THE ECONOMICS OF ECOSYSTEMS AND BIODIVERSITY: SCOPING THE SCIENCE ENV/070307/2007/486089/ETU/B2 FINAL REPORT Andrew Balmford, Ana S.L. Rodrigues (University of Cambridge), Matt Walpole (WCMC), Patrick ten Brink, Marianne Kettunen (IEEP), Leon Braat, Rudolf de Groot (Alterra) September 2008 This report has been produced for the European Commission under Contract ENV/070307/2007/486089/ETU/B2. Suggested citation: Balmford, A., Rodrigues, A.S.L., Walpole, M., ten Brink, P., Kettunen, M., Braat, L. & de Groot, R. (2008). The Economics of Biodiversity and Ecosystems: Scoping the Science. Cambridge, UK: European Commission (contract: ENV/070307/2007/486089/ETU/B2) Scientific lead : Andrew Balmford and Ana S.L. Rodrigues Conservation Science Group, Department of Zoology, University of Cambridge, Cambridge, United Kingdom Partners : Patrick ten Brink and Marianne Kettunen IEEP – Institute of European Environmental Policy, Brussels, Belgium Matt Walpole UNEP – World Conservation Monitoring Centre, Cambridge, United Kingdom Leon Braat and Rudolf de Groot Alterra, Wageningen University and Research Centre, Wageningen, The Netherlands External experts : The expertes that provided direct input into this project are listed under each theme. Acknowledgements : To all the experts that contributed as authors, reviewers, contributors or otherwise provided information useful to the thematic reviews (see participant list in each theme). Also to the interns that researched each theme: Kelly Flower, Hannah Peck, Antares Hernández, James Beresford, and James Waters. To Ben Phalan and Bernardo Strassburg for helping with case-studies. To the members of the Zoology Department that created the logistical conditions for this project, in particular Julian Jacobs, Nanna Evers, Neal Maskell, Simon Beeton, David Clarke, and Keith Griffiths. ii TABLE OF CONTENTS 1 INTRODUCTION ............................................................................................................... 1 1.1 Background ...........................................................................................................1 1.2 This Scoping the Science project......................................................................... 1 1.3 This report............................................................................................................. 2 2 A CONCEPTUAL FRAMEWORK FOR THE REVIEW ......................................................... 4 2.1 Why we need a conceptual framework............................................................... 4 2.2 Initial considerations and assumptions............................................................... 4 2.2.1 Valuing wild nature ....................................................................................... 4 2.2.2 Scope of the Review ....................................................................................... 6 2.2.3 Valuing marginal change.............................................................................. 7 2.2.4 The need to be spatially explicit .................................................................... 8 2.3 The conceptual framework.................................................................................. 8 2.3.1 Defining appropriate policy actions based on the drivers of loss .............. 10 2.3.2 Defining the counterfactual states of the world ......................................... 11 2.3.3 Quantifying and mapping how the biophysical provision of benefits is affected by the policy action ........................................................................................ 12 2.3.4 Quantifying and mapping the economic value of changes in benefits derived from the policy action ..................................................................................... 16 2.3.5 Quantifying and mapping the overall economic value of changes in benefits derived from the policy action ....................................................................... 21 2.3.6 Quantifying and mapping the costs of policy action .................................. 22 2.3.7 Quantifying and mapping the net economic consequences of policy action 23 2.3.8 Evaluating the adequacy/desirability of the policy action.......................... 24 2.4 Summary of key points from the conceptual framework ............................... 24 2.5 Participants ......................................................................................................... 25 3 A STRATEGY FOR REVIEWING KNOWLEDGE ON THE LINKS BETWEEN WILD NATURE AND HUMAN WELLBEING ..................................................................................... 27 3.1 The need for a strategy....................................................................................... 27 3.2 The Millennium Ecosystem Assessment as a starting point ........................... 27 3.3 The need to avoid double counting ................................................................... 28 3.4 Proposed classification of ecosystem processes and benefits.......................... 29 3.5 Partitioning the links between wild nature and human wellbeing as a basis for the thematic reviews........................................................................................ 35 3.6 Thematic reviews ................................................................................................ 38 3.7 Relationship between the proposed classification and the Millennium Ecosystem Assessment framework................................................................................ 40 3.8 Relationship between the proposed classification and the Total Economic Value framework .......................................................................................... 42 3.9 Participants ......................................................................................................... 45 iii 4 THEMATIC REVIEWS .................................................................................................... 46 4.1 Wild crop pollination.......................................................................................... 48 4.1.1 Why is wild crop pollination important for human wellbeing? ................. 48 4.1.2 What are the overall trends in the provision of wild crop pollination?..... 48 4.1.3 How is the provision of wild crop pollination affected by changes in wild nature? ................................................................................................................. 49 4.1.4 What are the main threats to the provisioning of wild crop pollination? .................................................................................................................. 52 4.1.5 Are abrupt changes likely in the provision of wild crop pollination?........ 52 4.1.6 Can we quantify and map the global provision of this wild crop pollination and how it might change? ........................................................................ 53 4.1.7 Insights for economic valuation.................................................................. 57 4.1.8 Some key resources...................................................................................... 57 4.1.9 Participants .................................................................................................. 58 4.2 Biological control of crop pests.......................................................................... 59 4.2.1 Why is biological control of crop pests important for human wellbeing? .................................................................................................................... 59 4.2.2 What are the overall trends in the biological control of crop pests? ......... 60 4.2.3 How is the provision of biological control of crop pests affected by changes in wild nature? .............................................................................................. 61 4.2.4 What are the main threats to the provision of biological control of crop pests?.................................................................................................................... 63 4.2.5 Are abrupt changes likely in the provision of this benefit/process? .......... 63 4.2.6 Can we quantify and map the global provision of biological control of crop pests, and how it might change?......................................................................... 64 4.2.7 Insights for economic valuation.................................................................. 65 4.2.8 Some key resources...................................................................................... 65 4.2.9 Participants .................................................................................................. 65 4.3 Genetic diversity of crops and livestock ........................................................... 66 4.3.1 Why is the genetic diversity of crops and livestock important for human wellbeing?........................................................................................................ 66 4.3.2 What are the overall trends in the genetic diversity of crops and livestock?...................................................................................................................... 67 4.3.3 How is the genetic diversity of crops and livestock affected by changes in wild nature? ............................................................................................................. 67 4.3.4 What are the main threats to the genetic diversity of crops and livestock?.....................................................................................................................