Draft Report 9/24/07 for SAB C-VPESS Public Teleconferences on October 15 and 16, 2007 This draft is a work in progress, does not reflect consensus advice or recommendations, has not been reviewed or approved by the chartered SAB, and does not represent EPA policy. 1 Table of Contents for Draft SAB C-VPESS Report “Valuing the Protection of 2 Ecological Systems and Services” 3 4 1 INTRODUCTION ....................................................................................................................... 6 5 2 CONCEPTUAL FRAMEWORK............................................................................................. 10 6 2.1. AN OVERVIEW OF KEY CONCEPTS...................................................................................... 10 7 2.1.1. The Concept of Ecosystem Services............................................................................... 10 8 2.1.2. The Concepts of Value................................................................................................... 12 9 2.1.3. The Concept of Valuation and Different Valuation Methods ........................................ 18 10 2.2. ECOLOGICAL VALUATION AT EPA ..................................................................................... 23 11 2.2.1. Policy Contexts at EPA Where Ecological Valuation Can be Important ...................... 23 12 2.2.2. Institutional and Other Issues Affecting Valuation at EPA ........................................... 25 13 2.2.3. An Illustrative Example of Economic Benefit Assessment Related to Ecological 14 Protection at EPA ........................................................................................................................ 27 15 2.3. AN INTEGRATED AND EXPANDED APPROACH TO ECOSYSTEM VALUATION: KEY FEATURES 16 32 17 2.3.1. Early Consideration of Effects that are Socially Important .......................................... 33 18 2.3.2. Predicting Ecological Changes in Value-relevant Terms ............................................. 34 19 2.3.3. Drawing on Multiple Methods for Characterizing Values ............................................ 36 20 2.4. STEPS IN IMPLEMENTING THE PROPOSED APPROACH.......................................................... 38 21 2.5. CONCLUSIONS AND RECOMMENDATIONS............................................................................ 42 22 3 BUILDING A FOUNDATION FOR ECOLOGICAL VALUATION: PREDICTING 23 EFFECTS ON ECOLOGICAL SYSTEMS AND SERVICES........................................................ 45 24 3.1. THE ROAD MAP: A CONCEPTUAL MODEL.......................................................................... 45 25 3.2. OPERATIONALIZING THE CONCEPTUAL MODEL: THE ROLE OF ECOLOGICAL PRODUCTION 26 FUNCTIONS........................................................................................................................................ 48 27 3.3. CHALLENGES IN IMPLEMENTING ECOLOGICAL PRODUCTION FUNCTIONS........................... 51 28 3.3.1. Understanding and Modeling the Underlying Ecology................................................. 51 29 3.3.2. Identifying Ecosystem Services...................................................................................... 55 30 3.3.3. Mapping Changes in Ecological Inputs to Changes in Ecological Services................. 60 31 3.4. STRATEGIES TO PROVIDE THE ECOLOGICAL SCIENCE TO SUPPORT VALUATION................. 61 32 3.4.1. Use of Indicators ........................................................................................................... 61 33 3.4.2. Use of Meta-analysis. .................................................................................................... 65 34 3.4.3. Opportunities regarding ecological data ...................................................................... 66 35 3.5. DIRECTIONS FOR ECOLOGICAL RESEARCH TO SUPPORT VALUATION.................................. 68 36 3.6. CONCLUSIONS/RECOMMENDATIONS ................................................................................... 68 37 4 METHODS FOR ASSESSING VALUE.................................................................................. 71 38 4.1. AN EXPANDED SET OF METHODS........................................................................................ 71 39 4.1.1. Biophysical Ranking Methods ....................................................................................... 76 40 4.1.2. Ecosystem Benefit Indicators......................................................................................... 77 41 4.1.3. Measures of Attitudes, Preferences, and Intentions....................................................... 78 42 4.1.4. Economic Methods ........................................................................................................ 79 43 4.1.5. Group Expression of Values and Social/Civic Valuation.............................................. 81 44 4.1.6. Decision Science Methods............................................................................................. 82 45 4.1.7. Methods Using Cost as a Proxy for Value..................................................................... 83 46 4.1.8. Summary and Recommendations................................................................................... 84 47 4.2. VALUE TRANSFER............................................................................................................... 90 48 4.2.1. Transfer of Economic Benefits ...................................................................................... 90 49 4.2.2. Transfer Methods........................................................................................................... 91 50 4.2.3. Guidance Regarding Benefits Transfer ......................................................................... 93 1 Draft Report 9/24/07 for SAB C-VPESS Public Teleconferences on October 15 and 16, 2007 This draft is a work in progress, does not reflect consensus advice or recommendations, has not been reviewed or approved by the chartered SAB, and does not represent EPA policy. 1 4.2.4. Screening Process ......................................................................................................... 97 2 4.2.5. Recommendations.......................................................................................................... 98 3 5 CROSS-CUTTING ISSUES ..................................................................................................... 99 4 5.1. ANALYSIS AND REPRESENTATION OF UNCERTAINTIES IN ECOLOGICAL VALUATION.......... 99 5 5.1.1. Introduction................................................................................................................... 99 6 5.1.2. Sources of Uncertainty in Ecological Valuations........................................................ 100 7 5.1.3. Approaches to assessing uncertainty........................................................................... 101 8 5.1.4. Using Uncertainty Assessment to Guide Research Initiatives..................................... 104 9 5.2. COMMUNICATION OF ECOLOGICAL VALUATION INFORMATION........................................ 105 10 5.2.1. Applying General Communication Principles to Ecological Valuation...................... 106 11 5.2.2. Special Communication Challenges Related to Ecological Valuation........................ 107 12 5.2.3. Communicating Uncertainties and Ecological Valuation ........................................... 110 13 5.2.4. Recommendations........................................................................................................ 112 14 6 APPLYING THE APPROACH IN THREE EPA DECISION CONTEXTS..................... 114 15 6.1. VALUATION FOR NATIONAL RULEMAKING......................................................... 114 16 6.1.1. Introduction................................................................................................................. 114 17 6.1.2. Implementing the Proposed Approach ........................................................................ 116 18 6.1.3. Conclusions ................................................................................................................. 132 19 6.2. VALUATION FOR SITE-SPECIFIC DECISIONS......................................................... 142 20 6.2.1. Introduction................................................................................................................. 142 21 6.2.2. Opportunities for using valuation to inform remediation and redevelopment decision. 22 143 23 6.2.3. Recommendations and discussion of valuation through illustrative site-specific 24 examples .................................................................................................................................... 148 25 6.2.4. Summary of recommendations for valuation for site-specific decisions...................... 166 26 6.3. VALUATION IN REGIONAL PARTNERSHIPS........................................................... 167 27 6.3.1. EPA Role in Regional-scale Value Assessment ........................................................... 167 28 6.3.2. Case Study: Chicago Wilderness................................................................................. 168 29 6.3.3. Other Case Studies: Portland, Ore.; and the Southeast Region.................................. 183 30 6.3.4. Summary and Recommendations................................................................................. 186 31 7 SUMMARY OF MAJOR RECOMMENDATIONS AND CONCLUSIONS..................... 190 32 APPENDIX A: SPECIAL TERMS AND THEIR USE IN