The value of biodiversity

Conservation of tropical biodiversity

1. Biodiversity: the main challenges
2. A rationale for biodiversity conservation
3. Lessons from island biogeography
4. The value of biodiversity
5. Small and other fragile populations
6. Overexploitation: a scrutiny of wildlife
trade
Biodiversity is a natural asset that
provides goods and services
Food
Medicine
Materials
Chemical products
Water & soil supply
Climate regulation
Science & technology
Sewage & garbage treatment
Biological control
Pollination
Recreation
Inspiration
Spiritual stimulation
Contemplation
Peace of mind
Religious experiences
It contributes to the
social, economic,
intellectual and spiritual
development of society.
The value of biodiversity
Concepts about the value of nature
Value of wildlife
For sport hunters
For tourists
Bioprospecting uncertain benefits
Ecotourism what is payed for?
Environmental services free water & free
air?
What sort of values?
Ethical values of nature
Environmental ethics
1. Every species has a right to exist.
2. The custody over nature is an agreement with God.
3. All species are interdependent.
4. We have obligations toward our neighbours.
5. We have obligations toward the next generations.
6. Respect for human life and diversity is compatible with
respect for biodiversity.
Economic values of nature
Environmental economics
No use ... No
value?
Economic value: some questions
What is the cost of producing water to a forest?
What is the cost of maintaining a forest as such
to its owner?
What is the cost of research to look for new,
sustainable uses of that forest or ecosystem?
How much shoud be payed to visit that
ecosystem?
What is the value of the scenic beauty to an
ecotourist?
Who should pay?
Who should receive the payment?
From Castro G. 1999
Economic values
Value of organisms in their natural state
Market value of organisms
Future value of organisms
Economic values
Direct values
Consumption use values:
products harvested and consumed
Production use values: revenue generated by
products from trade
E.g. 10 billion US$ / year from wildlife trade
Indirect values
Non-consumption values: Economic benefit derived
without harvesting or otherwise harming biodiversity
E.g. from environmental services, ecotourism, etc.

Fine for illegal wildlife trade
Market price
Ecological value of the species
Level of threat to the species
Costs of repairing the damage
First or multiple offender

Claudia Durana
Examples of economic values of
biodiversity
Value of wildlife
For sport hunters
For tourists
Bioprospecting uncertain benefits
Ecotourism what is payed for?
Environmental services free water & free
air?
Kenya NPs:
Yearly value
of a live lion
US$ 27.000,
elephant US$
610.000
(D. Western)
Extractive use: sport hunting
Shark watching
50% of tourists go diving.
Annual expenditure by
divers US $2.3 million
(indirect revenues not included)
Maldives (1992)
76,850 dives at 35
specific shark- watching
sites, at US$30 per dive
Shark watching
A single grey
reef shark at the
most popular dive
site was worth
about US $ 3,300
per year, year after
year (18 years
longevity).
The same shark
would have a one
time value of US $
32 if caught by a
local fisherman.
At least 100 x worth more alive than dead.
Shark species regularly encountered
by divers in the Maldives
English name Scientific name Maldivian name
Whitetip reef shark Triaenodon obesus Faana miyaru
Grey reef shark Carcharhinus
amblyrhynchos
Thila miyaru
Blacktip reef shark Carcharhinus
melanopterus
Falhu miyaru
Scalloped hammerhead Sphyrna lewini Kalhigandu miyaru
Tawny nurse shark Nebrius ferrugineus Nidhan miyaru
Silvertip shark Carcharhinus
albimarginatus
Kattafulhi
Miyaru
Whale shark Rhincodon typus Fehurihi
Variegated shark Stegostoma fasciatum Hitha miyaru
Shark watching
0
10
20
30
40
50
60
70
80
90
100
1987 1989 1991 1993 1995 1997
S
h
a
r
k
s

58% saw fewer sharks than expected
83% of repeat visitors thought that there had been a
decrease in shark numbers since their last visit.
revenue loss of US$ 500.000/year at Fish Head.
+20 sharks /dive
1 shark /dive
Shark watching
By 1997 the nominal value of reef sharks in the
Maldives, despite the declining shark population, was
calculated to be in the order of US $ 6.6 million on the
basis of will to pay (direct diving revenue).
Shark watching is probably now more important for
the tourist economy in the Maldives than ever before,
following the widespread effects of coral bleaching
in the Indian Ocean.
Ray watching
English name Scientific name Maldivian name
Manta ray Manta birostris En madi
Black spotted stingray Taeniura meyeni Naru nagoo madi
Brown stingray Himantura fai Naru nagoo madi

Ray watching
By 1997 the nominal value of ray watching in the
Maldives was calculated to be in the order of US $ 7.8
million on the basis of will to pay (direct diving revenue).
Measures to protect the whale & ray
watching industry in the Maldives
1995 Creation of 15 marine protected
areas (dive sites).
1995 Whale shark fishing prohibited.
1995 Export of rays prohibited.
1996 Export of ray skins prohibited.
1998 All shark fishing in tourism zone
prohibited.


Whale shark watching
Ningaloo Marine Park in Western Australia
In 1995, mean expenditure by participants in
whale shark tours was A$3,198 per person,
(including travel costs within Australia). Based on
2,000 participants, this translated to A$ 6.4
million. In 1997, an estimated 2,640
participants translated to an industry 'value' of
A$ 8.4 million.
Whale shark watching
The Seychelles:
potential of US$3.95 to $4.99 million per annum.
Thailand - Pukhet: a minimum of US$ 3 million
per annum.
Other sites: Philippines, the east coast of
Peninsular Malaysia, Sabah, eastern Indonesia
and Christmas Island.
The Threat: fisheries
A new paradigm in biodiversity
conservation
The best way to conserve the biodiversity
is to turn it into an instrument for human
sustainable development.
Costa Rican biodiversity: international
framework for its management
1992 Earth Summit in Rio de Janeiro (United
Nations Conference on Environment and Development):
a strategy for "sustainable development -
meeting our needs while ensuring that we leave
a healthy and viable world for future
generations.
Convention on Biological Diversity
Convention on Climate Change
Agenda 21
Convention on Biological Diversity
> 175 countries
Three main goals:
the conservation of biological diversity
the sustainable use of its components
the fair and equitable sharing of the
benefits from the use of genetic
resources.
www.biodiv.org/chm
www.dainet.de/bmu-cbd (German)
SAVE IT
KNOW IT
USE IT
NATIONAL STRATEGY FOR BIODIVERSITY
CONSERVATION
Bottom line: Use it or lose it
Biodiversity:
Know it, use it - introducing INBio
National Institute of Biodiversity







Non-profit private association. A scientific institution with
social orientation.
www. inbio.ac.cr (English)
Mission: Promote a new awareness of the value
of biodiversity, and thereby achieve its
conservation and use to improve the quality of
life.
Vision: We are an institution leader in the search
and popularization of the knowledge about
biodiversity and its sustainable uses.
Uses of biodiversity
Costa Rica will obtain greater
control of its biodiversity and,
mainly, greater benefits for its
society if it increases its capacity to
add value and information to the
country's biological resources.
INBio

The search for new sources of
chemistry compounds, genes, micro
and macro organisms, and other
valuable natural products with
potential use in pharmaceutical,
agricultural and biotechnology
industries.
The systematic search for natural
products with economic potential.

Adding value to biodiversity:
Bioprospecting
Medicine: against
parasites, virus,
fungi; anesthetics,
narcotics, muscle
relaxant,...
Agroindustry:
insecticides,
fungicides,
biological control.
Diverse materials:
sweeteners, flavors,
odours, colours,
cosmetics,...
Bioprospecting steps
Uses of biodiversity
BIOPROSPECTING involves location, detailed
description and collection of species that are not in
danger of genetic erosion. Field work is done by
parataxonomists.
BIOPROSPECTING research agreements foster
innovation, learning and local capacity building.
BIOPROSPECTING processes takes place in the
country's wild protected areas in collaboration with
the Ministry of the Environment and Energy
(MINAE).


Uses of biodiversity: sharing the
benefits of bioprospecting
ROYALTIES
2.5%
2.5%
95%
RESEARCH BUDGET
90%
10 %
INBio
Protected
Areas
Protected
Areas
Client
$

Sharing the benefits
1993-2000: INBio has made direct financial
contributions to the Conservation Areas (35%),
MINAE (15%), national universities (25%) and
other divisions in INBio (25%), that exceed $2.5
million dollars.
1993-1997: US$ 366.396 from bioprospecting
to national system of conservation areas.
Bioprospecting: the industry of the next
century?
$

Sharing the (non-tangible) benefits
The issue of benefits accrued from
bioprospecting is difficult given the
inherent complexities of assigning value to
the accumulated and increased knowledge
of our own biodiversity, to the transfer of
know-how and technology that has
occurred, or to capacity building among
others.
Uses of biodiversity: Ecotourism

Ecotourism A visit
to a natural setting,
in which the tourist
admires and learns
about the natural
and cultural
attributes while
contributing to its
conservation.
Biodiversity: The backbone of
ecotourism in Costa Rica
4% of global biodiversity in 0.01% of the earths
land surface.
Highest species richness per km
2
of the world.
25.3% of C.R.s territory under state protection.
525 km of nature trails in protected areas.
The species, the scenic beauty, the richness,
the green, the sizes, the setting ...
Ecotourism in Costa Rica
Non-extractive use of biodiversity.
Costa Rica: > 1 million tourists / year
Main source of income to Costa Rican
economy.
71% of foreign tourists visit protected areas.

Ecotourism in C.R.: the client
70% of visitors are motivated by natural
sightseeing.
40% make their own travel arrangements.
53% are professionals and 15% students.
Average stay is 11.5 days.
Average expenditure is US$ 1,200.

VISITATION OF PROTECTED AREAS (SINAC)
0
100,000
200,000
300,000
400,000
500,000
600,000
700,000
800,000
900,000
1,000,000
1
9
9
0
1
9
9
1
1
9
9
2
1
9
9
3
1
9
9
4
1
9
9
5
1
9
9
6
1
9
9
7
1
9
9
8
1
9
9
9
2
0
0
0
YEAR
V
I
S
I
T
O
R
S
57% nationals
Visitation of protected areas: income
generated by visitors - 2000
0 5 10 15 20 25 30 35
ACCVC
ACOP AC
ACTo
ACLA- P
ACM IC
ACG
ACA- T
ACT
ACOSA
ACLA- C
ACA- HN
C
O
N
S
E
R
V
A
T
I
O
N

A
R
E
A
% of US$ 1779.893
- NO DATO
The value of the ecotourism
experience: the tourists perspective
A dream, an
expectation
Nature, biodiversity
Recreation
A learning experience
Quality of the
experience
Transportation
Accomodation
Food
Souvenirs
What is bought? What is payed for?
Where is the value of biodiversity and the countrys
investment in its protection?
The tourist company
Scenic beauty and
biodiversity
Transportation
Food
Accomodation
Souvenirs


Transportation
Food
Accomodation
Souvenirs
Recreation
What is sold? What is charged for?
What about the biodiversity and its environmental services?
.... The quality of the experience? ... The dream?
The value of the ecotourism
experience
Foreign currency
Know how
Garbage



Images
Memories
Souvenirs
What is left behind by
the ecotourist?
What is taken by
the ecotourist?
What did Costa Rica sell?
Ecotourism
Pays for:
_______________
_______________
_______________
Benefits from:
Biodiversity
conservation
Scenic beauty
Clean air
Adequate quality and
quantity of water
(consumption/recreation)
Who pays? Who benefits?
The value of biodiversity
Concepts about the value of nature
Value of wildlife
For sport hunters
For tourists
Bioprospecting uncertain benefits
Ecotourism what is payed for?
Environmental services free water & free
air?
Environmental services improve
the quality of life of the citizens
Costa Rican biodiversity law (#7788)
defines 4 environmental services:
Water resources
Fixation of gases causing a greenhouse effect
Scenic beauty
Biological diversity
Opportunities from Environmental
Services
Conservation of natural resources
Generation of income to fund conservation
Acknowledgement of the value of environmental
services formerly taken for granted and free.
An asset to the quality of life (clean water and
air, scenic beauty, etc.)
Sustainability of socioeconomic activities
(industry depending on water, ecotourism, etc.)

Environmental Services:
Carbon fixation
Pollute at home, then pay the tropics to fix it
(Costa Ricas proposal for Kyoto Protocol)
Incentive for private land owners - in situ
conservation.
1999 3.8% of Costa Rican territory protected under
ES incentives for conservation.
Funding: 1/3 from fuel tax (US$ 20 mio/year), 2/3
from international cooperation agreements.
Payments: approx. US$ 35 / ha / year
Biodiversifix
Framework: Convention on Climatic Change - Rio 1992
Environmental Services:
Carbon fixation
Problems with payments for
environmental services
Payments do not always follow technically
defined priorities.
The approach is forestry biased.
The costs of some ES are not internalized.
Small land owners have less access to
incentives.
Little follow-up after payments are made.


From: National Biodiversity Strategy
Problems with payments for
environmental services
The funding capacity of the state does not
satisfy the demand. At the same time, some
of the
funds available
were not spent.

From: National Biodiversity Strategy
Perspectives for payments for ES
Legal framework.
Mechanisms for the estimation and
management of bills and payments for ES.
Projects to generate funds for payments.
Incentives for research, development and
trade of products from biodiversity.
Zonification with criteria for payments.
Zonification with
criteria for payments
Uses of biodiversity
Environmental
services in Costa
Rica


Scenic beauty
Bat pollination
services
Uses of biodiversity
Environmental services: Good neighbours:
Guanacaste Conservation Area GCA- Del
ORO orange plantation
Del ORO needs:
water for irrigation
ECO O.K. certification to compete in selected
international markets
efficient waste disposal
isolation of special varieties
Environmental services:
Good neighbours
Del ORO needs:
water
ECO O.K.
certification
waste disposal
isolation of special
varieties
GCA offers:
water throughout the year
biological control of pests
biodegradation of orange
waste
secluded areas surrounded
by forest
shared carbon fixation
technical advice

Environmental services:
Good neighbours
Payment for such services:
1.200 ha of unique forest
worth US$ 480.000
Problems with economic
environmental values
Resource economics based on market forces
may disregard the costs of environmental
degradation and ignore the future value of
resources. (Gifford Pinchot)
Distorted market economics: national
accounting system does not include investment
in the environment, environmental costs of
productive activities, or indirect values from
environmental services.

Problems with economic
environmental values
Resource users do not face the real social
cost of their behaviours.
Those who invest in maintaining
biodiversity do not harvest any benefits.
UNEP 1995 Global Biodiversity Assessment.
Technicalities or a fundamental fallacy?
Or a bit of both?