Ce diaporama a bien été signalé.
Le téléchargement de votre SlideShare est en cours. ×

Watershed Conference - "The value nature vs the nature of value" - 2006

Publicité
Publicité
Publicité
Publicité
Publicité
Publicité
Publicité
Publicité
Publicité
Publicité
Publicité
Publicité
Chargement dans…3
×

Consultez-les par la suite

1 sur 55 Publicité

Watershed Conference - "The value nature vs the nature of value" - 2006

Télécharger pour lire hors ligne

The historical perspective of what today is considered the modern study of environmental economics begins with problems proposed by Garret Hardin in his famous essay "The Tragedy of the Commons" in 1968. Many scientists, engineers, and economists have proposed methods of assessing the value of the natural environment since this time. This presentation will discuss many of these methods with specific focus on application of substitute cost method and its potential for application in stormwater management and mitigation.

The historical perspective of what today is considered the modern study of environmental economics begins with problems proposed by Garret Hardin in his famous essay "The Tragedy of the Commons" in 1968. Many scientists, engineers, and economists have proposed methods of assessing the value of the natural environment since this time. This presentation will discuss many of these methods with specific focus on application of substitute cost method and its potential for application in stormwater management and mitigation.

Publicité
Publicité

Plus De Contenu Connexe

Diaporamas pour vous (20)

Les utilisateurs ont également aimé (20)

Publicité

Similaire à Watershed Conference - "The value nature vs the nature of value" - 2006 (20)

Plus récents (20)

Publicité

Watershed Conference - "The value nature vs the nature of value" - 2006

  1. 1. Environmental Economics: The nature of value vs. the value of nature
  2. 2. What is “value”?
  3. 3. What is “value”? <ul><li>Webster’s Dictionary Defines Value as: </li></ul><ul><li>1 : a fair return or equivalent in goods, services, or money for something exchanged </li></ul><ul><li>2 : the monetary worth of something : marketable price </li></ul><ul><li>3 : relative worth, utility , or importance <a good value at the price> <the value of base stealing in baseball> <had nothing of value to say> </li></ul><ul><li>7 : something (as a principle or quality) intrinsically valuable or desirable <sought material values instead of human values -- W. H. Jones> </li></ul>
  4. 4. Utility in Value <ul><li>Utility is defined as the level of happiness or satisfaction associated with alternative choices. </li></ul><ul><li>Economists assume that when individuals are faced with a choice of feasible alternatives, they will always select the alternative that provides the highest level of utility . </li></ul>
  5. 5. What is Environmental Economics? <ul><li>A mechanism using economic theories and empirical analyses that characterizes relationships between the performance of the economy and environmental pollution control; </li></ul><ul><li>OR </li></ul><ul><li>It can be defined as the study and in-depth analyses of economic and policy issues relating to economic costs and benefits of environmental pollution control programs, policies, and guidance. </li></ul>
  6. 6. Why do we need to consider Environmental Economics? <ul><li>To perform analyses of the economic impacts of environmental pollution control programs. </li></ul><ul><li>To address the development dimensions of environmental policy – evaluating the social and economic impacts, in particular the impacts on poverty, and designing policies that are both cost-effective and equitable. </li></ul><ul><li>To examine the environmental implications of development policy – making tradeoffs between poverty reduction and environmental protection. </li></ul>
  7. 7. Concepts of Value <ul><li>Non-Utilitarian Concept </li></ul><ul><ul><li>(Typically Intangible Values) </li></ul></ul><ul><li>Utilitarian Concept </li></ul><ul><ul><li>(Typically Tangible Values) </li></ul></ul>
  8. 8. Total Economic Value <ul><li>Total Economic Value (TEV) </li></ul><ul><li>Concept is attributed to Pearce and Warford 1993, World Without End </li></ul><ul><li>Theoretical structure for assessing ecosystem value as a whole </li></ul>
  9. 9. TEV CATEGORIES COMMONLY USED VALUATION METHODS USE VALUE NON-USE VALUE TOTAL ECONOMIC VALUE (TEV) Direct use value Consumptive Nonconsumptive Indirect use value Option value Bequest value Quasi-option value Existence Value <ul><li>Changes in productivity </li></ul><ul><li>Cost-based approaches </li></ul><ul><li>Hedonic prices </li></ul><ul><li>Travel costs </li></ul><ul><li>Contingent valuation </li></ul><ul><li>Changes in productivity </li></ul><ul><li>Cost-based approaches </li></ul><ul><li>Contingent valuation </li></ul><ul><li>Changes in productivity </li></ul><ul><li>Cost-based approaches </li></ul><ul><li>Contingent valuation </li></ul><ul><li>Contingent valuation </li></ul>
  10. 10. TEV Categories Direct Use <ul><li>Direct use values are based on consumptive or nonconsumptive uses. </li></ul><ul><li>Consumptive use is a use that reduces the overall supply of resource, while nonconsumptive use causes no reduction in quantity or supply of that resource </li></ul>
  11. 11. TEV Categories Indirect Use <ul><li>Indirect use values can be described as support and protection provided to economic activity by regulatory environmental services. </li></ul><ul><li>Many ecosystem services are used as intermediate inputs for the production of goods, while other services indirectly contribute to consumption of goods. </li></ul><ul><li>An example of indirect use value of services through intermediate inputs would be pollination in food production, while indirect contribution to consumption would be water purification. </li></ul>
  12. 12. TEV Categories Option Value <ul><li>A value of information about future returns net of environmental damages conditional on refraining from making an investment that would entail uncertain future environmental damages. </li></ul>
  13. 13. TEV Categories Existence Value <ul><li>Existence values are non-use values often referred to as conservation values, or passive use values. </li></ul><ul><li>These are values applied to a resource that individuals do not intend to use, but would feel a “loss” if the resource were to disappear. </li></ul><ul><li>This could be stated as value ascribed to the knowledge of existence. </li></ul><ul><li>Studies have linked these applied values to the knowledge of maintaining a resource for one’s descendents and the knowledge of assured survival for a resource like habitats or species </li></ul>
  14. 14. TEV CATEGORIES COMMONLY USED VALUATION METHODS USE VALUE NON-USE VALUE TOTAL ECONOMIC VALUE (TEV) Direct use value Consumptive Nonconsumptive Indirect use value Option value Bequest value Quasi-option value Existence Value <ul><li>Changes in productivity </li></ul><ul><li>Cost-based approaches </li></ul><ul><li>Hedonic prices </li></ul><ul><li>Travel costs </li></ul><ul><li>Contingent valuation </li></ul><ul><li>Changes in productivity </li></ul><ul><li>Cost-based approaches </li></ul><ul><li>Contingent valuation </li></ul><ul><li>Changes in productivity </li></ul><ul><li>Cost-based approaches </li></ul><ul><li>Contingent valuation </li></ul><ul><li>Contingent valuation </li></ul>Substitute Cost Method is the focus of this research
  15. 15. Research
  16. 16. Introduction <ul><li>Development pressures are increasing </li></ul><ul><li>Stormwater runoff characteristics are changed by development </li></ul><ul><li>Stormwater runoff models exist </li></ul><ul><li>Models produce complicated scientific/engineering data </li></ul><ul><li>A common metric is needed to compare varied elements </li></ul><ul><li>The common metric is the Ecological Services Value (ESV) </li></ul>
  17. 18. What is the problem?
  18. 19. Stormwater Runoff Impacts <ul><li>It is often difficult for decision makers and political officials to understand complex scientific and engineering analysis, as it relates to stormwater runoff </li></ul><ul><li>The desire for economic development and sources of new revenue is creating intense pressure on decision makers to allow development of lands </li></ul><ul><li>Without a common metric, it is difficult to evaluate environmental impacts </li></ul>
  19. 20. Why is it a problem?
  20. 21. Decisions Will Be Made <ul><li>Development decisions are often made without respect to impacts of stormwater runoff </li></ul><ul><li>Few tools are available to evaluate complex development decisions with well recognized, simplistic terms </li></ul><ul><li>Without a common metric, decision makers may not consider the impacts of development on stormwater runoff </li></ul>
  21. 22. Why is it important to solve it?
  22. 23. Ecosystem Deterioration <ul><li>Assuming that predevelopment conditions are optimal for downstream areas, if impacts are not mitigated, significant damage can occur in the form of pollution and/or flooding </li></ul><ul><li>Without the appropriate comparisons, leaders may make poor decisions that could have negative impacts on society </li></ul>
  23. 24. Research Question <ul><li>What is the monetary value of the natural services provided by undeveloped lands with respect to stormwater runoff impacts? </li></ul>
  24. 25. Hypothesis <ul><li>H 0 = The proposed methodology and tool produces the required inputs for the ESV equation. </li></ul>Where: V ES = Ecological Services Value C C = Capital costs of the construction of the stormwater control C O = Operations and maintenance costs of the stormwater control
  25. 26. Methodology & Tool Development Research Approach
  26. 27. Research Stormwater Runoff Models With Respect to ESV Equation Needs Identify Model Inputs Write Computer Code to Generate Model Inputs through GIS Test Custom Generated Inputs with Models Write Computer Code to Accept and Extract Model Output to Calculate ESV Write Computer Code to Express ESV Graphically Classify Aerial/Satellite Imagery For Research Area Generate Inputs Using Decision-Tool And Execute Models No Yes Model Execution Complete, ESV Calculator Accepted Model Output, ESV Displayed Graphically for Decision Support
  27. 28. Existing Stormwater Models <ul><li>WinSLAMM </li></ul><ul><ul><li>Source Loading and Management Model </li></ul></ul><ul><li>WCS </li></ul><ul><ul><li>Watershed Characterization System </li></ul></ul><ul><li>L-THIA </li></ul><ul><ul><li>Long-Term Hydrologic Impact Assessment </li></ul></ul><ul><li>WinTR-55 </li></ul>
  28. 29. Decision Support Tool Development <ul><li>Input Support </li></ul><ul><ul><li>Manual input </li></ul></ul><ul><ul><li>Importation of text files </li></ul></ul><ul><ul><li>Importation of databases </li></ul></ul><ul><ul><li>Derivative inputs of a GIS </li></ul></ul><ul><li>Output </li></ul><ul><ul><li>Graphical representations </li></ul></ul><ul><ul><li>Reporting functions </li></ul></ul>The Decision Support Tool will be developed in the form of an extension for ESRI’s ArcGIS
  29. 30. Expected Results <ul><li>Existing models are expected to: </li></ul><ul><ul><li>Determine the characteristics of stormwater runoff </li></ul></ul><ul><ul><li>Select and determine varied combinations of stormwater controls for the reduction of quantity and the enhancement of quality </li></ul></ul><ul><ul><li>Calculate the cost and operations of the selected controls </li></ul></ul><ul><li>The proposed methodology and tool is expected to provide the required inputs necessary for the calculation of the ESV. </li></ul>
  30. 31. Manual Calculation Examples <ul><li>Low Density Residential Site </li></ul><ul><li>High Density Residential Site </li></ul><ul><li>Commercial Site </li></ul>
  31. 32. ESV Calculation <ul><li>Assumptions: </li></ul><ul><li>Pre-development is the optimal condition </li></ul><ul><li>Pre-development can be achieved through technology </li></ul><ul><li>Land cost is not factored </li></ul>
  32. 33. Low Density Residential Example
  33. 36. Low Density Residential Example Source Area Distribution
  34. 38. ESV for Low Density Residential <ul><li>Calculated cost runoff reduction per cubic foot </li></ul><ul><ul><li>$1.71 </li></ul></ul><ul><li>Reduction required from pre-development conditions to base developed conditions </li></ul><ul><ul><li>876,298.8 cu ft </li></ul></ul><ul><li>Site Acreage = 13.86 </li></ul><ul><li>ESV = $1,498,471.29 </li></ul>
  35. 39. High Density Residential Example
  36. 42. High Density Residential Example Source Area Distribution
  37. 44. ESV for High Density Residential <ul><li>Calculated cost runoff reduction per cubic foot </li></ul><ul><ul><li>$2.15 </li></ul></ul><ul><li>Reduction required from pre-development conditions to base developed conditions </li></ul><ul><ul><li>1,294,188 cu ft </li></ul></ul><ul><li>Site Acreage = 24.99 </li></ul><ul><li>ESV = $2,782,504.20 </li></ul>
  38. 45. Commercial Example
  39. 48. Commercial Example Source Area Distribution
  40. 50. ESV for Commercial <ul><li>Calculated cost runoff reduction per cubic foot </li></ul><ul><ul><li>$0.58 </li></ul></ul><ul><li>Reduction required from pre-development conditions to base developed conditions </li></ul><ul><ul><li>8,708,669 cu ft </li></ul></ul><ul><li>Site Acreage = 65.33 </li></ul><ul><li>ESV = $4,766,005.00 </li></ul>
  41. 51. Practical Example <ul><li>A municipality is presented with the decision to allow a commercial retail development in an undeveloped area. </li></ul><ul><ul><li>Question: </li></ul></ul><ul><ul><ul><li>What is the monetary value of the services provided by the existing natural system (i.e. ESV), with respect to stormwater runoff? </li></ul></ul></ul><ul><ul><ul><ul><li>If the ESV is greater than the costs the interested party is willing to support, the decision makers must determine if the amount of stormwater runoff impact is acceptable, hence informed consent. </li></ul></ul></ul></ul>
  42. 52. Conclusions <ul><li>This research will produce a methodology and decision tool: </li></ul><ul><ul><li>To aid in quantifying the environmental impact and cost associated with land disturbance/development </li></ul></ul><ul><ul><li>Through the determination of a common metric, aid in understanding relationships between: </li></ul></ul><ul><ul><ul><li>Economic development perspectives </li></ul></ul></ul><ul><ul><ul><li>Stormwater pollution control engineering cost implications </li></ul></ul></ul><ul><ul><ul><li>The value of natural stormwater services provided by the ecosystem </li></ul></ul></ul><ul><li>Lastly, this research will contribute to the greater body of knowledge on the topics of stormwater runoff impacts, environmental economics, and geographic information sciences. </li></ul>
  43. 53. SICS Consultants, LLC www.sicsconsultants.com Steve McKinney 256.289.6152 [email_address]
  44. 55. CALL ME!!! Cause baby needs new shoes!!!! Alexander McKinney

Notes de l'éditeur

  • Three engineers and three accountants were traveling by train to a conference. At the station, the three accountants each bought tickets and watched as the three engineers bought only one ticket. &amp;quot;How are three people going to travel on only one ticket?&amp;quot; asked an accountant. &amp;quot;Watch and you&apos;ll see&amp;quot;, answered an engineer. They all boarded the train. The accountants took their respective seats, but the three engineers all crammed into a rest room and closed the door behind them. Shortly after the train departed, the conductor came around collecting tickets. He knocked on the restroom door and said, &amp;quot;Ticket, please&amp;quot;. The door opened just a crack and a single arm emerged with a ticket in hand. The conductor took it and moved on. The accountants saw this and agreed it was a quite clever idea. So, after the conference, the accountants decide to copy the engineers on the return trip and save some money (being clever with money, and all that). When they got to the station, they bought a single ticket for the return trip. To their astonishment, the engineers didn&apos;t buy a ticket at all. &amp;quot;How are you going to ride without a ticket&amp;quot;? said one perplexed accountant. &amp;quot;Watch and you&apos;ll see&amp;quot;, answered an engineer. When they boarded the train, the three accountants crammed into a restroom and the three engineers crammed into another one nearby. The train departed. Shortly afterward, one of the engineers left his restroom and walked over to the restroom where the accountants were hiding. He knocked on the door and said, &amp;quot;Ticket, please.&amp;quot;

×