Using Ecosystem Service Values to Inform Coastal Policy

Decisions: A California Experiment with

Lessons for AlaskaSteve Colt

University of Alaska Anchoragesteve.colt@uaa.alaska.edu

Institute of Social and Economic ResearchACRC Juneau 19 April 2012

Outline

• Quiz• Context• California valuation exercise• Southeast Alaska ecosystem services

examples• So what?

Helicopter-based dog mushing excursions, Juneau

Quiz:What SE Alaska tourism sub-industry generated $16 million in revenue from one activity in 2006?

Context• Ecosystem services have value• Knowledge of ES values can inform better

management and development (Kaveira)• Knowledge of ES values can inform shared

understanding of the value of place (Chapin)• Tourism and harvest are obvious ways to

monetize and (perhaps) to nurture ES values. (90% Alaskans support salmon habitat)

California valuation exercise• CA Ocean Protection Council

• At OPC request, National Center for Ecological Analysis and Synthesis assembled a team of economists, ecologists, mappers, lawyers, and policy makers

California valuation exercise

• Objective: provide spatially explicit and policy-relevant values for ecosystem services generated in coastal regions in California

• Analogue: “avoided externalities” of solar PV and solar thermal power projects

• Applications: permitting, budgeting, mitigation schemes, offsets, ???

California exercise objectives

• CA OPC wanted a balance sheet or menu of ES values

• How much is one acre of salt marsh worth?• If we’re going to build roads, housing, or malls

on coastal ecosystem areas (such as marshes), we should know what we’re losing

The matrix: before lit search  marshes beach mud flats

lagoon and salt ponds estuaries

rocky intertidal kelp rocky reefs shell reefs seagrass inner shelf

outer shelves, edges, slopes

seamounts and mid-

ocean ridges

deep sea and central

gyresdeep sea

ventsPROVISIONING                              

food                              

--capture fisheries                              

--aquaculture                              

--wild plant and animal products                              

fiber                              

genetic resources                              

biochemicals, natural medicines, pharmaceuticals

                             

ornamental resources                              

human habitation                              

human navigation                              

energy (for human use)                              

REGULATING                              

air quality regulation                              

climate regulation                              

erosion regulation                              

water purification, waste treatment                              

disease regulation                              

pest regulation                              

pollination (and seed dispersal)                              

natural hazard regulation                              

freshwater storage and retention                              

gas regulation                              

CULTURAL                              

cultural diversity                              

spiritual and religious values                              

knowledge systems                              

educational values                              

inspiration                              

aesthetic values                              

social relations                              

sense of place                              

cultural heritage values                              

recreation and ecotourism                              

SUPPORTING                              

photosynthesis                              

primary production                              

nutrient cycling                              

water cycling                              

                               

BUNDLED ATTRIBUTES                              

Item: Habitat and refugia  

The matrix: after  marshes beach mud flats

lagoon and salt ponds estuaries

rocky intertidal kelp rocky reefs shell reefs seagrass inner shelf

outer shelves, edges, slopes

seamounts and mid-ocean

ridgesdeep sea and central gyres

deep sea vents

PROVISIONING                              

food               NOTE 7 NOTE 7   40-55 9      

--capture fisheries         55 - 81                    

--aquaculture                              

--wild plant and animal products         26                    

fiber                              

genetic resources                              

biochemicals, natural medicines, pharmaceuticals                              

ornamental resources                              

human habitation                              

human navigation                              

energy (for human use)                              

REGULATING                              

air quality regulation                              

climate regulation NOTE 1                            

erosion regulation   31,131                          

water purification, waste treatment       NOTE 4       NOTE 7 NOTE 7   NOTE 9        

disease regulation                     NOTE 9        

pest regulation                              

pollination (and seed dispersal)                              

natural hazard regulation         278 - 332     NOTE 7 NOTE 7   52        

freshwater storage and retention                              

gas regulation                       22      

CULTURAL                     41-45 45      

cultural diversity                              

spiritual and religious values                              

knowledge systems                              

educational values                              

inspiration                              

aesthetic values                              

social relations                              

sense of place                              

cultural heritage values   27     17     NOTE 7 NOTE 7            

recreation and ecotourism  16,946

(NOTE 2)  NOTE 4 8 - 346     NOTE 7 NOTE 7  

48 (NOTE 9)

NOTE 10      

SUPPORTING                              

photosynthesis                              

primary production         1,102 - 1,833                    

nutrient cycling                  11,188

(NOTE 8)843-2,165 69      

water cycling         56                    

                               

BUNDLED ATTRIBUTES (NOTE 1) 36,000 - 83,000

(NOTE 2) NOTE 3 NOTE 4

421 - 817 (NOTE 5)

NOTE 6                  

Item: Habitat and refugia 77 - 415

California exercise: Results

1. Very few papers provide spatially explicit values for coastal ecosystem services2. Many spatially explicit values are for an unspecified “bundle” of services3. Where they do exist the values vary widely

Studies valuing marine ecosystem services worldwide(searched 100s of articles, found 35 that “worked”)

per year (flow) per use

one-time (asset

value??)unclear,

aggregatespatially explicit:

per unit area (acre, hectare) 4 2 person-related:

per person 1 3 3 per household 8 2 per user (angler, visitor, party, respondent) 3 2

other:per unit of resource (fish) 1

per aggregate resource (coastline, bay, species in a region) 1 2 per business enterprise 1 per residential property 1

unclear, aggregate 1 Total: 35

Selected Economic Values of Marine Ecosystems Worldwide

2008US$/ha/yrService Category Estuary Beach

CULTURAL

Cultural heritage values

17 27

Recreation and ecotourism

8 - 346 16,946

Selected Economic Values of Marine Ecosystems Worldwide

2008US$/ha/yrService Category Estuary Beach

SUPPORTING

Habitat and refugia 77 - 415 -

Primary production -

Water cycling

0

50

100

150

200

250

300

350

400

450

estuary habitat

Southeast Alaska example: valuation of saltwater charter sport fishing

Ginny Fay, Darcy Dugan, Steve ColtInstitute of Social and Economic Research

University of Alaska AnchorageUAA-CNF Climate Symposium

May 5, 2011

Registered charter fishing vessels 1983-2004

0

200

400

600

800

1,000

1,200

1,400

1983 1985 1987 1989 1991 1993 1995 1997 1999 2001 2003

Years

Reg

iste

red

Ves

sels

Data

• AK Fish & Game– Quantity (fishing effort by area fished)

• Interviews & Web– Price information

• Business licenses & Web– associated reality checks

Method

• Aggregate the number of clients and/or boat-hours within each ADF&G statistical area.

• Allocate the revenue “from” each ADFG stat. area to its most logical community– (many-to-one relationship)

Results:

Total SE AK:

143,000 clients

37,560 trips

$73.5 million gross revenue

Example of specificity

Variation in revenue per square km

-

20,000

40,000

60,000

80,000

100,000

120,000

140,000

160,000

1 11 21 31 41 51 61 71 81 91 101

111

121

131

141

151

161

171

181

191

201

211

221

231

Revenue per square km, by stat areaaverage = $2,023

Lorenz curve of total revenue

-

10,000,000

20,000,000

30,000,000

40,000,000

50,000,000

60,000,000

70,000,000

80,000,000

- 5,000 10,000 15,000 20,000 25,000 30,000 35,000 40,000

Cum

ulati

ve re

venu

e, $

Cumulative area, square km

Lorenz curve total clients

0

20,000

40,000

60,000

80,000

100,000

120,000

140,000

160,000

- 5,000 10,000 15,000 20,000 25,000 30,000 35,000 40,000

Cum

ulati

ve c

lient

s

Cumulative area, square km

Highest revenue per square km:

Logbook Areas 101451 and 101452 averaged together

$49,294 per square km

So what?

• Very large variation in measured ES values per square km

• Reflects different ways of thinking about

“the benefits people obtain from ecosystems”

Economics

Ecology

So what?

Bob Weeden, AK Fish & Game 1987

“I do not advocate turning away from economic valuation”“Nor do I advocate embracing porcupines too warmly”

References• N. Raheema, , , S. Coltb, , E. Fleishmanc, m, 1, , J. Talberthd, , P. Swedeene, , K.J. Boylef, ,

M. Ruddg, , R.D. Lopezh, 2, , D. Crockeri, , D. Bohanj, , T. O'Higginsk, , C. Willerl, , R.M. Boumansm, . 2012. Application of non-market valuation to California's coastal policy decisions. Marine Policy. Available online 23 February 2012. http://dx.doi.org/10.1016/j.marpol.2012.01.005

• Fay, G.; Dugan, D.; Fay-Hiltner, I.; Wilson, M.; Colt, S. 2007. Testing a methodology for estimating the economic significance of saltwater charter fishing in Southeast Alaska. Anchorage: ISER. http://www.iser.uaa.alaska.edu/Publications/EconSE_Saltwater_Charter_Fish_070530.pdf

• Weeden, R. 1987. On Wooden Nickels, Trojan Horses, and Lonely Drummers. Alaska Fish & Game May-June.