Economic Valuation and Protected Areas. Venetia Hargreaves-Allen Imperial College London Conservation Strategy Fund

Economic Valuation and Protected Areas. Outline. Types of economic studies Types of economic studies Principles of economic valuation Principles of economic valuation Uses of economic valuation Uses of economic valuation Research in Belize Research in Belize

Types of economic study. Economic valuation Economic valuation beyond financial analysis $ value of net values Economic impact analysis Economic impact analysis $ value income & employment impacts, Market value based Cost benefit analysis Cost benefit analysis For future policies, projects and investments

Key concepts in economic valuation. Consumer surplus Consumer surplus Producer surplus Producer surplus Multipliers Multipliers Economic incentives Economic incentives Willingness to pay or accept Willingness to pay or accept Total economic value = Total economic value = Direct use + indirect use + non use values. Increasingly difficult to measure

Benefits of Protected Areas. Use Values Marketable products Marketable products Recreation/tourism Recreation/tourism Ecosystem services Ecosystem services Research Research Education Education Option Values Option Values Non-Use Values Bequest Bequest Existence value Existence value Spiritual Spiritual Cultural / historical Cultural / historical Intrinsic value Intrinsic value

Valuation methods. Market or shadow prices Market or shadow prices Effect on production Effect on production Replacement cost Replacement cost Damages avoided Damages avoided Revealed Preference. Travel cost method Travel cost method Hedonic pricing (houses) Hedonic pricing (houses) Stated Preference. Contingent valuation Contingent valuation Choice modelling Choice modelling

How can you use valuation? Help raise revenues and sustainable financing: Raise stakeholder, policy maker & donor awareness Raise stakeholder, policy maker & donor awareness Justify additional investment Justify additional investment Identify more / equitable sources of funding Identify more / equitable sources of funding Inform damage assessments Inform damage assessments

Economic studies can enhance management; Baseline indicators to judge policy impacts or management goals Baseline indicators to judge policy impacts or management goals Understanding incentives faced by illegal resource users Understanding incentives faced by illegal resource users Understand trade-offs implicit in decisions Understand trade-offs implicit in decisions Information for cost-benefit analysis Information for cost-benefit analysis Full cost accounting Full cost accounting How can you use valuation?

Affecting management; Influencing legislation Influencing legislation Designing interventions (taxes, regulations, incentives) Designing interventions (taxes, regulations, incentives) Maximise benefits through targeted management based on whole range of values Maximise benefits through targeted management based on whole range of values Identify marginalised stakeholders to target Identify marginalised stakeholders to target Appropriate price setting / controlling visitor numbers Appropriate price setting / controlling visitor numbers

My research interests. Benefits AND costs generated by marine reserves Benefits AND costs generated by marine reserves How these are distributed How these are distributed How this will affect management goals How this will affect management goals How to encourage resource conserving behaviour How to encourage resource conserving behaviour How to maximise long term benefits How to maximise long term benefits

My research plans. Economic analysis of a marine reserve as a case study: 1) Economic value of Gladden spit 2) Economic impact of Gladden spit Global study: 3) Management questionnaire

Marine Managed Area Science. Ecological and economic studies Ecological and economic studies 4 case study countries 4 case study countries 10 projects in Belize 10 projects in Belize People involved People involved Outputs – workshop, film Outputs – workshop, film Methods and protocols will be shared Methods and protocols will be shared Link with WRI economic valuation Link with WRI economic valuation

Economic valuation at Gladden Spit. Two major objectives; 1) Calculate the current economic value of goods and services derived from a marine reserve. 2) Exploring the effects of potential scenarios on future economic values.

Values to be measured at Gladden Spit Five major areas: gross and net values. 1) Tourist values 2) Tour operator producer surplus 3) Fisher producer surplus 4) Community values 5) Coastal protection values

Economic impact of Gladden spit. $ value of income and employment benefits $ value of income and employment benefits fishing, tourism, research and management fishing, tourism, research and management Identify winners and losers Identify winners and losers Examine user incentives Examine user incentives

Global MPA management survey. On-line survey to examine global patterns Economic costs generated by the MPA Economic costs generated by the MPA Economic benefits generated by the MPA Economic benefits generated by the MPA Fiscal initiatives / measures employed Fiscal initiatives / measures employed Indicators of MPA success Indicators of MPA success Factors associated with MPA success Factors associated with MPA success Contact details: please help!

Acknowledgements. Conservation International and Conservation Strategy Fund Conservation International and Conservation Strategy Fund Friends of Nature Friends of Nature Fisheries department Fisheries department UK government UK government My supervisors My supervisors Contact me: