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

2 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

3 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, ); 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, ) …

4 CONCEPTUAL FRAMEWORK Contribution of ecosystems services to human well being Plan Bleu (2008)

5 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) CategoryEcosystem servicesBenefits assessed Provisioning services Provision of food resources Resource rent of fisheries & aquaculture sectors Cultural services Amenities Resource rent of tourism, hotels & restaurants and real estate in coastal areas Support of recreational activities Regulating services Climate regulation Value of man-made CO 2 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)

8 Value of benefits relating to food provisioning By type of ecosystem (in millions €) Per unit area covered by each type of ecosystem (in €/km²)

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 CO 2 by the Mediterranean Sea  Yearly CO 2 quantities : recent scientific results 108Mt/y (Huertas, I.E. et al, 2009)  Value of the ton of CO 2 : Year 2005 average value of the European Emission Trading Scheme market = 20,5€/t  Riparian countries repartition : CO 2 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€/m 3  Quantities of domestic water consumed by coastal populations (Plan Bleu) 14,5Gm 3

14 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 :

15 RESULTS Distribution of the value of benefits by country

16 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

17 Contacts : Anaï MANGOS, Plan Bleu Didier SAUZADE, Plan Bleu & Ifremer France Jean Pascal BASSINO, Montpellier III University

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