Economics

Climate Change: Information on Potential Economic Effects Could Help Guide Federal Efforts to Reduce Fiscal Exposure

Anon. Climate Change: Information on Potential Economic Effects Could Help Guide Federal Efforts to Reduce Fiscal Exposure. Washington, D.C.: United States Government Accountability Office; 2017. Available from: http://www.gao.gov/products/GAO-17-720?wpisrc=nl_energy202&wpmm=1
Freely available?: 
Yes
Summary available?: 
Yes
Type: Report

Over the last decade, extreme weather and fire events have cost the federal government over $350 billion, according to the Office of Management and Budget. These costs will likely rise as the climate changes, according to the U.S. Global Change Research Program. In February 2013, GAO included Limiting the Federal Government’s Fiscal Exposure by Better Managing Climate Change Risks on its High-Risk List.

GAO was asked to review the potential economic effects of climate change and risks to the federal government. This report examines (1) methods used to estimate the potential economic effects of climate change in the United States, (2) what is known about these effects, and (3) the extent to which information about these effects could inform efforts to manage climate risks across the federal government. GAO reviewed 2 national-scale studies available and 28 other studies; interviewed 26 experts knowledgeable about the strengths and limitations of the studies; compared federal efforts to manage climate risks with leading practices for risk management and economic analysis; and obtained expert views. 

Long-term Economic Opportunities and Challenges for Pacific Island Countries

Anon. Long-term Economic Opportunities and Challenges for Pacific Island Countries. Washington, D.C.: The World Bank; 2017.
Freely available?: 
Yes
Summary available?: 
No
Type: Report

The increasing economic power of East-Asian nations, new technologies, and demographic change in the Pacific Rim countries bring new opportunities for Pacific Islands Countries (PICs). The 21st century is often referred to as the “Pacific Century,” reflecting the rising economic and political importance of East Asian nations and trans-Pacific relationships. This report argues that the PICs can truly make the Pacific Century their own, by taking advantage of new opportunities that are already on the horizon. These developments may help offset the challenges the PICs are facing to achieve sustained high growth, which include extreme remoteness, small size, geographic dispersion, and environmental fragility that limit the range of economic activities where the PICs can be competitive. Indeed, many PICs have seen only very limited increases in per capita incomes over the past 25 years.

Pacific Possible assesses whether fully exploiting new economic opportunities and dealing effectively with major threats could lead to a significant acceleration of economic growth and improved standards of living over the next 25 years. Pacific Possible examines specific opportunities and risks for the PICs in seven selected areas. These include opportunities for increased incomes (tourism, knowledge economy, fisheries, deep sea mining, and labor mobility) as well as risks (climate change and disaster risks, noncommunicable diseases - NCDs) that, if not managed well, could undermine development gains. While Pacific Possible focuses on those economic opportunities that have the greatest potential to drive faster economic growth in the future, it is important to note that other economic activities such as agriculture, coastal fisheries and so forth will remain important sources of livelihoods for much of the population of the PICs and require continued attention by policy makers.

For each of the transformational opportunities, Pacific Possible develops an “opportunity scenario” that considers external developments (such as demographic developments or technological changes) as well as policy decisions that drive the opportunity. The “opportunity scenario” typically presents an ambitious, although realistic, outlook on what is possible. For each of the opportunities, we then estimate the achievable impact on per capita incomes, employment, and government revenue. Comparing this to “business-as-usual” projections, that typically re ect historical trends, gives us the additional income, employment, and government revenue that could be achieved if opportunities are fully exploited and adequate policy decisions taken and implemented.

The report covers 11 World Bank member countries in the Pacific (PIC11-Federated States of Micronesia, Fiji, Kiribati, the Marshall Islands, Palau, Papua New Guinea, Samoa, the Solomon Islands, Tonga, Tuvalu, and Vanuatu). Opportunities and risks discussed best describe the smaller PICs but are also valid for larger countries (Fiji, Papua New Guinea), although in these countries there are many more economic opportunities (for example, Lique ed Natural Gas in Papua New Guinea or niche manufacturing in Fiji) which are beyond the scope of Pacific Possible. 

Blue growth and ecosystem services

Mulazzani L, Malorgio G. Blue growth and ecosystem services. Marine Policy [Internet]. 2017 ;85:17 - 24. Available from: http://www.sciencedirect.com/science/article/pii/S0308597X17301021
Freely available?: 
No
Summary available?: 
No
Approximate cost to purchase or rent this item from the publisher: 
US $35.95
Type: Journal Article

The recent years have witnessed a rise in interest in the ocean economy. To cover a more sustainable dimension, terms such as ‘blue economy’ and ‘blue growth’ have been coined, and are increasingly used in international contexts and academic literature. However, there are no generally accepted definitions of these ‘blue’ concepts. In particular, it is not clear what connotation of sustainability and what role of natural environment is linked to these terms. The objective of this study is to retrace the meaning of the concepts of blue economy and blue growth and include them in a coherent environmental accounting framework. Starting from the System of Environmental-Economic Accounting of the United Nations, a set of assumptions is proposed to link blue economy/growth and ecosystem services, including the creation of an adjusted measure of value added, while considering the depletion and degradation of the environment and the value of non-market benefits provided by the ecosystem. Finally, an example of this approach in the case of the Mediterranean Sea is presented.

Restoring and Protecting the world's large marine ecosystems: An engine for job creation and sustainable economic development

Hudson A. Restoring and Protecting the world's large marine ecosystems: An engine for job creation and sustainable economic development. Environmental Development [Internet]. 2017 ;22:150 - 155. Available from: http://www.sciencedirect.com/science/article/pii/S2211464516302299
Freely available?: 
No
Summary available?: 
No
Approximate cost to purchase or rent this item from the publisher: 
US $31.50
Type: Journal Article

Some of the most significant threats to the sustainability of the world's 66 Large Marine Ecosystems (LME) – invasive species, coastal hypoxia, overfishing, marine debris and ocean acidification – are due to a combination of market and/or policy failures which cause these environmental externalities. A concerted global effort to remove these barriers would not only lead to dramatic improvements in ocean health and preservation of trillions of dollars in ocean-related goods and services and hundreds of millions of existing jobs, but also catalyze transformation across a range of ocean using and affecting sectors that would create millions of new, and in many cases, well paying, jobs for people across both the developed and developing world.

Follow that fish: Uncovering the hidden blue economy in coral reef fisheries

Grafeld S, Oleson KLL, Teneva L, Kittinger JN. Follow that fish: Uncovering the hidden blue economy in coral reef fisheries Patterson HM. PLOS ONE [Internet]. 2017 ;12(8):e0182104. Available from: http://journals.plos.org/plosone/article?id=10.1371/journal.pone.0182104
Freely available?: 
Yes
Summary available?: 
No
Type: Journal Article

Despite their importance for human well-being, nearshore fisheries are often data poor, undervalued, and underappreciated in policy and development programs. We assess the value chain for nearshore Hawaiian coral reef fisheries, mapping post-catch distribution and disposition, and quantifying associated monetary, food security, and cultural values. We estimate that the total annual value of the nearshore fishery in Hawaiʻi is $10.3-$16.4 million, composed of non-commercial ($7.2-$12.9 million) and commercial ($2.97 million licensed + $148,500-$445,500 unlicensed) catch. Hawaii’s nearshore fisheries provide >7 million meals annually, with most (>5 million) from the non-commercial sector. Over a third (36%) of meals were planktivores, 26% piscivores, 21% primary consumers, and 18% secondary consumers. Only 62% of licensed commercial catch is accounted for in purchase reports, leaving 38% of landings unreported in sales. Value chains are complex, with major buyers for the commercial fishery including grocery stores (66%), retailers (19%), wholesalers (14%), and restaurants (<1%), who also trade and sell amongst themselves. The bulk of total nearshore catch (72–74%) follows a short value chain, with non-commercial fishers keeping catch for household consumption or community sharing. A small amount (~37,000kg) of reef fish—the equivalent of 1.8% of local catch—is imported annually into Hawaiʻi, 23,000kg of which arrives as passenger luggage on commercial flights from Micronesia. Evidence of exports to the US mainland exists, but is unquantifiable given existing data. Hawaiian nearshore fisheries support fundamental cultural values including subsistence, activity, traditional knowledge, and social cohesion. These small-scale coral reef fisheries provide large-scale benefits to the economy, food security, and cultural practices of Hawaiʻi, underscoring the need for sustainable management. This research highlights the value of information on the value chain for small-scale production systems, making the hidden economy of these fisheries visible and illuminating a range of conservation interventions applicable to Hawaiʻi and beyond.

Natural capital accounting in marine protected areas: The case of the Islands of Ventotene and S. Stefano (Central Italy)

Franzese PPaolo, Buonocore E, Donnarumma L, Russo GF. Natural capital accounting in marine protected areas: The case of the Islands of Ventotene and S. Stefano (Central Italy). Ecological Modelling [Internet]. 2017 ;360:290 - 299. Available from: http://www.sciencedirect.com/science/article/pii/S030438001730248X
Freely available?: 
No
Summary available?: 
No
Approximate cost to purchase or rent this item from the publisher: 
US $35.95
Type: Journal Article

Marine ecosystems are exposed to significant anthropogenic pressure mainly due to the exploitation of biotic and abiotic marine resources. Marine protected areas (MPAs) are important tools to achieve local and global marine conservation targets. Marine ecosystems generate goods and services vital for human well-being. Their value can be explored not only from an economic viewpoint based on market and human preferences, but also using a biophysical perspective based on the accounting of environmental costs sustained for the generation of natural capital stocks and ecosystem services flows.

In this study, the value of natural capital in the MPA “the Islands of Ventotene and S. Stefano” (Central Italy) was assessed applying a biophysical and trophodynamic environmental accounting model based on emergy accounting. The value of natural capital was estimated for the main habitats of the investigated MPA in terms of the work done by the biosphere for its generation and maintenance. Both the autotrophic and heterotrophic natural capital of the MPA was evaluated. The highest value of emergy density of 4.26∙1011 sej m−2 was shown by the habitat “Posidonia oceanica seagrass bed” when investigating the autotrophic natural capital. The sciaphilic hard bottom habitat (coralligenous) showed the highest value of emergy density of 2.76∙1012 sej m−2when investigating the heterotrophic natural capital. The high emergy cost of coralligenous confirmed the importance of this habitat that represents one of the most important hot spot of species diversity in the Mediterranean Sea. The total emergy value of natural capital of the MPA was converted to monetary units by using the emergy-to-money ratio for Italy, resulting in 8.26 M€. Finally, a GIS tool was used to show the spatial distribution of natural capital values in relation to different habitats. The outcomes of this study highlighted the usefulness of the applied biophysical and trophodynamic environmental accounting model to explore the ecological value of natural capital in marine ecosystems while supporting local managers and policy makers for the sustainable development of MPAs.

Financing Marine Protected Areas Through Visitor Fees: Insights from Tourists Willingness to Pay in Chile

Gelcich S, Amar F, Valdebenito A, Castilla JCarlos, Fernandez M, Godoy C, Biggs D. Financing Marine Protected Areas Through Visitor Fees: Insights from Tourists Willingness to Pay in Chile. Ambio [Internet]. 2013 ;42(8):975 - 984. Available from: https://link.springer.com/article/10.1007%2Fs13280-013-0453-z
Freely available?: 
No
Summary available?: 
No
Approximate cost to purchase or rent this item from the publisher: 
US $39.95
Type: Journal Article

Tourism is a financing mechanism considered by many donor-funded marine conservation initiatives. Here we assess the potential role of visitor entry fees, in generating the necessary revenue to manage a marine protected area (MPA), established through a Global Environmental Facility Grant, in a temperate region of Chile. We assess tourists’ willingness to pay (WTP) for an entry fee associated to management and protection of the MPA. Results show 97 % of respondents were willing to pay an entrance fee. WTP predictors included the type of tourist, tourists’ sensitivity to crowding, education, and understanding of ecological benefits of the MPA. Nature-based tourists state median WTP values of US$ 4.38 and Sun-sea-sand tourists US$ 3.77. Overall, entry fees could account for 10–13 % of MPA running costs. In Chile, where funding for conservation runs among the weakest in the world, visitor entry fees are no panacea in the short term and other mechanisms, including direct state/government support, should be considered.

Financing Marine Conservation: A Menu of Options

Spergal B, Moye M. Financing Marine Conservation: A Menu of Options. Washington, D.C.: WWF Center for Conservation Finance; 2004.
Freely available?: 
Yes
Summary available?: 
No
Type: Report

his guide describes over 30 mechanisms for financing the conservation of marine biodiversity, both within and outside of MP As. Its main purpose is to familiarize conservation professionals i.e., the managers and staff of government conservation agencies, international donors, and nongovernmental organizations (NGOs)-with a menu of options for financing the conservation of marine and coastal biodiversity. A number of economic incentive mechanisms for marine conservation (as contrasted with revenue-raising mechanisms) are also presented in section 5 (on Real Estate and Development Rights) and section 6 (on Fishing Industry Revenues).

Each section provides a description of the financing mechanism and examples showing how the mechanism has been used to finance marine conservation. In some cases, even though a mechanism may have only been used to finance terrestrial conservation, it has been included in this guide because of its potential to also serve as a new source of funding for marine conservation. This guide is not intended to provide detailed instructions on how to establish and implement each of the different conservation financing mechanisms. Instead references are provided at the end of each section for sources of additional information about each of the mechanisms described. Citations to specific references are also included in the text in parentheses.

Sustainable Financing of Protected Areas: A Global Review of Challenges and Options

Emerton L, Bishop J, Thomas L. Sustainable Financing of Protected Areas: A Global Review of Challenges and Options. Gland, Switzerland: IUCN; 2006 p. 97 pp. Available from: https://www.iucn.org/content/sustainable-financing-protected-areas
Freely available?: 
Yes
Summary available?: 
No
Type: Report

Over the past two years, discussions on Protected Area (PA) finance have formed a key agenda item during global deliberations on biodiversity conservation. Both the Vth IUCN World Parks Congress (Durban, September 2003) and the seventh Meeting of the Conference of the Parties (COP) to the Convention on Biological Diversity (Kuala Lumpur, February 2004) observed that insufficient investment is being made in biodiversity conservation in general and protected areas in particular. Both meetings called for innovative approaches to generate the additional funding required to ensure that biodiversity of global, national and local significance is conserved. A recent international meeting on biodiversity science and governance, hosted by UNESCO and the government of France (Paris, January 2005), likewise identified finance as one of several critical issues to be addressed if the world is to meet the CBD/WSSD 2010 Biodiversity Target. A particular concern in all of these processes has been the level and types of funding available for PAs, which lie at the core of global efforts to conserve biodiversity.

Economic value of ecosystem services, minerals and oil in a melting Arctic: A preliminary assessment

O'Garra T. Economic value of ecosystem services, minerals and oil in a melting Arctic: A preliminary assessment. Ecosystem Services [Internet]. 2017 ;24:180 - 186. Available from: http://www.sciencedirect.com/science/article/pii/S2212041616301309?np=y&npKey=c14d454b9d020d537e12509dc0f48ab95f638e962cc2578e46d95e4ea16a97d7
Freely available?: 
No
Summary available?: 
No
Approximate cost to purchase or rent this item from the publisher: 
US $31.50
Type: Journal Article

The Arctic region is composed of unique marine and terrestrial ecosystems that provide a range of services to local and global populations. However, Arctic sea-ice is melting at an unprecedented rate, threatening many of these ecosystems and the services they provide. This short communication provides a preliminary assessment of the quantity, distribution and economic value of key ecosystem services as well as geological resources such as oil and minerals provided by Arctic ecosystems to beneficiaries in the Arctic region and globally. Using biophysical and economic data from existing studies, preliminary estimates indicate that the Arctic currently provides about $281 billion per year (in 2016 US$) in terms of food, mineral extraction, oil production, tourism, hunting, existence values and climate regulation. However, given predictions of ice-free summers by 2037, many of the ecosystem services may be lost. We hope that this communication stimulates discussion among policy-makers regarding the value of ecosystem services and such geological resources as minerals and oil provided by the Arctic region, and the potential ecosystem losses resulting from Arctic melt, so as to motivate decisions vis a vis climate change mitigation before Arctic ice disappears completely.

Pages

Subscribe to RSS - Economics