Shoreline Protection in the Savegre Delta, Costa Rica

Serie Técnica 12

ECONOMIC VALUATION OF MANGROVE ECOSYSTEM SERVICES: SHORELINE PROTECTION IN THE SAVEGRE DELTA, COSTA RICA

El Proyecto Biodiversidad Marino Costera en Costa Rica, Desarrollo de Capacidades y Adaptación al Cambio Climático es un proyecto en el marco de la Iniciativa Internacional de la Protección del Clima “IKI” del Ministerio de Medio Ambiente, Protección de la Naturaleza y Seguridad Nuclear de la República Federal de Alemania

Publicado por: BIOMARCC-SINAC-GIZ

Investigación y Reporte Técnico: Natalie Gerlach

Coordinación y Revisión: Equipo técnico BIOMARCC-SINAC-GIZ, Christian-Albrechts- Universität zu Kiel

Esta publicación puede citarse sin previa autorización con la condición que se mencione la fuente.

Citar como: BIOMARCC-SINAC-GIZ. 2013. Economic Valuation of Mangrove Ecosystem Services: Shoreline Protection in the Savegre Delta, Costa Rica. San José-Costa Rica. 52 pags.

Fotografías: Humedal y desembocadura del Río Savegre (Natalie Gerlach)

Financimiento: “ Proyecto Biodiversidad Marino Costera en Costa Rica, Desarrollo de Capacidades y Adaptación al Cambio Climático (BIOMARCC-SINAC-GIZ)”

Las opiniones que el autor expresa en esta publicación no reflejan necesariamente las opiniones del Proyecto BIOMARCC-GIZ-SINAC.

SINAC BIOMARCC

El Sistema Nacional de Áreas de Conservación de BIOMARCC-SINAC-GIZ, es un proyecto de apoyo al Costa Rica (SINAC) es un sistema de gestión Sistema Nacional de Áreas de Conservación institucional descentrado y participativo, que (SINAC-MINAET) ejecutado por la Deutsche integra las competencias en materia forestal, de Gesellschaft fὕr Internationale Zusammenarbeit vida silvestre y áreas silvestres protegidas del (GIZ) GmbH, por encargo del Ministerio Alemán de Ministerio de Ambiente, Telecomunicaciones Medio Ambiente, Conservación de la Naturaleza y (MINAET) y Energía, con el fin de dictar políticas, Seguridad Nuclear (BMU) en el marco de su planificar y ejecutar procesos dirigidos a lograr Iniciativa Protección del Clima (IKI). la sostenibilidad en el manejo de los recursos naturales de Costa Rica. (Ley de Biodiversidad El objetivo principal del proyecto es “Incrementar 1998). El SINAC está constituido por once las capacidades de adaptación de los ecosistemas subsistemas denominados Áreas de Conservación marino-costeros de Costa Rica ante las y su Sede Central. Un Área de Conservación consecuencias del Cambio Climático” y tiene como es una unidad territorial administrativamente objetivos específicos: delimitada, en donde se interrelacionan 1. Contribuir a establecer un Sistema de Áreas actividades tanto privadas como estatales y se Protegidas Marino – Costeros ecológicamente buscan soluciones conjuntas, orientadas por representativo adaptado al cambio climático. estrategias de conservación y desarrollo sostenible de los recursos naturales. 2. Fortalecer las capacidades de gestión de las instituciones responsables del manejo de áreas “El SINAC es un concepto de conservación integral de conservación marino - costeras y de otros que ofrece la posibilidad de desarrollar una actores locales relevantes, especialmente gestión pública responsable, con la participación referentes a los desafíos del cambio climático. del Estado, la Sociedad Civil, la empresa privada, y 3. Elaborar e implementar conceptos y de cada individuo del país interesado y mecanismos financieros para la adaptación de comprometido con la construcción de un ambiente las Áreas Protegidas Marino – Costeras al sano y ecológicamente equilibrado”. Cambio Climático con la participación activa de los actores relevantes.

4. Establecer una plataforma de información, comunicación y cooperación (Mecanismo de Facilitación Nacional) que permita el intercambio y la transferencia de conocimientos y experiencias sobre manejo de los ecosistemas marino - costeros y su adaptación al Cambio Climático entre los actores relevantes (SINAC; MINAET; Instituciones Científicas; grupos y población locales).

5. Validar y transferir conceptos, instrumentos y estrategias desarrollados en el marco del proyecto hacia otros países de la región centroamericana.

333.918 C8374e Costa Rica.Biodiversidad Marina y Costera de Costa Rica

Economic valuation of mangrove ecosystem services: shoreline protection in the Savegre Delta, Costa Rica / Biodiversidad Marina y Costera de Costa Rica. - - 1ª ed. - - San José, C.R.: Biodiversidad Marina y Costera de Costa Rica, Creación de Capacidades y Adaptación al cambio climático, 2016. 59 p. – (Serie Técnica)

ISBN 978-9930-9497-1-9

1. MANGLARES 2. ECOSISTEMAS – INVESTIGA- CIONES 3. COSTA RICA I. Titulo

CONTENIDO

ÍNDICE DE FIGURAS / FIGURE INDEX ...... iii ÍNDICE DE TABLAS / TABLE INDEX ...... iii LISTA DE ABREVIACIONES / ABBREVIATIONS ...... iv Resumen ...... vi Abstract ...... vi PARTE 1 – RESUMEN EJECUTIVO (EN ESPAÑOL) ...... 1 Introducción ...... 1 Objetivo ...... 1 Hipótesis ...... 1 Área de Estudio ...... 1 Métodos ...... 2 Marco Teórico ...... 2 Resultados ...... 3 Discusión ...... 5 Conclusiones y Recomendaciones ...... 5 PARTE 2 – ECONOMIC VALUATION OF MANGROVE ECOSYSTEM SERVICES: SHORELINE PROTECTION IN THE SAVEGRE DELTA, COSTA RICA ...... 7 Introduction ...... 7 Research objective and hypothesis ...... 8 Hypothesis ...... 8 Literature review ...... 8 Description of the study area ...... 10 Materials and methods ...... 12 Approach and methods ...... 12 Database of the study ...... 17 Data collection limitations ...... 18 Theoretical background ...... 20

Coastal protection ...... 20 Ecosystem-based Adaptation ...... 21 Economic valuation of ecosystem services ...... 25 Empirical strategies and results: Shoreline Protection in the Savegre Delta ...... 28 Economic valuation of shoreline protection ...... 28 Mangrove conservation project ...... 34 The hypothetical dike construction project ...... 40 Comparison of the projects ...... 43 Discussion ...... 44 Conclusions and recommendations ...... 50 BIBLIOGRAFÍA / REFERENCES ...... 54

ÍNDICE DE FIGURAS / FIGURE INDEX

Figure 1 Study area in the Savegre Delta, Costa Rica 10 Figure 2 Mangrove lost since 1949 11 Figure 3 Methodological Framework 12 Figure 4 Factors affecting wave attenuation by mangroves 23 Figure 5 Valuation techniques for wetlands 26 Figure 6 Altimetry analysis of the vulnerable area in the Savegre Delta, Costa Rica 29 Figure 7 Vulnerable area to extreme weather events in the Savegre Delta, Costa Rica 30 Figure 8 Vulnerable area protected by mangroves in the Savegre Delta, Costa Rica 31 Figure 9 Land cover type analysis of the protected lands 31

ÍNDICE DE TABLAS / TABLE INDEX

Table 1 Steps to carrying out a CBA 16 Table 2 Database of the study 19 Table 3 Oceanographic data base of the study 29 Table 4 Total benefits of oil palm 32 Table 5 Total benefits of rice 32 Table 6 Total benefits of grassland 33 Table 7 Calculation of the economic value of the protected lands 33 Table 8 Avoided cost method 34 Table 9 Total economic value of the mangroves in the Savegre Delta 36 Table 10 Ranking of the environmental benefits 36 Table 11 Co-benefits of the mangroves in the Savegre Delta 37 Table 12 Total economic value of ecosystem services 37 Table 13 Maintenance costs attributed to the mangroves in the NPMA 38 Table 14 Cost-benefit analysis mangrove conservation without co-benefits 39 Table 15 Cost-benefit analysis mangrove conservation 40 Table 16 Costs of dike construction 42 Table 17 Cost-benefit analysis dike construction 43 Table 18 Comparison of the projects without co-benefits 43 Table 19 Comparison of the projects 44

iii

LISTA DE ABREVIACIONES / ABBREVIATIONS

ACM Avoided cost method Método de costo evitado Central Pacific Conservation Area Área de Conservación Pacífico ACOPAC Central Project “Coastal Marine Biodiversity Proyecto “Biodiversidad en Costa BIOMARCC and Climate Change Adaptation” Rica – Desarrollo de Capacidades y Adaptación al Cambio Climático” National Chamber of Palm Producers Cámara Nacional de Productores de CANAPALMA Costa Rica Palma CBA Cost-benefit analysis Análisis costo-beneficio CENAT Institute of high technology Costa Rica Centro Nacional de Alta Tecnología Center of marine sciences and Centro de Investigación en Ciencias CIMAR limnology del Mar y Limnología CM Choice modeling Modelo de Elección CONARROZ National Rice Corporation Costa Rica Corporación Arrocera Nacional CVM Contingent Valuation Method Método de Valoración Contingente EbA Ecosystem-based Adaptation Adaptación Basada en Ecosistemas EIA Environmental Impact Assessment Estudio de Impacto Ambiental ES Ecosystem services Servicios ecosistémicos HP Hedonic pricing Fijación de precio hedónico ICE Electricity Institute of Costa Rica Instituto Nacional de Electricidad Intergovernmental Panel on Climate Grupo Intergubernamental de IPCC Change Expertos en Cambio Climático Millennium Ecosystem Assessment Evaluación de Ecosistemas del MA Milenio Ministry of Agriculture and Livestock Ministerio de Agricultura y MAG Ganadería MCZ Marine and coastal zones Zonas marino-costeras Ministry of Environment and Energy Ministerio de Ambiente, Energía y MINAET1 Costa Rica Telecomunicaciones NPMA National Park Manuel Antonio Parque Nacional Manuel Antonio NPV Net present value Valor neto actual PES Payment for ecosystem services Pago por Servicios Ecosistémicos Airborne Research Programme Programa de Investigaciones PRIAS Aerotransportadas Reducing Emissions from Deforestation Reducción de Emisiones de la REDD+ and Degradation Deforestación y Degradación System of Conservation Areas Sistema Nacional de Áreas de SINAC Conservación TCM Travel cost method Método de Costo de Viaje The Economics of Ecosystems and La Economía de los Ecosistemas y TEEB Biodiversity de la Biodiversidad TEV Total economic value Valor Económico Total

1 A partir del año 2013 se denomina Ministerio Nacional de Ambiente, Energía y Mares (MINAE)

UCR University of Costa Rica Universidad de Costa Rica United Nations Environment Programa de las Naciones Unidas UNEP Programme para el Medio Ambiente United Nations Framework Convention Convención Marco de las Naciones UNFCCC on Climate Change Unidas sobre el Cambio Climático WRI World Resources Institute Instituto de Recursos Mundiales

Resumen Abstract

Actualmente más del 50% de la población More than 50% of human population lives mundial vive a lo largo de la costa, along the coast, building big cities with construyendo grandes ciudades con una high population densities. Nowadays densidad de población alta. Hoy en día these cities are exposed to several estas ciudades están expuestas a diversos meteorological and geophysical hazards riesgos meteorológicos y geofísicos, tales such as extreme weather events, storms como eventos climáticos extremos, and floods. Therefore, there is a need for tormentas e inundaciones. Existe la the implementation of adaptation necesidad de implementar medidas de measures to protect human populations adaptación para proteger a las and vulnerable communities against these poblaciones y a las comunidades impacts. Most of the protection measures vulnerables frente a estos impactos. La focus on hard engineering solutions, but mayor parte de las medidas de protección there is also a new focus on natural se centran en soluciones de ingeniería, protection by ecosystems like mangroves pero también hay un nuevo enfoque en la in the context of Ecosystem-based protección brindada por los ecosistemas Adaptation (EbA). This study aims to fill naturales como los manglares, dentro del the information gaps pertaining to the contexto de la adaptación basada en los economics behind the usage of natural ecosistemas (EbA). Este estudio pretende protection barriers in comparison to hard llenar los vacíos de información engineering structures. Therefore two relacionados al uso de barreras de coastal protection projects are compared protección naturales en comparación con within a cost-benefit analysis, the las estructuras de ingeniería. Para este mangrove conservation project and the propósito dos proyectos de protección construction of a dike. The net present costera son comparados dentro de un value (NPV) criterion is used to determine análisis de costo-beneficio: El proyecto de the more profitable option of these two conservación de manglares y el proyecto projects to protect the shore of the de la construcción de un dique. Para Savegre Delta. Moreover, a special focus determinar la opción que es of the study lies on the detailed economic económicamente más rentable para valuation of the ecosystem service of proteger la costa de la desembocadura del shoreline protection provided by the Savegre se usa el valor actual neto (VAN). mangroves with the avoided cost method Por otra parte, un enfoque especial de (ACM). As a result of the comparison of este estudio está en la valoración the two protection projects, the study económica detallada del servicio indicates that the NPV for mangrove ambiental de protección costera propor- conservation is higher than that of the

cionada por los manglares con el método construction of a dike. This result implies de costo evitado (ACM). Como resultado that shoreline protection through natural de la comparación de los dos proyectos de ecosystems can be a cost-effective protección, el estudio indica que el VAN alternative to the hard engineering para la conservación del manglar es solutions. It also entails that the mayor que para la construcción de un mangroves in the Savegre Delta and dique. Este resultado implica que la worldwide are worth conserving, because protección costera a través de los besides the benefit of shoreline ecosistemas naturales es una alternativa protection, they also provide a wide range rentable a las soluciones de ingeniería y of ecosystem services bound to a high también implica que los manglares en la economic value. desembocadura del Savegre y en todo el mundo merecen ser protegidos, porque además del beneficio de la protección de las costas, ofrecen una amplia gama de servicios ecosistémicos con un alto valor económico.

vii

PARTE 1 – RESUMEN EJECUTIVO (EN ESPAÑOL)

Introducción

Objetivo

El objetivo de este estudio es hacer un análisis económico de costo-beneficio de dos proyectos de protección costera: Conservación de los manglares y la construcción de un dique, para comparar cuál es la alternativa económicamente más rentable para proteger la costa de la desembocadura del Savegre. Se prestará especial atención a la valoración económica detallada del servicio ecosistémico de protección costera que ofrecen los manglares.

Hipótesis

Para asegurar la protección costera de las tierras vulnerables en el área de estudio en la desembocadura del Savegre, es económicamente más rentable conservar el ecosistema del manglar que invertir en la construcción de un dique.

Área de Estudio

El área de estudio son los manglares pertenecientes al Parque Nacional Manuel Antonio (PNMA), localizados en la desembocadura del río Savegre. Los manglares en el área de estudio tienen un total de 246,91 hectáreas y están ubicados en el sur del PNMA. Los manglares están compuestos principalmente por Avicennia sp. y Rhizophora sp. Estos ecosistemas son el hábitat de especies de aves, moluscos, peces y desempeñan un papel importante para la regulación de las mareas y de las corrientes de la zona. Lamentablemente desde el año 1949 más del 60% de los manglares en la desembocadura del Savegre se han perdido. Una de las razones principales de la degradación es la frontera agrícola que ha estado avanzando en los últimos años. Las principales presiones para los manglares son: La contaminación por productos químicos o aguas residuales, la extracción de madera para leña y la extracción de material de los ríos para la construcción.

Métodos

El enfoque metodológico de este estudio es llevar a cabo un análisis de costo-beneficio (CBA) de los dos proyectos para la protección costera: La conservación de los manglares en la desembocadura del Savegre y la construcción de un dique. Como primer paso, el servicio de protección costera de los manglares es valorado con el método de costo evitado (ACM). En una segunda etapa los costos y beneficios de la conservación de los manglares son evaluados en un análisis de costo-beneficio. A continuación, se lleva a cabo un CBA para el proyecto de construcción de dique, teniendo en cuenta los costos y los beneficios de protección costera. Por último, el VAN de los dos proyectos se compara para identificar la opción más rentable para el área de estudio.

Los métodos a usar para hacer la valoración económica son:

1. El análisis costo-beneficio (CBA): compara los costos y los beneficios de un proyecto dentro de un periodo de tiempo con una tasa de descuento. 2. El valor actual neto (VAN): es un criterio que sirve para evaluar si un proyecto es económicamente rentable. 3. El método de costo evitado (ACM): sirve para dar un valor económico al servicio ecosistémico de protección costera que ofrece el manglar. Este método calcula el costo evitado al estar el manglar presente en caso de un evento meteorológico extremo.

La duración del proyecto es 10 años y las tasas de descuento son 5% y 10%. Todos los valores están presentados en dólares americanos, usando la tasa de cambio 1US$=501,75 colones.

Marco Teórico

Los humanos tienen la necesidad de adaptarse a los efectos del cambio climático, las tormentas y el aumento del nivel del mar. Para esto existen distintos enfoques:

1. Retirarse: Implica abandonar el área costera. 2. Acomodación: Implica adaptarse a los efectos del cambio climático, por ejemplo adaptando la infraestructura. 3. Protección: Implica proteger la costa mediante soluciones de ingeniería, como la construcción de un dique, pero también mediante medidas más suaves como llenando la playa con más arena.

Usualmente las ciudades y los humanos usan las medidas de protección, debido a que siempre avanzan más hacia la costa reclamando más tierras. A lo largo de la historia de protección se han usado normalmente medidas de ingeniería, como la construcción de diques, marinas y estructuras de concreto. Sin embargo, la adaptación a través de estructuras de ingeniería se asocia a menudo con altos costos de construcción, lo cual es una barrera para su aplicación, especialmente en los países en desarrollo. Por este motivo, en los últimos años ha habido un nuevo enfoque, la adaptación basada en ecosistemas (EbA), que reconoce la protección costera que ofrecen los ecosistemas marino-costeros. Este enfoque es muy importante para las comunidades vulnerables de los países en desarrollo porque en su mayoría dependen del buen funcionamiento de los ecosistemas marinos y de sus servicios de protección costera. El enfoque es visto como una alternativa más rentable a la implementación de soluciones de ingeniería, porque los ecosistemas marinos ofrecen un gran valor económico aparte de muchos otros servicios ecosistémicos. Los manglares por ejemplo, son uno de los ecosistemas costeros más productivos, algunos de los servicios que ofrecen son recreación y turismo, captura de carbono, purificación del agua, criadero para peces, biodiversidad, aparte de la protección costera.

Se han realizado varios estudios para medir la atenuación de oleajes por manglares y todos llegan a la conclusión de que hay una reducción en la energía y la altura de las olas que pasan a través del manglar. Algunos estudios han encontrado, que con un cinturón de 100 metros de manglar, la energía del oleaje puede ser reducida entre un 13% y 66%. Otros estudios sugieren que a través de un manglar de 500 metros, la altura de las olas podría reducirse entre un 50% a 99%.

La revisión de los estudios de casos y lecciones aprendidas muestran las ventajas de la aplicación de la adaptación basada en los ecosistemas y su integración en las estrategias nacionales de adaptación. Es un enfoque innovador, que ofrece oportunidades rentables para lograr varios objetivos y es muy accesible por la mayoría de las comunidades vulnerables.

Resultados

El presente estudio analiza la rentabilidad económica de dos proyectos de protección costera: La conservación de los manglares en la desembocadura del río Savegre y la construcción de un dique. Al comienzo del estudio se asumió que para la protección de las tierras vulnerables es más rentable conservar los manglares existentes que invertir en la construcción de un dique. Para este propósito el beneficio de la protección de la costa se calculó utilizando el método de costo evitado. El valor de la

protección de costas con 70% de protección se ubica entre US$ 171,77 ha/año y US$ 257,66 ha/año, lo que da como resultado un valor total de US$ 53.015,52 por año. Para la comparación, al reducir la protección a 40% los valores disminuyeron a entre US$98,16 ha/año y US$ 147,23 ha/año, resultando en un total de US$ 30.294,58 por año.

Los co-beneficios de los manglares se evaluaron utilizando los valores de estudios de casos similares al área de estudio y dan un total de US$ 126.669,77 dólares por año. Al agregar el valor de la protección costera con un coeficiente de 0,7 a los co-beneficios, el valor económico total de los servicios del manglar resultan en US$ 179.685,29 por año. Por otro lado, los costos de mantenimiento del manglar se estimaron en US$93.771,16 por año. Los costos y beneficios de la conservación de los manglares fueron evaluados en un análisis de costo-beneficio, con una vida de proyecto de 10 años y con dos diferentes tasas de descuento (5% y 10%). Como un primer paso, solo el beneficio de protección costera fue comparado con sus costos de mantenimiento dentro de un CBA. Como resultado, el VAN es US$ -314.704,25 con una tasa de descuento 5% y US$ -25.094,94 con una tasa de descuento 10%. A continuación, se llevó a cabo un CBA teniendo en cuenta toda la gama de servicios ecosistémicos proporcionados por los manglares (protección costera + co-beneficios) resultando en un VAN de US$ 553.094,94 con una tasa de descuento del 5% y en US$ 527.905,13 con una tasa de descuento del 10%. Estos resultados indican, que el proyecto de conservación de manglar sólo es económicamente rentable cuando se considera también el valor de los co-beneficios.

El proyecto de construcción de un dique también fue analizado usando la misma vida de proyecto y las mismas tasas de descuento del proyecto del manglar. Para ello, el beneficio de la protección costera calculado para los manglares fue tomado como el beneficio de la construcción del dique. Los costos de inversión fueron calculados para un dique de 3m de altura, 2,6m de ancho y 3,48 km de longitud. Los costos totales de construcción son US$ 1.293.816 con costos anuales de mantenimiento de US$ 51.752,64. Los costos y beneficios del dique fueron evaluados en un análisis de costo- beneficio que resulta en un VAN de US$-1.222.918,45 con una tasa de descuento del 5% y en un VAN de US$-1.169.141,95 con una tasa de descuento del 10%. Teniendo en cuenta que los valores actuales netos son negativos para ambas tasas de descuento, el proyecto de construcción del dique no es económicamente rentable. Como resultado, el estudio muestra que la conservación de los manglares considerando todos los beneficios es más rentable económicamente que la construcción de un dique.

Discusión

Este estudio muestra que para asegurar la protección costera de las tierras vulnerables en la zona de estudio en la desembocadura del río Savegre es económicamente más rentable la conservación del manglar, que invertir en la construcción de un dique. Una posible explicación de este resultado es el alto costo inicial de la construcción del dique que no puede ser amortiguado por los beneficios anuales de protección costera. Por otro lado, el proyecto de conservación de los manglares es sólo económicamente rentable, ya que además del servicio de protección costera, los manglares proporcionan varios co-beneficios con alto valor económico. La evidencia de este estudio sugiere que si los manglares de la desembocadura del río Savegre desaparecerían, la protección de la costa estaría vinculada a una alta inversión económica y a posibles impactos negativos ambientales. También sugiere que vale la pena conservar los manglares, ya que proporcionan una amplia gama de servicios ecosistémicos relacionados con un alto valor económico y por lo tanto las actividades que destruyen los manglares deben ser detenidas inmediatamente.

Conclusiones y Recomendaciones

El PNMA es uno de los parques nacionales más famosos de Costa Rica, sin embargo, la atención de los visitantes y de los guardaparques se concentra más en el sendero ecológico diseñado por el parque, que va por el bosque y las playas de Manuel Antonio, sin tener mucho en cuenta los manglares del Savegre y de Portalón. Sin embargo, es importante que la administración del parque se centre más en el bienestar de estos manglares, especialmente debido a la degradación de los manglares desde el año 1949. La existencia y la salud de los manglares debe ser asegurada mediante más actividades de protección, como p. e. más vigilancia con los guardaparques para identificar a los agricultores con plantaciones ilegales y mayores sanciones monetarias para los agricultores. También se recomienda implementar una zona de amortiguación de al menos 100m o 200m para detener el movimiento de la frontera agrícola y permitir que el manglar se pueda regenerar y migrar. Si estas sugerencias no se tienen en cuenta, es posible que la degradación de los manglares continúe y que en un futuro próximo ese ecosistema ya no será capaz de proporcionar los servicios ecosistémicos.

Costa Rica es un país muy involucrado en la protección de los ecosistemas naturales. Hay varios proyectos en el ámbito nacional e internacional que promuevan una mayor protección de las áreas marinas protegidas. Por ejemplo, el gobierno de Costa Rica

tiene la meta de por lo menos duplicar las áreas marinas protegidas en el país, aumentar la eficacia de la gestión y administración de las áreas protegidas y mejorar la representatividad y la integridad del SINAC. Estos objetivos deben llevarse a cabo lo más pronto posible para evitar la degradación de los ecosistemas naturales en Costa Rica, sobre todo teniendo en cuenta que la huella ecológica de Costa Rica se ha vuelto negativa desde los años 90 debido a un incremento en las actividades agrícolas, la pérdida de los ecosistemas y el crecimiento de la población.

Los hallazgos de este estudio sugieren también varios cursos de acción para los responsables políticos de todo el mundo. La degradación y explotación de los manglares y otros ecosistemas marinos-costeros debe ser detenida, debido a que estos ecosistemas merecen ser conservados por la gama de servicios que ofrecen, importantes sobre todo para las comunidades vulnerables, como: La provisión de pescado, el turismo, la protección costera, secuestro de carbono, etc. Políticos deberían centrarse más en los ecosistemas marino-costeros y aplicar duras sanciones a los contaminadores y los agricultores que dañan el ecosistema. La regulación de parte del gobierno es muy importante, ya que estos ecosistemas son generalmente considerados como “bienes comunes” y en la mayoría de los casos, los derechos de propiedad no están bien definidos.

En cuanto al servicio de la protección costera, la revisión de los estudios de casos y lecciones aprendidas muestran las ventajas de la protección costera natural dentro del contexto de la Adaptación mediante ecosistemas (EbA), como una oportunidad rentable para lograr varios objetivos. Por eso es muy importante para los responsables políticos, integrar el enfoque dentro de planes de manejos nacionales de adaptación y notar que las barreras naturales deben tenerse en cuenta antes de implementar estructuras de concreto.

Es recomendado además, que instrumentos económicos, como el pago por servicios ecosistémicos (PSE) sean considerados para la creación de zonas buffer cerca de los ecosistemas de manglar, para que puedan migrar y regenerarse. Los instrumentos basados en incentivos podrían también ser utilizados para motivar a las comunidades y a los agricultores a proteger la infraestructura natural. Esto sería una oportunidad para que el gobierno delegue parte de la responsabilidad y sería una manera mucho más eficaz de proteger los ecosistemas, ya que las comunidades se encuentran en el sitio y se beneficiarían de la conservación de los ecosistemas y de sus servicios de forma sostenible.

PARTE 2 – ECONOMIC VALUATION OF MANGROVE ECOSYSTEM SERVICES: SHORELINE PROTECTION IN THE SAVEGRE DELTA, COSTA RICA

Introduction

Since decades humans have migrated to the coast for many reasons, most of them associated to the ecosystem services provided by marine and coastal ecosystems, such as food, recreation/tourism, and spiritual benefits. More than 50% of human population lives along the coast, building big cities with high population densities, including also poor communities that are dependent on ecosystem services (Hale et al. 2009).

Humanity is facing the impacts of climate change and coastal zones are more dynamic than ever. The increase of the greenhouse gases in the atmosphere is raising the temperature of the air and the sea, which induces changes in precipitation patterns and sea level rise. Experts say that the combination of sea level rise and higher surface temperature of the oceans result in a higher frequency of extreme weather events, like cyclones and hurricanes, leading to mass mortality in ecosystems like mangroves and to high damages in infrastructure (USAID 2009).

The pacific coast of Costa Rica has already been impacted by severe weather events. In the years 1996 and 1997 extraordinary tides impacted the island of Damas in Quepos (Lizano 1997). Taking into account the threats of living along the coastline, human population needs to protect the shoreline and adapt to the natural disasters and climate change impacts. On these regards, most adaptive responses focus on anthropogenic solutions, like hard engineering structures, but there is also a new focus on natural protection barriers, like the one offered by mangroves (Hale et al. 2009).

Mangroves are widespread along the coasts of Costa Rica and most of them are a part of a natural protected area, like the ones in the National Park Manuel Antonio (NPMA). These mangroves are being conserved mainly because of their high biodiversity, recreational purposes and their intrinsic value. However, the service of shoreline protection is becoming more important due to the already occurring natural hazards and the impacts of climate change.

Research objective and hypothesis

The objective of this study is to make an economical cost-benefit analysis of two coastal protection projects: Mangrove conservation vs. dike construction, to compare them and to determine which alternative is economically more profitable to protect the shoreline of the Savegre Delta area. A special focus lies on the detailed economic valuation of the shoreline protection service offered by the mangroves.

Hypothesis

To assure the shoreline protection of the vulnerable lands of the study area in the Savegre Delta, it is economically more profitable to conserve the mangrove ecosystem than to invest in the construction and maintenance of a hypothetical dike.

Literature review

The linkages between ecosystems, ecosystem services and human well-being have become very important over the past decades (TEEB 2010). One of the first pioneers who examined the interactions between ecosystems and economics was Westman (1977) in a paper called “How much are nature’s services worth?”. But it was not until the 90s when the term ecosystem service gained an importance with publications from Costanza et al. (1992) and Daily (1997), where the natural capital and nature’s services where further discussed. Furthermore, there was a growing interest on economic methods to estimate the value of these services. For example, Costanza et al. (1997) published a document called “The value of world’s ecosystem services and natural capital”, where the economic value of 17 ecosystem services was estimated (Costanza et al. 1997).

In the year 2003, the Millennium Ecosystem Assessment (MA) set a milestone by classifying the ecosystem services in 4 categories: supporting, provisioning, regulating and cultural2. Since then the term ecosystem service is more considered in the policy agenda and the publications about the topic shifted considerably (Gómez et al. 2009).

The economic valuation of ecosystem services became more important (Pagiola et al. 2004, Costanza et al. 2010, UNEP 2010) and so did the economic valuation of marine ecosystems services (Remoundou et al. 2009, Chong 2005, Nunes et al. 2009).

2 The classification is further explained in chapter 2. 8

Concerning economic valuation of mangroves the two outstanding authors are Barbier et al. (1997) who wrote about the economic valuation of wetlands and Bann (1998) who published a manual for the economic valuation of mangroves.

Since then, several mangrove economic valuation studies followed, focusing mainly on the total economic value (TEV) of these ecosystems (Sathirathai 1998, Hoberg 2011, World Resources Institute). Furthermore, the costs and benefits of mangroves were compared within a cost-benefit analysis by Fernandez et al. (2006), to analyze the net benefits of mangrove reforestation, by Padilla et al. (1996) to analyze the option of mangrove conversion into aquaculture and by Ruitenbeek (1991), to analyze the management options of mangroves in Bintuni Bay.

The service of shoreline protection provided by mangroves has also gained interest, particularly in the context of Ecosystem-based Adaptation (EbA) which is considered as the alternative to the hard engineering structures, because it is a coastal protection option which focuses on the restoration and protection of marine and coastal ecosystems to attenuate waves and reduce storm damages (Hale et al. 2009). Chong’s (2005) study focused particularly on the service of shoreline protection provided by coral reefs and mangroves and Rusyan (2006) analyzed the value of mangroves in reducing tsunami impacts in Sri Lanka.

A study of the University of California (Bren School of Environment Science & Management) valued different coastal adaptation options for the coast of the South Pacific Islands, using different scenarios. In most scenarios, the study comes to the conclusion, that the net present value (NPV) for constructing seawalls is generally higher than for the conservation and restoration of mangroves. However, in some scenarios mangroves perform better than seawalls (Clark et al.).

The literature review showed that economic valuation of ecosystem services has become very important over the last decades. There is a growing interest in valuing mangroves ecosystem services economically and to compare their benefits with other management options. In the context of coastal protection, there is a higher awareness of the provision of shoreline protection by mangroves. However, there is still a need for more information about the economic value of shoreline protection. Also the use of economic analysis to assess the costs and benefits of different coastal protection measures should be further developed. On these regards, the present study aims to fill in this gap.

Description of the study area

The study area is located at the delta of the Savegre River, at the Central Pacific coast of Costa Rica and it contains the mangroves of the National Park Manuel Antonio (NPMA). The NPMA is situated 7km south of the town of Quepos, Canton Aguirre, Province of Puntarenas and has a land area of 1.612 hectares and a marine surface of 42.016 hectares. The Park was created in 1972 and in the year 2000 the area of “Playa el Rey” and the Delta of the Savegre River were annexed. It is administrated by the Central Pacific Conservation Area (ACOPAC), the National System of Conservation Areas (SINAC) and the Ministry of Environment and Energy (MINAET) (ACOPAC- INBio 2005). The NPMA is located in the Central Pacific climate region with a tropical monsoon and an average temperature of 26,5°C. The dry season is from January to March and the rainy season lasts from April to December (Onca Natural 2012).

Figure 1 Study area in the Savegre Delta, Costa Rica. Source: own representation in cooperation with Leupolz, ArcGis 10.1, Land cover by PRIAS, Regularization of cadastre and registration of Costa Rica: IDB Cadastre Programme (2008, Satellite Picture by RapidEye 2010).

The mangroves in the study area (Figure 1) have a total of 246,91 ha and are located in the south of the NPMA, in the Delta of the Savegre River. The mangroves are mainly composed of Avicennia sp. and Rhizophora sp., mixed with other plants and beach palms (Onca Natural 2012). They provide habitat for bird species, mollusks, and fishes and play an important role in the regulation of tides and currents of the area. The mangroves in the Savegre Delta are categorized as “restricted area” because of its high ecological values and ecosystem services. There are only a few activities allowed in this area, for example scientific investigations of the area which have been properly

authorized or activities that aim the restoration or protection of the area. With an official permission of the administration of the NPMA, tourism is also allowed. However the development of tourism for the area has to be on an ecological basis and the tour has to be guided by an authorized person, to protect the wildlife and the nature. Furthermore it is prohibited to construct buildings or permanent facilities, only very rustic rails are allowed for touristic purposes (ACOPAC-INBio 2005).

Since 1949 more than 60% of the pristine mangrove forest in the Savegre Delta has been lost (Figure 2) (own calculation in cooperation with Leupolz based on IGN 2005). One of the main reasons for the degradation of the mangroves is the forward moving agricultural frontier. Mangroves are being drained and filled to be converted into rice fields, oil palm plantations or for livestock. Further pressures are: the contamination due to chemicals or wastewater, the extraction of wood for firewood and the extraction of construction materials from the rivers (ACOPAC-INBio 2005).

Figure 2 Mangrove lost since 1949. Source: own representation in cooperation with Leupolz, ArcGis 10.1, Land cover by PRIAS, Satellite Picture by RapidEye 2010.

Materials and methods

Approach and methods

The methodological approach of this study (Figure 3) is to perform a cost-benefit analysis (CBA) of two projects for coastal protection: The conservation of the mangroves in the Savegre Delta and the construction of a dike. First the service of shoreline protection of the mangroves is valued with the avoided cost method (ACM). As a second step the costs and benefits of mangrove conservation in the Savegre Delta are assessed within a cost-benefit analysis (CBA). Then a CBA is conducted for the dike construction project considering the investment and maintenance costs and the benefit of shoreline protection. Finally, the NPV of the two projects is compared to identify the more profitable option for the given area.

Framework

Step 2: Step 3: CBA Mangrove CBA Dike

Step 1: Benefits its Costs its C/B its

Avoided Shoreline Conservation Construction/ Cost maintenance protection costs Method costs (ACM)

Co-benefits Shoreline protection

Net present value > Step 4: Net present value (NPV) (NPV) mangrove Dike

< Figure 3 Methodological Frameworks. Source: Own representation

Step 1:

As a first step, a detailed economic analysis of the ecosystem service of shoreline protection is conducted, using the avoided cost method (ACM). According to Barbier et al. (1997) the avoided cost method can be used to value the indirect-use values of

mangroves, as it is the regulating service of shoreline protection. The method is a part of the cost-based approaches3 (Barbier et al. 1997) and concentrates on the costs which are avoided because a given ecosystem is present (WRI 2009). Although the costs-based approaches are seen as the second best options since they tend to overestimate the costs (Nunes et al.2009), they are used very frequently in valuation studies because they are useful when there are time and resources limitations (Bann 1998). Therefore, the ACM is used in this study instead of hedonic pricing or contingent valuation4.

For the application of the method in practice a step-by-step ACM approach developed by the World Resources Institute (WRI) is used. The method calculates the likely damage and the related economic losses to a coastal area with a given storm event scenario, with and without the coastal ecosystem (Kumar 2010). The economic losses avoided because of the ecosystem are the “damages avoided” (WRI 2009). This method has been applied in several case studies to value the ecosystem service of shoreline protection of mangroves and coral reefs, e.g. in Tobago and St. Lucia, Belize and Jamaica (WRI 2009).

The methodological procedure for the ACM developed by the WRI (2009) was adapted to the study area in Costa Rica, taking into account the availability and quality of the data.

The steps to undertake an ACM are:

1. Identify the land vulnerable to storm damage. The land vulnerable to storm damage is defined as the land within 2km of the coast which is lower than the combination of a storm surge and the wave height expected during a storm event.

2. Identify the land which is protected by a mangrove ecosystem. The land protected by mangroves is the area behind the mangroves which was before classified as vulnerable.

3. Conduct a land cover type analysis of the protected lands in ArcGis5

4. Determine the value of the vulnerable land protected by a mangrove ecosystem. In this step the value of the vulnerable land protected by a mangrove ecosystem is calculated, estimating the value of infrastructure, houses, agricultural land, etc.

3 Cost-based approaches are explained in chapter 2.3. 4 For more information about these methods see chapter 2.3. 5 ArcGis is a geographical information system. 13

5. Determine the share of coastal protection attributed to mangroves. In this step the percentage of coastal protection attributed to mangroves is calculated. Due to the lack of information for the study area, the percentage of protection provided by the mangroves is assessed with the help of experts in the area and with a literature review. 6. Calculation of the “damages avoided”. The damages avoided are calculated by taking into account the total value of the vulnerable land protected by mangroves, the probability of an extreme weather event per year occurring in the pacific coast of Costa Rica and the share of shoreline protection given by mangroves. The value of shoreline protection in US$/year is calculated by multiplying the total value of the protected land with the likelihood of any severe weather event in the Costa Rican Pacific coastline per year by the share of shoreline protection provided by mangroves. 7. Reflection of uncertainties. To reflect the uncertainties of these calculations a margin of (+/- 20%) is considered.

(Source: WRI 2009 and Horberg 2011)

Step 2

As a second step, the benefit of shoreline protection and the co-benefits provided by the mangroves are compared to the costs of its conservation within a CBA with a 10 year time frame and two discounting rates, 5% and 10%.

The economic analysis of this study is a cost-benefit analysis, as it considers the economic costs and benefits on the well-being of society (Bann 1998). CBA is an economic decision tool, which evaluates projects based on the comparison of their costs and benefits (Nyborg 1996). The standard reference to perform a CBA can be found in “The theory of Cost-Benefit Analysis” (Dréze and Stern 1987). This study analyses two mutually exclusive projects, thus the NPV criterion is used to determine which project should be pursued (Remer et al. 1995). The following formula is assumed:

푛 (퐵 − 퐶 ) 푁푃푉 = ∑ 푡 푡 (1 + 푟)푡 푡=0

With NPV= Net Present Value, B = Benefits, C= Costs, t= number of years, r= discounting rate, n=duration of the project.

푛 푁퐵 푁푃푉 = ∑ 푡 (1 + 푟)푡 푡=0

With NB=Net Benefits

(Source: Adapted from Fernandez et al. 2006, Barzev 2002 and Burbridge et al. 1981.)

This criterion is one of the most widespread techniques because of its easy way of evaluating projects by moving all the net benefits to the present (Remer et al. 1995). For the project two conditions are evaluated with the NPV criterion, to determine which project to choose.

Condition 1: NPV > 0

If the NPV is greater than zero, then the project is profitable and is accepted (Takatsu 1984).

Condition 2: NPV Project A > NPV Project B

The alternative with the highest NPV is chosen (Michel 2001).

For carrying out the cost-benefit analysis, an applied methodology is used, following the “Economic Valuation of Mangroves: A Manual for Researchers” (Bann 1998). This document gives a broad overview of the step-by-step methodology to perform a CBA for a mangrove project and its management alternatives. The methodology has been adapted for the study, as shown in Table 1. In addition Camille Bann (1998) suggests undertaking an Environmental Impact Assessment6 and a sensitivity analysis7 to integrate the results within the CBA. These two steps will not be part of the study, however the sensitivity of the variable discounting rate has been addressed by using two different discounting rates.

The steps to carrying out a CBA mentioned in Table 1 are applied in chapter 3 for each project.

6 An Environmental Impact Assessment is an assessment of the possible positive or negative impacts of a project. It takes environmental, social and economic aspects into account. 7 A sensitivity analysis is a study of how uncertainty in the output of, for example a project, can be apportioned to different sources of uncertainty in its inputs. 15

Table 1 Steps to carrying out a CBA

Step 1: Identification of the ecosystem services of the mangrove and classification within a Total Economic Valuation (TEV)8 framework

Step 2: Ranking and estimation of environmental benefits

Step 3: Calculation of conventional project costs

Step 4: Implementation of a CBA using the chosen decision criterion Source: own representation adapted from Bann, 1998 “The Economic Valuation of Mangroves: A Manual for Researchers”, p.13

For the benefit calculation of the mangrove conservation project, the value of shoreline protection is added to the other co-benefits provided by the mangroves. The detailed economic valuation of the co-benefits of the mangroves is not part of this study. The values are defined by the analysis of different case studies similar to the study area in the Savegre Delta (defra 2007) (see Appendix 1). For the analysis the highest and the lowest value are identified (Super 2010) and then the total value of each ecosystem service is calculated with the average value. The costs of the mangrove conservation project are obtained by interviews and second gathering data methods from official sources. For a detailed description of the data used for this section, see “Database of the study”.

Step 3

As a third step, a CBA is conducted for the dike construction project. The dike constructed is a substitute for the mangroves of the Savegre Delta, thus the shoreline protection benefits of the dike are equal to those provided by the mangroves. The costs and structure of the dike are determined by interviews, secondary data gathering and complemented by site visits. For a more detailed description of the sources, see “Database of the study”.

Step 4

Finally, the NPV calculated for both projects are compared and analyzed according to the conditions mentioned above.

Assumptions:

. Mangrove conservation (by the NPMA) is a condition for the provision of the shoreline service

8 The Total Economic Value (TEV) of mangroves is further explained in chapter 2.3. 16

. The mangroves of the Savegre Delta can provide the service of shoreline protection during the next 10 years . The reference value is a damage of a 100%: If an extreme weather event occurs without any coastal protection on site, the destruction would reach the highest degree. . The valuation of the “avoided damages” is static. This means there are no changes in the economic values of the different land covers for a period of 10 years . For a dike construction, it is assumed that the mangrove is completely degraded and the provision of shoreline protection can no longer be provided . The dike constructed is a perfect substitute for the mangrove and offers the same value of shoreline protection . The dike proposed is the least cost alternative . The maintenance costs of the dike are 4% of the initial construction costs (Clark et al.) . Sunk costs are not considered in the CBA . Option and non-use values9 are not part of the economic analysis . Environmental impacts and costs are not assessed in this study

Parameters

. The duration of the project is n=10 year, as it is the useful life of the proposed dike. After 10 years the dike has to be replaced by a new dike if the shoreline protection factor is to remain constant. . Baseline year is 2012. . All values are presented in 2012 US Dollars (US$). Values that were published in the Costa Rican currency (Colones) were converted using the exchange rate 1 US$ = 501,75 Colones (National Bank of Costa Rica 21.10.2012). . Two discounting rates are used for the study 5% and 10%. These discounting rates are taken as a reference from similar studies (Fernandez et al. 2006, Ruitenbeek 1991).

Database of the study

The data for the present study was collected between May and October 2012. The data was primarily collected through secondary data gathering from governmental agencies, e.g. the Ministry of Agriculture and Livestock (MAG), the National Park Manuel Antonio (NPMA) and the Electricity Institute of Costa Rica (ICE). Also from

9 Option and non-use values are further explained in chapter 2.3 17

non-governmental organizations, e.g. the University of Costa Rica (UCR) and private institutions like the Chambers of Palm Producers (CANAPALMA), CONARROZ and Palma Tica. In addition interviews were conducted with a panel of experts e.g. biologists, oceanographers and complemented by site visits and field work. The main data sources are listed below in Table 2. The validity of the data is classified in limited, satisfactory and high degree of certainty.

Data collection limitations

The effective collection of the data for the study was difficult and limited due to a number of reasons. There was no database set for the study area, instead the data was spread along companies, governmental agencies and private consultants. This delayed the process of recollecting the data needed for the study. Furthermore, there was a lag of time between the requesting and the obtaining of the data. Letters and application had to be written and on some occasions, they were rejected because of the confidentiality of the data.

In some cases, it was difficult to obtain updated information. It took several months to get the satellite pictures and the land cover from the study area in the year 2010. Furthermore, it was very difficult to access the oceanographic information. In Costa Rica only little research has been done in the topic of adaptation to climate change and sea level rise, thus only few experts knew about the situation in the country and had very limited data.

Table 2 Database of the study Type of the Data Source of the Data Validity of Data

Storm events, storm Omar Lizano, Physical Limited degree of certainty frequency, wave height Oceanographer of the Research associated to lack of reliable data. in Costa Rica Center for Marine Sciences and Not easy transferable to other (Oceanographic data) Limnology (CIMAR) at the UCR studies.

Land cover data Pictures taken with the RapidEye High degree of certainty, the data (Geographical data) satellite, land cover data by is supported by the Institute of Airborne Research Programme high Technology Costa Rica (PRIAS), Regularization of cadastre (CENAT) & registration of Costa Rica: IDB Cadastre Programme (2008)

Value of the vulnerable Palma Tica Company, National Satisfactory degree of certainty. land in the study area Chamber of Palm Producers The data is bound to the study (Quantitative data) (CANAPALMA), CONARROZ, area and is not transferable. Ministry of Agriculture & Livestock (MAG), interview with landlords and farmers (Alfredo Grajal)

Maintenance costs of the Mauricio Salazar, administrator High degree of certainty, data is NPMA (Quantitative NPMA complete and carefully listed. data) Data is not transferable.

Maintenance costs of the Mauricio Salazar, administrator Limited degree of certainty. The mangroves in the NPMA exact expenditure for the Savegre Delta protection of the mangroves is (Quantitative data) not listed. The percentage attributed to the protection of the mangroves is based on an interview with the administrator of the NPMA. The data is not transferable to other case studies.

Percentage of wave Experts opinion and literature Limited degree of certainty. attenuation by review Experts may tend to over or mangroves (Quantitative under estimate the values. Only data) temporarily validity of the data.

Information about the La Marina Pez Vela Quepos, Limited degree of certainty. Costs dike construction and Coastal Engineer of the UCR, are difficult to estimate and can materials used literature review be overrated very easily. Only (Quantitative and temporarily validity of data due qualitative data) to price fluctuations.

Altimetry model of the Henry Chaves Consulting High degree of certainty. Data is study area (Geographical bound to the study area and is data) not transferable.

Coordinate System used Henry Chaves Consulting High degree of certainty. Data is in ArcGis (Geographical transferable to all studies in data) Costa Rica.

Theoretical background

Coastal protection

The effects of climate change, like sea level rise, flooding and increased frequency of natural hazards, are already impacting communities and ecosystems (UNFCCC 2011). In the last decades, human population migrated to coastal areas and big cities developed. Nowadays these cities are exposed to several meteorological and geophysical hazards, such as extreme weather events, storms and flooding. According to estimations, already 200 million people in the planet are vulnerable to coastal flooding during extreme weather events and already 20 million people live below the tide levels. The number of threatened population is increasing and will continue to increase in the coming years and decades. Adaptation approaches and advanced management plans are needed to protect this high population density, the infrastructure and the economic activities lying in low coastal areas (Nicholls 2011).

According to the Intergovernmental Panel on Climate Change (IPCC), adaptation strategies to the impacts of climate change can be classified in three main categories: Retreat, accommodation and protection (Figure 4). According to Nicholls, the planned adaptation strategy of retreat, allows the impacts of sea-level rise to occur and human impacts are minimized by abandonment of the vulnerable area and resettlement of the population (Nicholls et al. 2010 and Nicholls 2011). In the strategy of accommodation, the impacts to humans and infrastructure are minimized for example by preparing the houses for flood resilience (raising them with pilings and other requirements) (IPCC CZMS 1990).

Accommodation and retreat are two strategies which require the acceptance that some coastal zones values could be lost. On the other hand, the protection strategy involves defensive measures to protect the areas against inundation and other weather events (IPCC CZMS 1990). Nicholls et al. (2010) describes a tendency to protection by hard engineering approaches along the history of adaptation, more than by retreat and accommodation (e.g. 22000 km² of the coastal zone in Europe are covered with concrete) (Hale et al. 2009). A reason for this is the population moving actively towards the sea, claiming the coastal area (Nicholls et al. 2010).

In the strategy of protection, “hard and soft structures” are used to protect the shore against the impacts (Nicholls et al. 2010). Depending on the site conditions “soft and hard” approaches can be used alone or in combination (IPCC CZMS 1990). However, according to Nicholls et al. (2010), complete protection is not achieved and some

residual risk always remains. In the following the two approaches “hard and soft structures” are further explained:

Hard structures

According to the IPCC, the hard structures concentrate on engineering and technical solutions. One of the options is the construction of seawalls and dikes. These structures are raised to protect the coast from floods, waves and storms. Other hard structural options mentioned by the IPCC are groins and detached breakwaters. Groins are placed perpendicular to the coast with the goal of trapping sediment to widen the beach and prevent it from eroding. Breakwaters on the other hand are constructed offshore and parallel to the coast with the goal of dissipating wave energy to reduce damage by storms and erosion. Regarding the hard structures, it should be considered, that this option is associated with high costs of investment which could be a barrier for its implementation, especially in development countries (IPCC CZMS 1990).

Soft structures

According to the IPCC, soft structures focus on other types of adaptation strategies. One option is beach filling and subsequent re-nourishment, which involves the replacement of sand along the coast. With this filling, a more width and long shoreline is achieved which will better dissipate wave energy and improve the beach for recreational purposes. Another option is the building and preservation of sand dunes along the coast. In combination with a long beach, these dunes offer a protection against storms and waves to the properties and humans living along the coast. Other possible solutions are the research on ecosystems that could reduce the vulnerability of the coast, like mangroves, artificial seaweed and reef creations. Enhancing the growth of these ecosystems could increase coastal protection (IPCC CZMS 1990).

Ecosystem-based Adaptation

Along the adaptation history, there has been a growing interest in the natural shoreline protection provided by coastal ecosystems (Hale et al. 2009). As already indicated in the chapter above, the implementation of soft structures and the research on ecosystems that could reduce the vulnerability of the coast is also an approach for coastal protection.

As mentioned earlier, the adaptation through hard engineering structures is often associated with high construction costs, which is a barrier for its implementation especially in developing countries. Therefore vulnerable communities in developing

countries are mostly dependent on the well-functioning of marine and coastal ecosystems and their service of shoreline protection. Shoreline protection and erosion prevention through mangroves and coral reefs are of vital importance for these communities, considering the lack of adaptive capacity of the population and the lack of financial means and engineers of the governments. This type of adaptation through ecosystems is a part of the Ecosystem-based Adaptation (EbA) approach (Hale et al. 2009). The United Nations Framework Convention on Climate Change defines the Ecosystem-based Adaptation as “(…) a range of local and landscape scale strategies for managing ecosystems to increase resilience and maintain essential ecosystem services and reduce the vulnerability of people, their livelihoods and nature in the face of climate change” (UNFCCC 2009, p.3). The Ecosystem-based Adaptation approach focuses on several adaptation measures to reduce the vulnerability of communities and one of the most important actions is the restoration and conservation of ecosystems, like mangroves, as a cost-effective solution to protect the shoreline and the communities against flooding and natural hazards (UNFCCC 2011).

To clarify the concepts, the TEEB defines ecosystem services as “the direct and indirect contributions of ecosystems to human well-being” (TEEB 2010). TEEB classifies the ecosystem services in four main categories: provisioning, regulating, habitat and cultural services, with a total of 22 services (TEEB 2010). Provisioning services are the products that we can obtain from the ecosystems, like food and water. Regulating services, on the other hand, are the benefits that can be obtained from the regulation of ecosystem processes such as climate regulation and erosion prevention. The habitat services, like lifecycle maintenance and gene pool protection, are necessary for the maintenance and production of all other ecosystem services. Their impact on humans is more indirect and occurs during a long period of time. Finally, cultural services are described as nonmaterial benefits. People can benefit from these services in forms of recreation, spiritual enrichment and reflection (UNEP 2006).

This study has a special focus on mangrove ecosystems as they provide many ecosystem services and are one of the most important ecosystems in tropical marine and coastal zones (MCZ). Mangroves are coastal tree species capable of living in saltwater or in salty soil regimes that grow in subtropics and tropic sheltered coastlines and provide a wide range of services important for human well-being and nature (Clark 1998). They are subject to natural and anthropogenic drivers of change, which can affect their intrinsic nature. However, they are very strong and adaptable ecosystems, daily they are exposed to tidal changes in temperature, to waves, water and salt. Furthermore, they exhibit a high degree of persistence, which refers to the constancy over time and ecological resilience, which means they have the ability to recover from disturbance (Alongi 2008).

Regarding the ecosystem services, they provide e.g. leaf litter that is an essential food source for many fish species and shrimps and are a sheltered place for young fish, mammals, reptiles and bird species. They also play a significant role in climate regulation by sequestrating significant amounts of CO2 (Clark 1998). Furthermore, these ecosystems provide cultural services, such as recreation, tourism, and spiritual significance and supporting services, such as nursery areas for fish species (UNEP 2006). Concerning the regulating services, mangroves improve water quality because of their capacity to absorb chemical pollutants in the water, stabilize the coastal shoreline and protect the coast from erosion by acting as a buffer against destructive storms and floods (Clark 1998).

Figure 4 Factors affecting wave attenuation by mangroves. Source: McIvor, Anna; Möller, Iris; Spencer, Tom; Spalding, Mark (2012): Reduction of Wind and Swell Waves by Mangroves. Natural Coastal Protection Series: Report 1. Published by Nature Conservancy and Wetlands International. University of Cambridge. Cambridge, UK. p.3.

McIvor et al. (2012) describes these ecosystems as strong and resilient and with the ability to protect the shore against natural hazards. Although mangroves usually settle on shores with little wave energy, they may be exposed to larger waves during hurricanes, storms and periods with high wind speed (McIvor et al. 2012). Mangroves have several key characteristics that contribute to their resilience to disturbance to extreme weather events. Some of the most important characteristics are: a great reservoir of low lying nutrients to buffer nutrient loss, fast recovery because of nutrient-use efficiency and complex and efficient biotic controls, a simple architecture which facilitates the rapid reconstruction and recovery and an immense attain of

biomass and height. There are several factors which influence the extent of the protection provided by mangroves (Figure 4), for example the width of the forest, the density, diameter and height of the trees, the biomass vested in the roots, presence of other ecosystems in the foreshore (coral reefs, seagrass, dunes) and the force and speed of the extreme weather event (Alongi 2008).

The characteristics of the mangrove vegetation are a very important factor for wave attenuation. For example the Rhizophora mangrove has roots, which form a network above the substrate and make resistance to the water flow. The Avicennia has aerial roots which project out of the substrate and can reach to 30cm height. The density of the obstacles that waves encounter while they pass through the mangroves is very important for the wave attenuation (McIvor et al. 2012).

Several studies have been made to measure the wave attenuation by mangroves and all come to the conclusion that there is a reduction in wave energy and height as the waves passed through the mangrove. Some studies found out, that with a 100 meter mangrove belt, wave energy can be reduced by 13 and 66%. Other studies suggest that across a 500 meter width mangrove belt, wave height could be reduced by 50 to 99%. The studies defer in their findings and most of them measured wave attenuation with relatively small waves, because the measurement during extreme waves is dangerous and difficult (McIvor et al. 2012). However, there are studies that used data from the tsunami 2004 in South-East Asia, which also measured the wave attenuation by mangroves, with waves up to 30 meters height. A research was conducted in the Adam Islands, a low lying area populated by pristine mangrove forests. Only 30 villages of 418 where severely devastated along the Adam coast during the tsunami, which represents only a 7% of destruction. In comparison in other areas where mangroves had been deforested and degraded because of aquaculture and tourism this percentage is between 80 to 100% (Dahdouh-Guebas 2006). Taking 80% as representative the percentage of protection by mangroves is estimated to be approximately 73% with big waves (Hoberg 2011). However in this research field more data about the characteristics of mangroves and its potential for shoreline protection is needed.

In the context of Ecosystem-based Adaptation, the shoreline protection provided by mangroves is considered as a complement to the soft structures and as a way to improve or replace the hard structures (Jones et al. 2012). By conserving or restoring mangroves, not only the service of shoreline protection is provided, but also a number of financial, ecological and socio-cultural co-benefits (UNFCCC 2011). For example, natural shoreline protection is less expensive, requires less maintenance and affords larger areas of protection (Hale et al. 2009). Other co-benefits are the enhancement of ecosystem services and support to local fisheries, employment, food security, income

generation through the trade of mangrove products, etc. Residual benefits include the conservation of biodiversity and species living in mangroves and the sequestration of carbon as a mitigation effort tool (UNFCCC 2011). Further benefits are the provision of shelter for important and endangered species and the enhancement of the resilience of ecosystems, especially vulnerable systems such as coral reefs and mangroves (Hale et al. 2009).

The review of case studies and the lessons learned show the advantages of implementing the Ecosystem-based adaptation and integrating it in national adaptation strategies. The approach offers cost-effective opportunities to accomplish several objectives and is very accessible by most vulnerable communities (UNFCCC 2011). In the Turks and Caicos Island, located in the Caribbean, for example, the protection provided by coral reefs against erosion and wave damage was estimated at US$16,9 million per year. On the other hand, the costs of implementing hard engineering solutions, like the constructing of a dike, was estimated at US$ 223 million, which represents 8% of its gross domestic product (Jones et al. 2012). In Vietnam experts calculated that with an investment of US$ 1,1 million on the restoration of almost 12.000 hectares of mangrove, the country saved about US$ 7,3 million per year in the maintenance of a dike (UNEP 2007).

The TEEB Study wrote in 2011, Ecosystem-based Approaches “(…) represent potential triple-win measures: they help to preserve and restore natural ecosystems; mitigate climate change by conserving or enhancing carbon stocks or by reducing emissions caused by ecosystem degradation and loss; and provide cost-effective protection against some of the threats resulting from climate change” (TEEB 2011).

Despite the evidence of the utility of the EbA approach, uncertainties and challenges remain. For example, the uncertainty of the provision of the ecosystem services, the behavior of ecosystems under stress factors like climate change and the protection provided by ecosystems in comparison to hard engineering solutions. More research and reliable data is needed to fill this information gap (Jones et al. 2012).

Economic valuation of ecosystem services

Economic valuation is considered one of the most challenging tasks modern economics is confronted with (Nunes et al. 2009). It is a way of comparing the costs and benefits the ecosystems provide by expressing them in monetary units. It is a way of making “apples and oranges comparable” (Pagiola et al. 2004 p.10). There are a number of reasons to carry out a valuation study. For example the missing markets for regulating services, market failures, uncertainty involving the demand and supply of

natural resources, economic decision making, etc. (TEEB 2010). Also, economic valuation is a way of considering the environmental costs and benefits in policy decisions and private investment (Remoundou et al. 2009). In fact this is one of the main reasons economic valuation is conducted, because of its potential for cost- benefit analysis which is the key element for any policy design and decision. Hereby, the project or policy is approved if the benefits outdo the costs and so the need arises to estimate all the range of economic values an ecosystem provides (Nunes et al. 2009).

To address the need of determining whether an environmental project will pass the CBA, economists have developed several approaches and economic valuation methods. The most common approach to value ecosystem services (ES) is the total economic value (TEV) approach, which classifies the ES in four different categories: direct use value, indirect use value, option value and non-use value (Figure 5). The direct use value includes consumptive uses, like timber, food, etc. and non- consumptive uses like recreation and cultural activities. The indirect use value refers to the indirect support of the ecosystems, like the storm protection, carbon sequestration and watershed protection. The option value relates to the option of using the ecosystem in future and the non-use value relates to the satisfaction of knowing that the ecosystem and its services are present (Pagiola et al. 2004).

Figure 5 Valuation techniques for wetlands. Source: Barbier, Edward; Acreman, Mike; Knowler, Duncan (1997): Economic Valuation of wetlands: A guide for policy makers and planners. Gland, Switzerland, p.42

Within the TEV approach, there are diverse valuation methods to assign a monetary value to the ecosystem services and in literature there are different classifications for these methods (TEEB 2010).

The TEEB (2010) did a compilation of several classifications and unified them as follow:

1. Direct market valuation approaches, which derive the necessary information of market transactions that are directly linked to the ecosystem service. It is divided into three approaches: a) market price-based approaches b) cost-based approaches c) production functions approaches 2. Revealed preference approaches, which use parallel market transactions associated to the service valued. Following two valuation methods belong to this approach: a) Travel cost method (TCM) b) Hedonic pricing (HP) 3. Stated preference approaches, which use hypothetical markets to value the services. It is divided in three valuation methods: a) Contingent valuation method (CVM) b) Choice modeling (CM) c) Group valuation

In Figure 5 Barbier et al. (1997) classified the most commonly used methods for the different ES of wetlands. The ACM is used to value indirect services, like shoreline protection and belongs to the cost-based approaches, which are based on the estimation of the costs incurred in the absence of an ecosystem service (Liu, Costanza et al. 2010). Cost-based approaches are categorized as “second best valuations techniques” because they are related to many uncertainties and tend to overestimate the costs (Bann 1998). Furthermore, among critics it is much discussed if the estimation of the costs avoided can equal the benefits of the service (Kumar 2010). However, cost-based approaches are implemented very frequently in valuation studies because they are useful when there are time and resources limitations. Economic valuation methods that are more precise to value indirect services like shoreline protection are, for example, the contingent valuation method, which is based on questionnaires to people, asking explicitly of how much they are willing to pay for the provisioning of the service or the hedonic pricing method, which determines the value of a service by calculating the change in demand (e.g. change in the value of a property if it’s near a mangrove forest). However, in practice these

methods are almost not applicable in developing countries because of the need of good quality of data and complex statistical analysis (Bann 1998).

Empirical strategies and results: Shoreline Protection in the Savegre Delta

Economic valuation of shoreline protection

In the following section, the ecosystem service of shoreline protection is valued with the avoided cost method.

Following information is required for the economic valuation:

1. The oceanographic data base: The annual probability of an extreme weather event in the Pacific coast of Costa Rica, the storm surge and the wave height in meters expected during an extreme weather event

2. Satellite pictures of the study area in the Savegre Delta, Costa Rica

3. Information about the land cover type of the study area

4. The prices of each land cover type to calculate the avoided costs

5. The altimetry of the area to calculate the vulnerable area to a given storm event

6. The percentage of wave attenuation by mangroves of the study area

As a first step the lands vulnerable to storm damage are identified in the study area. For this step, the oceanographic data base is used along with the satellite pictures and the altimetry analysis of the study area.

Vulnerable lands are defined as those within 2km of the coast and that are lower than the combined height of storm surge and wave height expected during an extreme weather event. To identify the vulnerable land, the satellite pictures of 2010 and the altimetry of the study area are processed in ArcGis 10.1.

Figure 6 illustrates the altimetry of the area, which is classified in intervals of 1 m, represented as different colors. The red colored area has an altitude of max. 1 m, the orange area of max. 2 m, the yellow area of max. 3 m, the green area of max. 4 m and the light blue of max. 5 m. The blue area has an altitude of more than 5 m but lower

than 7 m. As a result of the analysis of the oceanographic data, the combined height of storm surge and wave height for the study is 8,10 m (Table 3). This means that all the land within 2km of the coast is classified as vulnerable to the impacts of an extreme weather event.

Figure 6 Altimetry analysis of the vulnerable area in the Savegre Delta, Costa Rica. Source: own representation, ArcGis 10.1, Land cover by PRIAS, Satellite Picture by RapidEye 2010.

Table 3 Oceanographic data base of the study

Information 1 per Frequency of an extreme weather event in the Pacific coast of Costa Rica 20 years Annual probability of an extreme weather event in the Pacific coast of Costa Rica 5% Maximal height of a storm surge in Quepos (m) 3,10 Wave height expected in Quepos during an extreme weather event (m) 5 Combined height of storm surge and wave height in Quepos (m) 8,10

Source: Own representation with data obtained from Omar Lizano

Figure 7 Vulnerable area to extreme weather events in the Savegre Delta, Costa Rica. Source: own representation, ArcGis 10.1, Land cover by PRIAS, Satellite Picture by RapidEye 2010.

To analyze the economic importance of the vulnerable lands, a land cover type analysis is conducted for the study area (Figure 7). For this, the land cover information obtained from the PRIAS is adapted to the study area and is processed in ArcGis 10.1. The analysis shows that the most widespread land cover types are rice and oil palm plantations.

As a next step, the protected land is identified, which is defined as the area behind the mangrove ecosystem classified as vulnerable. Figure 8 shows the different land cover types that are protected by the mangroves in case of an extreme weather event. In the study area almost 23% land is protected by mangroves and more than 77% is exposed to the effects of an extreme weather event (own calculation based on the land cover type analysis of the PRIAS).

The land cover type analysis of the protected lands is very important for the economic analysis and the calculation of the values within the avoided cost method. The different land cover types of the protected lands are: 78,96% rice plantations, 7,2% forest, 4,76% bare soil, 4,47% oil palm plantations, 2,97% grassland and the others are sand (river), wetland, clouds and river with 1,64%, as shown in Figure 9 (own calculation based on land cover analysis of the PRIAS).

Figure 8 Vulnerable area protected by mangroves in the Savegre Delta, Costa Rica. Source: own representation, ArcGis 10.1, Land cover by PRIAS, Satellite Picture by RapidEye 2010.

4,47% 2,97% 1,64% 4,76%

7,20% Rice forest bare soil oil palm 78,96% grassland others

Figure 9 Land cover type analysis of the protected lands. Source: own representation based on land cover type analysis.

As a next step, the economic value of the different land cover types is calculated. For the calculation of the values of the protected lands, three land cover types are of economic importance: Oil palm plantations, rice plantations and grassland. Other land

cover types such as forest, river and river (sand) might also have economic values, however due to lack of that these values are not part of this study.

To determine the economic value that could be lost, the sales (total benefits) are calculated for the different land cover types with the following formula:

Sales = harvest/ha/year x price

For the calculation of the value, the total benefits are considered without subtracting the costs, because it is assumed that if a wave damages the palm or other crops, the total benefits and the investment is lost.

For the calculation of the value of oil palm in US$/ha/year, it is assumed that the oil palm in the study area has an age of 10 years, according to interviews with Palma Tica. As shown in Table 4, the total benefits of oil palm are US$ 2.877 ha/year.

Table 4 Total benefits of oil palm Cash flow Value Age of palm (years) 10 Fruit (mt/ha/year) 19,4 Price of fruit (US$/mt) 149 Sales/Total benefits (US$/ha/year) 2.877 Source: own representation based on CANAPALMA 2012 and interview with Palma Tica

In Costa Rica, rice is harvested twice a year according to an interview with the National Rice Corporation Costa Rica (CONARROZ). In practice the second period can sometimes be less productive than the first period. To value the total benefits of rice plantation, it is assumed that both periods are equally productive, because there is a lack of precise documentation of the productivity in the second period. The total benefits of rice amount to US$ 5.270,86 ha/year (Table 5).

Table 5 Total benefits of rice Cash flow Value Harvest (73,6 kg sack/ha/year) 117 Price of 73,6 kg sack (US$/mt) 45,05 Sales/Total benefits (US$/ha/year) 5.270,86 Source: own representation based on CONARROZ 2010

The total benefits of grassland are not valued directly. According to interviews with the Ministry of Agriculture and Livestock (MAG) and farmers the grasslands are used for the so called “farm animal boarding”. It is a payment from the cattle owner to the

grassland owner for the cattle fattening. Based on interviews it is assumed that two heads of cattle feed on one hectare of grassland. The total benefits of grassland amount to US$ 239,16 ha/year (Table 6).

Table 6 Total benefits of grassland Cash flow Value Head of cattle (cattle/ha) 2 Provision of boarding (US$/cattle/year) 119,58 Total provision/Total benefits (US$/ha/year) 239,16 Source: own representation based on interviews

The other land cover types are set a value of US$ 0 because it is assumed that they have no significant economic value. The total economic value of the protected lands per year is US$ 1.514.729,17 which is the sum of the total value US$/year of rice, oil palm and grassland (Table 7).

Table 7 Calculation of the economic value of the protected lands Land cover Area (ha) Value Total Value US$/ha/year US$/year 1. Sand (river) 0,82 0,00 0,00 2. Rice 278,31 5.270,86 1.466.944,19 3. Forest 25,39 0,00 0,00 4. Wetland 0,64 0,00 0,00 5. Mangrove 0,03 0,00 0,00 6. Clouds 1,46 0,00 0,00 7. Oil Palm 15,74 2.877,00 45.279,72 8. Grassland 10,48 239,16 2.505,26 9. River 2,84 0,00 0,00 10. Bare Soil 16,76 0,00 0,00 Total Value 1.514.729,17 Source: own representation with the land cover information of the PRIAS, information about oil palm prices, rice prices and grassland prices.

The next step is to determine the share of coastal protection which is attributed to the mangroves in the Savegre Delta of Costa Rica. With the opinion of biologists, experts of the area and research in literature, the protection coefficient of 0,7 is chosen for the mangroves of the Savegre Delta. This coefficient is attributed to the mangroves of the

study area, because it is a wide mangrove belt and the mangrove trees are healthy and tall. For comparison, a second coefficient is set at 0,4, as a worst-case scenario.

As a last step, the “avoided damages” are calculated considering the above collected data. Due to uncertainties in data, a margin of +/- 20% is considered.

Table 8 Avoided cost method Scenario 1 Present Scenario Protection 70% Comparison value: Protection 40% Total value of agricultural Land A. 1.514.729,17 1.514.729,17 use in US$ Likelihood of any severe weather B. event in the Costa Rican Pacific 5% 5% coastline per year Shoreline protection by C. 70% 40% mangroves Value of shoreline protection in D. 53.015,52 30.294,58 US$/year E. Mangroves in the study area (ha) 246,91 246,91 Value of Shoreline Protection F. 214,72 122,69 (US$/ha/year) Margin of error (+/- 20%) G. 171,77 – 257,66 98,16-147,23 (US$/ha/year) Source: own representation based on calculations.

As presented in Table 8, the value of shoreline protection with a coefficient of 0,7 ranges from US$ 171,17 ha/year to US$ 257,66 ha/year. For comparison, assuming the protection of the mangroves could be lower as estimated, the value with a coefficient of 0,4 ranges from US$ 98,16 ha/year to US$ 147,23 ha/year. It is to consider, that the value used for the further calculations is the total value calculated with a 70% protection factor.

Mangrove conservation project

To analyze the economic efficiency of the provision of shoreline protection by the mangroves in the Savegre Delta of Costa Rica, its maintenance costs and its benefits are compared within a cost-benefit analysis using a 10 year time frame and two discounting rates 5 and 10%. As a first step, the total economic value (TEV) of the

mangroves is identified. Thereafter, the economic value of shoreline protection is added to other co-benefits and then compared to the maintenance costs within a CBA.

Ecosystem services and total economic value (TEV) of mangroves

The mangroves of the Savegre Delta are categorized as “restricted area”. This status restricts the use of the ecosystem services of mangroves, for example, it is illegal to fish in the area and to harvest the wood from the mangroves. In this study most of the ecosystem services (actual and potential use) provided by the mangroves in the Savegre Delta are valued, besides the fish and timber provision. As described above, fishing and selling mangrove wood have potential uses, however it is assumed that the use will be illegal in the next 10 years. The most important ecosystem services are listed below and only these services will be considered for the economic valuation:

1. Shoreline protection: The mangroves of the Savegre Delta are very healthy ecosystems that have the ability to protect the shore against natural hazards.

2. Recreation and Tourism: The natural beauty of the mangroves in the Savegre Delta could attract many tourists for sightseeing and canoe tours. However, the eco-tourism potential of the area has not been utilized, but there already exist management plans to increase the tourism in the zone.

3. Carbon sequestration: The mangroves in the Savegre Delta are healthy ecosystems that provide the service of carbon sequestration. In Costa Rica, there are already some attempts to market the service in the international carbon market.

4. Biodiversity: Even if the mangrove has been invaded by the agricultural frontier, the remaining mangroves still preserve a relatively pristine condition with high biodiversity.

5. Nursery and breeding grounds for fish: The mangroves in the Savegre Delta play an important role as a nursery and breeding habitat for the young fishes. This is important for example for the fishing industry from Quepos. A study from Takeda (2012) shows that the fishing activities in Quepos are very close to the shoreline where mangroves exist.

In Table 9, the ecosystem services mentioned above are classified within the framework of the total economic value. According to the different value types presented in the classification, different economic valuation methods are used to determine the economic value, as described in chapter 2.3 and illustrated in Figure 5. Shoreline protection has an indirect value and was therefore valued with an avoided

cost method. The detailed economic valuation of the other ecosystem services is not part of this study, but the classification of the value types can give us an insight on the valuation techniques that could be used for each ecosystem service. Option value and non-use values are not a part of the economic valuation of the mangroves of the Savegre Delta.

Table 9 Total economic value of the mangroves in the Savegre Delta Total economic value of mangroves in the Savegre Delta Use Values Non-Use Values Direct Value Indirect Value Option Value  Recreation  Shoreline protection and tourism  Biodiversity  Carbon Sequestration  Nursery and breeding ground for fish Source: own representation based on Bann 1998

Benefits of the mangroves

As a first step for the calculation of the benefits of the mangroves, the environmental benefits are ranked depending on their importance for the outcome of the valuation in Table 10 (Bann 1998).

Table 10 Ranking of the environmental benefits Benefits Importance 1. Shoreline Protection high 2. Biodiversity Medium 3. Carbon Sequestration Medium 4. Nursery and breeding ground for fish Medium 5. Recreation and tourism Medium Source: own representation based on Bann 1998

The benefits classified as “high” are very important for the outcome of the valuation. The benefits classified as “medium” should be considered as co-benefits, but are also important for the valuation.

Co-benefits

As described in the methodology, only the ecosystem service of shoreline protection is valued in detail. The values of the co-benefits of the mangrove are assessed with a case study review (see Appendix 1). The values chosen for the economic valuation of the co-benefits are rather conservative, because the study takes place on a small scale, not to be compared with e.g. México where Cabrera et al. (1998) calculated US$ 1.578,6 ha/year for nursery and breeding ground fish and Belize where Cooper et al. (2009) calculated US$ 3.976,19 ha/year for shoreline protection. Table 11 shows the economic value of the co-benefits of the conservation of the mangroves in the Savegre Delta with a value of US$ 126.669,77 per year.

In Table 12 the value of the co-benefits is added to the calculated value for shoreline protection, which results in a total economic value of US$ 179.685,29 per year.

Table 11 Co-benefits of the mangroves in the Savegre Delta Ecosystem Mangrove Total Value Service Value in US$/ha/year Area in ha in US$/year Low High Average Biodiversity 5,00 15,00 10,00 246,91 2.469,10 Carbon 2,12 126,00 64,06 246,91 15.817,05 Sequestration Nursery & breeding 44,42 169,00 106,71 246,91 26.347,77 ground for fish Recreation & 6,50 658,00 332,25 246,91 82.035,85 tourism Total value of co-benefits 126.669,77 Source: own representation based on Appendix 1

Table 12 Total economic value of ecosystem services Value in

US$/year Total co-benefits 126.669,77 Shoreline protection value 53.015,52 Total value of ecosystem services 179.685,29 Source: own representation based on calculations

Project costs

Taking into account that it is not a reforestation project, but a conservation project, the only expenditures considered for the project are the yearly maintenance costs of the National Park Manuel Antonio attributed to the mangroves conservation.

For the calculation following information is required:

1. Total expenditures for maintenance in the NPMA

2. Percentage of the costs of the NPMA attributed to the mangroves protection

Table 13 presents the detailed maintenance costs of the NPMA with US$ 468.855,82 per year. The administrator of the NPMA attributed approximately 20% of the total expenditures to the maintenance of the mangroves in the Savegre Delta, leading to a total of US$ 93.771,16 per year. This value is an approximate, taking into account that there is no precise calculation of the real costs of maintenance just for the mangrove in the national park. The sunk costs invested in the installations of the national park are not included in these calculations.

Table 13 Maintenance costs attributed to the mangroves in the NPMA Entry US$/year 1. Employees 373.522,43 2. Transportation and food costs 8.245,14 3. Training 5.802,15 4. Items for administration 5.932,87 5. Maintenance of infrastructure and vehicles 36.273,19 6. Fuel 11.981,79 7. Vehicle Insurance 2.811,64 8. Electricity 7.248,29 9. Telecommunications 1.760,54 10. Others 15.277,78 Total 468.855,82 Share attributed to mangroves (20%) 93.771,16 Source: own representation based on the information of the administration of the NPMA

Cost-benefit analysis

The above calculated costs and benefits are assessed within a CBA, to determine if the project is economically profitable.

For comparison, the CBA of Table 14 considers only the benefit of shoreline protection provided by the mangroves (without the co-benefits) and the costs of conservation. The value of shoreline protection is lower than the yearly expenditure in maintenance costs for mangrove conservation and thus the net benefits are negative. As a result, the NPV with a 5% discounting rate amounts to US$ - 314.704,25 and the NPV with a 10% discounting rate amounts to US$ - 250.425,76.

Table 14 Cost-benefit analysis mangrove conservation without co-benefits Maintenance costs Total Benefits Net Benefits Years US$/year US$/year US$/year 0 0 0 0 1 93.771,16 53.015,52 -40.755,64 2 93.771,16 53.015,52 -40.755,64 3 93.771,16 53.015,52 -40.755,64 4 93.771,16 53.015,52 -40.755,64 5 93.771,16 53.015,52 -40.755,64 6 93.771,16 53.015,52 -40.755,64 7 93.771,16 53.015,52 -40.755,64 8 93.771,16 53.015,52 -40.755,64 9 93.771,16 53.015,52 -40.755,64 10 93.771,16 53.015,52 -40.755,64 NPV US$ (Discounting -314.704,25 rate 5%) NPV US$ -250.425,76 (Discounting rate 10%) Source: own representation based on own calculations

Table 15 shows a CBA with the complete range of benefits provided by the mangroves (shoreline protection + co-benefits). For the mangrove conservation project, the total value of benefits is higher than the yearly maintenance costs and thus the net benefits are positive. The NPV calculated with a 5% discounting rate amounts to US$ 553.094,94 and the NPV with a 10% discounting rate amounts to US$ 527.905,13. This means, the mangrove conservation project is economically profitable for both discounting rates.

Table 15 Cost-benefit analysis mangrove conservation Maintenance costs Total Benefits Net Benefits Years US$/year US$/year US$/year 0 0 0 0 1 93.771,16 179.685,29 85.914,13 2 93.771,16 179.685,29 85.914,13 3 93.771,16 179.685,29 85.914,13 4 93.771,16 179.685,29 85.914,13 5 93.771,16 179.685,29 85.914,13 6 93.771,16 179.685,29 85.914,13 7 93.771,16 179.685,29 85.914,13 8 93.771,16 179.685,29 85.914,13 9 93.771,16 179.685,29 85.914,13 10 93.771,16 179.685,29 85.914,13 NPV US$ (Discounting rate 553.094,94

5%) NPV US$ (Discounting rate 527.905,13

10%) Source: own representation based on calculations

The hypothetical dike construction project

If the mangroves in the Savegre Delta would disappear completely due to the pressures described above, a dike could to be constructed to protect the vulnerable lands against natural hazards. This hypothetical project aims to show what would happen if the mangroves would be fully degraded and cannot further provide shoreline protection. For this study, a total length of 3,48 km of mangroves are replaced by a dike. The costs and benefits of this project are analyzed within a cost- benefit analysis with a 10 year time frame and two discounting rates, 5 and 10%.

Project benefits

The direct benefit of the construction of a dike is the protection of the vulnerable land. The dike constructed is assumed to be a substitute for the mangroves of the Savegre Delta, thus the shoreline protection benefits of the dike are equal to those provided by the mangroves in the Savegre Delta. The value of shoreline protection is taken from the calculating above with US$ 53.015,52 per year.

Co-benefits

The construction of a dike can also generate co-benefits besides its shoreline protection benefits. The identified co-benefits are for example, job creation for the construction of the project and enhancement of the property or land value (Clark et al.). The relation between the construction of a dike and the creation of these co- benefits is however very difficult to measure, taking into account the location of the study area and the lack of information e.g. of the preferences of the landowners.

Project costs

For the calculation of the costs for the construction of a dike following information is required:

1. Height, width and length of the proposed dike

2. Material costs

3. Maintenance costs of the dike

The hypothetical construction of a dike in the Savegre Delta was discussed with a coastal engineer of the University of Costa Rica (UCR) and with “La Marina Pez Vela”, the navy in Quepos. The proposed dike presents the least cost substitute for the shoreline protection service of the mangrove in the Savegre Delta, therefore the costs are calculated on a rather conservative basis. The project is based on a project in Guanacaste in the north of Costa Rica, where the community constructed a dike with old tires to protect themselves from the floods. Together with the experts in coastal protection, the dimensions of the dike were set, so that the dike could provide at least the protection that the mangroves provided. The height of the dike is 3 m and the width 2,6 m. The costs presented in table 16 are an approximate based on the prices of the goods in Costa Rica (Jica 2010). It must be taken into account, that the labor costs are not included, because it is a community project where the community builds the dike with the help of a non-governmental agency. The costs per 1 meter of dike amount to US$ 372 and the total construction costs for a total length of 3.478 meters amount to a total of US$ 1.293.816. The annual maintenance costs were set at 4% of the initial construction costs and amount therefore to US$ 51.752,64 per year (Table 16).

Although this CBA does not include an EIA, it has to be considered that besides the construction costs, the dike also causes environmental costs and impacts. The dike construction could lead to more erosion at the coasts, loss of the sandy beach, retention of sediments and disruption of some natural processes such as the

migration of wetlands (IPCC CZMS 1990). Therefore, it is always necessary to make an EIA before implementing the project and to consider these environmental costs as part of the CBA.

Table 16 Costs of dike construction Entry Value Cement US$/m 93 Wooden Stake US$/m 39 Gravel US$/m 219 Sand US$/m 21 Total Costs US$/m 372 Total costs US$ for 3.478m 1.293.816 Maintenance costs US$/year (4%) 51.752,64 Source: own representation based on Jica 2010.

Cost-benefit analysis

With the collected data, a cost-benefit analysis is conducted with a 5 and a 10 % discounting rate. As shown in Table 17, the costs and the benefits of the dike construction project are compared. The yearly net benefits of the project are positive, because the yearly maintenance costs are lower than the yearly benefits of shoreline protection. However, the initial investment costs of building a dike are too high to be absorbed. As a result, the NPV with a discounting rate of 5% amounts to US$ - 1.222.918,45 and the NPV with a 10% discounting rate amounts to US$ -1.169.141,95 (Table 17).

The NPV for the dike construction project is negative for both discounting rates. This means, the project of constructing a dike in this area is unprofitable. The construction and maintenance costs are too high in comparison to the yearly benefits of shoreline protection.

Table 17 Cost-benefit analysis dike construction Initial Inversion Maintenance costs Benefits Net Benefits Years US$ US$/year US$/year US$/year 0 1.293.816,00 -1.293.816,00

1 51.752,64 53.015,52 1.262,88

2 51.752,64 53.015,52 1.262,88

3 51.752,64 53.015,52 1.262,88

4 51.752,64 53.015,52 1.262,88

5 51.752,64 53.015,52 1.262,88

6 51.752,64 53.015,52 1.262,88

7 51.752,64 53.015,52 1.262,88

8 51.752,64 53.015,52 1.262,88

9 51.752,64 53.015,52 1.262,88

10 51.752,64 53.015,52 1.262,88

NPV US$ (Discounting rate -1.222.918,45 5%) NPV (Discounting rate -1.169.141,95 10%) Source: own representation based on calculated data

Comparison of the projects

In this section, the final results of the CBA of the two projects are compared to identify the most profitable coastal protection option for the region. Table 18 shows the comparison of the NPV of the mangrove conservation (without considering co- benefits) and the dike construction project. In both cases, the NPV are negative and don’t meet condition 1 and thus condition 2 is also not achieved. The projects are not economically profitable if the co-benefits of the mangrove are not considered.

Table 18: Comparison of the projects without co-benefits 5% discounting rate 10% discounting rate NPV Mangrove conservation -314.704,25 -250.425,76 (without co-benefits) NPV dike construction -1.222.918,45 -1.169.141,95 project Condition 1: NPV > 0 NPV mangrove and dike < 0 NPV mangrove and dike < 0 Condition 2: NPV a > NPV b - - Source: own representation based on own calculations

Table 19 Comparison of the projects

5% discounting rate 10% discounting rate NPV Mangrove conservation (shoreline protection + co- 553.094,94 527.905,13 benefits) -1.222.918,45 -1.169.141,95 NPV dike construction project

NPV mangrove > 0 ; NPVdike NPV mangrove > 0 ; NPVdike Condition 1: NPV > 0 < 0 < 0 Condition 2: NPV a > NPV b NPV mangrove > NPV dike NPV mangrove > NPV dike Source: own representation based on own calculations

Table 19 shows the comparison of the two projects when all benefits are considered. It stands out that when the total economic value of the mangroves is considered, the NPV is greater than zero. The NPV of the dike construction project remains lower than zero. The mangrove conservation project is economically more profitable than the dike construction project when all benefits are considered.

Discussion

In the present study the economic profitability of two coastal protection projects was analyzed: The conservation of the mangroves in the Savegre Delta and the construction of a hypothetical dike. At the beginning of the study, it was expected that for the protection of the vulnerable lands in the Savegre Delta it is economically more profitable to conserve the existing mangroves, than to invest in the construction and maintenance of a hypothetical dike.

As a first step the benefit of shoreline protection was valued, using the avoided cost method. The value for shoreline protection of the mangroves in the Savegre Delta with a 0,7 protection coefficient, ranks between US$ 171,77 ha/year and US$ 257,66 ha/year and results in a total value of US$ 53.015,52 per year. As a comparison, by reducing the coefficient to 0,4, the value ranks between US$ 98,16 ha/year and US$ 147,23 ha/year, resulting in a total value of US$ 30.294,58 per year.

The co-benefits of the mangroves were assessed using the values of similar case studies and amount to US$ 126.669,77 per year. Adding the value of shoreline protection with a 0,7 protection coefficient to the co-benefits, the total economic value of the mangroves amounts to US$ 179.685,29 per year. On the other hand, the maintenance costs of the mangrove were estimated at US$ 93.771,16 per year.

The costs and benefits of the conservation of the mangroves in the Savegre Delta were assessed within a cost-benefit analysis, with a project lifetime of 10 years and using two different discounting rates (5 and 10%). First, only the value of shoreline protection (without co-benefits) was considered in the CBA. As a result, the NPV amounts to US$ -314.704,25 with a 5% discounting rate and to US$ -25.094,94 with a 10% discounting rate. Then, a CBA was conducted considering the whole range of ecosystem services provided by the mangroves (shoreline protection + co-benefits) and the NPV results in US$ 553.094,94 with a 5% discounting rate and in US$ 527.905,13 with a 10% discounting rate. The mangrove conservation project is only economically profitable when considering also the value of the co-benefits.

Furthermore, the project of a hypothetical dike construction was analyzed, with the same project lifetime and discounting rates. For this purpose the benefit of shoreline protection calculated for the mangroves was taken as the benefits for the dike construction. The costs were calculated for a dike of 3 m high, 2,6 m width and 3,48 km long, using the estimates of a dike construction project in the north of Costa Rica. The total costs of construction amount to US$1.293.816 with yearly maintenance costs of US$ 51.752,64. The costs and benefits were assessed within a cost-benefit analysis resulting in a NPV of US$ -1.222.918,45 with a 5% discounting rate and in a NPV of US$ - 1.169.141,95 with a 10% discounting rate. Given that both net present values are negative, the hypothetical dike construction project is not economically profitable. As a result, the study shows that the conservation of the mangrove is economically more profitable than the construction of a dike when considering all the benefits.

One of the most important values for the calculation of the CBA of this study is the value of shoreline protection. This value indicates that the mangroves in the Savegre Delta protect a high economic value in the vulnerable lands against natural hazards. The calculated results for shoreline protection corroborate with the findings of other similar case studies, which valuated the same service. The table in Appendix 1 ranks the values from the selected and reviewed case studies: The lowest value for shoreline protection is calculated by Hoberg (2011) in Kenya with US$76,58 ha/year and the highest value is calculated in Belize by Cooper et al. (2009) with US$ 3.976,19 ha/year. The value of shoreline protection calculated for the study area of the Savegre Delta is located between these two values, but belongs rather to the lower values. A possible explanation for this might be that the vulnerable area in Belize has a higher economic value (high property values) than an area in Kenya or in the National Park Manuel Antonio and thus, the damage cost avoided and the value of shoreline protection is higher. Another reason could be the mangrove protection coefficient used or the overestimation of property and infrastructure values in Belize.

In the present study, two cost-benefit analyses were conducted for the mangrove conservation project. In a first instance, only the benefit of shoreline protection was compared to the costs of conservation during a period of 10 years and discounted with 5 and 10%. As a result, the NPV for the project was negative and unprofitable. Afterwards, the total range of benefits offered by the mangroves was considered and the NPV was positive for both discounting rates. Economically speaking, this indicates that when considering only the benefit of shoreline protection, the conservation of the mangroves is unprofitable. The conservation project is economically profitable only when considering all benefits (shoreline protection and co-benefits) offered by the mangroves. It is important to bear in mind, that this is the reason why the protection of the shore by natural ecosystems like mangroves is very important in the context of Ecosystem-based Adaptation, because by conserving the mangroves for shoreline protection against storms, sea level rise and coastal inundation, simultaneously other social, cultural and economic co-benefits are provided (UNFCCC 2011). For the present study, this means that when adding the total range of benefits provided by mangroves they overpass the costs of its maintenance and result in a profitable project.

More and more national management plans find the way back to use ecosystems to protect the shore because it is an overall economically profitable alternative. Countries like India, Indonesia, Malaysia, Sri Lanka and Thailand are already involved in reforestation projects to protect the shore against natural hazards (UNFCCC 2011). In comparison to the present study, the mangroves had to be reforested and not protected, but the shoreline protection with natural ecosystems can still be a profitable alternative. Fernandez et al. (2006) analyzed for example the net benefits of mangrove reforestation in Sibunag Guimaras, Philippines, and came to the result that the NPV for mangrove reforestation, with and without harvesting, was positive for all discounting rates used. Furthermore, in Thailand there are several projects of replanting mangroves in tsunami affected areas because after the tsunami disaster in December 2004 in the Indian Ocean, the important role of the mangroves in attenuating wave energy was more recognized (Barbier 2006).

The project of a hypothetical dike construction was also assessed within a CBA. It was assumed that the dike is a perfect substitute for the existing mangrove and that it would be constructed if the mangrove would be fully degraded and unable to provide the same service of shoreline protection. To substitute the mangrove, a least cost alternative was chosen for the construction of a dike with the help of experts. For the analysis of the costs, the construction of a project in the north of Costa Rica was taken as a guide. The costs of a dike are difficult to estimate because depending on the materials used, it can cost several million dollars to build a proper dike. For example, in New Orleans a 1m high dike costs between US$ 7 and US$ 8 million (Jones et al.

2012). Therefore, it was important for this study to calculate with costs that are more conservative. Although the least cost alternative was chosen for the calculations, the net present value of the dike construction project was negative for both discounting rates, meaning that the project is economically unprofitable. This result was expected, as the initial investment costs were too high to be absorbed by the yearly benefits and the benefits of the dike were set as high as the benefit of shoreline protection provided by mangroves.

At the beginning of this study, the question arises whether the mangrove conservation project or the dike construction project is the most profitable option to protect the vulnerable lands of the Savegre Delta. The economic analysis of the two projects showed that the NPV of the conservation of the mangroves is higher than the NPV of the construction of a dike and thus to assure the shoreline protection of the vulnerable lands in the Savegre Delta, it is economically more profitable to conserve the mangrove ecosystem than to invest in the construction and maintenance of a hypothetical dike.

The findings of the present study corroborate with the declaration of the UNFCCC (2011) which stated that the protection and the restoration of natural ecosystems like mangroves can be a less costly alternative than building hard engineering structures, like dikes and seawalls (UNFCCC 2011). This statement is supported by many authors in the context of an Ecosystem-based Adaptation (Hale et al. 2009, UNEP 2007, Jones et al. 2012). However, in practice little evidence is available to further support the findings of this study. In fact, a study of Clark et al. analyzed the NPV of seawalls and mangroves for different scenarios. Surprisingly, the NPV for seawalls was higher than the NPV for conservation and reforestation of mangroves in almost all scenarios. A possible explanation for this result is the simplistic seawall model used and the protection coefficient. In the study, a complete efficiency of the seawall is assumed (100%), shifting notably the value of shoreline protection provided (Clark et al.).

In the literature, most of the evidence focuses on the service of shoreline protection, for example, in the Turks and Caicos Islands in the Caribbean the protection offered by coral reefs was estimated at US$ 16,9 million per year and the construction of a hard engineering structure was estimated at US$ 223 million (Jones et al. 2012). Furthermore, as already mentioned, both protection approaches can also be complementary to each other. In Vietnam mangroves are being reforested to reduce the dike maintenance costs. It was estimated that an investment of US$ 1,1 million for the reforestation of almost 12.000 ha of mangroves would save around US$ 7,3 million per year in dike maintenance (UNEP 2007). Contrary to this study here the mangroves are being used to avoid the dike maintenance costs instead of property values or agricultural benefits.

The results gained in this study are very important, because worldwide there is a trend of declining coastal ecosystems worldwide, disregarding the high economic value of its conservation. Although a large number of economic valuation studies show the significance and importance of these ecosystems, mangroves, seagrasses and saltmarshes are being degraded at a rate of 2 to 7% yearly (UNEP 2007). The mangroves in the Savegre Delta are also being threatened by several factors, like the forward moving agricultural frontier, pollution and human activities, although they are protected by the NPMA. The findings of this study indicate that the costs of a dike construction are so expensive that, with high probability, a hard engineering structure would not be constructed if the mangroves in the Savegre Delta would be fully degraded. The lands would be vulnerable to extreme weather events, eventually attached to high economic losses. For the study area of the Savegre Delta, this implies that the agricultural landowners are destroying their natural protection barrier against storms and natural hazards. Furthermore, if the mangroves were completely degraded a high economic value would be lost for society due to the other ecosystem services the mangrove provides besides shoreline protection.

Concerning other locations worldwide, the mangroves not only provide shoreline protection to agricultural lands but to local communities. By conserving the mangroves in the context of EbA, triple win situations can be created, where the ecosystems are protected, cost-effective protection against natural hazards is provided and the communities profit also from the other ecosystem services (TEEB 2011). If these ecosystems are lost, other more expensive measures have to be implemented to protect the shore. The problem is that, these other measures are usually very cost intensive and connected with high social and environmental impacts and this makes the vulnerable communities with limited economic resources depend on the functioning of natural ecosystems.

It has to be taken into account that the shoreline protection by natural ecosystems is not to be regarded as a best solution. In some cases, natural protection may not achieve the level of protection needed and hard structures must be implemented. Depending on the study site and on other factors like waves height and storm frequency, the coastal protection measure has to be chosen, but also taking into account that both measures can be implemented complementary to each other.

The findings and data presented in this study are to be interpreted with caution due to a number of limitations. For the economic valuation of the ecosystem service of shoreline protection, very detailed data was needed. However, even after an intensive research many uncertainties remained in the data recollected. Only little evidence was available on the frequency of extreme weather events in the Pacific Coast of Costa Rica. The data had to be gained by interviews with local experts and is thus bound to

some uncertainties. Furthermore, due to price fluctuations, the economic value of the protected land is meant to change and the value of shoreline protection could increase or decreased. The mangrove protection coefficient of 0,7 is also bound to uncertainties and changes: First, because more research on the status quo of the mangroves is needed to determine the exact protection factor and second, because depending on the ongoing health of the mangrove the percentage could increase or decrease. Moreover, the usage of other economic valuation tools like the contingent valuation method or the hedonic pricing could lead to a more precise shoreline protection value. To address some of the uncertainties enumerated, the study calculated the shoreline protection value with two protection coefficients (70% and 40%) and with a margin of error of +/- 20%. Furthermore, for the calculation of the NPV, two discounting rates (5 and 10%) were included.

Regarding the CBA of mangrove conservation, there is high uncertainty in the amount of maintenance costs attributed to the mangroves in the Savegre Delta. As the precise expenditure of maintenance costs was not separately listed, the percentage attributed to the protection of the mangroves was gained by an interview with the park administrator. The 20% attributed to the protection of mangroves is bound to a high uncertainty. Based on the existence of rice and oil plantations located within the National Park it could be assumed, that there is not much surveillance in that area, which could mean that the percentage attributed was too high. However, in case the maintenance costs would be lower, the NPV would be higher and it would not affect the outcome of the study.

Concerning the costs for a dike construction project, caution must be applied, as costs can be easily overestimated. Taking into account that it is a hypothetical dike construction project, there was no real dike construction in the Savegre Delta which could be analyzed. The proposal of the dike for the area is based on interviews with experts and with a navy in Quepos and is the least expenditure to achieve the same protection value as the mangrove. However it is to bear in mind that it is very uncertain to speculate with the prices and the materials which have to be used.

It is to recommend that before constructing a dike an EIA should be conducted to assess the negative impacts of the project and the resulting costs should be included in the CBA. Kortenhaus (1996) also recommends that the interaction between the waves and the dike should be analyzed before constructing or designing a dike. This is not treated in detail in this study due to the lack of experts working in the area and to the restriction of financial resources to hire a coastal engineer for a detailed advisory, especially for this area. However, probably the result of a negative NPV would not have changed, as the initial construction costs and the yearly maintenance costs

remain expensive and the benefit of shoreline protection is assumed to be the same as the one provided by the mangroves.

It is also important to consider, that the discounting rates were taken from other case studies. Additional to determining an appropriate discounting rate for this study, it is recommended to conduct a detailed sensitivity analysis, as it has many variables with very high uncertainty.

Despite the mentioned data uncertainties and study limitations, the findings of the study show a very clear pattern and this is that the NPV for mangrove conservation remains higher than the NPV of a hypothetical dike construction project and thus mangroves are worth its further conservation and protection.

Conclusions and recommendations

Facing the impacts of climate change and other natural hazards, there is a need for the implementation of coastal adaptation measures to protect vulnerable communities, economic activities and infrastructure. Most of the protection efforts focus on hard engineering solutions, like the construction of dikes and seawalls. However, these constructions are often linked to high investment costs, what makes their implementation difficult particularly in developing countries. A solution to this problem might be the use of natural ecosystems to protect the shoreline from natural hazards, like mangroves and coral reefs or in combination with hard engineering structures. On these regards, there is a need for more information about the cost- effectiveness of the implementation of such solutions, to determine which could be the best alternative for a given area.

The objective of this study was to conduct an economical cost-benefit analysis of two coastal protection projects: Mangrove conservation vs. dike construction and to compare which alternative was economically more profitable to protect the shore of the Savegre Delta. The findings of this study indicate that the NPV of mangrove conservation is positive and higher than the NPV of the construction of a hypothetical dike, when all ecosystem services are considered. As a result this study shows that to assure the shoreline protection of the vulnerable lands of the study area in the Savegre Delta it is economically more profitable to conserve the mangrove ecosystem than to invest in the construction and maintenance of a hypothetical dike. A possible explanation for this result is the high initial construction costs of the dike which couldn’t be absorbed by the yearly benefits of shoreline protection. On the other hand, the mangrove conservation project is only economically profitable because the

mangroves provide several co-benefits with high economic value besides the service of shoreline protection. The evidence of this study suggests that if the mangroves in the Savegre Delta disappear the further protection of the shore would be linked to high economic investment and to possible negative environmental impacts. It also suggests that the mangroves of the Savegre Delta are worth conserving because they provide a wide range of ecosystem services linked to a high economic value and thus the activities that destroy the mangroves should immediately be stopped.

The NPMA is one of the most famous national parks in Costa Rica. However, the main focus of the park administration relies on the tourist spots of the park like the beaches and forest, close to the city of Quepos. Still, it is important that the park administration focuses more on the well-being of the mangroves, especially after the degradation trend shown since 1949. The further existence and health of the mangroves should be secured by implementing more protection activities such as more surveillance by the park rangers to identify the farmers with illegal plantations and higher monetary sanctions for the farmers. Also, it is recommended to implement a buffer zone of at least 100m or 200m to stop the forward moving agricultural frontier and allow the mangrove to regenerate and migrate. If these suggestions are not taken into account, it is possible that the mangroves will continue degrading and in a near future will not be able to provide further the ecosystem services.

Costa Rica is a country committed in the protection of natural ecosystems. There are several projects on a national and international scale that promote the further protection of marine protected areas. For example, the government of Costa Rica has the goal to at least double the marine protected areas in the country, to increase the management and administrative effectiveness of protected areas and to improve the representativeness and overall ecological integrity of the SINAC (www.costaricaporsiempre.org). These objectives should be accomplished as soon as possible to prevent the further degradation of natural ecosystems in Costa Rica, especially taking into account that the national footprint of the country has turned negative since the 90s due to an increment in agricultural activities, ecosystem loss and population growth (www.footprintnetwork.org).

The findings of this study also suggest several courses of action for policy makers worldwide. The wide-reaching decline of mangroves and other marine ecosystems has to be stopped because these ecosystems are worth conserving due to the range of ecosystems services they provide, which are important especially for vulnerable communities, such as food provision, tourism, and shoreline protection. Policy makers should focus more on marine and coastal ecosystems and implement harder sanctions to polluters and farmers that damage the ecosystem. The regulation by the

government is very important, as the ecosystems are usually regarded as common goods and in most cases the property rights are not well defined.

Regarding the service of shoreline protection, the review of case studies and the lessons learned show the advantages of natural shoreline protection in the context of EbA, as a cost-effective opportunity to accomplish several objectives. Thus, it is very important for policy makers to integrate the approach in national adaptation policies and to notice that natural barriers are very important and they should be taken into account before implementing harder structures. Mangroves become very important especially with regard to the increasing frequency of storms and sea level rise in the context of adaptation to climate change and thus it is important that the threats to marine and coastal ecosystems are addressed and that the resilience of these ecosystems is increased. Furthermore, more economic instruments like payment for ecosystem services (PES) should be considered for the creation of buffer zones near mangrove ecosystems, so that these ecosystems have the possibility to migrate and expand. Such incentive based instruments could also been used to encourage communities and farmers to protect the natural infrastructure and so the government could delegate some responsibility. It would be a much effective way of protecting the ecosystems, as the communities would be on site and would profit from the conservation of the ecosystems in a sustainable way.

The present study has thrown up many questions in need of further investigations. More oceanographic data is needed and more information about the effects of climate change to the coasts of Costa Rica. On these regards, there is too little information about possible impacts on the shore and infrastructure damages. There is also a need of better understanding of the effects that climate change and the impact it will have on the natural ecosystems and to research whether the ecosystems will be able to provide the range of ecosystem services any further. Moreover, McIvor et al. (2012) stated that there are too few studies measuring the wave attenuation by mangroves during storms and extreme weather events because it is too risky and the expensive equipment could be lost. Almost all studies measured the impacts of small waves, therefore further research is needed to explore the interactions between waves and mangroves for more precise economic valuation studies on shoreline protection.

Finally, though there is a high awareness of the provision of shoreline protection by natural ecosystems, there is still a need for more information about the economic profitability of the implementation of natural protection barriers and hard engineering solutions, including the environmental costs and benefits as well. More studies should use economic decision tools like the cost-benefit analysis and assess the advantages of different coastal adaptation approaches also in the context of adaptation to climate change.

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