Assessing the role of economic instruments in a policy mix for biodiversity conservation and ecosystem services provision: a review of some methodological challenges

In this paper we review a number of methodological challenges of evaluating and designing economic instruments aimed at biodiversity conservation and ecosystem services provision in the context of an existing policy mix. In the context of the EU 2010 goal of halting biodiversity loss, researchers have been called upon to evaluate the role of economic instruments for cost-effective decision-making, as well as non-market methods to assess their benefits. We argue that cost-effectiveness analysis (CEA) and non-market valuation (NMV) methods are necessary, but not sufficient, approaches to assessing the role of economic instruments in a policy mix. We review the principles of “social-ecological-systems”(SES) (Ostrom et al. 2007) and discuss how SES can complement economic cost and benefit assessment methods, in particular in policy design research. To illustrate our conceptual comparison of assessment methodologies, we look at two examples of economic instruments at different government levels – payments for ecosystem services (PES) at farm level and ecological fiscal transfers to municipal /county government. What conceptual problems are introduced when evaluating policies in an instrument mix? How can the SES framework complement CEA and NMV in policy assessment and design? We draw on experiences from Brazil and Costa Rica to exemplify these questions. We conclude with some research questions

A data support infrastructure for Clean Development Mechanism forestry implementation: an inventory perspective from Cameroon

Clean Development Mechanism (CDM) forestry project development requires highly multi-disciplinary and multiple-source information that can be complex, cumbersome and costly to acquire. Yet developing countries in which CDM projects are created and implemented are often data poor environments and unable to meet such complex information requirements. Using Cameroon as an example, the present paper explores the structure of an enabling host country data support infrastructure for CDM forestry implementation, and also assesses the supply potential of current forestry information. Results include a conceptual data model of CDM project data needs; the list of meso- and macro-level data and information requirements (Demand analysis); and an inventory of relevant data available in Cameroon (Supply analysis). From a comparison of demand and supply, we confirm that data availability and the relevant infrastructure for data or information generation is inadequate for supporting carbon forestry at the micro, meso and macro-levels in Cameroon. The results suggest that current CDM afforestation and reforestation information demands are almost impenetrable for local communities in host countries and pose a number of cross-scale barriers to project adoption. More importantly, we identify proactive regulatory, institutional and capacity building policy strategies for forest data management improvements that could enhance biosphere carbon management uptake in poor countries. CDM forestry information research needs are also highlighted

Global variation in the cost of increasing ecosystem carbon

Slowing the reduction, or increasing the accumulation, of organic carbon stored in biomass and soils has been suggested as a potentially rapid and cost-effective method to reduce the rate of atmospheric carbon increase(1). The costs of mitigating climate change by increasing ecosystem carbon relative to the baseline or business-as-usual scenario has been quantified in numerous studies, but results have been contradictory, as both methodological issues and substance differences cause variability(2). Here we show, based on 77 standardized face-to-face interviews of local experts with the best possible knowledge of local land-use economics and sociopolitical context in ten landscapes around the globe, that the estimated cost of increasing ecosystem carbon varied vastly and was perceived to be 16-27 times cheaper in two Indonesian landscapes dominated by peatlands compared with the average of the eight other landscapes. Hence, if reducing emissions from deforestation and forest degradation (REDD+) and other land-use mitigation efforts are to be distributed evenly across forested countries, for example, for the sake of international equity, their overall effectiveness would be dramatically lower than for a cost-minimizing distribution.Peer reviewe

An assessment of monitoring requirements and costs of 'Reduced Emissions from Deforestation and Degradation'

<p>Abstract</p> <p>Background</p> <p>Negotiations on a future climate policy framework addressing Reduced Emissions from Deforestation and Degradation (REDD) are ongoing. Regardless of how such a framework will be designed, many technical solutions of estimating forest cover and forest carbon stock change exist to support policy in monitoring and accounting. These technologies typically combine remotely sensed data with ground-based inventories. In this article we assess the costs of monitoring REDD based on available technologies and requirements associated with key elements of REDD policy.</p> <p>Results</p> <p>We find that the design of a REDD policy framework (and specifically its rules) can have a significant impact on monitoring costs. Costs may vary from 0.5 to 550 US$ per square kilometre depending on the required precision of carbon stock and area change detection. Moreover, they follow economies of scale, i.e. single country or project solutions will face relatively higher monitoring costs.</p> <p>Conclusion</p> <p>Although monitoring costs are relatively small compared to other cost items within a REDD system, they should be shared not only among countries but also among sectors, because an integrated monitoring system would have multiple benefits for non-REDD management. Overcoming initialization costs and unequal access to monitoring technologies is crucial for implementation of an integrated monitoring system, and demands for international cooperation.</p

How can market mechanisms for forest environmental services help the poor?: preliminary Lessons from Latin America

Market mechanisms for forest environmental services are a new approach for conservation, but there is also an increasing interest in the derived developmental benefits of these mechanisms. We first propose a conceptual framework for future research on the livelihood impacts of environmental service markets. We then review eight Latin American case studies on carbon sequestration and watershed protection market initiatives, finding positive local income effects in most cases, more land tenure security and socioinstitutional strengthening in some cases, but some negative effects also. We recommend pro-poor policy measures such as reducing smallholders’ transaction costs and removing inappropriate access restrictions