Transcript
Page 1: Natural Capital. An Application of the Integrated Economic

Enhancing Mexico’s Wealth by Investing in

Natural Capital.

An Application of the

Integrated Economic-Environmental Model

(IEEM)

Onil Banerjee, Martin Cicowiez and Renato Vargas with:

Juan Manuel Torres Rojo, Monica Lopez Conlon, Bram Edens, Elsa Marcela

Begne De Larrea, César Edgardo Rodríguez Ortega ET AL.

Forum of Experts on SEEA Ecosystem AccountingDecember 7, 2021

Page 2: Natural Capital. An Application of the Integrated Economic

THE IEEM PLATFORM VALUE-ADDED

A dynamic economy-wide CGE model for future-

looking scenario analysis of public policy/investment.

“What if…?” policy questions.

Integrates SEEA CF: Natural Capital (NC) and market

Ecosystem Services (ES). Includes natural resource-

specific modeling modules.

IEEM and Ecosystem Services Modeling (IEEM+ESM):

spatial land use and non-market ES.

Standard economic indicators + NC, ES and wealth

metrics. Enables engagement with Min. of Finance,

Central Banks, others- we speak the same language.

Page 3: Natural Capital. An Application of the Integrated Economic

IEEM countries shaded green.

OPEN IEEM PLATFORM ONLINE DEBUT

DECEMBER 21, 2021

https://openieem.iadb.org/

IEEM countries shaded green.

Page 4: Natural Capital. An Application of the Integrated Economic

PARTICIPATIVE SCENARIO DESIGN

Stakeholder consultation to identify policy

instruments for conservation and sustainable

management. Types of initiatives included REDD+,

restoration, PES, SFM, bioeconomy, research and

extension, irrigation, infrastructure, and others.

Process led SEMARNAT’s Environmental Planning

Group + NCAVES support: CONABIO, CONAFOR,

CONAGUA, CONANP, INECC, IMTA, DGPE, DGVS; SADER

and SHCP.

Selection of instruments based on relevance to

environmental sector, data availability, and

opportunity to enhance or reinforce policy.

Page 5: Natural Capital. An Application of the Integrated Economic

SCENARIOS

1. Payment for Ecosystem Services (PSA). Conservation.

1,300,348 ha of PES between 2020-2024; 0.5 ha avoided

deforestation; funded by public sector efficiency gains.

2. Sustainable Forest Landscapes (ISFL). Reduce emissions

from AFOLU. 44,000 ha of silvopastoral systems and 14,102

ha of restoration between 2020 y 2024; 50% increase in

productivity; funded by efficiency gains.

3. Environmental Management Areas (UMAs). Sustainable use

area compatible with conservation. 35 million ha of UMAs

between 2020 and 2024; increased hunting revenues on 25%

of the UMAs; funded by efficiency gains.

4. COMBI: All of the above scenarios run jointly.

NATURAL CAPITAL

MANUFACTURED

CAPITAL

HUMAN CAPITAL

Page 6: Natural Capital. An Application of the Integrated Economic

IEEM+ESM WORKFLOW

Policy question:

Conservation in Mexico

Calibrate IEEMRun BASE + scenarios in

IEEM

Spatially attribute LULC change, Dyna-

CLUE

Model ES with InVEST and

IEEM+ESM data packets

Page 7: Natural Capital. An Application of the Integrated Economic

RESULTS: LAND USE LAND COVER

Land Use Land Cover (LULC) change modeling with IEEM-enhanced Dyna-CLUE model.

Page 8: Natural Capital. An Application of the Integrated Economic

RESULTS: ECONOMY

Gross domestic product (left) and wealth (right).

0

5

10

15

20

25

30

Mil

lio

ns

of

US

D

PSA ISFL UMA COMBI

-30

-20

-10

0

10

20

30

40

50

60

Mil

lio

ns

of

US

D

PSA ISFL UMA COMBI

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RESULTS: ECONOMY AND SOCIETY

Cumulative wealth (left) and poverty (right).

0

50

100

150

200

250

300

Mil

lio

ns

of

US

D

-1,200

-1,000

-800

-600

-400

-200

0

PSA ISFL UMA COMBI

Num

ber

of

ind

ivid

ual

s

Page 10: Natural Capital. An Application of the Integrated Economic

RESULTS: ENVIRONMENT

2.56% increase in carbon storage with policy intervention. Ecosystem services modeled with

the Natural Capital Project’s InVEST suite of models and IEEM+ESM datapackets.

Page 11: Natural Capital. An Application of the Integrated Economic

RESULTS: ENVIRONMENT

5.6% less soil loss with policy intervention. Ecosystem services modeled with the

Natural Capital Project’s InVEST suite of models and IEEM+ESM datapackets.

Page 12: Natural Capital. An Application of the Integrated Economic

KEY MESSAGES

The positive results are driven by four main factors:

1. Increased productivity of silvopastoral systems;

2. Enhanced efficiency in use of public resources;

3. Additional revenues from UMAs;

4. Avoided deforestation in the case of PES increases stocks of natural

capital and ecosystem services flows, which result in gains in

wealth.

Page 13: Natural Capital. An Application of the Integrated Economic

IEEM PAST, PRESENT AND FUTURE

IEEM countries shaded green.

Valuing Natural Capital for Evidence-based Public Policy and Investment Design

For more information on the IEEM Platform Project, contact:

Onil Banerjee

[email protected]

202-615-0603

Page 14: Natural Capital. An Application of the Integrated Economic

NEXT STEPS

Policy question:

Conservation in Mexico

Calibrate IEEMRun BASE + scenarios in

IEEM

Spatially attribute LULC change, Dyna-

CLUE

Model ES with InVEST and

IEEM+ESM data packets

Integrate feedbacks between changes in ecosystem service flows and

the economy; iteration between models every five-year period.


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