Biodiversity: estimation and calculation of the price of nature?

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Biodiversity: estimation and calculation of the price of nature?




by Christophe » 15/05/09, 09:52

Pavan Sukhdev wants to assess the value of nature…, Seeds of change, newsletter n ° 40, April 2009

The question of the price of the (free) services that Nature gives us, and in contrast to the cost of its degradation, is the subject which goes up for years to come ... and the subject which has been obsessed for a little over a year Pavan Sukhdev, 48, a banker of Indian descent who has worked in London for Deutsche Bank, in market halls for 25 years.

The reason ? Inspired by the Stern report, published in 2006 and which assesses the impact of climate change on the world economy in the event of inaction (5 to 20% of world GDP per year against 1% of world GDP to control emissions and stabilize atmospheric concentrations of greenhouse gases), the environment ministers of the European Union launched in 2007 a similar study this time on the loss of ecosystems and biodiversity.

And it was to Pavan Sudhkev that they entrusted the production of this report on biodiversity, poor relation of the mediated ecological subjects although essential support of our existence. According to Sudhkev, the problem stems from the fact that, as Adam Smith said, what is very useful - like water, for example - is not always of great value whereas, conversely, what has a lot of value - like diamonds for example - is not necessarily very useful. Hence his conviction: to manage our ecological security well, we must give a little more value to water, to the forest, to all the essential services rendered by nature ... which we cannot measure today and that current capitalism logically fails to take it into account, even if considerable efforts have already been made in this direction (we now know, for example, that the global monetary value of the services rendered by ecosystems rises to about 32 349 billion dollars per year, or the world GDP is 68 623 billion dollars).
Its study, whose publication is planned for 2010, has already delivered first edifying conclusions in a progress report published last June: 60% of the planet's ecosystems have undergone significant degradations during the last decades and , if current trends continue, 10% of natural areas are doomed to disappear by 2050. Worse still: the degradation of ecosystems could cost 7% of world GDP each year, from 2030, if we do not mobilize the governments on the subject.
To find out more, download Pavan Sukhdev's progress report in French in PDF format.


http://www.grainesdechangement.com/news ... vril09.htm

I say: it's mission impossible, it is not possible to estimate the price of the disappearance of a species ...
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by Christophe » 15/05/09, 09:58

On the same subject:

To better preserve it, the State puts nature at a price, Liberation, 11/05/09 Guillaume Launay

A report attempts to assess what would cost France the loss of biodiversity. Or we discover that a hectare of forest is worth 970 euros.

Who bumps the eye by doing bzzz bzzz all day long and who nevertheless saves the community the trifle of 150 billion euros per year? Answer: bees and, more generally, pollinating insects, without which fruits and vegetables would be hard to reproduce. The figure seems absurd, but it is supported economically: if the bees disappeared, it would be necessary to pay to do the work for them or find substitute products. Globally, the first estimates predict that in 2050, the loss of biodiversity could represent 7% of world GDP. 14 billion euros per year.
While international work on the economics of biodiversity is developing (read below), France is making a contribution: a multidisciplinary group, chaired by the Inspector General of Agriculture Bernard Chevassus-au-Louis, made public ten days ago a report (1), bushy and fascinating, which elaborates tracks to better take into account the value of nature in the economic sphere. A much more complex exercise than that of carbon, since the diversity of nature makes it difficult to reducible to a single unit of measurement.

What is the point of giving a price to nature?

The observation is the accelerated erosion of biodiversity. The report mentions a "process in progress towards an extinction of biodiversity, almost exclusively due to human activities". But giving a price to this biodiversity a priori was not at all unanimous in the working group. Between the regret to be forced to go through the monetary value to understand the issue and the fear of commodifying nature, many environmentalists hesitate to take the plunge. And so they all hammered that measurement did not mean working. For Allain Bougrain-Dubourg, president of the League for the protection of birds, “in this case, you have to be constantly in search of ethics. But in a market economy, we cannot consider that nature is priceless either. It's contempt. ”
The approach chosen is therefore not to set a price for bringing nature into trade - my highway destroys hamsters, we set a price per hamster and I reimburse -, but to be able to bring the variable "nature" into cost-benefit calculations. “Today, in a project, biodiversity is counted for zero in socio-economic calculations, explains Bernard Chevassus-au-Louis. Between two traces of a TGV line, for example, only time will count. ” The work of this group thus responds to the conclusions of the Grenelle, which provides that any infrastructure project must be evaluated with regard to its impact on nature.

What services are we talking about?

The report considers three types of services rendered. The most direct is the sampling service, when the man uses the food, fresh water or wood at his disposal. This is probably the most obvious to assess. But it is much more complex to give a value to regulatory services (carbon storage, water regulation and filtration, erosion control, etc.) and to so-called “cultural” services: tourism, education…
The group also decided to focus on mainstream biodiversity and did not want to give value for "remarkable" biodiversity. "What is irreplaceable would have infinite value, which does not do much," justifies Bernard Chevassus-au-Louis. We do not defend Notre-Dame de Paris by the economic value of its tourist receipts. ” The group favored an approach by milieus, rather than by species, to account for all the interactions. But it is not excluded one day to evaluate the services of such and such a species, for example, the vulture, scavenger very useful in matters of public health.

Why is one hectare of forest worth 970 euros?

The most detailed example is the forest. Not because it would be the most threatened ecosystem in France, but because this is where the data is most numerous. Conclusion, the direct value (wood) only counts for a tenth of the biodiversity of a hectare. Either 90 euros, against more than 500 euros for the fixing and storage of carbon, 90 for the quality of water or even 200 euros for recreational services ... These are evaluated according to the "revealed prices", that is - to say what individuals are ready to spend (in transport, for example) to benefit from a service which is free (the walk in the forest). Total: an average of 970 euros per hectare of French forest.
A reference value which is only a minimum, in particular because of missing data. "We are well aware of the appallingly reductive nature of our work," admits Bernard Chevassus-au-Louis, the president of the multidisciplinary group. But we are sure that it is worth at least that. ”

The case of meadows is more delicate. The “sketched” value is around 600 euros. But this sum is "very undervalued", according to a member of the group, in particular because the data to assess their recreational value are lacking. However, the meadows are decreasing: today one hectare cultivated in cereals yields more to the farmer than a hectare of pasture. On the other hand, the latter's interest in biodiversity is much higher: there are 60 to 80 different plant species on a meadow. Hence a call to review the mechanisms of the Common Agricultural Policy. On the maritime side, the services rendered by the French coral reefs are evaluated from 5 to 000 euros per hectare and per year (ie several billion euros), including fishing, coastal protection, water treatment, tourism, etc.

What concrete actions can be expected from the report?

The publication of the report was not followed by a resounding announcement from the Ministry of Ecology, much to the chagrin of some participants. There is no shortage of recommendations, however. In matters of taxation for example, by emphasizing that certain tax exemptions (towards farmers or fishermen in particular) could be "re-examined in the light of their impact on biodiversity".

In terms of research too, and particularly concerning the French overseas departments, which make France one of the richest countries in terms of biodiversity. The research models used are still in the running-in phase, but the challenges are colossal. Present at the presentation of the report, the Indian economist Pavan Sukhdev, who works on a global assessment of the price of biodiversity, warns: "In this matter, failure would be morally unacceptable and would lead to human tragedy."

(1) “Economic approach to biodiversity and ecosystem services”, group report chaired by Bernard Chevassus-au-Louis, April 2009, available on the site


www.strategie.gouv.fr
http://www.liberation.fr/terre/01015665 ... ure-a-prix
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by Christophe » 15/05/09, 10:01

And one last:

Biodiversity: first initiative for compensation, Novethic, 13/05/09 Veronique Smee

How to compensate for the impacts of economic activities on biodiversity? The question is complex, and the issue just as crucial as that of global warming. First French operator of this compensation, the “CDC Biodiversite” fund has just initiated a pilot approach in Saint-Martin-de-Crau (Bouches-du-Rhone) allowing to constitute “natural assets”, proposed to masters of structure subject to the obligation to compensate for their impacts on biodiversity.

CDC Biodiversite, launched in February 2008 and supported by a scientific committee and associations for the defense of the environment, has a mission hitherto little developed in France: to enable economic operators to restore or compensate for the damage to the environment created through infrastructure projects. Inscribed in law since 1976, the obligation to compensate for these impacts caused by road or building infrastructure, for example, has never actually been applied. The contractors, who were supposed to carry out the impact studies themselves, were content with financial compensation, for lack of other means at their disposal. Since then, the Grenelle de l'Environnement has made it possible to speed up the implementation of real compensation for the impacts that could not be avoided or reduced. First stage, the pilot site of Saint-Martin-de-Crau (Bouches-du-Rhone) has undergone a restoration of its ecosystem, i.e. 357 hectares of old orchards rehabilitated to allow the reconstitution of plant groups and the presence of animal species. The choice of site is obviously not due to chance: the plain of La Crau is indeed a unique ecosystem in Europe, a "Provencal steppe" with particular climatic conditions, sheltering many species. The area, transformed by the installation of industrial infrastructures, had only retained 20 to 30% of the 500 km of pastured vegetation. This restoration thus enables CDC Biodiversite to build up a reserve of natural assets, offered to project owners subject to the obligation to compensate for their impacts. Objective: to achieve the ecological neutrality of development and infrastructure projects, as Augustin de Romanet (director general of the CDC) had committed, ensuring that there would be "no net loss of biodiversity in the realization of a structure or the design of an activity zone ”, thanks to“ the full management of environmental impacts by those who harm nature ”.

Biodiversity: what economic cost?

Experimenting with new economic compensation tools is more relevant than ever when it comes to biodiversity. The European Union has therefore instructed Indian banker Pavan Sukhdev to carry out the first international study for 2010 on the economic cost of losing biodiversity. Like the Stern report on global warming, the "Sukhdev report" already announces impressive figures: the cost of deforestation alone could indeed amount to 1350 billion dollars per year for the lowest estimate , and $ 3100 billion for the strongest, until 2050.
We also know that 60% of the ecosystems on the world scale are degraded, and that the rate of extinction of the species has been multiplied by 200 during the last two centuries. However, the “ecological services” rendered by biodiversity to humanity and to its economic development are innumerable. Pavan Sukhdev's team thus estimates that the only forest of Masaola, in Madagascar, would represent a loss of 1,5 billion dollars for the pharmaceutical industry, 5 billion for tourism, and 4 billion dollars for the 8000 households that use food, natural medicines, or building or weaving materials from this forest.

What price should we give to nature?

The first elements of the “Sukhdev report” advocate the establishment of policies that “reward nature conservation”. Several examples of good practice are cited, particularly in the United States, where the compensation system is one of the most successful. Like the carbon market, companies or farmers who damage natural wetlands must buy "environmental credits" from specialized banks to compensate for degradation. Complex, the biodiversity market must determine in advance the "prices" of biodiversity and define what can and cannot be compensated for, because the process is not supposed to give a "right to destroy". Several avenues have been explored in the report "Economic approach to biodiversity and ecosystem services", directed by Bernard Chevassus-au-Louis, former director general of INRA commissioned by the government. While some already imagined a market of quotas, on the model of the carbon market, Bernard Chevassus-au-Louis recalls that it is impossible to give a unit of measurement of biodiversity, similar to that of the tonne for CO2. not - yet? - today to create this market, the stake of this report is to be able to integrate the costs of biodiversity in the public decisions of 2010, commitment made by Nicolas Sarkozy at the end of the Grenelle.

7% of global GDP in 2050

The report, directed by Bernard Chevassus-au-Louis, indicates that the "pernicious subsidies which damage biodiversity worldwide in the world estimated at 200 billion dollars / year, would be up to ten times greater than the amount spent on the protection of nature ". Likewise, the report indicates that the loss of ecological services could represent "up to 7% of world GDP in 2050, or even 13 million euros per year".


http://www.novethic.fr/novethic/planete ... sation.jsp
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by Christine » 15/05/09, 11:45

Why can't we respect and protect something without having to quantify its value?

Do we have to convert everything into hard cash? From what sum is something worthy of our respect?

I imagine extra-terrestrials responsible for estimating the value of Humanity with these criteria. Their conclusion: "Go zou, in the trash".
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by Flytox » 15/05/09, 12:39

Hello Christine
Why can't we respect and protect something without having to quantify its value?

Do we have to convert everything into hard cash? From what sum is something worthy of our respect?


It is one of the founding principles of our Western societies. We are there to appropriate, accumulate "wealth" and convert everything we find into money. Many so-called "primitive" societies do not understand the meaning of the word property, especially when it comes to nature. They have a wisdom / balance with nature that we have long lost ...: Cry:

I imagine extra-terrestrials responsible for estimating the value of Humanity with these criteria. Their conclusion: "Go zou, in the trash".

Finally ...! What about selective sorting of garbage? What do you do with it? By looking well ... but then very well ... we may be able to find human to recycle ... : Mrgreen:
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by Arthur_64 » 15/05/09, 14:56

Not better. If we have to make a benefit / cost ratio of the disappearance of species or the deterioration of the environment and we are not fucked up to change our habits otherwise, I am not sure that society has moved in the right direction.
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by Christophe » 15/05/09, 19:11

+3

Otherwise there is a good chance that we will never discover certain species, in fact:

More than 16 new species discovered per year, Le Monde, 000/27/06 Christiane Galus

To date, approximately 1,8 million species have been described, but much of the living world is still unknown. Researchers "detect between 16 and 000 new species each year, a figure that has remained constant for ten years. Three quarters of the discoveries are made up of insects, which represent the majority of the biodiversity of multicellular animals, "recalls Philippe Bouchet, professor at the National Museum of Natural History and specialist in marine biodiversity.
Apart from the immense mass of insects, there are among the new species brought to light each year 450 species of vertebrae - of which 250 are fish and 20 to 30 mammals. Rodents and bats make up two-thirds of the new mammal species detected, and an average of one new primate is discovered per year. "It is also surprising that there are still so many new primates", wonders Philippe Bouchet.

We must not forget in this list the plants and trees of which we regularly find new specimens. This sometimes in new places, such as Wollemi bread, an araucaria high from 25 to 30 meters, discovered a few years ago in a national park 90 km from Sydney (Australia).

The tropics reservoir

Three-quarters of the discoveries take place in the tropics, which remain the great reservoir of the planet's species. Little known, they are far from research centers in developed countries, except Australia. New species are also brought to light during the exploration of habitats or geographic areas that remained unknown for a long time. This is the case of the hydrothermal sources of the seabed, proliferating life and highlighted by chance during an underwater exploration in 1976.

Likewise, the international expedition carried out in 2005 in the Foja mountains - a region never visited in West Papua - has made it possible to discover twenty unknown species of amphibians, four butterflies and five palm trees, and to spot many rare birds. and very little observed mammals.

Some discoveries, spectacular for scientists, are not the subject of great presentations in the media, because they are microscopic animals. The great work of the exploration of biodiversity concerns micro-organisms and species from the ocean world, of which much is unknown.

Marine species - 250 have been described, out of a total of 000 million - are less numerous than terrestrial species. But they are more varied, due to the diversity of their types of anatomical and metabolic organization. The international Census of Marine Life program, launched in 1,8, aims to identify by 2000 all forms of marine life. From the smallest bacteria to the largest cetace, including krill and zooplankton.
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