Is Sustainable Development Path an Option?

July 20, 2009By Dr. Rene CastroRene.castro@incae.edu

Ecoturists are diverse, well educated and expend more

Greece and the Caribbean are positioned in sun and sand tourism, it is only growing at 4%

Cultural tourism is growing at 15% per year

Adventure tourism at around 20%

Ref. Lawrence Pratt, 2005Ref. Lawrence Pratt, 2005

Longer visits not always means more money…

$230 $224

$156

$114

$77

$0

$50

$100

$150

$200

$250U

S$ .

0 - 5 6 - 10 11 - 14 15 - 21 21 o más

Días

Gastos de Turistas por Día

Gráfico del autor basado en datos anexos y cálculos propiosGráfico del autor basado en datos anexos y cálculos propios

Tourist Tourist visiting visiting Costa Rica: Costa Rica: after 10 after 10 days days diminishing diminishing returns for returns for the countrythe country

Not all tourist niches are equally profitable…cruiships means high leakage

Volumen Anual de Turistas

0

200,000

400,000

600,000

800,000

1,000,000

1,200,000

1,400,000

1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003

Tourists Cruise tourists

Gastos por Turistas por Visita

-

200

400

600

800

1,000

1,200

1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003

US $

.

Expenditures per tourist visit

Expenditures per Cruise tourists

Gráficos del autor basado en datos anterioresGráficos del autor basado en datos anteriores

SMEs are common in ecoutourism and leakage is less than 20%

A- a Typica SME is a rain forest A- a Typica SME is a rain forest Tram in Playa JacóTram in Playa Jacó

((Ref. Ref. La República, 5 de septiembre de 2002.)La República, 5 de septiembre de 2002.)

EquityEquity $342,016$342,016 debtdebt $ 1,368,064$ 1,368,064 TotalTotal $ $ 1,710,080 1,710,080

B- Most hotels are around 20 B- Most hotels are around 20 rooms.rooms.

C- Around 40 cents X $1 expend C- Around 40 cents X $1 expend remains in local communties remains in local communties study in progress at INCAE, study in progress at INCAE, 2009).2009).

GREEN ENERGYStrong sustaibnability

Latin American Consumers and El Niño are Exacerbating Environmental Problems: Fossil Fuel Consumption Increasing

0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

100%19

8019

81

1982

1983

1984

1985

1986

1987

1988

1989

1990

1991

1992

1993

1994

1995

1996

1997

1998

1999

Source: U.S. Energy Information Administration

Bolivia

Dominican Republic

Ecuador

Haiti

Peru

Central America

Mexico

Colombia

EL NIÑO EL NIÑO

Net

The

rmal

Ele

ctri

city

Gen

erat

ion

%

… …cleaner energy and transportationcleaner energy and transportation induce by and COinduce by and CO22 markets markets

CC

Global Green Markets for COGlobal Green Markets for CO22 fixed by forest… fixed by forest…

Certificates and titlesCertificates and titles

Cash inflow coming from Cash inflow coming from Environmental ServicesEnvironmental Services

4-2-974-2-97

CERs CERs COCO22

OO22

Tomado de Cyclone Wind Energy Tomado de Cyclone Wind Energy System, en desarrollo System, en desarrollo

CERs payments help Costa Rica to aimfor 100% renewable power by 2021

Currently fossil fuels only for peak hours in Costa Rica

Tomado de: “Plan de expansión de la generación eléctrica, período 2004 – 2020”; ICE.Tomado de: “Plan de expansión de la generación eléctrica, período 2004 – 2020”; ICE.

Wind power and Wind power and biomass closing the gapbiomass closing the gap

Tomado de Cyclone Wind Energy System, Tomado de Cyclone Wind Energy System, en desarrollo en desarrollo

BIODIVERSITYStrong Sustainability

Tipos de muestras

Áreas del conocimiento

Productos

AgronomíaBiologíaQuímica

Computación

Ingeniería GenéticaLeyes

MicrobiologíaFarmacología

Microorganismos

Plantas Insectos

Muestrasambientales y

ADNMoluscos

y organismosmarinos

Bio-pesticidas

Medicinas

Plantastransgénicas

OtrosProductos

(cosméticos)

Ref. INBIO, 2001

Biodiversity: New Products and Services

BTG 92-BTG 92-0022 / ECOS –LA PACÍFICA / ECOS –LA PACÍFICA

MERCK 91-99

More than 30 Contracts Between INBIO and key industries between 1991-2001, such as:

BRISTOL MYERS SQUIBB 94-98

RBI 95-98 DIVERSA 98-01 /2001-06

GIVAUDAN ROURE 95-98

INDENA 96-98, INDENA 96-98, 00-0200-02

PHYTERA 98-00PHYTERA 98-00

AKKADIX 00-01AKKADIX 00-01

Eli Lilly 2000Eli Lilly 2000

CLIMATE CHANGEStrong Sustainability

CO2 Emissions per capita vs. GDP per capitaSelected Latin America and OECD countries

0

2

4

6

8

10

12

1416

1820

0 2,500 5,000 7,500 10,000 12,500 15,000 17,500 20,000 22,500 25,000 27,500

GDP per capita (US dollars)

CO

2 Em

issi

ons

per c

apita

(MT)

VEN

COL

PER MEX

CR

SPA

UKNED

GER

JAPNOR

CANUSA

Carbon-intensive Development

Less Carbon-instensive Development

ECONOMIC GROWTH AND EMISSIONS: WHAT IS THE LINK?

Ref. Castro and Ref. Castro and tattembach, 2000tattembach, 2000

Dr. René Castro

Climate Change is here

Extreme wheatear events are increasing in frequency and magnitude…

Developing countries in permanent reconstruction

Dr. René CastroSweden, June, 2004

Large Dams facing changes in rain patterns

Arenal Lake, Costa Rica During the 94 summer Arenal

Reservoir was about to closed down due to a severe El Niño.

It provides around 35% of Costa Rican electricity and surplus for export.

El Cajon, Honduras Honduras was no prepared to

confront water scarcity. Cajon Hydro plant closed down in

1994. The country faced black outs and had to redesigned Cajon.

Dr. René Castro

Large infrastructure facing water Budget reductions

In 1983 the Panama Canal water was scarce and bellow the critical level of 84.5 feet...

they dug one more meter

In 1997 water was scarce again and the lower level of 81.5 did not work...

In 2008 Canal Expansion project will reduce water waste by 60%

New Environmental Design New Environmental Design Reduction of Human VulnerabilityReduction of Human Vulnerability

Conclusions

Sustainable Development is possible but Difficult

Developing Countries need SD strategy to survive Climate Change and Economic Stress

Small Costa Rica could be a pioneer in some areas

There is a need for global leadership