meaning of value & Use of Economic Meaning of value & Use of Economic valuation in Environmental Policy valuation in Environmental Policy

___________________________________ ___________________________________

- - values of ecosystem & their services values of ecosystem & their services

are are inherently anthropocentricinherently anthropocentric

-- Used the Millennium Ecosystem AssessmentUsed the Millennium Ecosystem Assessment

(ecosystems services to human well-being)(ecosystems services to human well-being)

-- used broad definition of the term economic used broad definition of the term economic

valuation – commercial and non commercial valuation – commercial and non commercial

valuesvalues


___________________________________ ___________________________________

- - Role of valuation in policyRole of valuation in policy

-- importance of quantifyingimportance of quantifying


___________________________________ ___________________________________

- - NAS report based on the NAS report based on the

millennium Ecosystem millennium Ecosystem

AssessmentAssessment

- Broad overview of economic - Broad overview of economic

valuationvaluation


___________________________________ ___________________________________ Economic valuationEconomic valuation

- Based on Total economic value framework- Based on Total economic value framework

- wide variety of values- wide variety of values

-Willingness to pay – WTP-Willingness to pay – WTP

-discounting (capture timing of CBA,-discounting (capture timing of CBA,

means of weighing the utility of future means of weighing the utility of future

generations differently from that of generations differently from that of

present generations (Utility present generations (Utility

discounting)discounting)


___________________________________ ___________________________________

-- Role of Economic valuation Role of Economic valuation

-- Widespread agreement that ecosystems Widespread agreement that ecosystems

have a have a value, value,

- Values as inherently anthropocentric- Values as inherently anthropocentric

- Types- Types

instrumental value – usefulnessinstrumental value – usefulness

intrinsic value – independent of any intrinsic value – independent of any

contributioncontribution


___________________________________ ___________________________________ Some terms and concepts Some terms and concepts

instrumental value – value derived from its role as instrumental value – value derived from its role as a means toward an end other than itself a means toward an end other than itself

Anthropocentricism – assumes only humans Anthropocentricism – assumes only humans assign value assign value

Biocentrism values – assume that certain things Biocentrism values – assume that certain things have value even if no human beings think so.have value even if no human beings think so.



Examples: Snail Darter vs. Dam. Who won?Examples: Snail Darter vs. Dam. Who won?

Existence value – ability to preserve something, by Existence value – ability to preserve something, by the existence alone, has utility.the existence alone, has utility.

Utilitarian values stem from the ability to provide Utilitarian values stem from the ability to provide “welfare” to humans.“welfare” to humans.



Is there a right for others living creatures to exist?Is there a right for others living creatures to exist?

KANT – Philosopher wrote on intrinsic values:KANT – Philosopher wrote on intrinsic values:

humans are rational and thus only humans have humans are rational and thus only humans have intrinsic value and rights, He argued that rights intrinsic value and rights, He argued that rights should extend to nonhumans. should extend to nonhumans.



Economic approach to valuation is an Economic approach to valuation is an anthropocentric approach based on utilitarian anthropocentric approach based on utilitarian principles. principles.

Not based on non-anthropocentric values, Not based on non-anthropocentric values, biocentrism values and intrinsic values biocentrism values and intrinsic values


___________________________________ ___________________________________ Quantifying ValuesQuantifying Values

- not necessarily quantification of that value- not necessarily quantification of that value

- Some object, intrinsic value folks, to - Some object, intrinsic value folks, to measuring natural resources. Can you put a measuring natural resources. Can you put a price on human life or wilderness?price on human life or wilderness?


___________________________________ ___________________________________ When does quantification help?When does quantification help?

1) informing policy decisions in which trade-offs 1) informing policy decisions in which trade-offs are considered.are considered.

2) providing damage estimates for natural 2) providing damage estimates for natural resource damage assessment resource damage assessment

3) incorporating environmental assets and 3) incorporating environmental assets and services into national income accounts. services into national income accounts.


___________________________________ ___________________________________ When does quantification help?When does quantification help?

System is based on a core economic principle that System is based on a core economic principle that individuals are willing to trade the goods being individuals are willing to trade the goods being valued for something else that can also be valued for something else that can also be quantified by the dollar metricquantified by the dollar metric


______________________________________________________________________Cost Benefit AnalysisCost Benefit Analysis

- All costs and benefits be considered.- All costs and benefits be considered.

- intrinsic- intrinsic

- economic welfare- economic welfare

- Constraints - Constraints

- justice & fairness not violated- justice & fairness not violated

- populations do not fall below - populations do not fall below critical ecosystems critical ecosystems

- uncertainties not too great - uncertainties not too great


______________________________________________________________________

BCA – Policy (Executive orders)BCA – Policy (Executive orders)

Back and forth, strict to more Back and forth, strict to more currently are much weaker to include currently are much weaker to include simply that benefits must justify the simply that benefits must justify the costs. (BCA included in decisions but costs. (BCA included in decisions but not required). not required).


______________________________________________________________________FrameworkFramework

1) Quantification is the change in value of 1) Quantification is the change in value of the ecosystem services. Translating the the ecosystem services. Translating the physical characteristics into a common physical characteristics into a common metric.metric.

2) Scope: inclusion or exclusion, by choice 2) Scope: inclusion or exclusion, by choice or necessity, of certain ecosystem functions or necessity, of certain ecosystem functions or services and/or type of ecosystem or services and/or type of ecosystem services.services.


______________________________________________________________________

Spatial – geographic extent of the Spatial – geographic extent of the relevant ecosystems. relevant ecosystems.

Definition of the relevant populationsDefinition of the relevant populations

(stakeholders), Oil spill – communities (stakeholders), Oil spill – communities impacted. impacted.


______________________________________________________________________

Classification of Total Economic ValuesClassification of Total Economic Values

DirectDirect Indirect Indirect ExistenceExistence____________________________________________________________________Trans.Trans. Flood controlFlood control Wild PlacesWild PlacesRecreationRecreation Storm Protect.Storm Protect. Cultural Cultural


______________________________________________________________________

Consumptive UsesConsumptive Uses

Non Consumptive UsesNon Consumptive Uses

Property rights are determined collectively by Property rights are determined collectively by society. The willingness to pay theory is based on society. The willingness to pay theory is based on these property rights.these property rights.


______________________________________________________________________

Discounting Discounting

Uncertainty and the use of statisticsUncertainty and the use of statistics

Jim Powell, David D’Amore, Ralph Thompson, Terry Brock,Pete Huberth, Bruce Bigelow, and M. Todd Walter

List of Riverine Wetlands Functions

Hydrologic1. Channel Meander Belt Integrity2. Dynamic Flood Water Retention

Biogeochemical3. Nutrient Spiraling and Organic Carbon Export4. Particulate Retention5. Removal of Imported Elements and Compounds

Habitat6. Maintenance of In-Channel Aquatic Biota7. Presence of Coarse Wood Structure8. Maintenance of Riparian Vegetation.9. Maintenance of Connectivity and Interspersion

Are the parts of the resource greater than or equal to the whole?

Wetland FunctionsWetland FunctionsHydrologic: Hydrologic: 1)) Soil Profile Integrity Soil Profile Integrity2) 2) Characteristic Soil Thermal RegimeCharacteristic Soil Thermal Regime3) 3) Surface & Near Surface h20 StorageSurface & Near Surface h20 Storage

Biogeochemical:Biogeochemical:4)4) Organic Carbon Export Organic Carbon Export5) 5) Cycling of Elements CompoundsCycling of Elements Compounds

1)1)Maintenance of Characteristic Plant Maintenance of Characteristic Plant CommunitiesCommunities

Habitat:Habitat: 7) Main. of Characteristic Habitat StructureMain. of Characteristic Habitat Structure8) 8) Interspersion and ConnectivityInterspersion and Connectivity

Alaska Wetland Assessment Project

Variables for Flat/ slope Complexes Variables for Flat/ slope Complexes

1. Adjacent Land Use (Vadjuse)1. Adjacent Land Use (Vadjuse) 9. Shrubs (Vshurb)9. Shrubs (Vshurb)

2. Animal Sign (Vasign)2. Animal Sign (Vasign) 10. Organic Horizons (Voh)10. Organic Horizons (Voh)

3.3. Aquic Moisture Regime (Vaquic)Aquic Moisture Regime (Vaquic) 11. Mosses, Lichens, & Liverworts 11. Mosses, Lichens, & Liverworts

4. Native Plants (Vnplants)4. Native Plants (Vnplants) 12. Herb(Vherb)12. Herb(Vherb)

5. Distant Land Use (Vdistantuse)5. Distant Land Use (Vdistantuse) 13. Surface Water Storage (Vsurwat)13. Surface Water Storage (Vsurwat)

6. Static Surface Water Storage (Vsurwat)14. Total Vegetation Cover 6. Static Surface Water Storage (Vsurwat)14. Total Vegetation Cover (Vtotcov)(Vtotcov)

7. Land Use of Assess. Area (Vwetuse)7. Land Use of Assess. Area (Vwetuse) 15. Vegetation Strata (Vstrata)15. Vegetation Strata (Vstrata)

8. Macro/Micro Topography (Vmicro)8. Macro/Micro Topography (Vmicro) 16. Water Connections 16. Water Connections (Vwatcon)(Vwatcon)

• Slope Riverine Proximal Functions

1) Dynamic Flood Water Retention Capacity= (Vfreq + Vcwslope + Vsoilperm + Vmicro+ Vvegcov +Vstore)

/ 6

2) Subsurface Water Retention Capacity= (Vsource + (Vacro + Vsoilperm +Vdecomp)/ 3 + Vmicro +

Vadjuse) / 4

3) Nutrient Cycling = (Vadjuse + Vsurwat + Vvegcov +(Vsource + Vsubout) / 2 + (Vacro + Vredox+ Vdecomp) / 3) / 5

4) Organic Carbon Export= (Vsource + (Vacro + Vsoilperm +Vdecomp +

Vredox + Vegcov) / 4+Vsubout) / 35) Integrity of the Root Zone

= (Vsource +Vsurwat + Vacro + (Vredox +Vsoilperm) / 2) / 4

6) Maintenance of Wildlife Habitat Structure= (Vvegcov + Vadjuse +Vwetuse + (Vsurwat+ Vmicro) / 2 + Vstrata + (Vgaps + Vcwslope) 2) / 6

7) Maintenance of Plants= (Vwetuse + Vvegcov + Vsource + Vtreeba+ (Vsurwat + Vacro) / 2 +(Vredox + Vsoilperm) / 2) / 6

Historical Values of Open Space Historical Values of Open Space

__________________________________________________________________________________________

Our relationship with open space and parks Our relationship with open space and parks

has existed in western and eastern thought has existed in western and eastern thought

and in religion since ancient times. We find and in religion since ancient times. We find

it in our religious and spiritual writings.it in our religious and spiritual writings.

Historical Values of Open Space Historical Values of Open Space

__________________________________________________________________________________________

Our relationship with open space and parks Our relationship with open space and parks

has existed in western and eastern thought has existed in western and eastern thought

and in religion since ancient times. We find and in religion since ancient times. We find

it in our religious and spiritual writings.it in our religious and spiritual writings.

Values

Philosophical “Thousands of tired, nerve-shaken,

over-civilized people are beginning to find out that going to the mountains is going home; that wildness is necessity; that mountain parks and reservations are useful not only as fountains of timber and irrigating rivers, but as fountains of life. In every walk with nature one receives far more than he seeks.”

John Muir

Values

Western Thought

• God gave us dominion over all, (including nature)

Genesis

Bible

Asian Thought

• Man is on an equal plane with nature

LaoTzu

Chinese

Values

Spiritual and Religious

“If God so precisely and carefully and lovingly and amazingly constructed a mind-boggling habitat for his creatures, then it would be natural for him to want them to explore it, to measure it, to investigate it, to appreciate it, to be inspired by it-and ultimately, and most importantly, to find Him through it.”

Lee Strobel (Minister, Speaker)

Values

PhilosophicalOpen spaces are also to be utilized for healing (emotional, psychological, and spiritual), finding oneself and our connection to the world in which they are a part (we are not islands unto ourselves…our decisions affect other people), their purpose in life, slowing down from the rat-race of society and renewal

Michael CrotteauAlaskan True North Expeditions

Values

Spirituality

“The diverse ways we answer the heart’s longing to be connected with the largeness of life”

Parker Palmer

Quaker educator and writer

Daily struggle between the practical and spiritual – open space speaks to the spiritual and the future.

-moderate greed with generosity

-private ambition with civic ambition

-care for others as much as we care about the future

-think about future generations as much as we think about ours.

Opportunities &

Importance of Measurement

- Past 200 years, the U.S. has led the world based on two powerful systems for adaptation:

•Free market and Democracy

Opportunities &

Importance of Measurement

Today• Midst of information revolution

• Rate of change is increasing drastically

• Lip service at least to learning organizations

Key is feedback

– Feedback for cultural system is based on traditional values very closely linked to community survival

– Information is feedback to explore cause and effect as an enlightened path for making choices and affecting progress

– Feedback for the free market is the sum of choices of consumers ( the wisdom of crowds)

– Feedback for democracy is the sum of choices of voters ( more wisdom of crowds)

OpportunitiesBenefits Better Understood

- Physical health

- Psychological health

- Recreation needs

- Habitat

- Affordable Family Recreation

- Creates Community

- Spiritual Health

Engaging

Citizens

Getting Things

Done

Measuring

Results

1 34

2

1. Community Problem Solving

3. Citizens Reaching for Results

4. Communities Governing for Results

2.Organizations managing

Community Context

OpportunitiesRelatively new Approaches

Traditional Valuation

Example: Proximate Principle

- incremental property taxes paid by adjacent landowners has shown in studies to retire debt of acquisition cost of park land (Boston).

OpportunitiesLWV

- Budget Survey

Consistently ranks natural parks high use

Opportunities

Revised CBJ Comp Plan

- Chapter on Sustainability

Implementing actions

- Indicators

Revised CBJ Parks Plan

Sustainability Indicators

1995 CBJ Comprehensive Plan

26 Key Sustainability Indicators

Four Dimensions of Sustainability

Social/Ethical

Political/Governmental

Ecological

Economic

50 Suggested Data Sets

2007 CBJ PR Draft Comp. Plan

Chapter 5 - Sustainability

- Identify sustainability indicators

- Use traditional and long term

- use them (operationalize)

- use them for monitoring change

environmental

public policy

technological

socio-cultural

economic

sustainable sustainable

communitiescommunities

The Five Domains of Sustainable Development

Questions ?

Valuing Parks & Nature: Community Connections & the Experience of Place

Questions

Documents

Program 1) Class progress 2) Readings in economic valuation - NAS Article 3) Example – Wetlands (functions & values) 4) Example – Open Space 5) Last Class