A Tool for Economic Valuation of Ecosystem Services in Flanders

Sara Ochelen – Flemish Ministry of Environment, Nature and Energy

Biodiversity in a changing World 8-9 September Ghent

Cost benefit analysis for better informed decisions

• Intended new policy or new project• Society better off with or without? A or B?• Cost Benefit Analysis: all welfare effects, in EUR.• Better informed decisions IF also impacts on

ecosystems included.• Need to quantify the impact on ecosystem and to

price the change in the services they deliver.• No figures for impacts on ecosystems available.• Team of economists and ecologists filled this gap:

VITO, University of Antwerp, Free University of Amsterdam.

• Toolkit for valuation of ESS.

Biodiversity in a changing World 8-9 September Ghent

Cultural and regulating services

• Cultural ecosystem services:• Value of recreation (use);• Value of existence and preserving nature for future

generations (non-use).

• Regulating services:• Nutrient removal and stock of N & P;• Climate regulation by C-capture in biomass and soil;

• Improving air quality by capturing polluents as PM10;

• Noise buffer by forests.

Tool: handbook and supporting on-line calculator for valuation of ecosystem services.

Biodiversity in a changing World 8-9 September Ghent

Value of cultural services

• No prices economic valuation techniques.• Expensive and time consuming.• We want ready-to-use formula for many cases.• Valuation function developed with empirical data.• Reveal value of people by asking them questions.• Choice experiment: sophisticated questionnaire:

multiple pretests, representative sample, rigourous statistical analysis of results…

• Interviewed 3000 people in Flanders with choice cards.

Biodiversity in a changing World 8-9 September Ghent

Choice cards to reveal WTP

Biodiversity in a changing World 8-9 September Ghent

Valuation function

• All answers pooled: wealth of information about preferences of people for nature.

WTP of average household in function of: nature characteristics, population characteristics and distance.

• Forest > heath land > natural grassland.• Available trails > no trails.• Members NGO > non members.• Close to home > far away.

0

40

80

120

160

200

0 10 20 30 40 50 60

afstand van de woning tot het gebied

WT

P in

€

Biodiversity in a changing World 8-9 September Ghent

Apply valuation function to new nature in region of Antwerp “Opstalvallei”

Berendrecht

Biodiversity in a changing World 8-9 September Ghent

Apply valuation function to new nature in region of Antwerp “Opstalvallei”

• Area of 190 ha agricultural land.• Compensation area for Masterplan Port Antwerp.• To be transformed in new nature: wetlands and

grasslands, with high biodiversity.• Accessible for recreation.• Adjecent land use: industry, buildings and nature.• 1 million households living in area 50 km.

Total cultural value: € 170 million/year

Biodiversity in a changing World 8-9 September Ghent

Value of regulating services

Change in quantity x price

Δ ton CO2 in soil

Δ kg PM in air

Δ decibel in houses

Δ kg N in water

…

50 €/ton CO2 (international literature)

30 €/kg PM (health costs)

1% house value/dB (house depreciation)

74 €/kg N (marginal abatement cost)

…

Biodiversity in a changing World 8-9 September Ghent

Regulating service water purification

Quantity x Price = € 3,8 million

Marginale kostencurve (Nt)

-100

0

100

200

300

400

500

600

700

0% 5% 10% 15% 20% 25% 30% 35% 40%

Reductie Nt emissies naar oppervlaktewater (%)

Mar

gin

ale

kost

pri

js

(€/k

g)

BasismaatregelenInzaaien wintergroenbedekker

Voederefficiëntie bij varkens

BemestingsadviesHoogproductieve melkkoeien

Verbeteren van rendement van RWZI's

Toepassen van ERSA normen voor bedrijfslozingen

Afbouw pluimvee

Verdere uitbouw van collectieve saneringsinfrastructuur in goedkope clusters van buitengebied

Verdere uitbouw van collectieve saneringsinfrastructuur in minder goedkope clusters van buitengebied

Voederefficiëntie overige veestapel

Verlagen van bemestingsnorm 170kg dierlijk N/ha + Afbouw overige veestapel

Aanleg van IBA's in buitengebied

Verdere uitbouw van collectieve saneringsinfrastructuur in dure clusters van buitengebied

Uitbouw van saneringsinfrastructuur door uitvoering van bijkomende opgedragen bovengemeentelijke projecten

Cost curve N-removal

Additional 51.660 kg N

times 74 €/kg N

Change in denitrification potential

= 3,8 € million

Biodiversity in a changing World 8-9 September Ghent

Conclusions

• Tool available for Flanders to quantify multiple ecosystem benefits and to express them in money terms.

• Enables summing up and comparing value new nature or destroyed nature with other benefits and costs in CBA.

• Tool supplied to potential users on voluntary basis.• Hope to include ecosystem valuation in compulsary CBA

guidelines for infrastructure.• Remaining challenges concerning quantification and data

availability and quality. • Nevertheless: step forward for better informed decisions

on measures or projects with impacts on ecosystems.

Biodiversity in a changing World 8-9 September Ghent

Thank you for your attention!

for more information:

Sara.Ochelen@lne.vlaanderen.be

Tanya.Cerulus@lne.vlaanderen.be

Inge.Liekens@vito.be

http://milieueconomie.lne.be