1. Western Philippines University Puerto Princesa Campus
NATURAL CAPITAL:
COUNTING IT IN!
Allaine T. Baaco
Western Philippines University
Puerto Princesa Campus

2. Overview of presentation
Western Philippines University
Overview of presentation
Understanding the environment
Defining economic valuation
SEEA Framework
Significance of economic valuation of natural resources in the National Income Accounting

3. Composed of different ecosystems.
Western Philippines University
Environment
Composed of different ecosystems.

4. Western Philippines University
Ecosystems
A dynamic interaction of plants, animals, microorganisms community and the nonliving physical environment as one unit.

5. Benefits people obtain
Western Philippines University
Ecosystems Services
Benefits people obtain
from ecosystems.

6. Western Philippines University
Ecosystem Benefits

7. Economic Values of the Environment Why?
Western Philippines University
Economic Values
of the Environment
Why?

8. IN A WORLD WHERE MONEY TALKS, ENVIRONMENT MUST HAVE A
Western Philippines University
IN A WORLD WHERE MONEY TALKS, ENVIRONMENT MUST HAVE A
“VOICE” SO THAT IT CAN
BE HEARD.

9. Western Philippines University
VOICE
~ VALUE
(ECONOMIC)
,$, £, ¥, €

10. We consider environmental valuation
Western Philippines University
We consider environmental valuation
Resource Allocation Decisions
Efficient choice in the use of scarce resources
Resource Pricing
Services
Damaging impacts
Distributional Impacts
Gainers
Losers
Awareness Raising
Losses
Opportunities
Measure opportunities from the environmental changes

11. Western Philippines University
Definition
Economic valuation techniques re-defines the previous conception of nature as a complex web of inter-related and ever-changing relationships into an image of nature as a provider of measurable services.

12. Western Philippines University
Definition
Economic valuation can generate estimates of the value of ecosystem services in monetary terms.

13. Monetary valuation of Ecosystem services
Monetary valuation via markets, particularly provisioning services, are traded in markets and 
Monetary valuation via surrogate markets for services not traded in the market, particularly the regulating and support services

14. In Accounting… VALUE (Maintaining ecological function) MISSING STOCKS
Western Philippines University
In Accounting…
VALUE
(Maintaining ecological function)
MISSING
STOCKS
(Natural capital)
FLOWS
(Ecosystems & abiotic services)
VALUE
(Goods & Services)
VALUE
(Nature as nature)
MISSING
Figure modified from the natural capital protocol.

15. Methodology:
The SEEA
Expanding the Systems of National Accounts (SNA) to the environment
contains the internationally agreed standard concepts, definitions, classifications, accounting rules and tables for producing internationally comparable statistics on the environment and its relationship with the economy.

16. Environmental Services and human well-being:
Ecosystems & Biodiversity
Biophysical
Structure
or process
(functioning)
Human well-being
Capacity
(function)
e.g. growth of biomass
Service
e.g.
photosynthesis
e.g. wood that is harvested
Benefit(s)
e.g. wood supply for furniture
Value
e.g. value of wood used for furniture
Cascade Diagram, modified from Haines-Young and Potschin)

17. Western Philippines University

18. Environmental Services:
Provisioning services: the products that can be extracted from or harvested in ecosystems

19. Environmental Services:
Regulating Services: regulation of ecological, hydrological and climate processes

20. Environmental Services:
Cultural services: the non-material benefits from ecosystems (e.g. recreation, education and research)

21. Environmental Services:
Support services: Ecosystem services that are necessary for the production of all other ecosystem services. Some examples include, production of atmospheric oxygen, and provisioning of habitat.

23. Linking Services to Values
Ecosystem
Step 1. Specification of boundaries and system to be valued..
Provisioning Services
Regulating Services
Cultural Services
Support Services
Step 2. Assessment of ecosystem services in bio-physical terms
Step 3. Valuation using monetary or other indicators..
Direct use values
Indirect use Values
Option Values
Non-use Values
Step 4. Aggregation of the different values
Total Economic Value

24. Ecosystem services and valuing methods:
VALUE INDICATOR
Timber
Opportunity cost
Non-Timber Forest Products
Market value of products
Biodiversity
Pharmaceutical genetic material
Carbon sequestration and Carbon Stock
Social Cost of Carbon
Water Supply
Resource Charge
Water Purification
Averting Expenditure Method
Soil protection
Replacement of forest for soil retention
Ecotourism/Recreational Value
Travel Cost Method
Oxygen Production
Cost of Hospital Oxygen

25. Economic valuation enables
agencies to respond more effectively to an unavoidable cost of economic development and growth

26. Ameneties, Health & Safety
Western Philippines University
Economic Opportunities & Policy Responses
Policies
Measures
Opportunities
Taxes
Subsidies
Regulations
Investments
Research
Innovation
Trade
Education & Training
Economic Activity
Inputs
Outputs
Income
Goods/Services
Labor
Capital
Resouces
Residuals
(emissions, waste)
Ameneties, Health & Safety
Natural inputs
(raw materials)
ENVIRONMENTAL ASSETS
(Capital stocks, Environmental Quality)
Service Function
Sunk Function
Resource Function

27. Maraming Salamat po!

28. References:
Baaco, A. T. , J. M. Javier, H. G. Lagan, B. Montaño, and R. Sariego Economic Values of Mount Mantalingahan Protected Landscape.
Briones, N. D., A. T. Baaco, J. M. Javier, R. G. Dolorosa and S. Tabayag Biodiversity values of Rasa Island Wildlife Sanctuary.
Cambridge Conservation Initiative Biodiversity at the Heart of Accounting for Natural Capital: the Key to Credibility
Dvarskas, Anthony SEEA and the Green Economy. United Statistics Division. July 3, 2013.
European Union Mapping and assessment of ecosystems services: An analytical framework for ecosystem assessment under Action 5 of EU Biodiversity Strategy to Discussion paper – Final. April 2013.
Natural Capital Coalition Natural Capital Protocol.

29. References:
SEEA CF 2012. System of Environmental-Economic Accounting 2012 – Central Framework. Ed. United Nations, European Union, Food and Agriculture Organization of the United Nations, International Monetary Fund, Organisation for Economic Co-operation and Development and The World Bank. ISBN: