Environmental Valuation of Biodiversity in Japan Koichi Kuriyama - - PowerPoint PPT Presentation

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Environmental Valuation of Biodiversity in Japan Koichi Kuriyama - - PowerPoint PPT Presentation

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Environmental Valuation of Biodiversity in Japan Koichi Kuriyama (Kyoto University) 1 Introduction Why Valuing Biodiversity? No price of biodiversity Economic Values of Biodiversity Use-value and non-use value Empirical

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SLIDE 1

Environmental Valuation of Biodiversity in Japan

Koichi Kuriyama (Kyoto University)

1

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Introduction

  • Why Valuing Biodiversity?

– No price of biodiversity

  • Economic Values of Biodiversity

– Use-value and non-use value

  • Empirical Studies in Japan

– Contingent valuation studies

  • Policy Implication

– Economic incentives for conservation

2

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Why Valuing Biodiversity?

  • Cost of biodiversity conservation

– US$22 billion per year

  • Benefit of biodiversity

conservation

– No price – No profit to protect biodiversity

  • Problems of conservation

– Cost benefit of conservation – Monetary benefit of conservation

3

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Direct Use Value Indirect Use Value Option Value Bequest Value Existence Value

  • Timber

production

  • Recreational

use

  • Landscape
  • Conservation for

future use

  • Genetic

resources

  • Conservation for

future generation

  • World heritage
  • Conservation for

endangered species

  • Wildlife habitat

Economic Values of Biodiversity

Use Value Non‐Use Value

4

Forest Values

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Replacement Cost

Forest Value of Japan Billion $ / year

Water conservation

36 11%

Preventing landslides

69 21%

Recreational use

65 20%

Biodiversity and wildlife habitat

6 2%

Cleaning air

156 47%

Total value

332 100%

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Source: Forestry Agency (1993) Note: Estimated by the replacement cost method, US$1 = 118 yen in 1993.

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Valuation of Biodiversity

  • Characteristics of biodiversity

value

– No market price – No substitution goods – Non-use value

  • Contingent Valuation (CV)

– How much to pay for biodiversity conservation?

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Case Study Yakushima World Heritage Site

  • World Heritage List since 1993
  • Yakusugi cedar
  • More than 1,000 years old
  • Biodiversity
  • More than 1,900 spiecies
  • Increasing tourists
  • Conflicts
  • Biodiversity conservation?
  • Tourism development?

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500 1000 1500 Altitude (m) 2000 Tropical and Subtropical Temperate evergreen forests Yakusugi cedar Alpine plants

Vegetation Distribution

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CV Question

(Biodiversity Protection Scenario)

Landscape protection Biodiversity protection

  • Would you pay * * * yen for protecting

biodiversity in Yakusima World Heritage site?

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Double-bounded CV

Initial response Follow-up response Initial bid Upper bid Lower bid $30 -  $10 - $30 $5 - $10 $0 - $5 WTP interval $10? $30? $5?

Yes No Yes Yes No No

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CV Question

(Tourism Development Scenario)

  • Would you pay * * * yen for protecting

biodiversity in Yakusima World Heritage site?

Landscape protection No Biodiversity protection

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Data

  • CV survey of Yakusima World

Heritage Area

– Double-bounded CV

  • Split-sample CV Scenario

– Biodiversity conservation – Tourism development scenario

  • In-person interview survey

– 821 sample – response rate 68.4%

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Estimation of Willingness-to-Pay

Bid

  • Prob. of YES Response

０ 1.0 0.5 Median WTP

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Estimation Results

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Scenario WTP ($ / household)

Aggregated Value

(million dollar) Biodiversity Conservation

48.0 2,109

Tourism Development

29.2 1,283

Difference

18.8 826

Note: Market Value 1,461 million dollars

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Value of Yakushima

Valuation Function

User Distance Option to Visit Ecosystem Important Landscape protection Ecosystem protection Biodiversity scenario Age Income Household size Assessment TV program

Scenario Valuation Targets Individual Attributes Use Value

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+ + + + + + +

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Case Study Kabukuri Marsh

  • Kabukuri marsh
  • Rice paddies

– Habitat for the wild goose – 423ha area was inscribed as a registered wetlands under the Ramsar Convention

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Winter-Flooded Rice Paddies

  • Ramsar area
  • Including rice paddies
  • Management for w aterbirds

habitat

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Population of Wild Goose

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Current More than 70,000 10 years ago About 10,000

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Choice Experiment

Plan 1 Plan 2 Plan 3

Marsh

62ha 150ha 62ha

Rice paddies

0ha 50ha 22ha

Birdwatching Site

Yes No No

Payment

$10 $5 $0

↓ ↓ ↓

1 2 3

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Willingness-to-pay

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Yen per household per year

Marsh Rice paddies Ecotourism

Local Other

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WTP Distribution (Ecotourism)

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Eco Tourism

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WTP Distribution (Marsh Conservation)

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Eco Tourism Marsh

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Summary

  • Need for valuing biodiversity

– No market price of biodiversity – Market failure

  • Contingent valuation

– How much to pay for conservation?

  • WTP of biodiversity

– Ecotourism: Local resident – Ecosystem: National resident – Heterogeneity in preference of biodiversity

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Policy Implication

  • Cost share of biodiversity

conservation

– Beneficiary pays principle – Payment scheme with heterogeneity

  • Conservation w ith private capital

– Limits of government subsidies – Economic incentives to conserve biodiversity – Valuing biodiversity

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