mesoamerican biological corridor and the environmental goods, services and impacts. mesoamerican...

Mesoamerican Biological Corridor

and the Environmental

Goods, Services and Impacts.

Mesoamerican Biologicas Corridor – promotes conservation of biodiversity and

economic development

Rado Barzev (MSc), rbarzev@hotmail.com

Mesoamérica (Central America and the South of Mexico) is a region between two continental bodies (North and South America), that is a natural biological bridge, making possible the flow of flora and fauna.

Out of the 250,000 species, described worldwide, about 20000 can be found in the Region.

BIOLOGICAL TREASURES MESOAMERICAS

Mesoamérica

0.5%

World Territory World Biodiversity

Mesoamérica

10%

BIODIVERSITY

POPULATION

COMMUNITY

PLANTS ANIMALS

SOIL, ENERGY, AIR, WATER

ECOSYSTEMS

INDIVIDUALS

COMMUNITY

ASSOCIATION

GENES

BIODIVERSITY = ENVIRONMENTAL GOODS AND SERVICES

Genetic ResourcesRaw materials for the

pharmaceutics

GENES

Biological ControlFood ProductionWood, Fire Wood

SPECIES

Soil formationWater supply and quality

Erosion controlClimate regulation

Nutrients RecyclingFlood control

Oxygen production and carbon sequestrationLandscapes

Species habitatWaste recycling

ECOSYSTEMS

ENVIRONMENTAL GOODS AND SERVICES

MARKET PRICES FOR SOME GENETIC RESOURCES AND THEIR DERIVATIVES (US $/KG)

Growth Hormones 20,000,000.Taxotere-Docetaxol (anti leukemia) 12,000,000.Viscristine sulfato 11,900,000.Cocaine 150,000.Camptothecin 85,000.Anti AIDS 5,000.Tiger bone 3,000.Shark oil 550.Coffee 10.Cotton 1.5

Land use planning under CBM

Environmental Goods and Services

Protected Areas

MBC

BIODIVERSITY

FRAGMENTATION

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Biological CorridorsZ

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Protected Areas

Country X

Example of land use planning in order to establish the

Mesoamercian Biological Corridor

Biological Corridors

Buffer zones

Mesoamerican Biological Corridor

A corridor of protected areas surrounded by other multiuse and nature friendly areas

The neighbor country Y

Protected Areas

Repeat the process

MBC spreads

* A land use planning system for the Central American Protected Areas System (SICAP), including buffer zones and multiuse areas.

* It provides several environmental goods and services to the central American society and also benefits societies from all over the world.

* The system promotes as well the sustainable use of the natural resources. This happens through a process of consulting a wide range of population in order to improve the sustainable livelihoods.

DEFINITION OF THE MBC (SUMMARY)

COMPONENTS OF THE MBC – The Project

I. Strengthen the Institutional Capacity of Management of the MBC.

II. Strengthen the Sustainability Conditions of the MBC.

III. Establish construction processes for Local Biological Corridors, focusing on the border areas.

CCAD - Central American Commission for the Environment and Development

Agendas

(1) Green (2) Grey

Biodiversity, EGS

Envir. Benefits

Clean Production/ Pollution

Envir. Costs

Economic Instruments for the Conservation in the Mesoamerican Biolgical Corridor

MBC

MESOAMERICAN BIOLOGICAL CORRIDOR

Map Source: DCW, 1975 ; CIAT, 1998; USGS, 1995

RESERVA DE LA BIOSFERA MAYA

GOLFO DE HONDURAS

SOLIDARIDAD

CAYOS MISQUITOS

TRIFINIO

GOLFO DE FONSECA

BAHIA DE SALINAS SIAPAZ

PILA

GANDOCA-BOCAS

RB DARIEN

Priority Areas of the Central American Protected Areas

System

OBJECTIVES 

General:

Analyze and make available the results from the efforts in Economic Valuation of the Natural Resources in the Region and the Establishment of Payments for the Use of the Environmental Goods and Services. 

Specifics:

Introduce the concepts and methodologies in economic valuation of the natural resources and the establishment of Payments for the Use of the Environmental Goods and Services.

Describe the process of negotiation between the supply and the demand of the natural resources, in order to establish the Payments for the Environmental Goods and Services (PES) (key players, environmental funds, environmental commission, environmental legislation).

Determine the economic viability of the implementation of the Payments for the Environmental Goods and Services (conservation of the biodiversity).

Present some successful experiences of PES in Central America.

Environmental Goods – Tangible Products of hte Nature (Row materials)

Environmental Services – Ecosystemic Functions that benefit Humans

-        Water for Domestic use- Water for the Agriculture- Water for Industrial use-         Wood-         Medicine Plants-         Firewood -         Seeds-         Food-         Plants y Fruits -         Other products of the forest-         Biological raw material- Flora and fauna-         Handicraft-         Cattle- Agricultural products. 

-         Underground water supply -         Soil water retention-         Soil protection-         Carbon sequestration-         Flood control-         Erosion control-         Nutrients retention-         Landscape attraction- Watershed protection 

ENVIRONMENTAL GOODS AND SERVICES THAT GENERATES AN ECOSYSTEM

Crops

Natural Protected Areas

Natural Forest

Plantations

CommunitiesPrivate lands

Natural Protected Areas

Private lands

Plantations

GEOGRAPHIC DISTRIBUTION OF THE NATURAL RESOURCES (ENVIRONMENTAL GOODS AND SERVICES)

ENVIRONMENT- Ecosystem

-Protected Areas-Watershed

ECONOMICS

Wastes: Impacts, Externalities

Environmental Goods and Services

Decision making ExtractionTransformation

Benefits

Costs

Consumption

Production Costs (PC) Distribution Costs (DC)

Contamination Costs (CC)

Environmental Costs (EC) = Depreciation

Costs + Reposition and Recycling Costs

Benefits > Costs

(Costs = PC + DC + CC + EC)

USE OF THE ENVIRONMENTAL GOODS AND SERVICES COST/BENEFIT ANALYSIS

Achieve an environmental management

system:

A) Internalize the Environmental Costs: With the Cost/Benefit analysis find out if Benefits are higher than Costs.

B) Costs Reduction: Cost/Efficiency analysis to achieve the productive goals at the lowest costs possible.

Economic viability and

competitiveness

CONSERVACION: Management and use of the biodiversity, guaranteeing the higher and most sustainable benefits, without

endangering its potential for the future generation.

It implies activities such as protection, maintenance, sustainable use, restoration and improvement of the environment.

TOTAL ECONOMIC VALUE

Direct Use Value

Indirect Use Value

Use Value Non Use Value

Option Value Existence Value

- Species

- Habitat Conservation

- Biodiversity Protection

- Pharmaceutics Potential

- Recreational Potential

-Wood-Firewood- Food products- Handicraft- Water supply-Landscape and- Tourism- Medicines-Construction materials- Raw materials- Research- Education-Plant and Animal Species

- Endangered Species

- Esthetic Value

- Cultural and Historical Values

- Flood Control

- Disaster Prevention

- Erosion Control

- Nutrients Retention

- Water Quality

- Habitat

- Oxygen Production

- Carbon Sequestration

- Watershed protection

VET=VUD+VUI+VO+VE

TEV = Total Economic Value

DUV = Direct Use Value

IUV = Indirect Use Value

OV = Option Value

EV = Existence Value

Methodologies

Effects measured Valuation bases

A) Objective Valuation

1. Change in Productivity Productivity Technical/physical Assumed behavior

2. Health Costs Health(Desease)

Technical/physical Assumed behavior

3. Human Capital Health(Deth)

Technical/physical Assumed behavior

4. Replacement Costs Capital, Natural Resources

Technical/physical Assumed behavior

Economic Valuation Methodologies

B) Subjective Valuation

1. Preventive and Mitigation Costs

Health, Productivity, Capital, Natural Resources

Revealed behavior

2. Hedonic PricesProperty Values

Wage Differential

Environmental quality  

Health

Revealed behavior   

3. Travel Cost Natural Resources quality Revealed behavior

4. Contingent Valuation Health, Natural Resources quality

Revealed behavior

X

Px

EXTERNALITIES

Private Marginal Cost - Supply

Social Marginal Cost – Negative Externalities

Social Marginal Cost – Positive Externalities

Price Reduction

Price Increment

Demand

BENEFITS FOR THE ECONOMY

AGRICULTURE INDUSTRY SERVICES

Water for domestic use X

Water for the agriculture X

Water for the industry XSustainable wood production X

Firewood X

Carbon sequestration X

Carbon avoided emissions X

Agricultura y Ganadería X

Landscape and potential for tourism X

BENEFITS PER SECTORS OF THE ECONOMY X X X

TOTAL OF BENEFITS X

BIENES Y SERVICIOS AMBIENTALES

SECTORS OF THE ECONOMY

SERVICIO AMBIENTAL

OWNERLocal

Mechanisms

COUNTRYNational

Mechanisms

THE WORLDInternational Mechanisms

Sustainable Wood Production

Water for different use

Landscape    

Biodiversity 

Carbon sequestration

BENEFITS DISTRIBUTION AND IMPLEMENTATION OF THE ECONOMIC MECHANISMS FOR THE ENVIRONMENTAL GOODS AND SERVICES PAYMENTS

PHYSICAL INDICATORS

ECONOMIC INDICATORS

SOCIAL AND ECONOMIC

ASSESMENT

ENVIRONMENTAL AND ECONOMIC INDICATORS

ECONOMIC VALUATION METHODOLOGIES

Costs

Benefits

Damage by each additional unit of contamination

Cost for each unit of contamination mitigated

Costs

Contamination

MITIGATION COSTS FOR THE NEGATIVE IMPACTS (EXTERNALITIES)

Q2 Q1

C2

C1

LA NEGOCIACIÓN – SITUACIÓN “TODO EL MUNDO GANA (WIN-WIN SITUATION)

Up the

River

Down the

River

$

Q equilibrium Q2 Q1Q0

Level of Production and Level of Contamination

A

B

Benefits for each additional unit of commodity

Costs for each additional unit of contamination

ECOSISTEM

SUPPLYOwners of the

Natural Resources

DEMANDConsumers

Charging Consumers

Paying the Owner of the

Natural Resources

Environmental Services

Commission

PES:- Fees- Environmental Taxes- Trading Permissions- Licenses- Penalty, etc.

Environmental Fund

Paying the Nature

PAYMENTS FOR ENVIRONMENTAL

SERVICES (PES)

BASIC PROCEDURES FOR ESTABLISHING PAYMENTS FOR ENVIRONMENTAL SERVICES

Identify the consumers of the Environmental Goods and Services (the Demand). Physical and economic quantification of the Demand.

Identify the owners of the Environmental Goods and Services (the Supply). Physical and economic valuation of the Demand.

Determine and characterize the geographic area where the PES will be implemented.

Determine the Investment and Costs required for implementing activities for sustainable management of the Environmental Services considered.

Economic valuation of the Environmental Goods and Services: Quantify in monetary terms the Supply and Demand.

Establishing economic mechanisms for capturing financial resources (establishing the Payments for Environmental Services).

Form the Environmental Services Commission. This commission will be in charge of monitoring the process of implementation of the PES.

Establishing the Environmental Fund.

Based on negotiations, agreements are achieved and there will be contractual relationship between Owners and Consumers.

Hire experts who will provide technical assistance on activities required for the conservation of the Environmental Goods and Services (Technological changes – Environmental Management System).

Certification of the Environmental Management System proposed. Monitoring the Environmental Management System implemented and the PES established.

BASIC FUNCTIONS OF THE ENVIRONMENTAL SERVICES COMMISSION

Help negotiation process between owners and consumers.

Monitor the transparent use of the Environmental Funds.

Involve different sectors of society into the Conservatión Effort proposed through the establishment of PES.

Coordinate activities with Certification Experts.

Coordinate activities con Experts on Technical Assistance.

Environmental Problem

Needs Demands

EV Study and other technical studies

Economic Mechanism Proposal

Negotiation

Environmental management policies change

Implementation

Training

The Process of establishing the PES Programme

THANK YOU