Water Accounts and Economics Workshop EEA, 7-8 October 2010 Economic analysis of the Mediterranean marine ecosystems – links to environmental accounting.

Water Accounts and Economics WorkshopEEA, 7-8 October 2010

Economic analysis of the Mediterranean marine ecosystems – links to environmental accounting

Cécile Roddier-Quefelec, Plan Bleu

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Plan Bleu and economic analysis

Macroeconomic approach to support sustainable development analysis and assessment• Financing the development • SIA of the free trade area• Analysis of external trade flows • Economic scenarios (RED 2005)• Clean Development Mechanism• Energy and climate change: cost of non-action

• Economic impact of extreme events• Economic analysis of water policies and

strategies• Economic value of sustainable benefits rendered

by the Mediterranean marine ecosystems

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Economic value of sustainable benefits rendered by the Mediterranean marine

ecosystems OBJECTIVES

Enhance awareness of the sustainable related to the ecosystems services provided by marine ecosystems in the Mediterranean,

Offer policy makers a common metric for better management of environmental issues,

Contribute to the implementation of the Ecosystem Approach in the Mediterranean ,

Inspired by: • Millennium Ecosystem Assessment (MEA,2000-

2005); • System of Environmental and Economic Accounting

(UN, 2003); • CIESM (Economic valuation of natural coastal and

marine ecosystems, n°37 CIESM Workshop Monographs, 2008) ;

• The Economics of Ecosystem and Biodiversity (EC, UNEP, 2007-2010) …

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CONCEPTUAL FRAMEWORK Contribution of ecosystems services to human well being

Plan Bleu (2008)

Human well beingEcosystem

services

Usages:•Fishing, •Tourism, •Climateregulation…

Ecosystem functions:

-Support-Provisioning -Regulation- Cultural

Benefits provided by ecosystems

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METHODOLOGY

Benefits provided to riparian countries, macroeconomic approach at regional scale

Economic valuation method inspired from SEEA 2003

Restricted to sustainable and direct benefits (e.g. fishing excluding over-fishing and seafood processing )

Valuation of the annual (2005) flow of benefits, NOT the value of the stock (natural capital, Ecosystem…)

Ecosystem services = interactions between biotic elements and abiotic structures. Exclude economic activities based on abiotic structures only : maritime transport, granulate extraction…

Valuation methods constrained by existing data

Audited by an ad’hoc advisory committee (environmental economists, Mediterranean marine ecosystem experts…)

METHODOLOGY

(Adapted from Beaumont et al, 2007)

Category Ecosystem services Benefits assessed

Provisioning services Provision of food resources Resource rent of fisheries &

aquaculture sectors

Cultural servicesAmenities Resource rent of tourism,

hotels & restaurants and real estate in coastal areas

Support of recreational activities

Regulating services

Climate regulationValue of man-made CO2 sequestration

Mitigation of natural hazards Value of protection against coastal erosion through Posidonia meadows

Waste treatment Recycling of waste water by marine ecosystems

METHODOLOGY

Fisheries and aquaculture

Resource rent : not directly calculable, proxy : gross Value Added of the sector (UN Data)

Overfishing and other non sustainable practices expressed by an overall coefficient, estimated to 80% (GFCM)

Riparian countries repartition : VA by country (UN Data)

Repartition by ecosystem types : Catches by species (FishStat), prevalence of species (ECOMER expertise)

METHODOLOGY

Resource rent = Value added in coastal areas (UN Data) as proxy

How to evaluate the “coastal attractive effect” ?

Multiple regression analysis computed on NUTS 3 data (where available)Positive and robust correlation between number of establishments and coast length : 5%

Resource rent of hotels & restaurants in coastal areas

METHODOLOGY

Resource rent of real estate and tourism in coastal areas

Transfer of the Hotels & restaurants “coastal attractive effect” coefficient

Real Estate : application of this coefficient to the domestic expenditures for lodging (UN Data) in coastal areas

Tourism : application of this coefficient to the VA of the sector, evaluated to 50% of coastal tourism expenditures (source Plan Bleu)

METHODOLOGY

Global climate regulation

Sequestration of the anthropogenic CO2 by the Mediterranean Sea

Yearly CO2 quantities : recent scientific results 108Mt/y (Huertas, I.E. et al, 2009)

Value of the ton of CO2 : Year 2005 average value of the European Emission Trading Scheme market = 20,5€/t

Riparian countries repartition : CO2 emissions (UN Data)

Acidification side effects and biologic pump neglected

Methodology

Coastal protection due to Posidonia meadows

Evaluation of the Med coast length actually protected by Posidonia meadows ?

• 20% European coasts are eroded• 16% of Med coasts are eroded• Posidionia meadows present in 90% of eroded

areas• 10% of European coasts are protected

Approx. 3300km ! Proxy: Replacement cost by artificial protection

structures (e.g. groynes) Cost of protection structures : 160k€/km

METHODOLOGY

Recycling of waste water

Essential question of the sustainability of this service

Sustainable = compliance to current norms Selection of a local case compliant to norms,

where a fee is applied on domestic water consumptions for compliance maintenance : 0,18€/m3

Quantities of domestic water consumed by coastal populations (Plan Bleu) 14,5Gm3

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RESULTS Annual value of direct benefits in 2005: 26 billion

€

Per unit area of the whole Med Sea : 10 k€/km²

Distribution of value by type of benefits :

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RESULTS Distribution of the value of benefits by country

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Illustrate the importance of services provided by marine ecosystems

Provide a low estimation of the annual flow of benefits: • Valuation restricted to some preeminent

benefits, calculable with existing data • Indirect benefits (spread in the economic

branch) are not taken into account • The “Sustainability option” greatly reduces

some benefit valuations (waste treatment)

A 100p detailed report soon available in FR and EN

A first exploratory study, need to be comforted by further studies :

• Local studies on MPA

• Regional study on the Cost of Environmental Degradation induced by maritime economic activities

DISCUSSION and PERSPECTIVES

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Contacts : Anaï MANGOS, Plan BleuDidier SAUZADE, Plan Bleu & Ifremer FranceJean Pascal BASSINO, Montpellier III University

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For more information

www.planbleu.www.planbleu.orgorg

[email protected]

For more information

www.planbleu.www.planbleu.orgorg

[email protected]