Valuation of nature in political decision making Experience in the Netherlands Dr.ir. E.C.M....
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![Page 1: Valuation of nature in political decision making Experience in the Netherlands Dr.ir. E.C.M. Ruijgrok, 09/2002.](https://reader036.fdocuments.us/reader036/viewer/2022062317/5a4d1b0e7f8b9ab05998cef8/html5/thumbnails/1.jpg)
Valuation of nature in political decision making
Experience in the Netherlands
Dr.ir. E.C.M. Ruijgrok, 09/2002
![Page 2: Valuation of nature in political decision making Experience in the Netherlands Dr.ir. E.C.M. Ruijgrok, 09/2002.](https://reader036.fdocuments.us/reader036/viewer/2022062317/5a4d1b0e7f8b9ab05998cef8/html5/thumbnails/2.jpg)
• Acidification abatement leads to increased nature quality
• To include this benefit in Cost Benefit Analysis:
Nature must be valued in monetary terms.
Nature and Acidification
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Key questions
1. What is socio-economic valuation?- how do different views on nature determine valuation?
2. Why economic valuation of nature?- what is the role of valuation in political decisions?
3. How to determine the economic value of nature related to acidification abatement? - how much experience do we have in the Netherlands?
![Page 4: Valuation of nature in political decision making Experience in the Netherlands Dr.ir. E.C.M. Ruijgrok, 09/2002.](https://reader036.fdocuments.us/reader036/viewer/2022062317/5a4d1b0e7f8b9ab05998cef8/html5/thumbnails/4.jpg)
• Hands- off• Classical • Nature development• Co-evolution• Functional
What is the value of nature?
This depends on your view!
Do not value
Ecological Valuation
Both socio-economic and ecological valuation
Financial valuation
Views on nature: Valuation:
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Financial value:Income for humans
Socio-economic value:Welfare for humans, by production-, regulation-, information- and non-use functions
Ecological value:Welfare for plants and animals
The financial value of not exploited nature areas is very small or even zero!
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Why valuation of nature?
In general:
To make the trade off between economic and ecologicalinterests more balanced
In today’s political context:
To complete Cost Benefit Analyses in such a way that:• they can support investments in nature• they can prevent damage to nature
![Page 7: Valuation of nature in political decision making Experience in the Netherlands Dr.ir. E.C.M. Ruijgrok, 09/2002.](https://reader036.fdocuments.us/reader036/viewer/2022062317/5a4d1b0e7f8b9ab05998cef8/html5/thumbnails/7.jpg)
Cost Benefit Analyses
• Important role in national en regional infrastructural works
• The role of the Enviromental Impact Assessment is reduced
• Nature is not included in CBA’s
• The position of nature is deteriorating
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Including nature in CBA
Some pitfalls:
• Is nature valued financially of socio-economically?
• Are all functions of nature included?
• Do not replace intrinsic valuation by economic valuation; make them complementary!
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How to determine the economic value of nature related to acidification abatement?
Can unaffected nature performthis function better?
Overlap?Out: functions affectedby acidification
In: all kinds of ecosystem functions
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Functions affected by acidification:
• CO2 fixation
• Nitrogen storage
• Aluminium binding
• Binding heavy metals
• Recreational perception
• Non-use
Different functions, different valuation methods
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Total economic value
Non-use valueUse value
Option/Quasi-optionvalue
Bequestvalue
Existencevalue
Indirect usevalue
Direct usevalue
Productionvalue
Informationvalue
Regulationvalue Contingent Valuation
Market AnalysisContingent ValuationHedonic PricingTravel Cost
Damage cost avoidedAbatement costs
A combination of valuation methods:
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Socio-economic valuation =
• Importance• Material and immaterial welfare• Representation of social preferences
Willingness to pay as measurement
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Dutch experience with valuation (1973-2002)
53
14
6 1
transfersoriginal CVMoriginal HPMoriginal TCM
Source: Historical overview of Dutch valuation studies
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Platform for Economic Valuation of Nature
Aim: to strengthen the position of nature, landscape, cultural heritage and environment in the public decision making process
http://www.fsd.nl/naturevaluation.
Network of specialistsLearn from experience in other countries