The value of biodiversity

Conservation of tropical biodiversity

1. Biodiversity: the main challenges

2. A rationale for biodiversity conservation
3. Lessons from island biogeography
4. The value of biodiversity
5. Small and other fragile populations
6. Overexploitation: a scrutiny of wildlife
trade
Biodiversity is a natural asset that
provides goods and services
Food  Recreation
Medicine  Inspiration
Materials  Spiritual stimulation
Chemical products  Contemplation
Water & soil supply  Peace of mind
Climate regulation  Religious experiences
Science & technology
It contributes to the
Sewage & garbage treatment social, economic,
Biological control intellectual and spiritual
Pollination development of society.
The value of biodiversity
 Concepts about the value of nature
 Value of wildlife
 For sport hunters
 For tourists
 Bioprospecting – uncertain benefits
 Ecotourism – what is payed for?
 Environmental services – free water & free
air?
What sort of values?
 Ethical values of nature No use ... No
 Environmental ethics
1. Every species has a right to exist.
value?
 2. The custody over nature is an agreement with God.
 3. All species are interdependent.
 4. We have obligations toward our neighbours.
 5. We have obligations toward the next generations.
 6. Respect for human life and diversity is compatible with
respect for biodiversity.
 Economic values of nature
 Environmental economics
Economic value: some questions
 What is the cost of producing water to a forest?
 What is the cost of maintaining a forest as such
to its owner?
 What is the cost of research to look for new,
sustainable uses of that forest or ecosystem?
 How much shoud be payed to visit that
ecosystem?
 What is the value of the scenic beauty to an
ecotourist?
 Who should pay?
 Who should receive the payment? From Castro G. 1999
Economic values
 Value of organisms in their natural state
 Market value of organisms
 Future value of organisms
Economic values

 Direct values
 Consumption use values:
products harvested and consumed
 Production use values: revenue generated by
products from trade
 E.g. 10 billion US$ / year from wildlife trade
 Indirect values
 Non-consumption values: Economic benefit derived
without harvesting or otherwise harming biodiversity
 E.g. from environmental services, ecotourism, etc.
Fine for illegal wildlife trade
 Market price
 Ecological value of the species
 Level of threat to the species
 Costs of repairing the damage
 First or multiple offender

Claudia Durana
Examples of economic values of
biodiversity
 Value of wildlife
 For sport hunters
 For tourists
 Bioprospecting – uncertain benefits
 Ecotourism – what is payed for?
 Environmental services – free water & free
air?
 Extractive use: sport hunting

 Kenya NPs:
Yearly value
of a live lion
US$ 27.000,
elephant US$
610.000
(D. Western)
Shark watching
50% of tourists go diving.

Maldives (1992)
76,850 dives at 35
specific shark- watching
sites, at US$30 per dive

Annual expenditure by
divers US $2.3 million
(indirect revenues not included)
Shark watching

 A single grey
reef shark at the
most popular dive
site was worth
about US $ 3,300
per year, year after
year (18 years
longevity).
 The same shark
would have a one
time value of US $
32 if caught by a
local fisherman.
At least 100 x worth more alive than dead.
 Shark species regularly encountered
by divers in the Maldives
English name Scientific name Maldivian name
Whitetip reef shark Triaenodon obesus Faana miyaru
Grey reef shark Carcharhinus Thila miyaru
amblyrhynchos
Blacktip reef shark Carcharhinus Falhu miyaru
melanopterus
Scalloped hammerhead Sphyrna lewini Kalhigandu miyaru
Tawny nurse shark Nebrius ferrugineus Nidhan miyaru
Silvertip shark Carcharhinus Kattafulhi
albimarginatus Miyaru
Whale shark Rhincodon typus Fehurihi
Variegated shark Stegostoma fasciatum Hitha miyaru
Shark watching
+20 sharks /dive
100
90
80
70
Sharks

60
50
40
30
20
10
0 1 shark /dive
1987 1989 1991 1993 1995 1997

•58% saw fewer sharks than expected

• 83% of repeat visitors thought that there had been a
decrease in shark numbers since their last visit.
• revenue loss of US$ 500.000/year at Fish Head.
Shark watching

•By 1997 the nominal value of reef sharks in the

Maldives, despite the declining shark population, was
calculated to be in the order of US $ 6.6 million on the
basis of will to pay (direct diving revenue).
• Shark watching is probably now more important for
the tourist economy in the Maldives than ever before,
following the widespread effects of coral bleaching
in the Indian Ocean.
Ray watching

English name Scientific name Maldivian name

Manta ray Manta birostris En madi
Black spotted stingray Taeniura meyeni Naru nagoo madi
Brown stingray Himantura fai Naru nagoo madi
Ray watching
• By 1997 the nominal value of ray watching in the
Maldives was calculated to be in the order of US $ 7.8
million on the basis of will to pay (direct diving revenue).
Measures to protect the whale & ray
watching industry in the Maldives

 1995 Creation of 15 marine protected

areas (dive sites).

§
 1995 Whale shark fishing prohibited.
 1995 Export of rays prohibited.
 1996 Export of ray skins prohibited.
 1998 All shark fishing in tourism zone
prohibited.
Whale shark watching

Ningaloo Marine Park in Western Australia

In 1995, mean expenditure by participants in
whale shark tours was A$3,198 per person,
(including travel costs within Australia). Based on
2,000 participants, this translated to A$ 6.4
million. In 1997, an estimated 2,640
participants translated to an industry 'value' of
A$ 8.4 million.
Whale shark watching

 The Seychelles:
potential of US$3.95 to $4.99 million per annum.
 Thailand - Pukhet: a minimum of US$ 3 million
per annum.
 Other sites: Philippines, the east coast of
Peninsular Malaysia, Sabah, eastern Indonesia
and Christmas Island.
 The Threat: fisheries
A new paradigm in biodiversity
conservation
 The best way to conserve the biodiversity
is to turn it into an instrument for human
sustainable development.
Costa Rican biodiversity: international
framework for its management
 1992 Earth Summit in Rio de Janeiro (United
Nations Conference on Environment and Development):
a strategy for "sustainable development” -
meeting our needs while ensuring that we leave
a healthy and viable world for future
generations.
 Convention on Biological Diversity
 Convention on Climate Change
 Agenda 21
Convention on Biological Diversity
 > 175 countries
 Three main goals:
 the conservation of biological diversity
 the sustainable use of its components
 the fair and equitable sharing of the
benefits from the use of genetic
resources.
www.biodiv.org/chm
www.dainet.de/bmu-cbd (German)
 NATIONAL STRATEGY FOR BIODIVERSITY
CONSERVATION

SAVE IT

KNOW IT USE IT

Bottom line: “Use it or lose it”

Biodiversity:
Know it, use it - introducing INBio

 National Institute of Biodiversity

www. inbio.ac.cr (English)

 Non-profit private association. A scientific institution with

social orientation.
 Mission: “Promote a new awareness of the value
of biodiversity, and thereby achieve its
conservation and use to improve the quality of
life.”
 Vision: “We are an institution leader in the search
and popularization of the knowledge about
biodiversity and its sustainable uses.”
Uses of biodiversity

“Costa Rica will obtain greater

control of its biodiversity and,
mainly, greater benefits for its
society if it increases its capacity to
add value and information to the
country's biological resources.”
INBio
 Adding value to biodiversity:
Bioprospecting

 The search for new sources of

chemistry compounds, genes, micro
and macro organisms, and other
valuable natural products with
potential use in pharmaceutical,
agricultural and biotechnology
industries.
 The systematic search for natural
products with economic potential.
 Bioprospecting steps

 Medicine: against
parasites, virus,
fungi; anesthetics,
narcotics, muscle
relaxant,...
 Agroindustry:
insecticides,
fungicides,
biological control.
 Diverse materials:
sweeteners, flavors,
odours, colours,
cosmetics,...
Uses of biodiversity

 BIOPROSPECTING involves location, detailed

description and collection of species that are not in
danger of genetic erosion. Field work is done by
parataxonomists.
 BIOPROSPECTING research agreements foster
innovation, learning and local capacity building.
 BIOPROSPECTING processes takes place in the
country's wild protected areas in collaboration with
the Ministry of the Environment and Energy
(MINAE).
Uses of biodiversity: sharing the
benefits of bioprospecting
RESEARCH BUDGET ROYALTIES
Protected Protected
Areas Areas
INBio
10 % 2.5% 2.5%

90% $ Client 95%

 Sharing the benefits $
 1993-2000: INBio has made direct financial
contributions to the Conservation Areas (35%),
MINAE (15%), national universities (25%) and
other divisions in INBio (25%), that exceed $2.5
million dollars.
 1993-1997: US$ 366.396 from bioprospecting
to national system of conservation areas.
 Bioprospecting: the industry of the next
century?
Sharing the (non-tangible) benefits
 The issue of benefits accrued from
bioprospecting is difficult given the
inherent complexities of assigning value to
the accumulated and increased knowledge
of our own biodiversity, to the transfer of
know-how and technology that has
occurred, or to capacity building among
others.
Uses of biodiversity: Ecotourism

 Ecotourism A visit
to a natural setting,
in which the tourist
admires and learns
about the natural
and cultural
attributes while
contributing to its
conservation.
Biodiversity: The backbone of
ecotourism in Costa Rica

 4% of global biodiversity in 0.01% of the earth´s

land surface.
 Highest species richness per km2 of the world.
 25.3% of C.R.´s territory under state protection.
 525 km of nature trails in protected areas.
 The species, the scenic beauty, the richness, the
green, the sizes, the setting ...
Ecotourism in Costa Rica
 Non-extractive use of biodiversity.
 Costa Rica: > 1 million tourists / year
 Main source of income to Costa Rican
economy.
 71% of foreign tourists visit protected areas.
Ecotourism in C.R.: the client
 70% of visitors are motivated by natural
sightseeing.
 40% make their own travel arrangements.
 53% are professionals and 15% students.
 Average stay is 11.5 days.
 Average expenditure is US$ 1,200.
 VISITATION OF PROTECTED AREAS (SINAC)

1,000,000 57% nationals

900,000
800,000
700,000
VISITORS

600,000
500,000
400,000
300,000
200,000
100,000
0
90

91

92

93

94

95

96

97

98

99

00
19

19

19

19

19

19

19

19

19

19

20
YEAR
 Visitation of protected areas: income
generated by visitors - 2000
A C A -H N - NO DATO
CONSERVATION AREA

A C LA -C
A C OSA
ACT
A C A -T
ACG
A C M IC
A C LA -P
ACTo
A C OP A C
A C C VC

0 5 10 15 20 25 30 35
% of US$ 1´779.893
The value of the ecotourism
experience: the tourist´s perspective
What is bought? What is payed for?
 A dream, an  Transportation
expectation
 Nature, biodiversity
 Accomodation
 Recreation  Food
 A learning experience  Souvenirs
 Quality of the
experience
Where is the value of biodiversity and the country´s
investment in its protection?
The tourist company
What is sold? What is charged for?
 Scenic beauty and
biodiversity
 Transportation  Transportation
 Food  Food
 Accomodation  Accomodation
 Souvenirs  Souvenirs
 Recreation
What about the biodiversity and its environmental services?
.... The quality of the experience? ... The dream?
The value of the ecotourism
experience
What is left behind by What is taken by
the ecotourist? the ecotourist?
 Foreign currency
 Know how  Images
 Garbage  Memories
 Souvenirs

What did Costa Rica sell?

Ecotourism
Pays for: Benefits from:
 _______________  Biodiversity

 _______________ conservation
 _______________  Scenic beauty

 Clean air

 Adequate quality and

quantity of water
(consumption/recreation)

Who pays? Who benefits?

The value of biodiversity
 Concepts about the value of nature
 Value of wildlife
 For sport hunters
 For tourists
 Bioprospecting – uncertain benefits
 Ecotourism – what is payed for?
 Environmental services – free water & free
air?
 Environmental services improve
the quality of life of the citizens
 Costa Rican biodiversity law (#7788)
defines 4 environmental services:
 Water resources
 Fixation of gases causing a greenhouse effect
 Scenic beauty
 Biological diversity
Opportunities from Environmental
Services
 Conservation of natural resources
 Generation of income to fund conservation
 Acknowledgement of the value of environmental
services formerly taken for granted and free.
 An asset to the quality of life (clean water and
air, scenic beauty, etc.)
 Sustainability of socioeconomic activities
(industry depending on water, ecotourism, etc.)
Environmental Services:
Carbon fixation
 Pollute at home, then pay the tropics to fix it
(Costa Rica´s proposal for Kyoto Protocol)
 Incentive for private land owners - in situ
conservation.
 1999 3.8% of Costa Rican territory protected under
ES incentives for conservation.
 Funding: 1/3 from fuel tax (US$ 20 mio/year), 2/3
from international cooperation agreements.
 Payments: approx. US$ 35 / ha / year
 Biodiversifix
Framework: Convention on Climatic Change - Rio 1992
Environmental Services:
Carbon fixation
Problems with payments for
environmental services
 Payments do not always follow technically
defined priorities.
 The approach is forestry biased.
 The costs of some ES are not internalized.
 Small land owners have less access to
incentives.
 Little follow-up after payments are made.

From: National Biodiversity Strategy

 Problems with payments for
environmental services
 The funding capacity of the state does not
satisfy the demand. At the same time, some
of the
funds available
were not spent.
Perspectives for payments for ES
 Legal framework.
 Mechanisms for the estimation and
management of bills and payments for ES.
 Projects to generate funds for payments.
 Incentives for research, development and
trade of products from biodiversity.
 Zonification with criteria for payments.

From: National Biodiversity Strategy

 Zonification with
criteria for payments
Uses of biodiversity

 Environmental
services in Costa
Rica

 Scenic beauty
 Bat pollination
services
 Uses of biodiversity
 Environmental services: Good neighbours:
Guanacaste Conservation Area GCA- Del
ORO orange plantation
 Del ORO needs:
 water for irrigation
 ECO O.K. certification to compete in selected
international markets
 efficient waste disposal

 isolation of special varieties

Environmental services:
Good neighbours

 Del ORO needs:  GCA offers:

 water throughout the year
 water
 biological control of pests
 ECO O.K.
 biodegradation of orange
certification waste
 waste disposal  secluded areas surrounded
 isolation of special by forest
varieties  shared carbon fixation
 technical advice
Environmental services:
Good neighbours

 Payment for such services:

1.200 ha of unique forest

worth US$ 480.000
Problems with economic
environmental values
 Resource economics based on market
forces may disregard the costs of
environmental degradation and ignore the
future value of resources. (Gifford Pinchot)
 Distorted market economics: national
accounting system does not include
investment in the environment,
environmental costs of productive activities,
or indirect values from environmental
services.
Problems with economic
environmental values
 Resource users do not face the real social
cost of their behaviours.
 Those who invest in maintaining
biodiversity do not harvest any benefits.
 UNEP 1995 Global Biodiversity Assessment.

Technicalities or a fundamental fallacy?

Or a bit of both?