Mesoamerican Biological Corridor
and the Environmental
Goods, Services and Impacts.
Mesoamerican Biologicas Corridor – promotes conservation of biodiversity and
economic development
Rado Barzev (MSc), [email protected]
Mesoamérica (Central America and the South of Mexico) is a region between two continental bodies (North and South America), that is a natural biological bridge, making possible the flow of flora and fauna.
Out of the 250,000 species, described worldwide, about 20000 can be found in the Region.
BIOLOGICAL TREASURES MESOAMERICAS
Mesoamérica
0.5%
World Territory World Biodiversity
Mesoamérica
10%
BIODIVERSITY
POPULATION
COMMUNITY
PLANTS ANIMALS
SOIL, ENERGY, AIR, WATER
ECOSYSTEMS
INDIVIDUALS
COMMUNITY
ASSOCIATION
GENES
BIODIVERSITY = ENVIRONMENTAL GOODS AND SERVICES
Genetic ResourcesRaw materials for the
pharmaceutics
GENES
Biological ControlFood ProductionWood, Fire Wood
SPECIES
Soil formationWater supply and quality
Erosion controlClimate regulation
Nutrients RecyclingFlood control
Oxygen production and carbon sequestrationLandscapes
Species habitatWaste recycling
ECOSYSTEMS
ENVIRONMENTAL GOODS AND SERVICES
MARKET PRICES FOR SOME GENETIC RESOURCES AND THEIR DERIVATIVES (US $/KG)
Growth Hormones 20,000,000.Taxotere-Docetaxol (anti leukemia) 12,000,000.Viscristine sulfato 11,900,000.Cocaine 150,000.Camptothecin 85,000.Anti AIDS 5,000.Tiger bone 3,000.Shark oil 550.Coffee 10.Cotton 1.5
Land use planning under CBM
Environmental Goods and Services
Protected Areas
MBC
BIODIVERSITY
FRAGMENTATION
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Biological CorridorsZ
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Protected Areas
Country X
Example of land use planning in order to establish the
Mesoamercian Biological Corridor
Biological Corridors
Buffer zones
Mesoamerican Biological Corridor
A corridor of protected areas surrounded by other multiuse and nature friendly areas
The neighbor country Y
Protected Areas
Repeat the process
MBC spreads
* A land use planning system for the Central American Protected Areas System (SICAP), including buffer zones and multiuse areas.
* It provides several environmental goods and services to the central American society and also benefits societies from all over the world.
* The system promotes as well the sustainable use of the natural resources. This happens through a process of consulting a wide range of population in order to improve the sustainable livelihoods.
DEFINITION OF THE MBC (SUMMARY)
COMPONENTS OF THE MBC – The Project
I. Strengthen the Institutional Capacity of Management of the MBC.
II. Strengthen the Sustainability Conditions of the MBC.
III. Establish construction processes for Local Biological Corridors, focusing on the border areas.
CCAD - Central American Commission for the Environment and Development
Agendas
(1) Green (2) Grey
Biodiversity, EGS
Envir. Benefits
Clean Production/ Pollution
Envir. Costs
Economic Instruments for the Conservation in the Mesoamerican Biolgical Corridor
MBC
MESOAMERICAN BIOLOGICAL CORRIDOR
Map Source: DCW, 1975 ; CIAT, 1998; USGS, 1995
RESERVA DE LA BIOSFERA MAYA
GOLFO DE HONDURAS
SOLIDARIDAD
CAYOS MISQUITOS
TRIFINIO
GOLFO DE FONSECA
BAHIA DE SALINAS SIAPAZ
PILA
GANDOCA-BOCAS
RB DARIEN
Priority Areas of the Central American Protected Areas
System
OBJECTIVES
General:
Analyze and make available the results from the efforts in Economic Valuation of the Natural Resources in the Region and the Establishment of Payments for the Use of the Environmental Goods and Services.
Specifics:
Introduce the concepts and methodologies in economic valuation of the natural resources and the establishment of Payments for the Use of the Environmental Goods and Services.
Describe the process of negotiation between the supply and the demand of the natural resources, in order to establish the Payments for the Environmental Goods and Services (PES) (key players, environmental funds, environmental commission, environmental legislation).
Determine the economic viability of the implementation of the Payments for the Environmental Goods and Services (conservation of the biodiversity).
Present some successful experiences of PES in Central America.
Environmental Goods – Tangible Products of hte Nature (Row materials)
Environmental Services – Ecosystemic Functions that benefit Humans
- Water for Domestic use- Water for the Agriculture- Water for Industrial use- Wood- Medicine Plants- Firewood - Seeds- Food- Plants y Fruits - Other products of the forest- Biological raw material- Flora and fauna- Handicraft- Cattle- Agricultural products.
- Underground water supply - Soil water retention- Soil protection- Carbon sequestration- Flood control- Erosion control- Nutrients retention- Landscape attraction- Watershed protection
ENVIRONMENTAL GOODS AND SERVICES THAT GENERATES AN ECOSYSTEM
Crops
Natural Protected Areas
Natural Forest
Plantations
CommunitiesPrivate lands
Natural Protected Areas
Private lands
Plantations
GEOGRAPHIC DISTRIBUTION OF THE NATURAL RESOURCES (ENVIRONMENTAL GOODS AND SERVICES)
ENVIRONMENT- Ecosystem
-Protected Areas-Watershed
ECONOMICS
Wastes: Impacts, Externalities
Environmental Goods and Services
Decision making ExtractionTransformation
Benefits
Costs
Consumption
Production Costs (PC) Distribution Costs (DC)
Contamination Costs (CC)
Environmental Costs (EC) = Depreciation
Costs + Reposition and Recycling Costs
Benefits > Costs
(Costs = PC + DC + CC + EC)
USE OF THE ENVIRONMENTAL GOODS AND SERVICES COST/BENEFIT ANALYSIS
Achieve an environmental management
system:
A) Internalize the Environmental Costs: With the Cost/Benefit analysis find out if Benefits are higher than Costs.
B) Costs Reduction: Cost/Efficiency analysis to achieve the productive goals at the lowest costs possible.
Economic viability and
competitiveness
CONSERVACION: Management and use of the biodiversity, guaranteeing the higher and most sustainable benefits, without
endangering its potential for the future generation.
It implies activities such as protection, maintenance, sustainable use, restoration and improvement of the environment.
TOTAL ECONOMIC VALUE
Direct Use Value
Indirect Use Value
Use Value Non Use Value
Option Value Existence Value
- Species
- Habitat Conservation
- Biodiversity Protection
- Pharmaceutics Potential
- Recreational Potential
-Wood-Firewood- Food products- Handicraft- Water supply-Landscape and- Tourism- Medicines-Construction materials- Raw materials- Research- Education-Plant and Animal Species
- Endangered Species
- Esthetic Value
- Cultural and Historical Values
- Flood Control
- Disaster Prevention
- Erosion Control
- Nutrients Retention
- Water Quality
- Habitat
- Oxygen Production
- Carbon Sequestration
- Watershed protection
VET=VUD+VUI+VO+VE
TEV = Total Economic Value
DUV = Direct Use Value
IUV = Indirect Use Value
OV = Option Value
EV = Existence Value
Methodologies
Effects measured Valuation bases
A) Objective Valuation
1. Change in Productivity Productivity Technical/physical Assumed behavior
2. Health Costs Health(Desease)
Technical/physical Assumed behavior
3. Human Capital Health(Deth)
Technical/physical Assumed behavior
4. Replacement Costs Capital, Natural Resources
Technical/physical Assumed behavior
Economic Valuation Methodologies
B) Subjective Valuation
1. Preventive and Mitigation Costs
Health, Productivity, Capital, Natural Resources
Revealed behavior
2. Hedonic PricesProperty Values
Wage Differential
Environmental quality
Health
Revealed behavior
3. Travel Cost Natural Resources quality Revealed behavior
4. Contingent Valuation Health, Natural Resources quality
Revealed behavior
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Px
EXTERNALITIES
Private Marginal Cost - Supply
Social Marginal Cost – Negative Externalities
Social Marginal Cost – Positive Externalities
Price Reduction
Price Increment
Demand
BENEFITS FOR THE ECONOMY
AGRICULTURE INDUSTRY SERVICES
Water for domestic use X
Water for the agriculture X
Water for the industry XSustainable wood production X
Firewood X
Carbon sequestration X
Carbon avoided emissions X
Agricultura y Ganadería X
Landscape and potential for tourism X
BENEFITS PER SECTORS OF THE ECONOMY X X X
TOTAL OF BENEFITS X
BIENES Y SERVICIOS AMBIENTALES
SECTORS OF THE ECONOMY
SERVICIO AMBIENTAL
OWNERLocal
Mechanisms
COUNTRYNational
Mechanisms
THE WORLDInternational Mechanisms
Sustainable Wood Production
Water for different use
Landscape
Biodiversity
Carbon sequestration
BENEFITS DISTRIBUTION AND IMPLEMENTATION OF THE ECONOMIC MECHANISMS FOR THE ENVIRONMENTAL GOODS AND SERVICES PAYMENTS
PHYSICAL INDICATORS
ECONOMIC INDICATORS
SOCIAL AND ECONOMIC
ASSESMENT
ENVIRONMENTAL AND ECONOMIC INDICATORS
ECONOMIC VALUATION METHODOLOGIES
Costs
Benefits
Damage by each additional unit of contamination
Cost for each unit of contamination mitigated
Costs
Contamination
MITIGATION COSTS FOR THE NEGATIVE IMPACTS (EXTERNALITIES)
Q2 Q1
C2
C1
LA NEGOCIACIÓN – SITUACIÓN “TODO EL MUNDO GANA (WIN-WIN SITUATION)
Up the
River
Down the
River
$
Q equilibrium Q2 Q1Q0
Level of Production and Level of Contamination
A
B
Benefits for each additional unit of commodity
Costs for each additional unit of contamination
ECOSISTEM
SUPPLYOwners of the
Natural Resources
DEMANDConsumers
Charging Consumers
Paying the Owner of the
Natural Resources
Environmental Services
Commission
PES:- Fees- Environmental Taxes- Trading Permissions- Licenses- Penalty, etc.
Environmental Fund
Paying the Nature
PAYMENTS FOR ENVIRONMENTAL
SERVICES (PES)
BASIC PROCEDURES FOR ESTABLISHING PAYMENTS FOR ENVIRONMENTAL SERVICES
Identify the consumers of the Environmental Goods and Services (the Demand). Physical and economic quantification of the Demand.
Identify the owners of the Environmental Goods and Services (the Supply). Physical and economic valuation of the Demand.
Determine and characterize the geographic area where the PES will be implemented.
Determine the Investment and Costs required for implementing activities for sustainable management of the Environmental Services considered.
Economic valuation of the Environmental Goods and Services: Quantify in monetary terms the Supply and Demand.
Establishing economic mechanisms for capturing financial resources (establishing the Payments for Environmental Services).
Form the Environmental Services Commission. This commission will be in charge of monitoring the process of implementation of the PES.
Establishing the Environmental Fund.
Based on negotiations, agreements are achieved and there will be contractual relationship between Owners and Consumers.
Hire experts who will provide technical assistance on activities required for the conservation of the Environmental Goods and Services (Technological changes – Environmental Management System).
Certification of the Environmental Management System proposed. Monitoring the Environmental Management System implemented and the PES established.
BASIC FUNCTIONS OF THE ENVIRONMENTAL SERVICES COMMISSION
Help negotiation process between owners and consumers.
Monitor the transparent use of the Environmental Funds.
Involve different sectors of society into the Conservatión Effort proposed through the establishment of PES.
Coordinate activities with Certification Experts.
Coordinate activities con Experts on Technical Assistance.
Environmental Problem
Needs Demands
EV Study and other technical studies
Economic Mechanism Proposal
Negotiation
Environmental management policies change
Implementation
Training
The Process of establishing the PES Programme
THANK YOU
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