Newsletters - full list
December 2011 - Scoping study on Valuing Ecosystem Services of Forests across Great Britain
eftec has completed a 'Scoping study on Valuing Ecosystem Services of Forests across Great Britain' for Forestry Commission the objective of which was to review existing evidence on the value of ecosystem services provided by forests in England, Scotland and Wales. This includes: (i) reviewing estimated values for the economic, social and environmental benefits produced by Britain’s forests from existing literature and to categorise these values according to the ecosystem services framework; (ii) identifying gaps in the existing evidence base and recommending future research priorities to demonstrate the ecosystem service value of woodlands across the UK; (iii) highlight key challenges and uncertainties that could arise in the valuation of ecosystem services and suggest how these could be addressed; and (iv) considering practical market opportunities for forest ecosystem services and their potential scale, using case studies where possible. The report will be published by the Forestry Commission in early New Year.
October 2011 - Costing Biodiversity Offsets in England
Applying biodiversity offsets in England, at least initially on a voluntary basis, is one of the key policy proposals in Defra’s Natural Environment White Paper published in June and a lot is already happening on this.
The cost of such offsets is an important factor to consider and was the subject of a technical report by GHK and eftec. The report makes assumptions about how the proposed system would operate in relation to land use planning and estimates the potential scale of offsetting that could take place. The financial implications of this estimate are assessed based on the unit costs developed to assess the implications of the UK BAP.
The report and all others that contributed to the offsets discussion in the White Paper can be downloaded from: http://www.defra.gov.uk/environment/natural/biodiversity/uk/offsetting/
Revealed Preference Methods are likely to be Used More by Water Companies in England and Wales
Ofwat (the Water Services Regulation Authority) has published two reports prepared by eftec in association with Cascade Consulting on the role of revealed customer behaviour in providing evidence to support water companies’ business plans. The reports cover both conventional economic methods and more general customer behaviours, such as complaints, that can be observed in relation to water, wastewater and environmental services.
There are a number of opportunities for using the information revealed by actual customer behaviour. The reports can be downloaded from: http://www.ofwat.gov.uk/future/monopolies/fpl/prs_web110531reveal
April 2011 - Norwegian Use of Whales: Past, Present and Future Trends
eftec have recently completed a study on the economics of whaling in Norway for the World Society for the Protection of Animals (WSPA) and two of its Norwegian partners: Dyrebeskyttelsen Norge and NOAH – for Dyrs Rettigheter. The study looked at existing evidence from Norway’s whaling industry as well as public opinion on whale hunting and views on eating whale meat. The conclusion is that that while the Norwegian’s support for whaling and demand for whale meat are waning, the Norwegian whaling industry is kept afloat by financial support from the government that is greater than the revenue from whaling. NOAH – for Dyrs Rettigheter and Dyresbeskyttelsen Norge handed a copy of eftec’s report to the leader of the Trade and Industry Committee in the Norwegian parliament on Tuesday, 5th April.
For more information, please see WSPA's website: http://www.wspa.org.uk/latestnews/2011/New_economic_study_Norwegian_whaling_belongs_in_past.aspx
or a related article in the Ecologist: http://www.theecologist.org/blogs_and_comments/commentators/other_comments/834271/hundreds_of_whales_face_slaughter_as_norways_killing_season_resumes.html
December 2010 - Economic Value Evidence for Implementing the Water Framework Directive across the EU
This study, commissioned by the European Commission, DG Environment, reviewed recent developments in economic valuation to help inform future implementation of the Directive. Recommendations from the study were presented at the Member State Common Implementation Strategy ‘Workshop on WFD economics: taking stock and looking’ in Liege, Brussels in October. They focus on the need for better multi-disciplinary input to valuation studies and include developments in valuation methods, as well as the use of ecosystem services approach, GIS, scientific data (including monitoring data) and value transfer.
The report can be downloaded directly here or from the WFD CIRCA website – click here
Review of Cost Benefit Analysis and Benefit Valuation as Used in the Price Review 2009 of the Water Industry
UK Water Industry Research (UKWIR) has published the outputs from this study which was undertaken by eftec, ICS Consulting and Cascade Consulting and examined the use of CBA and benefits valuation in investment planning for the 2009 water industry Price Review (PR09). The findings from the research address four key questions:
- What happened at PR09;
- What can be learnt from the PR09 experience;
- What is the future role for CBA in business planning in the water industry; and
- How can the future role for CBA be developed?
The final report is also accompanied by a ‘Practitioners Guide’ to assist water companies and other stakeholders in the use of benefit valuation and CBA for future price setting exercises.
The report can be purchased from UKWIR – click here
Valuing the Benefits of Regeneration
The Department for Communities and Local Government (CLG) has published outputs from a major study examining the benefits of regeneration and economic development. The work was led by Cambridge Economic Associates with input from eftec, CRESR (Sheffield Hallam University) and Anne Green at the University of Warwick. It provides an analytical framework that will underpin a programme of research on the value of the benefits from regeneration and how they compare with the relevant costs. The study reviewed the available evidence base, identified potential challenges and provided recommendations on how these could be overcome.
eftec’s contribution to work included the design and development of a stated preference survey for valuing improvements in local environmental amenity arising from regeneration activities, including open space (e.g. urban parks, country parks), community space (allotments and community gardens), public realm (pedestrian areas, landscaping, public art), green routes (including cycle paths), street cleanliness, and restoration of derelict land and properties.
The final report and supporting documents can be downloaded from the CLG website – click here
Details of the stated preference survey design are contained in the Technical Report (‘Environmental Quality and Amenity’).
September 2010 - Valuing Water and the Environment in Practice
This conference explored the emerging lessons from the recent water planning cycle (Periodic Review 2009 & Water Framework Directive) on the use of economic decision support tools and to consider this in the light of the emerging practice from projects using ecosystem services. Its aim was to identify and clarify important issues in order to inform the development of these tools for future project and planning appraisal.
Both Allan Provins and Ece Ozdemiroglu of eftec spoke at the conference. They shared their experiences with regards to the use of ecosystem services, economic valuation and cost benefit analysis in the water sector in the UK, renewable energy and forestry. They also contributed to the identification of lessons from practical application.
The seminar was organised for CIWEM by CMS.
For details and registration please visit: http://www.coastms.co.uk/conferences/437
Socio-Economics in the Marine Environment
This meeting explored how social and economic information is being used in practice to reconcile environmental programmes and to understand the range of issues that this is raising and highlight possible solutions; the meeting focused on practical delivery issues.
Ian Dickie of eftec spoke at the conference. He provided an introduction to the way socio-economic considerations were being routinely applied to marine policy and projects, outlining the purpose of and relationships between different tools, including: social analysis (and what this means), an ecosystems services approach, cost-benefit analysis and impact assessments.
The seminar was organised for CIWEM by CMS.
For details please visit: http://www.coastms.co.uk/conferences/440
April 2010 - The use of Market-based Instruments for Biodiversity Protection – The case of Habitat Banking
The European Commission has recently published this study, led by eftec and IEEP, which examines the potential use of habitat banking in the EU. Habitat banking is similar to carbon trading whereby units of biodiversity credits are created and sold to compensate units of damage to biodiversity. The difference to carbon trading is that while for carbon, the unit of trade is uniform (a tonne of carbon), for biodiversity this unit is location, habitat, species and damage specific.
Again similar to carbon trading, regulatory incentives are required for habitat banking to be taken up by potential buyers and sellers. At present such incentives are not sufficient to support a viable market because: a) where regulation exists (e.g. under the Habitats Directive), requirements for compensation are very specific; and b) regulation does not require compensation for more widespread biodiversity which is lost at a high rate and can easily be traded.
While new policy, science and economic research will be required before habitat banking can be implemented, it remains an attractive policy instrument given the new 2020 target to halt biodiversity loss which cries out for new instruments following the failure to deliver the 2010 target.
Our study compares habitat banking to other policy instruments, gives examples of it in practice from around the world and describes how the system may work.
The study reports are available on the European Commission website: http://ec.europa.eu/environment/enveco/studies.htm#2
Flood and Coastal Erosion Risk Management: Economic Valuation of Environmental Effects
The Environment Agency for England and Wales has published the recently revised Economic Valuation of Environmental Effects Handbook. Originally completed by eftec in 2007 and updated in 2010, the Handbook supports the Agency’s new Flood and Coastal Erosion Risk Management Appraisal Guidance (FCERM-AG). Its purpose is to help appraisal practitioners estimate the value of environmental costs and benefits of FCERM schemes. The Handbook sets out a value (benefits) transfer methodology that draws on evidence from recent studies and incorporates an ecosystem services framework.
The Handbook is available from the Environment Agency website: http://www.environment-agency.gov.uk/research/planning/116707.aspx
Or can be directly downloaded via this link: http://publications.environment-agency.gov.uk/pdf/GEHO0310BSFH-e-e.pdf
The Value of the Forestry Commission Estate
The Forestry Commission has recently published the outputs from this eftec project which analyses the economic contribution of the Estate managed by the Forestry Commission in England and identifies ways of increasing this contribution. This information feeds into a broader analysis that evaluates the long-term role for the public forest estate.
The study develops an economic valuation framework incorporating an ecosystem services approach, and applying this to analyse values for current, past and future management scenarios, and site-level case studies.
The guidelines and documents for download can be accessed here: http://www.forestry.gov.uk/forestry/infd-7yxk2h#economic (see Economic Research).
February 2010 - Valuing Environmental Impacts: Practical Guidelines for the Use of Value Transfer Policy and Project Appraisal
Defra has recently published the outputs from this eftec project which provide practical guidelines for valuing environmental impacts via ‘value transfer’. The guidelines augment Defra’s An introductory guide to valuing ecosystem services , which seeks to ensure that the true value of ecosystems and the services they provide are taken into account in policy decision-making. Value transfer (VT) utilises existing economic valuation evidence in a new appraisal context. Its advantages are that it is typically quicker and lower cost compared to primary valuation studies. The guidelines are intended to assist economists, policy analysts and scientists in all aspects of undertaking value transfer including determining the level of detail in analysis and methods, selecting the most suitable economic value evidence from available studies and presenting results for decision-making.
The guidelines and documents for download can be accessed here: http://www.defra.gov.uk/environment/policy/natural-environ/using/valuation/index.htm.
Upland Ecosystem Services: Valuation Methods
Natural England has recently published the final report from this research project, in which the total economic value and ecosystem services associated with different land use scenarios due to upland management interventions and policies at a wide range of scales are presented. The study applies a value transfer approach to six case studies of upland management. The results offer interesting conclusions regarding the economic value of ecosystem services under different management approaches and offer recommendations about where and how to apply economic valuation techniques for uplands ecosystem services, and point to where further research is most needed.
The final report is available for download from: http://naturalengland.etraderstores.com/NaturalEnglandShop/NECR029
July 2009 - Investigating the Economics of Whaling
Following the renewed tension over whale hunting in Japan, and preceding the annual meeting of the International Whaling Commission, eftec was approached by WWF and the Whale and Dolphin Conservation Society (WSDC) in late April to investigate whether commercial whaling is economically viable in its own right or it has only been made viable due to government subsidies.
The research focused on Japan and Norway and included analysis of costs associated with whaling; market prices and demand for whale products; conflicts of the whale hunting trade with whale watching; and direct and indirect government subsidies of the whale trade. The data suggest that the costs of whale hunting are higher than the economic benefits.
To download a summary of our research click here. For an electronic copy of the full technical report please email us.
April 2009 - Valuing Transport’s Impact on the Natural Landscape
The Department for Transport has published the Phase 2 report of this research project aimed at estimating the monetary value of landscape impacts from proposed transport schemes.
The Phase 2 report and supporting annexes, along with the previously published Phase 1 report, are available for download from: http://www.dft.gov.uk/pgr/economics/rdg/landscape/
The research is being led by eftec in conjunction with Accent, ADAS and TRL. Building on the findings from Phase 1, the objective of Phase 2 was the development of a stated preference (SP) survey instrument. This includes establishing a formal framework for assessing the transferability of monetary values across different landscape and transport scheme types.
The report presents the results of a series of focus groups and cognitive interviews and a pilot survey where a split sample approach was used to trial a number of scenarios featuring different types of transport scheme in different locations in England. Findings indicate that ‘landscape values’ vary with transport scheme type, socio-economic characteristics, landscape perception and the individual’s interaction with affected site in terms of familiarity, distance and frequency of use.
The Phase 2 report concludes with recommendations for final phase of the research which comprises of the main survey and analysis stages of the study.
January 2009 - Marine Impact Assessments and Analysis
While the UK has a well-established network of terrestrial habitat designations, our marine environment, arguably our richest environmental asset, contains very few areas designated for the protection of biodiversity and ecosystems. This is now changing, with the application of the Birds and Habitats Directives to marine habitats, the presence of the Marine Bill in the Queens Speech in December 2008 and the implementation of the Marine Strategic Framework Directive. At the same time more attention is being paid to marine economics, with a special report in The Economist (3-9 Jan 2009) warning that “Man is assaulting the oceans. They will smite him if he does not take care”.
Marine impact assessments……Offshore:
eftec, has commenced work for the Joint Nature Conservation Committee (JNCC) to produce impact assessments (IAs) to accompany the intended designation of two Special Areas of Conservation (SACs) in UK offshore waters (beyond 12 nautical miles). The draft IAs will accompany JNCC’s public consultation on the sites in 2009 and will appear alongside the relevant consultation documents on the JNCC website in due course. IAs for marine protected areas are complicated by many factors such as the limited knowledge of marine ecosystems and the impact of current human activities on them, and uncertainty over future exploitation of marine resources such as energy and aggregates. To handle these uncertainties, eftec has applied the methodology for marine IAs that we developed for JNCC in relation to the first UK SACs, which were designated in 2008.
Marine impact assessments……Inshore:
eftec has also started work for Natural England on IAs for the UK’s first proposed marine inshore Special Protection Areas (SPAs) and SACs. Inshore sites are inevitably accessed by a wider range of marine interests, including local stakeholders as well as the larger interests who dominate activities at offshore sites. As a result eftec’s team, which includes ABPmer and other marine experts, will be undertaking a consultation process covering local and national issues relating to all the proposed sites. This will result in the further development of our IA approach for marine protected areas.
And more marine analysis:
eftec completed analysis of the Costs of Illegal, Unreported and Unregulated (IUU) Fishing in Europe for The Pew Charitable Trusts in November 2008. The study reviewed evidence on the rates of IUU fishing in European waters, and on the costs associated with it, developing a surplus production model applied at the level of key commercial groups in five Large Marine Ecosystems (LME), covering 46% of the value of European fishing. Using best estimates of actual IUU rates for different commercial groups in different areas, the study estimates the cost of IUU fishing in terms of lost catches from 2008 to 2020, lost end stock in 2020 and lost jobs in the fishing sector, by comparing the baseline case with a zero-IUU scenario. For more details of The Pew Charitable Trusts lobbying work click here.
eftec is also a partner to ABPmer working to prepare the Productive Seas Evidence Group (PSEG) feeder report for Charting Progress 2. This is the Government’s follow-up to its initial Charting Progress report on the state of the marine environment in the UK in 2005. The objective of the work is to identify and source economic data for industry sectors with a presence in the UK’s marine environment and undertake an assessment of the environmental costs of sectoral impacts.
eftec is working with ABPmer on a study for Defra into how and what socio-economic data should be taken into account in the planning of marine protected area (MPA) networks. The study will review international approaches to using socio-economic data in MPA planning, and organise an expert workshop early in the spring. It will inform the process for taking socio-economic data into account in developing potential networks of Marine Conservation Zones in the UK.
December 2008 - The Wallasea Project and Habitat Banking
We have completed an assessment of the benefits of a proposed RSPB project at Wallasea Island on the Roach and Crouch Estuary in Essex for the East of England Development Agency (EEDA). The proposals are for the largest managed realignment site in the UK (over 500 ha). It includes substantial landraising within the realignment area, to allow optimal intertidal habitat development and to minimise disruption to the tidal cycle and adjacent flood defences. The assessment applied the approach set out in the handbook for economic valuation of environmental effects of flood defence options developed by eftec for the Environment Agency. If you are interested in further details on the handbook, please email us.
Major habitat creation opportunities such as Wallasea are challenging projects in terms of planning, engineering, ecology and finances. One option to help fund these projects is for a proportion of the area created to be “sold” as compensatory habitat through habitat banking. While habitat compensation already operates in limited circumstances through the Habitats Directive, its appeal as a conservation policy instrument is increasing with requirements for compensation also from the Environmental Liability Directive.
October 2008 - Marine Impact Assessments
Our recently completed work for the Joint Nature Conservation Committee (JNCC) produced the first impact assessments (IAs) for seven marine Natura 2000 sites in the UK. Natura 2000 sites are those designated as Special Protection Areas (SPAs) or Special Areas of Conservation (SACs) under the European Wild Birds or Habitats Directives respectively.
The IAs are available here: www.jncc.gov.uk/marineconsult
We developed a methodology and framework for linking the application of the ecosystem services approach in the marine environment to the completion of IAs in accordance with Government guidance. Given the uncertainties about the exact management plans for the sites, analysis was based on two scenarios, representing the maximum and minimum likely extent of the measures that could be put in place to achieve the conservation objectives for a site.
The UK’s seas are arguably our richest biodiversity resource, so it is unsurprising that further potential Natura 2000 sites are being prepared for designation. In addition, new scientific information on the biodiversity value of areas of marine habitat is still emerging. There will doubtless be further developments in marine impact assessment approaches.
April 2008 - Demand for Cars and Their Attributes
Our recent study for the Department for Transport considers how changes in the cost of motoring affect demand in the market for new cars. The report is available here: http://www.dft.gov.uk/pgr/economics/rdg/cardemand/
The analysis, which was led by eftec associate Dr. Brett Day (University of East Anglia), estimates own and cross price elasticities for new cars models, informing on how different attributes of a vehicle (e.g. body style, engine and performance specifications, number of doors and seats, equipment, etc.), price and running cost influence households’ new car purchasing decisions.
The report sets out the data collection, model specification, estimation and analysis stages of the research. For illustrative purposes, the model is used to forecast how demand for new cars changes in response to changes in the fixed and variable costs of driving and to predict how those changes might impact on the CO2 emissions profile of the new car market.
Valuing Transport’s Impact on the Natural Landscape
The Department for Transport has recently published the Phase 1 report of this three phase research project. The report is available here: ttp://www.dft.gov.uk/pgr/economics/rdg/landscape/
The study aims to estimate transferable monetary values for the impacts individual transport schemes have on the natural landscape in England. The monetary values will be used to augment the New Approach to Transport Appraisal (NATA) methodology developed by the DfT.
The Phase 1 report details the initial stages of research including exploring the context for economic valuation and method selection and defining the basis of the good to be valued in terms of a typology of transport schemes and landscape types. The presently ongoing second phase of the project is testing the stated preference survey instrument. Phase 3, planned for later this year, will implement the stated preference questionnaire, analyse the data and set out the transfer model.
December 2008 - Ecosystem Services Guide
Defra has just published an ‘Introductory Guide to Valuing Ecosystem Services’ at http://archive.defra.gov.uk/environment/policy/natural-environ/documents/eco-valuing.pdf. The aim of this Guide is to ensure that the true value of ecosystems and the services provided are taken into account in policy decision-making. It builds on previous approaches to valuing the environment but takes a more systematic approach to the assessment of impacts.
The Guide includes one major case study, prepared by eftec for Defra. It originates from eftec’s work for the Environment Agency to develop a guide for valuing the environmental effects of flood risk management schemes. The case study involves the application of the guide, combining ecosystem services and economic valuation approaches, to the assessment of flood risk management options in Wareham.
Alongside the guide, Defra has also published the natural environment action plan: ‘Securing a healthy natural environment: an action plan for embedding an ecosystems approach’ at http://archive.defra.gov.uk/environment/policy/natural-environ/documents/eco-actionplan.pdf. The action plan sets a new strategic direction for government policy on the natural environment. Defra has identified 37 actions that will be delivered mainly over the next two years and which include many actions relating to valuation.
May 2006 - Valuing Our Natural Environment
Defra has just published ‘Valuing Our Natural Environment’, a report prepared by eftec in association with Environmental Futures Ltd, which is downloadable from: http://earthmind.net/rivers/docs/ukdefra-eftec-valuing-our-natural-environment.pdf
The report is a compendium of economic and non-economic (participatory / deliberative) valuation methods, decision-support methods and alternative measures of prosperity. The main report rehearses the rationale for gathering value evidence, summarises experience of working with such evidence, details some of the expressed requirements and problems of policy advisors, and finally provides recommendations. Annexes contain references, consultation with policy makers and valuation experts and detailed fiches of each valuation method covering the conceptual basis, objectives, conflicts and complementarities. The following methods are explored in the report:
| Economic valuation methods | Deliberative and participatory valuation methods |
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| Decision support measures | Alternative measures of prosperity |
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January 2006 - Economic Valuation of Environmental Impacts in the Severely Disadvantaged Areas
eftec has recently completed a study on the Economic Valuation of Environmental Impacts in the Severely Disadvantaged Areas for the Department for Environment, Food and Rural Affairs, in association with Professor Nick Hanley and other researchers from the University of Stirling. It is now available from the Defra website: http://archive.defra.gov.uk/evidence/economics/foodfarm/reports/documents/sda.pdf
The objectives of this study were to value the possible environmental and landscape impacts in Severely Disadvantaged Areas (SDAs) arising from the redesign of the Less Favoured Areas policy. SDAs are upland areas where farming is more difficult because of higher production and transportation costs, such as the Lake District and Exmoor. The study used a stated preference study to elicit the willingness to pay in seven English regions for five attributes associated with the landscape: heather moorland and bog, rough grassland, broadleaved and mixed woodland, field boundaries (dry stone walls and hedgerows) and cultural heritage. A choice experiment approach was used to estimate welfare changes within each region relating to three scenarios relating to possible different hill-farming subsidy regimes (net of a “business-as-usual” baseline). The study which provided the predictions on the environmental changes was prepared by Cumulus Consultants.
The results show that, on the whole, people are willing to contribute to improvements in Severely Disadvantaged Areas and upland attributes associated with them. However, there are large variations in the values individuals place on landscape features across different regions that are not possible to explain fully on the basis of socio-economic differences between populations. There is also evidence that respondents hold non-use values for SDAs which they do not visit themselves.
December 2005 - Olympic Games Impact Study – stated preference analysis
As part of the studies conducted for the Department for Culture, Media and Sport on the economic impacts of the London 2012 Summer Olympics, eftec undertook a stated preference survey in London, Manchester and Glasgow to elicit individuals’ willingness to pay for the intangible benefits of hosting the 2012 Olympic Games in London. You can receive an electronic copy of the report titled, Olympic Games Impact Study – stated preference analysis if you email us at This e-mail address is being protected from spambots. You need JavaScript enabled to view it
According to the survey, 79% of Londoners supported the bid (either “strongly support” or just “support”) while 81% of those outside London supported the bid. Attitudes towards the Olympic Games in general were also very positive.
The vast majority of respondents (72% in London and 78% in Manchester and Glasgow) thought that the intangible benefits such as uniting people/feel good factor/national pride; improving awareness of disability; motivating/inspiring children; legacy of sports facilities; environmental improvements; promoting healthy living; and (associated) cultural and social events were more important than or at least equally important as tangible benefits such as transport improvements, jobs and local investment.
Average willingness to pay for hosting the 2012 Games was found to be £22 per household per year in London (as an increase in their council tax) and £12 per household per year in both Manchester and Glasgow (as a voluntary contribution to a support fund). The time period for this payment was set at 10 years. While an ‘unspecified’ time period was also tested in London, the analysis showed that a 10 year time period can be applied to the whole sample. The responses were elicited net of intangible costs (where relevant) which included crowding; increased risk of petty theft; increased safety and security risks; local disruption during construction; transport delays; and excessive media coverage (of the Games).
September 2005 - Valuation of the Historic Environment
The recently completed report by eftec for English Heritage, the Heritage Lottery Fund, the Department for Culture, Media and Sport and the Department for Transport is now available online: Valuation of the Historic Environment: The scope for using results of valuation studies in the appraisal and assessment of heritage-related projects and programmes - http://www.english-heritage.org.uk/publications/valuation-historic-environment/valuation-historic-environment-exec-summary.pdf
The historic environment includes monuments, buildings, landscapes and so on. The report begins by defining of the concept of total economic value and discusses whether this concept is able to fully capture the values that people may ascribe to the historic environment. The report also contains a comprehensive and up-to-date review of the UK and international studies applying economic valuation techniques to the historic environment.
The potential for using these studies (through benefits or value transfer) in decision-making is illustrated with use of five case studies appraising investments in conservation and improvement. The report finds the current scope for value transfer in this context to be limited and makes recommendations for future research targeting key gaps in evidence.
While the number of economic valuation studies concerned with heritage assets is small in comparison to studies on the natural environment, their application is increasing. Therefore, we hope that you will find this report interesting in its coverage of the state-of-the-art conceptual discussions and literature as well as in its recommendations of how to use this information in decision-making now and in the future.
May 2005 - The Economic, Social and Ecological Value of Ecosystem Services: A Literature Review
If you are avid readers of the ENDS Environment Daily newsletter, you may already be aware that eftec’s report on the value of ecosystem services for the UK Department of Environment, Food and Rural Affairs (Defra) was published on the internet last week: The Economic, Social and Ecological Value of Ecosystem Services: A Literature Review - http://www.cbd.int/doc/case-studies/inc/cs-inc-uk6-en.pdf
The report was presented at the International Conference on Biodiversity in Paris in January of this year. It aims to provide policy-makers with a better understanding of the extent of human dependence on ecosystem services and the vulnerability of human welfare to ecosystem change. The dependence of the poor in developing countries on ecosystem services is specifically addressed.
The main report presents a 30 page summary, based on a longer version of the report found in Annex 2. Three ecosystem types are examined in a mainly developing country context: tropical forests, wetlands and agro ecosystems. A framework for analysis, integrating the disciplines of ecology and economics, is developed and applied throughout the report and to a case study presented in Annex 1. Examples and evidence from the literature are used to illustrate methods for estimating the value of ecosystem services and provide a snapshot of the state of knowledge in the field.
In the words of ENDS daily, this is a field enjoying increasing attention. Even the Economist newspaper gave the topic several pages recently. However, there is still a long way to go in convincing policy makers. Demonstrating the value of healthy ecosystems is an important first step. But, as the defra report points out, the solutions lie in the ability to design mechanisms for ‘capturing’ that value and correcting the well-known failures that lead to over-exploitation and ecosystem decline.
Work in this field requires interdisciplinary expertise, and this project benefited from collaboration with ecologists from Imperial College London and economists at the University of East Anglia and Oxford University. Enthusiasm for the work has led to a follow-on project for English Nature. In that project eftec, in collaboration with Just Ecology, is detailing the services of key UK ecosystems with a view to advise economists on the most appropriate methods for economic evaluation.
December 2004 - Economics of Sustained Marine Measurements and Valuation of the External Costs and Benefits to Health and the Environment of Waste Management Options
The first report is Economics of Sustained Marine Measurements prepared for Inter Agency Committee on Marine Science and Technology which sets out a methodology for estimating the economic value of the marine data in its various uses and applies the methodology to two case studies: Jason-2 altimetry satellite and Liverpool Bay coastal monitoring observatory. The hard copies of the full and colourful report can be obtained for free by sending an email to This e-mail address is being protected from spambots. You need JavaScript enabled to view it .
The second report is Valuation of the External Costs and Benefits to Health and the Environment of Waste Management Options for Defra to which we contributed the review of economic valuation literature on the environmental and health impacts associated with different waste management options. The report is available to download from http://archive.defra.gov.uk/environment/waste/statistics/documents/costbenefit-valuation.pdf
August 2004 - A Framework for Environmental Accounts for Agriculture
eftec recently completed with IEEP (The Institute for European Environmental Policy) a report on green accounting for the UK agricultural sector. The report: A Framework for Environmental Accounts for Agriculture is now available for download at http://archive.defra.gov.uk/evidence/economics/foodfarm/reports/envacc/documents/Eftec-execsumm.pdf
This project was commissioned by Defra, the Department of Agriculture and Rural Development (Northern Ireland), the Scottish Executive and the Welsh Assembly Government to develop a framework showing the impacts, positive and negative, of agriculture on the environment in monetary terms in the sectoral accounts.
The aims of the project were to develop a framework for valuing the impacts, both positive and negative, of agriculture on the environment. Existing data sources were identified for both the physical impacts of agriculture on the environment and the economic value of these impacts, both in terms of welfare gains and losses to society and reductions or gains in productivity to other sectors.
The report begins with a discussion of green accounting theory and the rationale for developing environmental accounts for agriculture. A framework consisting of environmental adjustments to the accounts is then laid out, including both negative and positive adjustments to income to the sector for impacts on air, water and the provision of land-based environmental services. The report then presents physical environmental impacts and the key data sources selected for use in the environmental accounting exercise. These data are then matched with economic data to allow estimation of monetary values for each of the accounting adjustments. Finally, the report provides an analysis of the gaps in both physical and economic data.
This project is an important first step in a long term development process of the Environmental Accounts for Agriculture, bringing together relevant information currently available, into an accounting framework and helping to identify areas for further investigation and analysis. It is anticipated that this project will enhance the evidence base on the environmental impact of agriculture to allow improved appraisal and evaluation of agri-enviromental policies, to assess the relative importance of environmental impacts and to better understand the tensions between the economic and environmental dimension of sustainability.
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