Valuation of ecosystem services for policy

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1 Valuation of ecosystem services for policy A pilot study on green infrastructure in Oslo, Norway David N. Barton Mapping and Assessment of Ecosystems and their Services EEA Grants/European Conference Trondheim, Norway May 2015

2 An ES valuation dilemma Economic valuation of ES is seldom used in decision making!.. of 676 papers reviewed 313 made even fewer still.. even fewer.. Source: Laurans et al. 2013

3 Overview 1. Decision context framework 2. Methodological challenges 3. ES in Oslo s municipal awareness 4. Example: Valuation for awareness raising 5. Example: Valuation of economic liability trees 6. Take home

4 1. Framework valuation of ecosystem services for policy

5 Values of ecosystem services are decisioncontext specific Values are an expression of the (relative) importance of alternative courses of action with alternative levels of benefits and costs Ecosystem Structures Ecosystem functions Ecosystem Services Ecosystem Benefits Ecosystem Values Decisions Actions Cost of decisions

6 What are the possible uses of valuation? The Economics of Ecosystems and Biodiversity (TEEB): Recognizing value Demonstrating value Capturing value NOU 2013:10: Natural benefits on the value of ecosystem services: cases, stories, illustrations asset degradation on private & public balance sheets cost benefit analysis of policy, measures, projects setting incentive levels, targeting user groups legal damage & compensation claims

7 Spatial scale Recognizing value Demonstrating value Capturing value Spatial contexts of valuation? Valuation context Valuation context Valuation context Valuation context Valuation context 1 da 1 ha 10 ha 1 km 2 10 km m 2 Reliability & accuracy requirement Source: adapted from Gomez Baggethun and Barton(2013)

8 2. Challenges of valuation of ecosystem services for policy

9 Biophysical heterogeneity DIMENSIONS OF ES VALUATON CONTEXT Social heterogeneity Value Plurality Weekly average g/m 3 Visit Area scale Process Times Perception times Use occasions Decision horizons Ecosystem Structures Ecosystem functions Ecosystem Services Ecosystem Benefits Ecosystem Values Location resolutions Process locations Subject locations Subject characteristics Decision alternatives Ecosystem service supply mapping Ecosystem service demand mapping Source: own elaboration

10 3. Urban ecosystem services in municipal policy & management in Oslo

11 Pilot Study Area Basic stats: Total area: 454 km km 2 forest 28 km 2 green space Population : (2013) ? (2030) Northern Europe s fastest growing capital?

12 Oslo Municipality s ecosystem service awareness

13 Urban ecosystem services of green infrastructure mentioned in key municipal policy documents ES 1. Oslo Municipal Master plan (2008): Kommuneplan 2008: Oslo mot Oslo Municipal Master Plan (poposed) Smart, Safe and Green: Smart, Trygg, Grønn. Kommuneplan for Oslo: Oslo mot 2030 (Høringsutkast) 3. Green Plan for Oslo. Municipal subplan for the green infrastructure (2010): Grøntplan for Oslo: Kommunedelplan for den blågrønne strukturen i Oslos byggesone 4. Plan for Sport and Outdoor recreation in Oslo ( ): Plan for Idrett og Friluftsliv i Oslo City of Oslo Urban Ecology Programme Action Plan for Noise Reduction : Handlingsplan mot støy i Oslo Strategy for Surface water management Source: Barton et al. 2015

14 Recognizing value 4. Valuation for awareness raising Oslo

15 Recognizing value Headline: Nature in Oslo is worth billions of NOK! but a smaller number of Photo: VisitOslo Illustration: CEEweb

16 Oslo Pilot study: monetary valuation methods 4 ECONOMIC LIABILITY 1 WILLINGNESS TO PAY (META ANALYSIS) 3 VALUE OF TIME USE 2 HEDONIC PROPERTY PRICES

17 Recognizing value Spatial scale Oslo Pilot study: monetary valuation methods Building Street Neighbourhood Built zone Ecosystem Reliability & accuracy requirement Individual Source: adapted from Gomez Baggethun and Barton(2013)

18 Recreation time value 23 million Marka visits, 71 million hours/year: 2,3 13,3 billion NOK/year Hedonic property pricing flats 500m from Marka forest: 0,8 4,1 billion NOK Total compensation value 0,7 1,2 million city trees on public and private land: billion NOK Hedonic property pricing flats 500m from parks: 8,3 18,9 billion NOK Willingness to pay park recreation (meta analysis): ca.1 billion NOK/year Map: Traaholt(2014)

19 Capturing value 5. Valuation for decision support Example: Compensation value of city trees

20 Capturing value Geographical scale Region Streetscape Neighbourhood Reliability & accuracy requirement Building/property

21 Norway Maple (Acer platanoides)

22 Compensation value model used by Oslo: VAT 03 Valuation of Trees in Danish Randrup (2005) Source: Randrup (2005) Source: Barton et al Source: illustrasjon: BYM(2012) Arbeid nær trær

23 Economic liability tree compensation value (VAT03) Visibility Crown area Main branches and stem Choking rot NOK compensation value

24 4

25 4

26 Decision context I: adjusting VAT03 value to address property rights At what distance from public space is a tree on private land of public concern (aesthetic value)? Value= VAT03 Value>0 Value=0 Private Public property Private d*h Tree height (h) 2h 1h 1/3 h = Current «neighbour concern distance» (Granneloven)

27 Decision context II: tree density in forest remnants and peri urban forest When does a forest tree become a city tree in terms of non timber benefits? Full VAT03 value Adjusted VAT03? =3/10* VAT03 Timber value only 0 Neighbouring tree density (radius of tree height in m) 3 10

28 Spatial scale Recognizing value Demonstrating value Capturing value information cost 100 m 2 1 da 1 ha 10 ha 1 km 2 10 km 2 Reliability & accuracy requirement Source: adapted from Gomez Baggethun and Barton(2013)

29 7. Conclusions Nature in Oslo is worth billions it s awareness raising, but will it be policy relevant?

30 Colleagues Nina Oslo David N. Barton Erik Gómez Baggethun Stefan Blumentrath Anders Often Olve Krange NINA Lillehammer Vegard Gundersen Berit Köhler Erik Stange Margrethe Tingstad NINA Trondheim Graciela Rusch VISTA Analyse A/S Rasmus Reinvang, Henrik Lindhjem OSLOpenNESS partners: Partners Oslo Municipality: Environment Agency Planning and Building Agency Water and Sewage Agency Main funding: MSc. students: Claudia Fongar, NTNU Oscar Haavardsholm, UiO Nora Vågnes Traaholt, U. København (completed) Ph.D. students : Emma Soy Massoni, U. de Girona, Spania Sergi Nuss Girona, U. de Girona, Spania (completed) Related funding: Dissemination Visiting researchers: Grazia Zulian, JRC Leena Kopperoinen, Pekka Itkonen, Arto Viinikka (SYKE) Project Project App Development: Joerg Preiss(UFZ), Robin Elger project.eu/node/78

31 References For further information on OSLOpenNESS case study visit: project.eu/node/78 Barton, D. N., et al. (2015). Economic valuation of ecosystem services for policy. A pilot study on green infrastructure in Oslo.. NINA Report 1114: 77. Barton, D. N., et al. (2015). Materials and methods appendix for valuation of ecosystem services of green infrastructure in Oslo. NINA Rapport [ pp.]. Laurans, Y., et al. (2013). "Use of ecosystem services economic valuation for decision making: Questioning a literature blindspot." Journal of Environmental Management 119:

Natural Capital Accounting and Valuation of ES in the EU Initial Conceptual Framework. International conference on the BIOMOT research consortium

Natural Capital Accounting and Valuation of ES in the EU Initial Conceptual Framework International conference on the BIOMOT research consortium Strahil Christov, DG Environment Brussels, 24/03/2014 Content