Indirect Economic Value of Biodiversity Brook Milligan Department - - PowerPoint PPT Presentation

Indirect Economic Value of Biodiversity

Brook Milligan

Department of Biology New Mexico State University Las Cruces, New Mexico 88003 brook@nmsu.edu

Fall 2009

Brook Milligan Indirect Economic Value of Biodiversity

Types of Valuation for Biodiversity

Direct use value

productive use value consumptive use value

Indirect use value

nonconsumptive use value

• ption value

existence value

Brook Milligan Indirect Economic Value of Biodiversity

Nonconsumptive Use Value Ecosystem Productivity Increases with Diversity

Brook Milligan Indirect Economic Value of Biodiversity

Nonconsumptive Use Value Protection of Soil and Water Resources

New York City watershed

expenses during 1980s: $1.5 billion

Asian tsunami: 26 December 2004

effects worsened because of destruction of coastal mangrove forests

Hurricane Katrina: 29 August 2005

worsened by damage to coastal wetlands and barrier islands 1,900 square miles of coastal wetlands lost since 1930s

Brook Milligan Indirect Economic Value of Biodiversity

Nonconsumptive Use Value Protection of Soil and Water Resources

Brook Milligan Indirect Economic Value of Biodiversity

Nonconsumptive Use Value Regulation of Climate

Local climate: temperature reduction by transpiration Regional and global climate: reduction of rainfall due to deforestation

Brook Milligan Indirect Economic Value of Biodiversity

Nonconsumptive Use Value Waste Treatment and Water Retention

Aquatic communities absorbing waste New York Bight

destination in Atlantic Ocean of Hudson River currently stressed with excess waste

Brook Milligan Indirect Economic Value of Biodiversity

Nonconsumptive Use Value Species Interactions

Indirect effects of species interactions benefit harvested species Examples

Brook Milligan Indirect Economic Value of Biodiversity

Nonconsumptive Use Value Species Interactions

Indirect effects of species interactions benefit harvested species Examples

pollinators parasitoids reducing pest populations mycorrhizal fungi

Brook Milligan Indirect Economic Value of Biodiversity

Nonconsumptive Use Value Environmental Monitoring

Accumulation of toxins and pollutants integrates chemical inputs into environment Examples

Brook Milligan Indirect Economic Value of Biodiversity

Nonconsumptive Use Value Environmental Monitoring

Accumulation of toxins and pollutants integrates chemical inputs into environment Examples

DDT accumulation: R. Carson, 1962, Silent Spring toxin accumulation in mussels, clams, oysters polar bear body fat and toxin accumulation

Brook Milligan Indirect Economic Value of Biodiversity

Nonconsumptive Use Value Environmental Monitoring: Arctic Ecosystem

Brook Milligan Indirect Economic Value of Biodiversity

Nonconsumptive Use Value Environmental Monitoring: Polar Bear Tissue

Brook Milligan Indirect Economic Value of Biodiversity

Nonconsumptive Use Value Recreation and Ecotourism

Amboseli National Park, Kenya

early 1970s

each lion: $27,000 annually elephant herd: $610,000 annually

currently

elephant herd: $25 million annually

Brook Milligan Indirect Economic Value of Biodiversity

Nonconsumptive Use Value Recreation and Ecotourism: Yellowstone

Brook Milligan Indirect Economic Value of Biodiversity

Nonconsumptive Use Value Recreation and Ecotourism: Phillipines

Brook Milligan Indirect Economic Value of Biodiversity

Nonconsumptive Use Value Education and Scientific Value

Nature-themed books, films Sources of educational examples Library of research resources Enrich human experience

Brook Milligan Indirect Economic Value of Biodiversity

Option Value

Value of future use (usually future consumptive use) Measurable by assessing impact of species recently exploited for consumptive use Examples

Brook Milligan Indirect Economic Value of Biodiversity

Option Value

Value of future use (usually future consumptive use) Measurable by assessing impact of species recently exploited for consumptive use Examples

Future biological control agents Genetic crop resources improve crop production and increase food security (http://www.bioversityinternational.org)

sunflowers (Helianthus spp.): $267–$384 million annual value to the US sunflower industry tomato: one wild variety contributed to a 2.4% increase in solids contents worth $250 million peanuts: source of resistance to root knot nematode, which costs growers around the world $100 million Bhut Jolokia chile from India

Future medicinals

Brook Milligan Indirect Economic Value of Biodiversity

Option Value: Medicinals

Brook Milligan Indirect Economic Value of Biodiversity

Existence Value

Value of maintaining biodiversity in wild

to visit someday simply to protect

How can this be quantified?

Brook Milligan Indirect Economic Value of Biodiversity

Existence Value

Value of maintaining biodiversity in wild

to visit someday simply to protect

How can this be quantified? Partially measurable based upon contributions to

• rganizations

Nature Conservancy World Wildlife Fund Audobon Society Native Plant Society

Brook Milligan Indirect Economic Value of Biodiversity