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The relevance of economic costs to conservation planning Robin Naidoo WWF-US [email protected]

The relevance of economic costs to conservation planning Robin Naidoo WWF-US [email protected]

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Page 1: The relevance of economic costs to conservation planning Robin Naidoo WWF-US robin.naidoo@wwfus.org

The relevance of economic costs to conservation

planning

Robin Naidoo

WWF-US

[email protected]

Page 2: The relevance of economic costs to conservation planning Robin Naidoo WWF-US robin.naidoo@wwfus.org

Conservation planning

• Systematic cons. planning is about maximizing cost-effectiveness

• Very sophisticated on biological side

• Relatively crude on costs side

• But, great gains result from consideration of costs *costs are heterogeneous

*plans more efficient when this accounted for

Page 3: The relevance of economic costs to conservation planning Robin Naidoo WWF-US robin.naidoo@wwfus.org

Outline

I. What are conservation costs?

II. How are conservation costs assessed?

III. How are conservation plans improved by including costs?

Page 4: The relevance of economic costs to conservation planning Robin Naidoo WWF-US robin.naidoo@wwfus.org

TREE 21: 681-687 (2006)

Page 5: The relevance of economic costs to conservation planning Robin Naidoo WWF-US robin.naidoo@wwfus.org

I. What are conservation costs?

• Acquisition costs

• Management costs

• Transaction costs

• Damage costs

• Opportunity costs

Page 6: The relevance of economic costs to conservation planning Robin Naidoo WWF-US robin.naidoo@wwfus.org

Focus on monetary costs

$ $ $

Page 7: The relevance of economic costs to conservation planning Robin Naidoo WWF-US robin.naidoo@wwfus.org

• Non-monetary proxies:

I. What are conservation costs?

Add map of non-monetary proxies

WEIGHTEDNON-MONETARYCOST PROXY

Tres Positive

NeutralNegativeTres Negative

Positive

=

Page 8: The relevance of economic costs to conservation planning Robin Naidoo WWF-US robin.naidoo@wwfus.org

How are costs used?

• Cost-effective analysis:– Costs in $ terms, benefits

in original units; maximize benefits per $ of cost

• Cost-benefit analysis:– Map all $ costs and $

benefits of conservation, compare

Page 9: The relevance of economic costs to conservation planning Robin Naidoo WWF-US robin.naidoo@wwfus.org

II. Assessing conservation costs

• Examples of spatial distribution of acquisition costs, management costs, opportunity costs

• No examples of transaction costs or damage costs

Page 10: The relevance of economic costs to conservation planning Robin Naidoo WWF-US robin.naidoo@wwfus.org

Acquisition costs

• United States: county-level data on agricultural land values

Page 11: The relevance of economic costs to conservation planning Robin Naidoo WWF-US robin.naidoo@wwfus.org

Acquisition costs

• Denmark: county-level data on agricultural land values

Strange et al. Biol. Conserv. 2007

Page 12: The relevance of economic costs to conservation planning Robin Naidoo WWF-US robin.naidoo@wwfus.org

Acquisition costs

• South Africa: modelled farm-level sale prices

Osano et al. Unpublished data

Page 13: The relevance of economic costs to conservation planning Robin Naidoo WWF-US robin.naidoo@wwfus.org

Acquisition costs

• Bahia, Brazil: modelled farm-level sale prices

Chomitz et al. Env. Dev. Econ. (2005)

Page 14: The relevance of economic costs to conservation planning Robin Naidoo WWF-US robin.naidoo@wwfus.org

Management costs

• Global surveys of protected area managers (terrestrial & marine)

• Modelled cost of Pa management based on GNP, PPP, and PA area

A. Balmford and colleagues, Proc. Nat. Acad. Sci. 2003,2005

Page 15: The relevance of economic costs to conservation planning Robin Naidoo WWF-US robin.naidoo@wwfus.org

Management costs• Used in a variety of conservation planning

applications, eg. Africa-wide

Moore et al. Biol. Cons. (2004)

Page 16: The relevance of economic costs to conservation planning Robin Naidoo WWF-US robin.naidoo@wwfus.org

Opportunity costs• Global: Opp. costs based on returns to

agriculture (crops and livestock)

Naidoo & Iwamura Biol. Cons. (in press)

Page 17: The relevance of economic costs to conservation planning Robin Naidoo WWF-US robin.naidoo@wwfus.org

Opportunity costs• Mbaracayu, Paraguay: for forests, based on

agricultural net rents integrated with conversion probabilities

U.S. dollarsU.S. dollarsU.S. dollars

Naidoo & Adamowicz Cons. Biol. (2006)

Page 18: The relevance of economic costs to conservation planning Robin Naidoo WWF-US robin.naidoo@wwfus.org

Opportunity costs

• Marine examples:– Foregone sales value

of fish and shellfish off Welsh coast (Richardson et al. Cons. Biol. 2006)

– Foregone revenue from harvest of rock lobster in South Australia (Stewart and Possingham Env. Model. Ass. 2005)

Page 19: The relevance of economic costs to conservation planning Robin Naidoo WWF-US robin.naidoo@wwfus.org

III. Including costs in planning

• General result that including spatial distribution of costs up-front in conservation planning can greatly increase efficiency of resulting plans

Page 20: The relevance of economic costs to conservation planning Robin Naidoo WWF-US robin.naidoo@wwfus.org

III. Including costs in planning

• General result that including spatial distribution of costs up-front in conservation planning can greatly increase efficiency of resulting plans

Page 21: The relevance of economic costs to conservation planning Robin Naidoo WWF-US robin.naidoo@wwfus.org

Costs in planning• Global: Plans that consider costs represent endemic species at 10 to

33 % of the opportunity cost of plans that do not (ecoregion-level)

0

20

40

60

80

100

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

% E

nd

emic

sp

p.

Cost-efficient

Cost minimization

Endemics-only

Hotspots

Global 200

ABCa

b

Naidoo & Iwamura Biol. Cons. (in press)

Page 22: The relevance of economic costs to conservation planning Robin Naidoo WWF-US robin.naidoo@wwfus.org

• Continental: Plans that consider costs represent 2/3rds more vertebrate species for the same opportunity cost compared to plans that do not (ecoregion-level) in Africa

Costs in planning

Moore et al. Biol. Cons. (2004)

Page 23: The relevance of economic costs to conservation planning Robin Naidoo WWF-US robin.naidoo@wwfus.org

• Sub-national: Plans that consider costs represent the same # of vertebrate species at roughly 10% of the opportunity costs of plans that do not in Oregon, USA

Costs in planning

Polasky et al. Land Econ. (2001)

Page 24: The relevance of economic costs to conservation planning Robin Naidoo WWF-US robin.naidoo@wwfus.org

• Landscape: Plans that consider costs have provide environmental benefits for 16-67% of total cost compared to plans that focus only on benefits (New York state, USA)

Costs in planning

Ferraro J. Pol. Analy. Man. (2003)

Page 25: The relevance of economic costs to conservation planning Robin Naidoo WWF-US robin.naidoo@wwfus.org

$11,384,552= remaining forests

Val

ue

(U.S

. $)

cost benefit

Naidoo & RickettsPLoS 2006

Page 26: The relevance of economic costs to conservation planning Robin Naidoo WWF-US robin.naidoo@wwfus.org

$11,384,552

$4,670,904

Val

ue

(U.S

. $)

cost benefit

= wild meat > land value + timber

Naidoo & RickettsPLoS 2006

Page 27: The relevance of economic costs to conservation planning Robin Naidoo WWF-US robin.naidoo@wwfus.org

$11,384,552

Val

ue

(U.S

. $)

cost benefit

= wild meat + timber > land value + pharm.

$8,806,601Naidoo & RickettsPLoS 2006

Page 28: The relevance of economic costs to conservation planning Robin Naidoo WWF-US robin.naidoo@wwfus.org

$11,384,552

Val

ue

(U.S

. $)

cost benefit

= wild meat + timber > land value + pharm. + existence

$13,506,473

Naidoo & RickettsPLoS 2006

Page 29: The relevance of economic costs to conservation planning Robin Naidoo WWF-US robin.naidoo@wwfus.org

Val

ue

(U.S

. $)

cost benefit

= wild meat + timber + pharm. > land value + existence + carbon (5$/T)

$11,384,552

$207,143,557

Naidoo & RickettsPLoS 2006

Page 30: The relevance of economic costs to conservation planning Robin Naidoo WWF-US robin.naidoo@wwfus.org

IV. Conclusions

• Just as biodiversity is unevenly distributed in space, so are costs

• Plans that consider spatial distr. of costs at the outset deliver more biodiversity for less cost

Page 31: The relevance of economic costs to conservation planning Robin Naidoo WWF-US robin.naidoo@wwfus.org

Questions?

Email: [email protected]