teeb training session 1: analysing value ©teeb. teeb training missing and imperfect markets –the...
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The Economics of Ecosystems & BiodiversityThe Economics of Ecosystems & Biodiversity
TEEB Training
Session 1:Analysing value
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The Economics of Ecosystems & BiodiversityThe Economics of Ecosystems & Biodiversity
TEEB Training
Missing and imperfect markets – The quality and the extent of natural spaces affects our well-
being
– These benefits are often not marketed
Market failures – Does the market provide the ‘right’ level of pollution?
– If not should be value the pollution damage caused?
To ask policy questions– Should we support conservation programs?
Natural resource accounting
Why Conduct Valuation Studies?
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The Economics of Ecosystems & BiodiversityThe Economics of Ecosystems & Biodiversity
TEEB Training
Fundamentals: Marginality
Fundamentals: ‘with-minus-without’ What net effect is the policy measure having?
Measure this in terms of changes in ecosystem services A typology of ESs
Qualitative assessment Expert judgment on whether provisioning would trend up
or down
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The Economics of Ecosystems & BiodiversityThe Economics of Ecosystems & Biodiversity
TEEB Training
Fundamentals: spatial scale and scope
Analysis of marginal change must be bounded in terms of spatial scale and thus scope – Global, regional, national, sub-national, local
Bio-physical versus economic scales– Appropriate bio-physical scale (data, inter-linkages etc.) might
be river catchment, i.e. trans-boundary– Appropriate economic scale might be ‘national’ as this is where
governance/jurisdiction applies to act on valuation outcomes Must be wary of displacement effects
– Extending protected areas: does this mean more intensive resource-use just outside the protected area boundary?
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The Economics of Ecosystems & BiodiversityThe Economics of Ecosystems & Biodiversity
TEEB Training
Total Economic Value
TEV is the sum of use and non-use values:– Direct use values
– Indirect use values
– Option value
– Existence value
– Bequest valueNote that valuation is from a human perspective, intrinsic
value is not included
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The Economics of Ecosystems & BiodiversityThe Economics of Ecosystems & Biodiversity
TEEB Training
Value Types within the TEV Approach
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The Economics of Ecosystems & BiodiversityThe Economics of Ecosystems & Biodiversity
TEEB Training
TEV and ecosystem services
Category Service Direct Use Indirect Use
Option Value
Non-use Value
Provisioning Food; fibre; fuel; bio chemicals; natural medicines; pharmaceuticals; fresh water supply
Regulating Air-quality; climate; water; natural hazard; carbon storage; nutrient cycling; micro-climate functions
Cultural Cultural heritage; recreation and tourism; aesthetic values
Habitat/supporting
Primary production; nutrient cycling; soil formation Valued through other ES categories
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The Economics of Ecosystems & BiodiversityThe Economics of Ecosystems & Biodiversity
TEEB Training
Group exercise
Think of the key ecosystems in your country and list the main ecosystem services they provide
Identify the elements of TEV associated with those ecosystem services
What information on the value of those ecosystem services do you think is available?
Are there any major gaps in this value information?
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