Using Ecosystem Service Values to Inform Coastal Policy Decisions: A California Experiment with Lessons for Alaska Steve Colt University of Alaska Anchorage Institute of Social and Economic Research ACRC Juneau 19 April 2012

Outline Quiz Context California valuation exercise Southeast Alaska ecosystem services examples So what?

Helicopter-based dog mushing excursions, Juneau Quiz: What SE Alaska tourism sub-industry generated $16 million in revenue from one activity in 2006?

Context Ecosystem services have value Knowledge of ES values can inform better management and development (Kaveira) Knowledge of ES values can inform shared understanding of the value of place (Chapin) Tourism and harvest are obvious ways to monetize and (perhaps) to nurture ES values. (90% Alaskans support salmon habitat)

California valuation exercise CA Ocean Protection Council At OPC request, National Center for Ecological Analysis and Synthesis assembled a team of economists, ecologists, mappers, lawyers, and policy makers

California valuation exercise Objective: provide spatially explicit and policy- relevant values for ecosystem services generated in coastal regions in California Analogue: “avoided externalities” of solar PV and solar thermal power projects Applications: permitting, budgeting, mitigation schemes, offsets, ???

California exercise objectives CA OPC wanted a balance sheet or menu of ES values How much is one acre of salt marsh worth? If we’re going to build roads, housing, or malls on coastal ecosystem areas (such as marshes), we should know what we’re losing

The matrix: before lit search marshesbeachmud flats lagoon and salt pondsestuaries rocky intertidalkelprocky reefsshell reefsseagrassinner shelf outer shelves, edges, slopes seamounts and mid- ocean ridges deep sea and central gyres deep sea vents PROVISIONING food --capture fisheries --aquaculture --wild plant and animal products fiber genetic resources biochemicals, natural medicines, pharmaceuticals ornamental resources human habitation human navigation energy (for human use) REGULATING air quality regulation climate regulation erosion regulation water purification, waste treatment disease regulation pest regulation pollination (and seed dispersal) natural hazard regulation freshwater storage and retention gas regulation CULTURAL cultural diversity spiritual and religious values knowledge systems educational values inspiration aesthetic values social relations sense of place cultural heritage values recreation and ecotourism SUPPORTING photosynthesis primary production nutrient cycling water cycling BUNDLED ATTRIBUTES Item: Habitat and refugia

The matrix: after marshesbeachmud flats lagoon and salt pondsestuaries rocky intertidalkelprocky reefsshell reefsseagrassinner shelf outer shelves, edges, slopes seamounts and mid-ocean ridges deep sea and central gyresdeep sea vents PROVISIONING food NOTE capture fisheries aquaculture --wild plant and animal products 26 fiber genetic resources biochemicals, natural medicines, pharmaceuticals ornamental resources human habitation human navigation energy (for human use) REGULATING air quality regulation climate regulationNOTE 1 erosion regulation 31,131 water purification, waste treatment NOTE 4 NOTE 7 NOTE 9 disease regulation NOTE 9 pest regulation pollination (and seed dispersal) natural hazard regulation NOTE 7 52 freshwater storage and retention gas regulation 22 CULTURAL cultural diversity spiritual and religious values knowledge systems educational values inspiration aesthetic values social relations sense of place cultural heritage values NOTE 7 recreation and ecotourism 16,946 (NOTE 2) NOTE NOTE 7 48 (NOTE 9) NOTE 10 SUPPORTING photosynthesis primary production 1, ,833 nutrient cycling 11,188 (NOTE 8) 843-2,16569 water cycling 56 BUNDLED ATTRIBUTES(NOTE 1) 36, ,000 (NOTE 2) NOTE 3NOTE (NOTE 5) NOTE 6 Item: Habitat and refugia

California exercise: Results 1. Very few papers provide spatially explicit values for coastal ecosystem services 2. Many spatially explicit values are for an unspecified “bundle” of services 3. Where they do exist the values vary widely

Studies valuing marine ecosystem services worldwide (searched 100s of articles, found 35 that “worked”) per year (flow)per use one-time (asset value??) unclear, aggregate spatially explicit: per unit area (acre, hectare) 4 2 person-related: per person per household 8 2 per user (angler, visitor, party, respondent) 3 2 other: per unit of resource (fish) 1 per aggregate resource (coastline, bay, species in a region) 1 2 per business enterprise 1 per residential property 1 unclear, aggregate 1 Total: 35

Selected Economic Values of Marine Ecosystems Worldwide 2008US$/ha/yr Service CategoryEstuaryBeach CULTURAL Cultural heritage values1727 Recreation and ecotourism ,946

Selected Economic Values of Marine Ecosystems Worldwide 2008US$/ha/yr Service CategoryEstuaryBeach SUPPORTING Habitat and refugia Primary production - Water cycling

Southeast Alaska example: valuation of saltwater charter sport fishing Ginny Fay, Darcy Dugan, Steve Colt Institute of Social and Economic Research University of Alaska Anchorage UAA-CNF Climate Symposium May 5, 2011

Registered charter fishing vessels

Data AK Fish & Game – Quantity (fishing effort by area fished) Interviews & Web – Price information Business licenses & Web – associated reality checks

Method Aggregate the number of clients and/or boat- hours within each ADF&G statistical area. Allocate the revenue “from” each ADFG stat. area to its most logical community – (many-to-one relationship)

Results: Total SE AK: 143,000 clients 37,560 trips $73.5 million gross revenue

Example of specificity

Variation in revenue per square km

Lorenz curve of total revenue

Lorenz curve total clients

Highest revenue per square km: Logbook Areas and averaged together $49,294 per square km

So what? Very large variation in measured ES values per square km Reflects different ways of thinking about “the benefits people obtain from ecosystems” Eco nomics Eco logy

So what? Bob Weeden, AK Fish & Game 1987 “I do not advocate turning away from economic valuation” “Nor do I advocate embracing porcupines too warmly”

References N. Raheem a,,, S. Colt b,, E. Fleishman c, m, 1,, J. Talberth d,, P. Swedeen e,, K.J. Boyle f,, M. Rudd g,, R.D. Lopez h, 2,, D. Crocker i,, D. Bohan j,, T. O'Higgins k,, C. Willer l,, R.M. Boumans m, Application of non-market valuation to California's coastal policy decisions. Marine Policy. Available online 23 February a b cm1 d e f g h2 i j k l m Fay, G.; Dugan, D.; Fay-Hiltner, I.; Wilson, M.; Colt, S Testing a methodology for estimating the economic significance of saltwater charter fishing in Southeast Alaska. Anchorage: ISER pdf pdf Weeden, R On Wooden Nickels, Trojan Horses, and Lonely Drummers. Alaska Fish & Game May-June.