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Healthy Lands & Healthy Economies HEALTHY LANDS & HEALTHY ECONOMIES: NATURE’S VALUE IN SANTA CLARA COUNTY SUGGESTED CITATION Batker, D., Schwartz, A., Schmidt, R., Mackenzie, A., Smith, J., Robins, J. 2014. Nature’s Value in Santa Clara County. Earth Economics, Tacoma, WA & the Santa Clara Valley Open Space Authority, San Jose, CA. PARTICIPATING AGENCIES • Santa Clara Valley Open Space Authority • Resource Conservation District of Santa Cruz County • Sonoma County Agricultural Preservation and Open Space District Initiative team members include Andrea Mackenzie, Jake Smith, Matt Freeman, and Joelle Garretson (Santa Clara Valley Open Space Authority); Karen Christensen and Sacha Lozano (Resource Conservation District of Santa Cruz County); and Karen Gaffney, Tom Robinson, Alex Roa, and Bill Keene (Sonoma County Agricultural Preservation and Open Space District). TECHNICAL PARTNERS • Alnus Ecological • Earth Economics Technical partners include Jim Robins (Alnus Ecological), David Batker, Rowan Schmidt, Aaron Schwartz, Tania Briceno, Angela Fletcher, Jacob Gellman, Jennifer Harrison-Cox, Zachary Christin, Brianna Trafton, Tedi Dickinson, Martha Johnson, Daniel Brent, Allen Posewitz, Josh Reyneveld and TaNeashia Sudd (Earth Economics). FUNDING PARTNERS • Gordon and Betty Moore Foundation • S.D. Bechtel, Jr. Foundation • State Coastal Conservancy ACKNOWLEDGMENTS The Santa Clara Valley Open Space Authority would like to thank its Board of Directors, Initiative partners at the Resource Conservation District of Santa Cruz County; and The Sonoma County Agricultural Preservation and Open Space District, Jim Robins of Alnus Ecological for providing regional coordination, Earth Economics and its Board of Directors for their support and guidance, and Kate Reza and Melanie Askay for research support. Report authors: David Batker, Aaron Schwartz, Rowan Schmidt, Andrea Mackenzie, Jake Smith, Jim Robins. The authors are responsible for the contents of this report. TABLE OF CONTENTS Foreword � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � 1 Executive Summary � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � 2 CHAPTER 1: Healthy Lands & Healthy Economies � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � 4 Landscapes: Supporting Our Economies � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � 4 The Healthy Lands & Healthy Economies Initiative � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � 5 Nature’s Value in Santa Clara County: How to Use This Study � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � 6 CHAPTER 2: A Primer on Natural Capital: Ecosystem Goods and Services � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � 7 What is Natural Capital? � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � 7 A Framework for Assessing Ecosystem Services � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � 7 Provisioning Services � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � 9 Regulating Services � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � 9 Cultural Services � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � 10 The Importance of Valuing Ecosystem Services and Accounting for Natural Capital � � � � � � � � � � � � � � � � � � � � � � � � � 10 Policy Applications of Ecosystem Services � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � 12 CHAPTER 3: Natural Capital in Santa Clara County � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � 14 Santa Clara County: Open Spaces and Innovative Technologies � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � 14 The Importance of Open Space for Santa Clara County’s Health and Well-being � � � � � � � � � � � � � � � � � � � � � � � � � � � � 15 Open Space’s Natural Capital Provides Multiple Benefits � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � 16 The Benefits of Stewardship � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � 19 Protecting Santa Clara County’s Natural Capital Through Policy � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � 21 CHAPTER 4: Estimating Nature’s Value in Santa Clara County � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � 22 Monetizing Ecosystem Goods and Services � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � 22 Benefit Transfer Methodology � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � 22 Valuation Results � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � 33 Valuation Gaps and Study Limitations � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � 33 Asset Value of Natural Capital in Santa Clara County � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � 34 CHAPTER 5: Valuing Conservation Investments � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � 36 Conservation as an Investment � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � 36 Calculating Return on Investment � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � 36 Return on Investment Case Study: The Coyote Valley Open Space Preserve � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � 36 Estimating the Costs of the Coyote Valley Open Space Preserve � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � 37 Estimating the Benefits of the Coyote Valley Open Space Preserve � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � 38 Estimating the Return on Investment of the Coyote Valley Open Space Preserve � � � � � � � � � � � � � � � � � � � � � � � � � � � 40 Discussion and Applications � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � 41 CHAPTER 6: A New Vision for a 21st Century Economy � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � 42 Balancing Investment in Built and Natural Capital � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � 42 A Framework for New Economic Measures � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � 43 Building Partnerships and Funding Mechanisms � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � 44 Recommendations � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � 46 Next Steps: Making Smart Conservation Investments � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � 47 Appendix A: Value Transfer Studies Used: List of References � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � 48 Appendix B: Study Limitations � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � 53 Appendix C: Value Transfer Studies Used By Land Cover � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � 57 Appendix D: Value Transfer Studies Used: Annotated Bibliography � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � 57 References � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � 58 Figures Figure 1: The Link between Natural Capital and Functions and the Provision of Ecosystem Goods and Services � � � � � � � 7 Figure 2: Location of Santa Clara County � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � 14 Figure 3: Parks and Open Space by Jurisdiction � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � �
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