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... H8: credit use and access will contribute less to income size and composition for households inside the flood zone, as they are able to partly rely on Mekong flood-pulse ecosys-tem services in lieu of formal or informal credit systems (Emerton, 2013;Fox & Ledgerwood, 1999); H9: market access impacts will contribute equally to incomes inside and outside the flood area, although different types of market access will contribute the most in each region reflecting the different types of products for transport to markets in each zone (Chamberlin & Jayne, 2013;Emerton, 2013); H10: forest access will have a weaker impact on income size and composition for households within the flood area, due to their relative lack of access to forests (Fox & Ledgerwood, 1999;Hortle, 2007). ...
... H8: credit use and access will contribute less to income size and composition for households inside the flood zone, as they are able to partly rely on Mekong flood-pulse ecosys-tem services in lieu of formal or informal credit systems (Emerton, 2013;Fox & Ledgerwood, 1999); H9: market access impacts will contribute equally to incomes inside and outside the flood area, although different types of market access will contribute the most in each region reflecting the different types of products for transport to markets in each zone (Chamberlin & Jayne, 2013;Emerton, 2013); H10: forest access will have a weaker impact on income size and composition for households within the flood area, due to their relative lack of access to forests (Fox & Ledgerwood, 1999;Hortle, 2007). ...
Livelihood diversification strategies in developing countries are influenced by access to financial credit, to markets and to forests. Understanding their interrelated impacts has important implications for development policy, for market access, credit provision, and forest conservation. Using a survey of 2,417 households in 64 villages in four Provinces in Cambodia and satellite data on forest extent, we test hypotheses and quantify the relative contributions and first-order interactions effects of market and road access, forest access, and formal and informal financial credit access on household expenditures and livelihood incomes. We test hypotheses about their statistical interactions, their relative contributions to incomes, and how their effects differ within and outside the Mekong River floodplain. Market and road access are significant with gross income and expenditures, as well as portfolio shifts to off-farm business activities. Forest access contributes significantly to gross income and expenditures. Credit utilization is significant with gross income, expenditures, off-farm business, and livestock activities. Households below the poverty line use financial credit primarily for consumption and agricultural investments, but above the poverty line for business investment and purchasing assets. Market access and financial credit are more important for incomes in the Mekong floodplain area, while forest access is more important outside it. Using dominance analysis, we find that financial credit contributes more than market or forest access to gross income, expenditures, and livestock income. However, market access is more important than credit for off-farm, on-farm and crop incomes, and forest access contributes more to gross income than formal credit access. We also test for first-order interactions between these effects and find they are statistically significant, confirming a synergistic interaction between credit, market and forest access. Market access improves the impact of credit use, as credit use improves gross and off-farm incomes with improved access to large cities, and improves livestock incomes with improved road access. Forests and roads act synergistically to improve household incomes in areas with good city market access, as forest access contributes more to gross income, expenditures and off-farm incomes in areas with good primary road access, and to on-farm incomes in areas with good secondary road access. Our findings show that market, road, credit and forest effects are interconnected and interdependent, but support each other, and significant interaction effects between forest and market access suggest that policies for poverty reduction and forest conservation should be coordinated with the development of roads to improve potential forest returns.
... H8: credit use and access will contribute less to income size and composition for households inside the flood zone, as they are able to partly rely on Mekong flood-pulse ecosys-tem services in lieu of formal or informal credit systems (Emerton, 2013;Fox & Ledgerwood, 1999); H9: market access impacts will contribute equally to incomes inside and outside the flood area, although different types of market access will contribute the most in each region reflecting the different types of products for transport to markets in each zone (Chamberlin & Jayne, 2013;Emerton, 2013); H10: forest access will have a weaker impact on income size and composition for households within the flood area, due to their relative lack of access to forests (Fox & Ledgerwood, 1999;Hortle, 2007). ...
... H8: credit use and access will contribute less to income size and composition for households inside the flood zone, as they are able to partly rely on Mekong flood-pulse ecosys-tem services in lieu of formal or informal credit systems (Emerton, 2013;Fox & Ledgerwood, 1999); H9: market access impacts will contribute equally to incomes inside and outside the flood area, although different types of market access will contribute the most in each region reflecting the different types of products for transport to markets in each zone (Chamberlin & Jayne, 2013;Emerton, 2013); H10: forest access will have a weaker impact on income size and composition for households within the flood area, due to their relative lack of access to forests (Fox & Ledgerwood, 1999;Hortle, 2007). ...
... A meta-analysis of South East Asian wetlands and mangrove ecosystem services estimated that the mean value of ecosystem services was $ 4185/ha/year (Brander et al., 2012). World Wildlife Fund report estimated the average value of ecosystem services in the Lower Mekong Basin countries at $ 1639/ha/ year for freshwater wetlands (Emerton, 2013). A survey of 780 local households in Bung Khong Long (the largest freshwater lake in Northeast Thailand) was carried out in February 2012 and three economic valuation methods (choice experiment, avoided damage cost, and market price valuation) were used to estimate the value of water regulation, food production, water quality improvement, biodiversity, culture services, carbon sequestration, water supply and raw material. ...
The Mekong River is the largest freshwater fishery and the third most bio-diverse river system in the world. Two of 11 planned mainstream hydropower projects, Xayaburi and Don Sahong, are nearly completed and a third project proposal, Pak Beng, has been submitted by the Lao PDR government for consideration. This paper builds on previous studies and examines the tradeoffs (between water use, food security supply and energy production) for the proposed mainstream hydropower projects in the Lower Mekong Basin (LMB). The paper concludes that the forecast loss of capture fisheries, sediment/nutrients and social mitigation costs measured as Net Present Value (NPV at 10% discount rate) are greater than the benefits from electricity generation, improved irrigation and flood control. The paper also forecasts huge negative economic impacts for Cambodia and Vietnam in contrast to previous Mekong River Commission's (MRC) conclusions that all countries will benefit from hydropower development. The paper recommends reassessing the economic impacts of hydropower development using full environmental cost accounting. It also recommends that a new LMB energy strategy be developed taking into account less hydropower income than previously anticipated, updated forecasts for LMB power demand and anticipated technology developments for improved energy efficiency & renewable energy (especially solar which is now competitive with hydropower).
... The following assumptions are made in constructing this model. First, it is assumed that a linear relationship exists between relative ecosystem condition (coral cover), delivery of services, and ecosystem service values (similar to other studies, see for example Emerton et al. 2013). These values are presented in USD per annum, using two nominal discount rates (6% and 13%). ...
Coastal and marine ecosystems provide a wide variety of benefits to humans in the form of goods and services; collectively these are termed marine ecosystem services. In the Republic of the Maldives, coral reefs and associated habitats provide valuable ecosystem services such as fish and other food, natural hazard protection, climate regulation and the beaches, clear blue waters, and seascapes that are the basis for the thriving tourism industry. Globally approximately 60% of all ecosystem services — marine and terrestrial — are used unsustainably, with irreversible consequences that include shifts in regional climate, disease emergence and collapse of fisheries and nature-based tourism industries. Experiences from around the world have shown that the costs involved in restoring coastal systems to enable ecosystem services to flow from them once more is significantly more than the costs inherent in good management practices — yet ecosystems continue to be degraded. In the Maldives, careful development and effective marine management could ensure that its valuable ecosystem services do not suffer the same fate.
Ecosystem Service Assessment and Valuation can prioritise conservation and management efforts, be used as a tool for stakeholder negotiation, set prices and compensation packages and provide economic arguments for environmental conservation in political debates. One method of measuring the value of ecosystem services requires estimating the amount people are willing to pay to preserve or enhance these services, an amount that varies across space and with time. The potential for ecosystem services valuation to influence policy will depend on contextual, procedural and methodological factors integrated in the decision-making process.
This report presents a qualitative description of ecosystem services being provided by natural habitats. It lays the groundwork for a description of the factors affecting ecosystem services delivery – both favourably, in the sense of management to restore or enhance ecosystem services delivery, and negatively in the sense of summarizing human pressures and natural factors that contribute to a decline in ecosystem health or a decrease in ecosystem services delivery. Limited information regarding trends in ecosystem services delivery are available and where present, this information has both been summarized and used to discuss implications for future delivery of ecosystem services in the atoll and the wider Maldives region.
An assessment of ecosystem services of Alifu Alifu Atholu (North Ari Atoll) in the Maldives was undertaken in 2015. The assessment is based on published information, IUCN surveys carried out under Project Regenerate and interviews with key actors in Malé and North Ari Atoll. The preliminary assessment of this atoll was carried out in conjunction with a synthesis of benefits being delivered by the coastal and marine environment of the Maldives more generally. The key habitats that contribute to the delivery of valuable ecosystem services in the Maldives include coral reefs, tidal flats, seagrass beds, beaches, mangroves, as well as offshore pelagic areas and seamounts.
The main ecosystem services being provided by the coastal and marine natural habitats of North Ari include commercial, subsistence, and recreational fisheries; dive, snorkel, and other ecotourism support; shoreline stabilization and beach formation and maintenance; hazard mitigation; water quality maintenance; and spiritual and cultural benefits. Some data exist to quantify these values at the atoll level, but for most services economic information is only available at the national scale. For some sectors, economic data are difficult to obtain; for these services, a benefits transfer methodology can be used to present a range of potential values that services may be bringing to North Ari specifically, and to the Maldives more generally.
Coastal ecosystems are responsible for providing the land that comprises the whole of the country, but also specifically support tourism and fisheries of value. With 13 resorts and 24 guesthouses in the atoll at the time of writing, North Ari has the 3rd highest concentration of tourism infrastructure of any atoll. North Ari is a preferred destination for liveaboard boats, and the atoll accommodates approximately 400 tourists per week on average on these boats according to IUCN surveys. The atoll is also important for fishing where nearshore areas support fisheries yield revenues of USD 1,000–3,000 per capita per month for approximately 400 North Ari fishers. The atoll also supports the highly lucrative handline yellowfin tuna fisheries that occur throughout Maldivian waters, since North Ari is a preferred location for acquiring baitfish used in the yellowfin tuna fishery.
Preliminary annual values were calculated for services from eco-based tourism1, from bait fishing for the tuna fisheries and from reef fishing in North Ari. Additional services such as shoreline protection were not included in this analysis due to a lack of data. Given the lack of data at the local level, notably regarding accurate cost information in the tourism sector, the estimates provided in the table below are based on several assumptions and so are only indicative. Future analyses can contain new datasets in order to increase the accuracy of these estimates.
Of course, it must be noted that the values expressed here are not uniform across the reef system, and some coral reefs will provide more ecosystem services and will be more valuable for the economy than others. The value of a reef will depend on its ecological condition and productivity, perceived importance by different sectors and actual use by the stakeholders. More accurate values can be determined for North Ari with targeted economic studies. This preliminary analysis of economic values of services is supplemented with mapping that shows that some geographical areas within the North Ari Atoll may have more significant concentrations of ecosystem services than others. These areas can be flagged as needing protection – whether as newly established marine protected areas, or as core zones within a multiple use marine spatial plan or biosphere reserve. Areas that provide high levels of ecosystem services cover approximately 3.7% of the administrative area of North Ari Atoll. There are potentially five main regions in North Ari that provide the highest number of services. These include the Madivaru and Kuramathi-Rasdhoo Channels, Maathivereefinolhu, Gangehi Kan’du and the southern reef of Ranfaru. They all demonstrate a higher number of ecosystem services than other parts of North Ari and warrant careful management and conservation from the government in order to maintain the provision of these services.
A net present value (NPV) analysis was undertaken to explore various management scenarios and compare their potential impact on ecosystem service delivery. The results of the analysis, which estimated costs and benefits of creating new marine managed areas (MMAs) 3 and locally managed marine areas (LMMAs) 4 , and is based on several assumptions and therefore can only be seen as speculative at this stage. Even so, these suggest that safeguarding ecosystem services could be done cost-effectively.
The following table summarizes the estimated economic benefits from investing in coral reef management based on four scenarios that include ‘business as usual’, ‘more degraded’, ‘improved management’ and ‘significantly improved management’ cases. The ‘business as usual’ (BAU) case projects what is likely to happen in the absence of improved marine management of the coral reef and other ecosystems of North Ari. The ‘more degraded reef’ case projects what is likely to happen under a set of more negative assumptions to the BAU case where increased damage to the coral reef ecosystems would result in further negative impacts on the main economic activities over time. The ‘improved reef management’ case assumes the establishment of six MMAs in resort islands and of four LMMAs in community islands. The ‘significantly improved reef management’ case assumes that all the resorts (13) and communities (8) in North Ari Atoll would establish MMAs and LMMAs.
As is evident, the NPV values of the improved and significantly improved management cases are superior to those of the BAU case, while those of the more degraded case are considerably inferior. While the differences between the improved and significantly improved cases and the BAU case are not that great in terms of the percentages (only 6% and 10% higher using a 6% discount rate, and 4% and 6% using a 13% discount rate), the total differences are not trivial within the context of the local economy: USD 48.7 million in benefits for the improved management case and USD 75.7 million in benefits for the significantly improved management case and the 6% discount rate scenario; USD 15.8 in benefits for the improved management case and USD 24.1 for the significantly improved management case.
Another way of comparing the cases and scenarios under the same set of assumptions is to contrast the NPV of the improved and much improved management cases to that of the BAU case versus the NPV of the costs associated only with the implementation of the MMAs and LMMAs, i.e. the main “additionality” of the proposed management cases. The analysis is presented in Figure 1.
The following graph depicts the relevant NPV costs and benefits of the two management case scenarios (using 6% and 13% discount rates) compared to the BAU case:
As can be seen when making this type of comparison, the additional expenses associated with the MMAs and LMMAs under the improved management case generate almost 6 times the benefits using a 6% discount rate and just over 4 times the benefits when using a discount rate of 13%. Under the significantly improved management case, the additional MMA and LMMA costs result in almost 5 times the benefits, using a 6% discount rate and in almost 3 times the benefits when using a 13% discount rate.
So, even assuming quite conservative annual changes in reef fishing and dive-tourism related to coral reef total area and the quality of reef ecosystems, the case for supporting investments in MMAs and LMMAS to promote marine management and conservation is compelling. Furthermore, given the relatively small difference in the costs (in present value terms) of the significantly improved management scenario to the improved management scenario, versus the much greater benefits that would be generated by the significantly improved management case over time, it is obvious that the significantly improved management case is the most cost-effective option.
The analysis presented in this report clearly shows that investing in coral reef management would be beneficial to the economy of North Ari Atoll. If coral reefs of North Ari Atoll were allowed to degrade and were not managed properly, this could impact both revenue from tourism and productivity from fisheries, leading to estimated losses of USD 148.54 million to USD 288.54 million (in NPV compared to the BAU estimates), depending upon the discount rates used, over a 30-year time horizon. However, investing in improved coral reef management would provide returns of between USD 15.78 million and USD 48.67 million over a 30-year time-period with the lower investment scenario, depending on the discount rates; and between USD 24.01 million and USD 75.69 with the higher investment scenario, depending on the discount rates used. These estimated values highlight the importance of managing coral reefs sustainably, so that they continue to support the economic pillars and livelihoods of the Maldives and Maldivians. A more comprehensive valuation of the ecosystem services of North Ari Atoll is recommended to refine the data, to fully understand the ecosystem values and to provide the necessary information for a more comprehensive NPV analysis.
Coastal areas are overwhelmingly rich in resources and support the livelihoods of the local communities. Coastal mangrove ecosystem provides a wide range of goods and services for human needs and wellbeing. To value conservation benefits of 252.29 ha extent of Kundapura mangrove ecosystem's goods and services, an economic valuation study was conducted using Systems of Environmental Economics Accounting (SEEA) framework. In total, seven ecosystem benefits were identified under provisioning, regulating and cultural services categories of SEEA. Identified baskets of benefits are fisheries, timber, fuelwood, protection against storms and floods, water quality maintenance, carbon sequestration, recreation and tourism. Out of seven benefits, the present study has found that the disturbance regulation benefit's contribution, which is about 92.65% of overall benefits with its economic value, US$1.786 million per year (17.86 lakh). Disturbance regulation benefit has significant role in reducing the impact of vulnerability from coastal hazards and sheltering 4354 individuals of population occupying 1088 houses. Despite that fact, Kundapura mangrove's assets are being degraded by various negative externalities. Particularly reclamation for aquaculture purpose and consequent discharging of the effluents, and dumping of sludge and municipal solid wastes (MSWs). These externalities would exacerbate the environmental problems and impacts on the flow of benefits. Hence, circular economic approach as pioneering to renovate the current linear system into circular one through 3R's strategy (reduce, reuse, and recycle) in the process of production, distribution, and consumption of ecosystem goods and services. This research paper explains about the application of circular economic approach in conservation management by assessing economic valuation of Kundapura mangrove's specific services. This approach is expected to finally result in aiding decision‐making process to limit the quantity of polluting residuals and control the degradation activities thereby sustain the mangroves in good health. Further the regeneration and expansion of mangrove extent would improve the mangrove‐dependent fishery, promote sustainable tourism, and maximize the coastal protection and economic benefits in this region. This will go a long way in sustaining the health of the otherwise fragile mangrove ecosystem of Kundapura coastal stretch, which is under the category of Critically Vulnerable Coastal Areas (CCVAs), identified under CRZ of India.
The Environmental Challenges for Green Growth and Poverty Reduction in the Lao People’s Democratic Republic report reveals strong linkages among environmental quality, economic growth, and social wellbeing of the nation’s 7 million inhabitants. This report is a comprehensive presentation prepared after two years of targeted diagnostic research and analysis of issues and conditions within Lao PDR. The analysis was conducted by an international team of World Bank researchers in cooperation with counterparts in lead government agencies in Lao PDR. Information from the Ministry of Health, the Ministry of Natural Resources and Environment, and others, provided an initial basis for the assessments, and this was complemented by other international information. The results can be regarded as a state-of-the-art contribution of information to decision makers in Lao PDR having an interest in achieving sustainable growth consistent with the 2019 National Green Growth Strategy. The report’s scope includes consideration of impacts on key economic sectors and on risk factors influencing the health of the population. The assessments encompassed the economic costs of degradation in the forestry, agriculture, fisheries, mining, and hydropower sectors. The report identifies solid waste management and plastics as an important priority to which the Government of Lao PDR has already pledged its support in regional and global initiatives. Within the context of the Mekong River and its watershed, this report addresses climate-change impacts including increased risks of flooding.
https://openknowledge.worldbank.org/handle/10986/36266
This study is the first meta-regression analysis of the economic value of regulating ecosystem services at the global level. Most of the regulating ecosystem services have not been properly estimated in terms of economic value and are also ignored in the everyday decision-making process. This study has reviewed 100 publications and included 275 economic value estimates. This study includes explanatory variables in the meta-analysis to account for these influences on the estimated economic value of regulating ecosystem services. This study has estimated the economic value of regulating ecosystem services at US$29.085 trillion for 2015. This study also has found that the values of climate and water regulations are the highest contributors to the total value of regulating ecosystem services. This study indicates that the results of meta-analysis might be helpful to decision-making with respect to three aspects: first, planning and management of urban green cover for sustainable cities; second, integration of the economic value of all the regulating ecosystem services; third, budget allocation for conservation and improvement of regulating ecosystem services for the present and future generations.
Efficient, equitable, and transboundary management of the water resources of the Mekong River Basin (MRB) is challenged by ongoing and accelerating alteration of the river hydrology, land use, water quality, and the uncertainties associated with climate change and its future impacts. Integrated water resources management (IWRM) institutions and mechanisms offer a good entry point for the uptake and implementation of climate change adaptation measures. This review paper provides an overview about IWRM approaches in the MRB and ongoing processes as well as opportunities to mainstream climate change adaptation into existing basin strategies and water management instruments. The review clearly shows that approaches taken by the Mekong River Commission, the Greater Mekong Subregional Economic Cooperation Program, and the Association of Southeast Asian Nations with respect to water resources management are largely complementary and synergies could be increased to incorporate climate change adaptation into existing schemes. Ecosystem-based adaptation (EbA) has a great potential in the region as its economy is still largely based on the use of natural resources. Despite this acknowledgment, the inclusion of EbA measures as a sustainable land and water management tool for climate change adaptation is still relatively new in the MRB context. We argue that mainstreaming EbA measures in IWRM-guided basin development planning offers no-regret and flexible solutions and opportunities and allows for action despite the considerable uncertainties decision-makers face.
The first section of the document reports on a strategic review carried out to support the development of a sustainable finance strategy for Myanmar’s PA network. It assesses financing status, trends, constraints and opportunities. The aim is to identify needs, niches and entry points for strengthening PA financial sustainability, to be discussed with MOECAF and other key stakeholders and prioritised according to their usefulness, relevance and strategic importance for follow-up. The second section of the document reports on a strategic review carried out to support the development of a sustainable finance strategy for Myanmar’s PA network. It builds on the findings of the first section of the document, where we identified needs, niches and entry points for strengthening PA financial sustainability. The report elaborates concrete options for the development of the selected measures, specifies enabling conditions and requirements for their implementation, and compiles a roadmap of suggested actions for strengthening the financial sustainability of the PA system.