FREE ELECTRONIC LIBRARY - Dissertations, online materials

Pages:     | 1 |   ...   | 29 | 30 || 32 | 33 |

«The Economic and Social Aspects of Biodiversity Benefits and Costs of Biodiversity in Ireland REPORT PREPARED BY: CRAIG BULLOCK, OPTIMIZE CONSULTANTS ...»

-- [ Page 31 ] --

In terms of public costs, an increasing amount of European and national funding is being directed at research into marine ecosystems and ecosystem fisheries management. A few areas are already zoned for marine protection, but the identification of Marine Protection Areas has made slow progress and an application is only now being made to Brussels. Costs would apply principally to naval enforcement. At present, enforcement has been argued to cost as much as 100 million per year (half the value of output), although the rational has been strategic protection of commercial stocks rather than biodiversity. In principle, a private cost should be incurred in that privately owned vessels will need to adopt new environmentally-friendly fishing gear. However, past experience would suggest that this investment too will be underpinned by the state.

Summary of benefits of selected ecosystem services to marine fisheries and policy costs

–  –  –

* largely reimbursed through EU 11.2.4 Water Water provides for numerous economic and social uses and benefits and, for many of these, good, clean water is the standard required. The chapter on Water noted several key benefits due to the cleaning services performed by the aquatic ecosystem. These include provisioning services such as quality drinking water, supporting services to fisheries and other fresh-water produce, and regulating services such as the assimilation of domestic, agricultural and industrial waste.

W e t l an d s an d flo o d i n g In addition, wetlands perform important economic and social functions in the form of flood mitigation. For peatlands and fens, it is the ecosystem itself that performs the retention function, at least up to a saturation threshold. The economic benefits of flooding avoided are limited for lowland bogs in that most are surrounded by poorly productive pasture. However, upland blanket bogs may be more influential in reducing flash flooding of lowland towns. Flash floods in Boscastle, Cornwall, in 2004 and Carlisle, Cumbria, in 2005 (both beside rivers rising in upland areas) caused many millions of euro worth of damage. In Ireland, bog slides have been a recent phenomenon where the integrity of peatlands has been undermined by a combination of weather conditions, subsoil, overgrazing and structural works. Flooding in October 2004 led to insurance claims of 38 million (Huyskes et al. 2006) causing companies to take climate change very seriously. The predicted drying out of upland bogs could lead to more frequent flooding in future. Indeed, peatlands provide for storage of carbon that would otherwise be lost to the atmosphere. While the living surface layer sequesters carbon only slowly, it does protect the underlying peat carbon store from dessication. This store has been estimated to total 1.07 billion tonnes (Tomlinson, 2005).

F i s h i n g an d re c re a t i o n Rivers and lakes are associated with significant public benefits. To avoid double-counting, the utility benefits of amenity and recreation are specifically dealt with under the section on Welfare below, but it is possible here to consider the amount that is spent on water-based recreation. Domestic spending is at least 70 million per year and that of foreign tourists is put at 65 million according to the Marine Institute (2003). Although much of the former may have resided within Ireland, it can nevertheless be linked to the aquatic ecosystem services.

Angling expenditure is included in the Marine Institute figures. Until very recently wild salmon supported a commercial industry, but falling stocks have led to the closure of the industry. If the recreational catch increases to fill the gap, the value of fish caught should increase to at least 15 million per annum. On top of this can be added the expenditure by foreign anglers which probably at least matches that of domestic anglers at 50 million. Inland trout production depends on clean water and is valued at 600,000 per year.

Waste assimilation Waste assimilation is a tremendously valuable ecosystem service, even if it is one that can quickly be undermined by the quantity or toxicity of pollutants. Industry endures a private cost in that it is required to have on-site waste-water treatment to comply with EPA Integrated Pollution Control licensing. The private costs of this abatement have been estimated by Clinch and Kerins (2002) at anything between 0.08 and 4 per tonne depending of the nature of the industry. Inevitably, pollution regulations would need to be stricter without the subsequent purification provided by natural ecosystem services. Under-investment in municipal treatment plant means that many towns across Ireland depend on these same processes to clean up effluent that has been inadequately treated. Without this waste assimilation, further costs would be incurred for other water users down-stream. Likewise, diffuse pollution from agriculture and rural housing exerts an external cost where this exceeds the assimilation capacity of rivers. The value of the waste assimilation is realised in terms of the avoided cost of additional treatment down-stream. Unfortunately, it is a benefit that is impossible to value precisely, although it is certain to run into hundreds of millions of euro.

I n d u s t ri a l ab s t ra c t i o n Both industry and agriculture require clean water for abstraction. Water for most businesses typically requires treatment and, where provided by rural county councils, the supply cost is around 1 per m3. For a typical creamery, this would result in a cost of around 192,000 per year (Hayes, 2006). Clearly the cost would increase if source waters were more polluted.

Many farms abstract water directly from rivers or groundwater. Although there is only a limited amount of crop irrigation compared with other countries, clean water is needed for livestock.

Assuming that one quarter of the national herd receive their water from natural sources, this represents a cost saving of 35 million compared with county water charges given average consumption per animal of 20m3 per annum.

Aside from agriculture and industry, water is used for domestic use. Artificial treatment is generally provided, but ideally the source should also be of high quality given that this water is used for drinking. No figures on the benefits are available, but the cost of water purification can be estimated in terms of on-going purification and capital expenditure. The former is estimated at 200 million per year assuming daily water consumption per person of 150 litres of which around one quarter would be for drinking/cooking. Given previous underinvestment in environmental infrastructure, capital expenditure is currently very high at around 500 million per year out of a Water Services budget of 860 million. When, finally, this belated investment has been made, the annual capital costs should fall over the long-term.

Summary of benefits of ecological services to water quality and policy costs Table assumes that current expenditure on Water Services is broadly comparable with social benefits.

–  –  –

11.2.5 R o a d s an d i n f ra s t ru c t u re Although the net impact of roads on biodiversity is evidently negative, a greater amount of attention is given to ecological protection associated with the construction of roads or other public infrastructure than is typically given to private development, including housing. Considerable effort is made to mitigate the adverse environmental impact of roads through the environmental assessment process. Inevitably these vary substantially from one road to the next depending on the environment through which it cuts. The National Roads Authority has not been able to supply an estimate of the average cost of these mitigation measures.

Biodiversity impacts are not included at the cost-benefit analysis stage of road design. Neither are the biodiversity implications of cumulative impacts taken into account, although this should change with the advance of Strategic Environmental Assessment (SEA). Arguably, inadequate consideration is given to the relative biodiversity impacts of alternative transport options, or to the effect that residential planning has on stimulating the need for new roads in the first place.

Summary of benefits of ecological services to roads and infrastructure and policy costs

–  –  –

Benefits Only a handful of environmental valuation studies have been undertaken in Ireland and none of these have been specific to biodiversity. Consequently, the summary table below is in no way comprehensive. Marginal values can be provided as annual estimates of public benefits, expressed as the consumer surplus of particular activities associated with biodiversity, e.g. angling. Alternatively, these marginal values can be expressed as the additional consumer surplus due to incremental improvements in the biodiversity resource, for example due to policies such as the Rural Environmental Protection Scheme (REPS) or water quality improvements. The latter is more reliable and more relevant to cost-benefit analysis.

L an d u s e A recent survey for the Heritage Council (2007) estimated the public benefit of increased government spending on heritage. Of the estimated annual value of 90 million, public preference was greater for spending on natural heritage features (at approx 65m pa.). The association between such features and biodiversity varies considerably, being high for wildlife sites, but less for others where geology, geomorphology or cultural practices play a significant part, e.g. the Cliffs of Moher.

Campbell et al. (2006) have estimated the aggregate value of REPS at 150 million per year. Again, this only provides a partial valuation of the welfare benefit of biodiversity, although the survey found that the greater part of the estimated benefits was associated with rivers and lakes, the quality of which supports biodiversity (and vice-versa).

F o re s t r y Various welfare estimates have been provided for forestry. The most recent of these by Bacon and Associates (2004) includes an annual value of biodiversity of 5.6 million per annum in relation to existing forestry or a marginal value 1.6 million per annum for the proposed expansion programme. Biodiversity also makes a significant contribution to forest recreational benefits estimated at 97 million per year (Coillte/Irish Sports Council, 2005). Few new areas of forest are being planted by the public agencies, and growth in future recreation benefits, together with the associated biodiversity benefit, is restricted by the lack of access to private forests. However, some new marginal benefits will derive from sustainable forestry guidelines applied to existing forest areas.

Wa t e r Estimation of the welfare benefits associated with the recreational use (use value) of rivers and lakes is hampered by the absence of figures on the number of visits to such localities. The Marine Institute (2003) estimates that 190,000 people undertake water-based recreation each year.

However, many more would be involved in more general recreation and leisure. It seems likely that, given the large number of rivers and lakes, together with the relative attraction of water, the number of trips is in excess of the estimated 18 million trips associated with forests (Coillte/Irish Sports Council 2005) or the 25 million trips associated with distinct heritage destinations (Heritage Council 2007). Excluding coastal trips, a possible figure might be 30 million trips. The total utility or consumer surplus associated with each individual trip is unlikely to be less than 10 and is probably significantly more (no estimates are available for Ireland). Biodiversity is likely to contribute strongly to any estimate of this consumer surplus.

The consumer surplus is additional to expenditure incurred. Domestic tourism (excluding angling discussed above) accounts for around 37 million of annual expenditure (Marine Institute, 2003). In principle, much of this spending should be discounted on the basis that it would otherwise be spent elsewhere in the economy (although not necessarily in areas with as high an economic multiplier).

However, the amount spent by tourists from overseas represents a net addition.

As well as the expenditure and utility value, rivers and lakes can be expected to elicit substantial passive use (non-use) benefits given their importance to the Irish rural environment. These benefits have not been quantified, but would probably match those estimated for the farmed countryside, particularly given the importance attached to water by respondents to the REPS survey.

Ideally, for a cost-benefit approach, it is the marginal benefit of protecting or enhancing aquatic biodiversity that is most relevant to an assessment of new biodiversity policies. For the UK, the benefits of improvements in water quality have been estimated by Green and Tunstall (1991) at up to 97 pence per trip. This figure would likely have more than doubled to £2 per trip given income growth in the subsequent period. By comparison, most Irish rivers and lakes are already of relatively good quality compared with those in the UK. Seventy per cent of Ireland’s rivers are described by the EPA as Class A (unpolluted) while 85% of lakes are good quality oligotrophic or mesotrophic (McGarrigle et al. 2002). Taking the proportion of moderately polluted rivers (13%) and assuming that these could potentially share in the presumed 30 million annual trips, such an improvement would be worth at least 10 million per year if transfer values can be based on current UK estimates. Indeed, as the proportion of moderately polluted rivers is higher (25%) in the Eastern Region where most people live, it is possible that actual use benefits could amount to between 10 and 20 million per year.

Welfare benefits would be higher on an individual level amongst specialist users such as anglers, boaters and kayakers. Curtis (2002) estimated total consumer surplus benefits, given current water quality, of between 62 and 185 per trip for anglers in Ireland. These anglers’ valuation of marginal improvements in water quality from moderate to good quality could be estimated at between (at least) 3 and 28 (salmon) per trip based on UK figures (Environmental Agency, 2002).

For kayakers, Hynes and Hanley (2006) report values for improved water quality of 14.50 per trip.

Pages:     | 1 |   ...   | 29 | 30 || 32 | 33 |

Similar works:

«CENTER ON CAPITALISM AND SOCIETY COLUMBIA UNIVERSITY http://www.capitalism.columbia.edu/ Working Paper No. 81, April 2014 New Empirical and Theoretical Framework in Diagnosing Financial Crisis Ping Chen Senior Member of the Center for New Political Economy at Fudan University in Shanghai, China Abstract The sub-prime crisis in the U.S. reveals the limitation of diversification strategy based on meanvariance analysis. A regime switch and a turning point can be observed using a high moment...»

«ANNEX of the Commission Decision on the individual measure in favour of ACP countries, to be financed from the 10th European Development Fund Action Fiche for Minimising the Illegal Killing of Elephants and other Endangered Species MIKES 1. IDENTIFICATION Title/Number Minimising the Illegal Killing of Elephants and other Endangered Species MIKES CRIS number : 024-888 Total cost Total estimated cost: EUR 13 708 000 Total amount of EDF contribution: EUR 12 335 000 The action is co-financed in...»

«Quantifying Users’ Interconnectedness in Online Social Networks – An Indispensible Step for Economic Valuation Martin Gneiser Julia Heidemann FIM Research Center FIM Research Center Finance & Information Management, Finance & Information Management, University of Augsburg, Germany University of Augsburg, Germany martin.gneiser@wiwi.uni-augsburg.de julia.heidemann@wiwi.uni-augsburg.de Mathias Klier Andrea Landherr Department of Information Systems, FIM Research Center University of...»

«Financial Life Focus, LLC Form ADV Part 2A – Disclosure Brochure Effective: May 11, 2016 This Form ADV2A (“Disclosure Brochure”) provides information about the qualifications and business practices of Financial Life Focus, LLC (herein “Financial Life Focus” or the “Advisor”). If you have any questions about the contents of this Disclosure Brochure, please contact us at (973) 533-0666 or by email at pnicita@financiallifefocus.com. Financial Life Focus, LLC is a registered...»

«Author's personal copy Available online at www.sciencedirect.com Research in Organizational Behavior 29 (2009) 111–133 Pushing up to a point: Assertiveness and effectiveness in leadership and interpersonal dynamics Daniel Ames * Columbia Business School, Columbia University, USA Available online 3 August 2009 Abstract Past work on interpersonal assertiveness and organizational effectiveness paints a mixed picture: some research suggests a positive link, other work highlights negative effects....»

«School of Economics and Finance ECON 140 ECONOMICS AND STRATEGIC BEHAVIOUR Trimester Two 2009 COURSE OUTLINE Names and Contact Details Course Lecturers: Jerry Mushin (L1, CRN 8722) RH426 Email: Jerry.Mushin@vuw.ac.nz Ph: 463-5884 Stephen Burnell (L2, CRN 10037) RH425 Email: Stephen.Burnell@vuw.ac.nz Ph: 463-5764 Course Coordinator: Stephen Burnell RH425 Email: Stephen.Burnell@vuw.ac.nz Ph: 463-5764 Course Administrator: Francine McGee RH319 Email: Francine.Mcgee@vuw.ac.nz Ph: 4635818 Francine...»

«CDDRL WORKING PAPERS DECEMBER 2014 THE EU, THE US AND PARTNERSHIP IN DEVELOPMENT COOPERATION: BRIDGING THE GAP? Karen Del Biondo Postdoctoral Scholar at CDDRL, 2012-2013; Postdoctoral Fellow, KFG Transformative Power of Europe, Free University of Berlin, 2013-2014 About CDDRL Since 2002, the Center on Democracy, Development and the Rule of Law (CDDRL) at Stanford University has collaborated widely with academics, policymakers and practitioners around the world to advance knowledge about the...»

«1 Jack Goody The British anthropologist and historian Jack Goody (b. 1919) is acknowledged as one of the most versatile intellectuals of our times. His work, marked by great erudition, breadth of interest and a distinctly `Goodyan' approach, has attracted the attention and admiration of not only anthropologists and historians but also philosophers, educationalists and economists. The great French historian Georges Duby, for instance, characterized Goody's work as a disconcerting but `superb...»

«Algorithmic Social Sciences Research Unit ASSRU Department of Economics University of Trento Via Inama 5 381 22 Trento, Italy Discussion Paper Series 3 – 2013/I It is not too late Economics Nobel Prizes for a Trio of pioneers Uzawa, Scarf and Negishi K. Vela Velupillai March 2013  Tennyson’s noble lines in Ulysses (italics added) are the inspiration for this phrase: Death closes all; but something ere the end, Some work of noble note, may yet be done, Not unbecoming men that strove...»

«Faculty of Design and Volume 10 Creative Technologies The Art of Research Auckland University of Technology Auckland 1142, New Zealand Drawing As “Learning To See”: A Strategy To Locate The “White/Open Space” That Encourages Intuitive Thinking In Designers Mari Lecanides-Arnott Abstract: It is essential for designers to keep up with evolving technologies so that they can function within the networked knowledge economy. However, there is a growing awareness that, because design outcomes...»

«A Work Project, presented as part of the requirements for the Award of Masters Degree in Finance from the NOVA – School of Business and Economics. TIMOR TELECOM CASE STUDY – TEN YEARS OF EXPERIENCE ANDRÉ FILIPE TOMÉ LOPES CASTELHANO HERMENEGILDO, MST 16000393 A Project carried out under the supervision of Professor José Neves de Adelino June 2013 1 NOVA SCHOOL OF BUSSINESS & ECONOMICS Timor Telecom Case Study: Ten Years of Experience Dr. Manuel Capitão Amaro, Timor Telecom’s CEO since...»

«M&A Insights March 2012 Merger & Acquisition Services Carve-Out Financial Statements Why such a fuss? Introduction As soon as the discussion turns to the sale or spin-off of a portion of a business, someone inevitably brings up the need for financial statements. Obviously, the buyer and/or potential investors are going to need to understand the financial parameters of what they are investing in. Sounds easy, right? After all, the company has been preparing consolidated financial statements for...»

<<  HOME   |    CONTACTS
2016 www.dissertation.xlibx.info - Dissertations, online materials

Materials of this site are available for review, all rights belong to their respective owners.
If you do not agree with the fact that your material is placed on this site, please, email us, we will within 1-2 business days delete him.