A Tool for Economic Valuation of Ecosystem Services in Flanders. Sara Ochelen Flemish Ministry of Environment, Nature and Energy

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1 A Tool for Economic Valuation of Ecosystem Services in Flanders Sara Ochelen Flemish Ministry of Environment, Nature and Energy

2 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.

3 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 PM 10; Noise buffer by forests. Tool: handbook and supporting on-line calculator for valuation of ecosystem services.

4 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.

5 Choice cards to reveal WTP

6 WTP in 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 afstand van de w oning tot het gebied

7 Apply valuation function to new nature in region of Antwerp Opstalvallei Berendrecht

8 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

9 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)

10 Marginale kostprijs ( /kg) Regulating service water purification Quantity x Price = 3,8 million Change in denitrification potential Cost curve N-removal Marginale kostencurve (Nt) Aanleg van IBA's in buitengebied Inzaaien Verbeteren van 100 Basismaatregelen wintergroenbedekker rendement van RWZI's Afbouw pluimvee 0 0% 5% 10% 15% 20% 25% 30% 35% 40% -100 Hoogproductieve melkkoeien Verdere uitbouw van collectieve saneringsinfrastructuur in goedkope clusters van buitengebied Voederefficiëntie bij varkens Verdere uitbouw van collectieve saneringsinfrastructuur in minder goedkope clusters van buitengebied Uitbouw van saneringsinfrastructuur door uitvoering van bijkomende opgedragen bovengemeentelijke projecten Bemestingsadvies Reductie Nt emissies naar oppervlaktewater (%) Verdere uitbouw van collectieve saneringsinfrastructuur in dure clusters van buitengebied Verlagen van bemestingsnorm 170kg dierlijk N/ha + Afbouw overige veestapel Toepassen van ERSA normen voor bedrijfslozingen Voederefficiëntie overige veestapel Additional kg N times 74 /kg N = 3,8 million

11 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.

12 Thank you for your attention! for more information: