Presentation on theme: "Biodiversity and Changes in the Ecosystems: Consequences to Sustainable Development Hamdallh Zedan Conference on Environmental Economics and Sustainable."— Presentation transcript:
1 Biodiversity and Changes in the Ecosystems: Consequences to Sustainable Development Hamdallh Zedan Conference on Environmental Economics and Sustainable Development Alexandria, 25 October 2007
2 Today’s presentationBiological diversity underpins ecosystem services needed for human well-beingAchieving the MDGs requires awareness of the importance of biological diversity for food security and nutrition, human health and ecosystem resilienceEconomic analysis of biodiversityStrategies for making valuation relevant for decision-making
3 Global Environmental Changes Climate changeLoss of biological diversityLand degradation and desertificationDeforestation and forest degradationDepletion of stratospheric ozonePollution of fresh and marine watersAccumulation of persistent organic pollutants
5 Responsibility and Impacts of Global Changes Differ among countries and peopleThe rich contribute disproportionatelyThe poor and disadvantaged are the most vulnerablePoverty and inequity exacerbate global changes
6 Biodiversity loss and changes in the ecosystems are the most seriousbut the less felt or appreciated
8 The Web of Life Biodiversity is the variety of all life forms: the different plants, animals and microorganisms, theirgenes and the ecosystems of which they are a part.It covers the terrestrial, marine and other aquaticenvironments.It is not static, but constantly changing. A conceptthat emphasizes the interrelatedness of the biologicalworld.
9 This variability can be considered at four levels:Genetic (i.e. genes, nucleotides, chromosomes, individuals);Species (i.e. kingdom, phyla, families, subspecies, species, populations);Ecosystem (i.e. bioregions, landscapes, habitats); and,Functional (i.e. ecosystem robustness, resilience, goods and services).
10 Direct Causes/Drivers of Change (Human Induced Actions) Land-use changes (degradation and fragmentation of ecosystems)Introductions/removal of species (e.g. invasive alien species)External inputs (e.g. fertilizer use, pest control, pollution, irrigation)Harvest and resource consumption (over exploitation, unsustainable production and consumption)Technology adaptationClimate change (additional stress)Natural causes (e.g. floods, droughts, volcanoes, evolution)
11 Indirect Drivers of Biodiversity Loss Economic (e.g. globalization, trade, market and policy frameworks)Demographic (e.g. population growth and density)Socio-political (e.g. governance, institutional and legal frameworks)Cultural and religious (e.g. choices about what and how much to consume)Science and technology
12 What economics has to say about biodiversity The overriding goal of economics is to deliverchoice solutions that make society better off. Asthe creation of value makes society better off,three questions ought to be addressed:Why is biodiversity valuable?How can the value of biodiversity be estimated? and,How can the value of biodiversity be delivered to society?
14 Importance of biodiversity: Ecosystem Goods and Services ProvisioningGoods produced or provided by ecosystemsfoodfresh waterfuel woodfiberbio-chemicalsgenetic resourcesRegulatingBenefits obtained from regulation of ecosystem processesclimate controldisease controlflood controlwaste detoxification and decompositiondrought moderationCulturalNon-material benefits obtained from ecosystemsspiritualrecreationalaestheticinspirationaleducationalcommunalsymbolicSupportingServices that maintain the conditions for life on earth.Soil formationNutrient cyclingPollination and seed dispersal
15 Biodiversity Contribution to World Economy 40% of the world economy is derived directly from biodiversity.aggregated annual value of ecosystem services worldwide: US$ 18 trillion to US$ 61 trillion ( similar to figures resulting from all goods and services produced by people).
16 Diverse ecosystems are more productive than non-diverse ones, because any group of species can never fully exploit all potential niches. Since human economic productivity is largely reliant on Earth's ecosystems, adequate bioproductivity needs to be maintained.Natural innovation found in biological organisms rivals all known technologies derived through synthetic means.A single human genome has some three billion bits of information but the human species also has many variations.
17 There are many millions of species of life on the planet each with valuable information. Many chemical formulae and forty-five percent of all drugs have bio-origin.Services and economic commodities that biodiversity supplies to humankind are essential for sustainable development and achievement of the Millennium Development Goals (MDGs).
18 The Millennium Development Goals Goal 1 - Eradicate extreme poverty and hungerGoal 2 - Achieve universal primary educationGoal 3 - Promote gender equality and empower womenGoal 4 - Reduce child mortalityGoal 5 - Improve maternal healthGoal 6 - Combat HIV/AIDS, malaria, and other diseasesGoal 7 - Ensure environmental sustainabilityGoal 8 - Develop a global partnership for development
19 Ecosystem Services and the MDGs Goal 1 - Eradicate extreme poverty and hungerGoal 2 - Achieve universal primary educationGoal 3 - Promote gender equality and empower womenGoal 4 - Reduce child mortalityGoal 5 - Improve maternal healthGoal 6 - Combat HIV/AIDS, malaria, and other diseasesGoal 7 - Ensure environmental sustainabilityGoal 8 - Develop a global partnership for development
20 Millennium Development Goal 1 Goal 1: Eradicate extreme poverty and hungerTarget 2 : Halve, between 1990 and 2015, the proportions of people who suffer from hungerAchieving this target has important consequences for the drivers of biodiversity loss
21 Increased food production will mean a larger ecological footprint. Dietary trends can produce health problemsConservation and sustainable use of biodiversity will reduce the ecological footprint from increased food production and provide access to diversity of food stuffs800 Million are hungryDeaths from cardiovascular diseases - 17 million171 million suffer from diabetes globally300 million people clinically obese worldwide
22 Contribution of Biodiversity to nutrition and resilience Genetic DiversitySpecies DiversityEcosystem DiversityEnsures resilienceBasis for nutritional diversityImportant for nutritional diversityBiodiversity provides range of foodsImportant for sound agricultural managementMaintains soil fertilityHelps increase agricultural productivity
23 Biodiversity provides high variety of food: crops, livestock, forestry, and fish are important food source of human species. However, the number of species have been domesticated and cultivated are small if comparing with the number of species existing.Food supply: 30,000 species are edible. Of these, 7,000 are cultivated or collected for foodWild species and varieties can supply genes for improving domesticated species by improving their yield, disease resistance, tolerance and vigor; this can increase the profit of farming.Genetic traits from wild crop varieties introduced into domestic agricultural crops (in USA): US$8 billion per yearTotal seed-sector activities worldwide: US$45 billion per year
24 Ecosystem Services and Human Health Fresh waterMedicinal plants/ resourcesControl of infectious diseaseFoodTimber, fuel and fiberWaste management
25 Millennium Development Goals 4, 5 and 6 Goal 4 - Reduce child mortalityGoal 5 - Improve maternal healthGoal 6 - Combat HIV/AIDS, malaria, and other diseasesBiodiversity supports the ecosystem services which enable these goals to be met
26 The Importance of Biodiversity for Medicine 60% of world population relies on plants for primary healthcare80% of population in developing countriesrely on traditional medicines25% of prescriptions in United States contain plant extracts or active principles from plantsMore than 50% of the top prescription drugs in the U.S. are compounds derived from, or are based on compounds derived from, natural sources
27 A wide variety of plants, animals and fungi are used as medicine A wide variety of plants, animals and fungi are used as medicine. Wild plant species have been used for medicinal purposes since before the beginning of recorded history.Source of medicine (health care): 20,000 species are used in traditional medicine for about 2.5 billion people; 5,000 species are potential source of commercial drugsOver 60% of world population depends on plant medicines for their primary health care. For example, quinine from the cinchona tree has been used to treat malaria, digitalis from the foxglove plant treats chronic heart trouble, and morphine from the poppy plant gives pain relief.
28 Global market for herbal drugs: US$47 billion in 2000 Sales of prescription drugs containing ingredients from wild plants (in USA): US$15 billion in 1990According to the National Cancer Institute, over 70 % of the promising anti-cancer drugs come from plants in the tropical rainforests. It is estimated that of the 250,000 known plant species, only 5,000 have been researched for possible medical applications. Ethno-pharmacy is the branch of science that investigates traditional medicines.
29 Animals may also play a role, in particular in research Animals may also play a role, in particular in research. In traditional remedies, animals are extenively used as drugs. Many animals also medicate themselves. Zoopharmacognosy is the study of how animals use plants, insects and other inorganic materials in self-medicatation.
31 Microbially derived agents are also important Penicillins and other β-lactam antibioticsAminoglycosidesTetracyclinesAnthracyclinesThere is no question that the templates for most drugs are in the natural world.
32 Biodiversity and Control of Infectious Diseases Change to diversity of habitat elements, such as degradation, deforestation may change epidemiologyYellow fever, malariaReduction of overall species diversity can lead to an increase in vector-based disease (dilution effect is reduced)West Nile encephalitis, Lyme diseaseClimate change may expand the range of vector-based diseasesMalaria, denguePollution, including nitrogen loadingEutrophication may lead to River blindness
33 Using control species is often more environmentally friendly compared with using pesticides. The control species can be used to protect the crops against pests and weeds. The economic loss due to the loss of crops/food can be reduced with the use of the control species.Also, the population of disease vectors (for example, mosquitoes) and the invasive species can be controlled; thus, the economic loss led by the invasive species and vectors can be reduced. Damages worldwide from invasive species was estimated at more than US$ 1.4 trillion per year.
34 Millennium Development Goal 8 Biodiversity and environmental sustainabilityServices that maintain the conditions for life on earth:> Soil formation> Nutrient cycling> Pollination andseed dispersalBenefits obtained from regulation of ecosystem processes:> Climate control> Disease control> Flood control> Waste detoxificationand decomposition> Drought moderation
35 Ecosystem Products and Services Estimated Value (US Dollars)Economic activity generated by the 350 million visitors to U.S. national parks, wildlife refuges and other public lands through expenditures on fishing, hiking, hunting, whale watching and wildlife photographyMore than 400,000 jobs and28 billion per yearCommercial and sport fishing revenue lost because of destruction of U.S. estuaries between 1954 and 1978More than $200 millionValue of flood control services provided by marsh-lands near the Charles River in Boston, Massachusetts$72,000 per acre of marshland
36 Why measuring biodiversity in monetary terms? >Many of the goods and services provided bybiodiversity and ecosystems are crucial, but not alwaysmeasurable in monetary terms.>Many of these goods and services are not traded inthe market place and so do not have an obvious priceor commercial value.>If unpriced values are not included in the decision-making process, the final decision may favor outcomeswhich do have a commercial value.>Hence decision makers may not have full awarenessof the consequences for biodiversity conservation.
37 Despite these facts, biodiversity is lost at unprecedented rate Some 100 to 150 species become extinct everydaySome 20,000 to 100,000 species become extinct every year (natural extinction rate 2-10 species/year)One breed of livestock dies out every weekMore than 31,000 plant animal species are threatened with extinctionSome 75 % of the genetic diversity found in agricultural crops have been lost over the last centuryOf 6300 animal breeds, 1350 are endangered or already extinctForests and ecosystems are being destroyed at the rate of over 10 million hectares every yearIf current destruction rate in forests and coral reefs is maintained, 50% of plant and animal species will be gone by the end of the 21st century
38 Current extinction rates are as much as 1,000 times background rates 20% of worlds coral reefs were lost in last several decades35% of mangrove area has been lost
39 We don’t know what is lost: number of species on Earth Recent estimate: 7 to 20 millionGood working estimate: 13 to 14 millionScientifically described species: 1.8 to 2.1 millionLess well-studied groups: bacteria, fungi, arthropods and nematodesPoorly known groups: species living in marine ecosystems and beneath the ground
40 Reasons for Concern Decline in ecosystem services Required for human-well-beingImpact on the poorestMay prevent attaining the MDGsLoss of resilienceCan exacerbate shocks & produce surprisesLoss of unique species & habitats
41 Impact of Global Warming It was estimated that one third of the earth’s species could disappear by 2050 if the current rate of global warming continues.
42 Maintaining Biodiversity Maintaining biodiversity requires more than just protecting wildlife and their habitats in nature conservation reserves. It is also about the sustainable use and management of all natural resources and safeguarding the life-support systems on earth.Society needs mechanisms for determining the appropriate trade-off between biodiversity protection and the human activities that create value for people but result in biodiversity loss.Economics offers some techniques to help in this decision-making process. However, the full potential of these techniques is yet to be realized.
43 Economic Analysis of Biodiversity Economic analysis of biodiversity requires an understanding of the connections between the choices people make, the resultant changes and the subsequent changes in the wellbeing of people.At the core of the interrelationships between people and biodiversity is the ecological system in which the state and scale of biological resources are intrinsically linked to biodiversity.
45 This is particularly evident in a dynamic analysis of the interrelationship through the notion of resilience. This is because, in general, the greater the biodiversity, the greater is the resilience of the ecological system. Hence, with greater biodiversity, society has better ‘insurance’ against the impacts of a future adverse event.Valuation methods have mostly concentrated on species and habitat protection. There is little recognition of the complex relationship between biodiversity and the scale of the biological resource
46 Hence, the values reported are not estimates of biodiversity per se, but rather of the species/ ecosystem being studied. Very few studies have targeted the value of ecosystem resilience as the specific result of biodiversity protection activities.Unless the ecological system is understood, the role of economics is very limited. For instance, to use the production function approach to assess the value of soil biota we need to understand the links between farm management practices, soil biota and the productivity of the soil.
47 When markets fail Decisions about biodiversity management are complicated by the fact that various types of marketfailure are associated with natural resources and theenvironment.Market failures occur when markets do not reflectthe full social costs or benefits of a good. Factorsthat cause market failures related to biodiversityprotection include:many ecosystems provide services that are public goods; they may be enjoyed by any number of people without affecting other peoples’ enjoyment.
48 many ecosystem services are affected by externalities (the side effects of human actions; for example, if a stream is polluted by runoff from agricultural land, the people downstream experience a negative externality. Externalities can also be positive, e.g. the crop pollination services performed by wild bees).property rights related to ecosystems and their services are often not clearly defined.
49 An example of an externality is the cost of salinity arising from vegetation clearance. The repair bill for salinity and water logging due to removal of the vegetation that regulated groundwater flow (another ecosystem service) is one of the most expensive ones facing Australia at the moment. Estimates of the size of the repair bill vary from $20 - $65 billion over 10 years, depending on what aspects of salinity are included. If these externalities had been factored into the original decisions to clear vegetation, a costly repair bill may have been avoided.
50 Proper ecosystem valuation can help resource managers deal with the effects of market failures by measuring their costs to society in terms of lost benefits. The costs to society can then be imposed, in various ways, on those who are responsible, or can be used to determine the viability of actions to reduce or eliminate environmental impacts.
51 key strategies for making valuation studies more relevant and timely for decision makers Greater policy application: Decision-makers can increase their understanding of the range of values that biodiversity offers and the techniques used to estimate them through greater exposure to the use of valuation techniquesBetter science: We need to improve our scientific understanding of the impacts of human activities on biodiversity.Better communication: Improved general awareness of what biodiversity and biodiversity valuation can offer society.
52 Role of developed countries Take the lead in adopting positive policy approaches towards sustainable consumption and production.Take a fresh look at their policies on foreign aid, trade and debt relief.Make available additional financial resources and technologies essential for developing countries to break the vicious cycle of poverty and environmental degradation.
53 Role of developing countries Create conditions whereby stakeholders, in particular, local communities, assume greater responsibility over the management of biological resources and benefit from their utilization.Give serious consideration to the effects of misuse of resources in defeating the purpose of well-intended sustainable development policies.
55 Whilst biodiversity value estimation has struggled to achieve a higher policy profile, the economic analysis of delivering biodiversity values to society has progressed rapidly in the last decade. This has been achieved through the development of policy tools that provide incentives for people to provide biodiversity values.
56 The predominant mechanism for delivering public goods – including biodiversity – has been government provision. In the case of biodiversity this was achieved through the creation of a network of parks and nature reserves. However, in recognition that such a ‘patchwork’ approach would not provide functional biodiversity protection (resilience), more policy emphasis has been put on biodiversity protection on privately owned land. Economists have provided assistance in this endeavour by bringing to the fore a suite of policy measures broadly known as ‘market based instruments’.
57 These measures involve the use of financial incentives to promote biodiversity protection. They include the payment of targeted subsidies, the levying of taxes on biodiversity destructive practices and the introduction of trading and banking schemes in which property rights to biodiversity are created and then bought and sold amongst people who can supply biodiversity (for example, land owners) and those who want biodiversity (for example, society, as represented by their government, conservation clubs, and developers who want to use biodiversity in their development activities).
58 The implication of market failure is that there is a potential role for government in filling the gap left by market forces. However, governments should only step in if it can be demonstrated that the benefits of intervention exceed the costs. In other words, the actions of government must be justified with reference to an improvement in human wellbeing. This is because a net benefit from government action cannot be presumed simply because of market failure. There is always the prospect of ‘government failure’ arising because of inadequacies in the bureaucratic/political processes involved in designing and implementing such action.What this means is that without government intervention to protect biodiversity, insufficient protection can be expected.
59 Valuation techniquesMarket based techniquesRevealed preference techniquesStated preference techniques
60 Examples Impacts of Alien Invasive Species The invasive sea lamprey collapsed lake trout and other native great Lake fisheries.Introduction of the Nile perch to lake Victoria, as a prey for local fishermen, ate up all other fish they used to catch.Invasive brown tree snakes have wiped out native forest birds, bats and reptiles to extinction in Guam.Damages worldwide from invasive species was estimated at more than US$ 1.4 trillion per year.
61 EcotourismBiodiversity is a source of economical wealth for many regions of the world, such as many nature reserves, parks and forests, where wildlife and plants are sources of beauty and joy for many people.Ecotourism, in particular, is a growing outdoor recreational activity. In 1988, it is estimated that million people took part in ecotourism. The majority of species have yet to be evaluated for their current or future economic importance