BIODIVERSITY CONSERVATION

Ecology, Economy & Environment

VOLUME 4

The titles published in this series are listed at the end of this volume.

BIODIVERSITY CONSERVATION Problems and Policies

Papers from the Biodiversity Programme Beijer International Institute of Ecological Economics Royal Swedish Academy of Sciences

edited by

c. A. Perrings University of York, Heslington, York, U.K.

K.-G. Măler Stockholm School of Economics and Beijer Institute, Sweden

C. Folke Stockholm University and Beijer Institute, Sweden

C. S. Holling University of Florida, U.S.A.

and

B.-O. Jansson Stockholm University and Stockholm Centre for Marine Research, Sweden

SPRINGER-SCIENCE+BUSINESS MEDIA, B.V.

A C.I.P. Catalogue record for this book is available from the Library of Congress.

ISBN 978-94-010-4123-2 ISBN 978-94-011-0277-3 (eBook) DOI 10.1007/978-94-011-0277-3

Printed an acid-jree paper

AH Rights Reserved © 1995 Springer Science+Business Media Dordrecht OriginalIy published by Kluwer Academic Publishers in 1995 Softcover reprint ofthe hardcover Ist edition No part of the material protected by this copyright notice may be reproduced or utilized in any form or by any means, electronic or mechanical, including photocopying, recording or by any information storage and retrieval system, without written permission from the copyright owner.

CONTENTS Tables Figures Abbreviations Authors Preface

PART 1

Chapter 1

Chapter 2

PART 2

Chapter 3

Chapter 4

Chapter 5

Chapter 6

PART 3

Chapter 7

Chapter 8

FRAMING THE PROBLEM

Biodiversity conservation and economic development: the policy problem c.A. Perrings, K.-G. Maler, c. Falke, C.S. Holling and B. -0. Jansson

Biodiversity conservation and economic development: local and global dimensions D. W. Pearce and C.A. Perrings

UNDERSTANDING BIODIVERSITY CHANGE

Population extinction and the biodiversity crisis Gretchen C. Daily and Paul R. Ehrlich

Diversity conservation in relation to fisheries in the Baltic Sea Monica Hammer

Rangeland ecology: managing change in biodiversity B.H. Walker

Biodiversity, natural resource accounting and ecological monitoring M.S. Common and T. W. Norton

vii IX

Xl

xiii xv

3

23

45

57

69

87

THE VALUATION OF BIODIVERSITY

Modelling the value of biodiversity using a production function approach: the case of the Anolis lizard in the Lesser and Greater Antilles Urvashi Narain and Anthony Fisher 115

Ecology and microeconomics as Joint products': the Bonaire Marine Park in the Caribbean John A. Dixon, Louise Fallon Scura and Tom van 'f Hof 127

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Chapter 9

Chapter 10

PART 4

Chapter 11

Chapter 12

Chapter 13

Chapter 14

PART 5

Chapter 15

Chapter 16

Chapter 17

Chapter 18

References Index

Tropical wetland values and environmental functions Edward B. Barbier

Valuation and the management of biological diversity Mohan Munasinghe

147

171

THE IMPACT OF ECONOMIC POLICY

Environmental impact of governmental policies and external shocks in Botswana: a computable general equilibrium approach Lena Unemo 195

A dynamic computable general equilibrium model of deforestation in Costa Rica Annika B. Persson

Biodiversity loss through tropical deforestation: the role of timber production and trade

215

Joanne C. Burgess 237

Sustainable use of tropical forests in Asia Theodore Panayotou and Peter S. Ashton 257

OPTIONS AND PRIORITIES FOR BIODIVERSITY CONSERVATION

Traditional ecological knowledge, biodiversity, resilience and sustainability Fikret Berkes, Carl Folke and Madhav Gadgil

Conservation of biodiversity and economic development: the concept of transferable development rights Theodore Panayotou

Biodiversity conservation and local development aspirations: new priorities for the 1990s Michael P. Wells

Unresolved issues C.A. Perrings, K.-G. Miiler, C. Folke, C.S. Holling and B.-O. Jansson

281

301

319

335

343 393

TABLES

2.1 2.2 6.1 7.1 S.l 9.1 9.2 9.3 9.4

10.1 10.2 10.3 10.4 10.5 10.6 11.1 11.2 11.3

11.4 11.5 12.1 12.A1 12.A2 12.A3 12.A4 12.A5 12.A6 12.A7 12.AS 12.A9 13.1 13.2 13.3 13.4

Returns to development uses Comparative rates of return to land use in Botswana Valuation and PNDP measurement Model results Revenues and costs associated with the Bonaire Marine Park, 1991 Causes of wetland loss Major threats to wetlands: Asia, Latin America and the Caribbean General, ecological and economic system characteristics Comparison of present value net economic benefits Kano River Project Phase I and Hadejia-Jama'are Floodplain, Nigeria Environmental functions of forests Land use information for villages Value of forest products collected by villages Summary statistics for complete sample of tourists Summary statistics for tourists by country of origin Summary of economic analysis of Mantadia National Park Sectoral elasticities A fall in the price of diamonds: environmental and economic indicators A deterioration of the terms of trade: environmental and economic indicators Lower import tariff on crops: environmental and economic indicators Quantity constraint on labour: environmental and economic indicators The producing sectors and production factors The aggregation of production sectors Costa Rica 1986: base data Deforestation parameters and initial values Changes in interest rate Capital Land Forestry Agriculture Industry Tropical forest resources: status and changes Estimated rates of extinction based on tropical deforestation World and tropical timber production and trade, 1990 Forest products trade balance and percentage of total trade in tropical countries, 1990

13.5 a Production and trade in timber products by tropical countries, 1990 13.5 b Export of timber products as a percentage of production in tropical

31 32 97

121 136 149 150 151

156 172 179 180 180 181 189 207 208

209 2lO 211 218 231 232 232 232 233 233 234 234 235 239 240 242

243 244

countries 244 13.6 Timber harvesting and deforestation in African ITTO producer countries,

1981-1985 247 13.7 a Sources of deforestation in tropical countries, 1981-90 248

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13.7b 13.8 13.9 13.10 13.11 14.1 14.2 14.3 14.4 14.5 14.6 14.7

Sectoral share in forest degradation and forest modification The causes of deforestation in developing countries, 1968-78 Estimated deforestation equation Elasticity offorest depletion with respect to significant variables, 1967-85 The causes of deforestation in tropical countries Long-term land use change, 1900-80 Cropland and forest per capita Wood production, Asian developing economies, 1975-1987 Estimated sustainable yield and wood harvest, 1980 Main sources of tropical deforestation Causes of deforestation in Southeast Asia: a summary of statistical findings Net present values of tropical forest extracts and services (dominant use only), selected countries

248 250 251 252 253 260 261 262 263 267 269

272

FIGURES

2.1 Private and social optima: continuous external cost functions 34 2.2 Local and global social optima: continuous external cost functions 35 4.1 The Baltic Sea 59 4.2 Fish catches in Sweden's fisheries 1913-1992 62 5.1 Generalised model of the determinants of savanna structure 71 5.2 Hypothetical distribution of savanna types in relation to the main

determinants of savannas 72 5.3 Assumed relationship between stocking rate and range condition 74 5.4 Spatial patterning (patchiness) in semi-arid rangelands 76 5.5 Dynamics of the proportional composition of unpalatable and palatable

grasses in response to changes in grazing pressure 79 5.6 The relation between annual rainfall and grass production on cleared and

bushed plots on clay loam and sandy soils at Matopos in Zimbabwe 80 5.7 Simulated changes in rainfall, pasture biomass, and density of red

kangaroos at Kinchega National Park, New South Wales 81 5.8 Simplified state-and-transition interpretation of semi-arid grassland!

woodland in eastern Australia 84 8.1 Bonaire 129 8.2 Relationship between coral cover, species diversity and stress 133 8.3 Diving intensity and threshold stress level 134 8.4 Willingness to pay for park management: Bonaire Marine Park 140 8.5 Park management, diver education and threshold stress level 143 9.1 Valuing wetland benefits 152 9.2 Optimal extraction paths for wetland resources 163 10.1 Multicriteria analysis methodology 184 10.2 Biodiversity index value and reservoir size in Sri Lanka 187 10.3 Trade off between biodiversity and electricity supply 188 14.1 Deforestation as a function of cropland expansion: tropical and

subtropical Asia (1964-1985) 259 14.2 Forest cover and population density: tropical and subtropical Asia 261 14.3 Population density and percent of land in forest cover for selected countries 265 14.4 Wildlife habitat: remaining habitat and protected area 266 15.1 Remnant network of sacred trees and sacred groves presently existing in

an area of 25m2 on the Western Ghats of Karnataka State in South India 286 15.2 Successional stages of the kebun-talun system (Java) 288 15.3 Profile of a typical Javanese home garden (pekarangan) 289 15.4 Bora agroforestry from the Peruvian Amazon 290 15.5 Traditional Indonesian integrated rice-fish culture (subak) and

inshore polyculture pond management (tambak) 292 15.6 An example of the South Pacific 'integrated corporate estate' concept:

The Maroro (Solomon Islands) puava 293 15.7 The concept model of the ancient Chinese ideal of 'living in harmony

with nature' 294

16.1 Biodiversity protection: supply and demand 306

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ABBREVIA TIONS

AN BMC

BMP

CES

CET CGE

GCTE

CVM DNA

EAGDP

EC

FAO

GDP

GEF

GNP

ICDP

IGBP

lIED IK IMF ITTC rno mCN

LDC LEEC LMfRS MCA MTF NGO NNP NPP

ODA

om OECD

PAM PCC

PNDP SAM SGDP

SIDA SMS TAC TDR

Available Nutrients

Botswana Meat Commission

Bonaire Marine Park

Constant Elasticity of Substitution

Constant Elasticity of Transformation Computable General Equilibrium

Global Change and Terrestrial Ecosystems

Contingent Valuation Method

Deoxyribonucleic acid

Environmentally Adjusted Gross Domestic Product

Environmental Cost

Food and Agriculture Organisation

Gross Domestic Product

Global Environment Facility

Gross National Product

Integrated Conservation and Development Project

International Geosphere and Biosphere Programme

International Institute for Environment and Development Indigenous Knowledge

International Monetary Fund

International Tropical Timber Council

International Tropical Timber Organisation

International Union for the Conservation of Nature and Natural Resources

(World Conservation Union)

Less Developed Country London Environmental Economics Centre Long-Term Forest Management Research Sites Multi-Criteria Analysis

Moist Tropical Forest Non-Governmental Organisation Net National Product Net Primary Product

Overseas Development Administration Oversease Development Institute Organisation for Economic Cooperation and Development

Plant Available Moisture Potential Carrying Capacity Proper Net Domestic Product

Social Accounting Matrix Sustainable Gross Domestic Product Swedish International Development Authority Safe Minimum Standard Total Allowable Catch Transferable Development Right

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TEK TEV UNCED UNEP UNSO USAID USEPA WCED WRI WTA WTP WWF

Traditional Ecological Knowledge Total Economic Value United Nations Conference on Environment and Development United Nations Environment Programme United Nations Statistical Office United States Agency for International Development United States Environmental Protection Agency World Commission on Environment and Development World Resources Institute Willingness to Accept Willingness to Pay World Wildlife Fund (Worldwide Fund for Nature)

AUTHORS

Peter S. Ashton is a Faculty Fellow in the International Environment Program at the

Harvard Institute for International Development, Harvard University.

Edward B. Barbier is Senior Lecturer at the Department of Environmental Economics and

Environmental Management, University of York, and formerly Director of the London

Environmental Economics Centre of the International Institute for Environment and

Development.

Fikret Berkes is a specialist in common property resources and community-based resource

management at the Natural Resources Institute, University of Manitoba, Winnipeg.

Joanne C. Burgess is a lecturer at the Department of Environmental Economics and

Environmental Management, University of York and formerly a Research Associate at

the London Environmental Economics Centre, International Institute for Environment

and Development.

Gretchen Daily is WinslowlHeinz Postdoctoral Fellow at the Energy and Resources Group,

University of California, Berkeley, and Research Associate at the Center for

Conservation Biology, Stanford University.

John A. Dixon is an environmental economist in the Environment Department of the World

Bank and formerly in the Environment and Policy Institute, East-West Center,

Honolulu.

Paul R. Ehrlich is Bing Professor of Population Studies and President of the Center for

Conservation Biology, Department of Biological Sciences, Stanford University.

Anthony Fisher is Professor of Agricultural and Resource Economics at the University of

California, Berkeley.

Carl Folke is Deputy Director of the Beijer International Institute of Ecological Economics at

the Royal Swedish Academy of Sciences, and an Associate Professor at the Department

of Systems Ecology, Stockholm University.

Madhav GadgiJ is the Astra Professor of Biological Sciences at the Centre for Ecological

Sciences, Indian Institute of Science, Bangalore.

Monica Hammer is completing a PhD at the Department of Systems Ecology, Stockholm

University.

C.S. Holling is the Arthur R. Marshall Professor of Ecological Sciences at the Department of

Zoology, University of Florida, Gainesville.

Bengt-Owe Jansson is Professor of Marine Ecology in the Department of Systems

Ecology, Stockholm University, and Director of the Stockholm Centre for Marine

Research.

Karl-Goran Miiler is Professor of Economics at the Stockholm School of Economics, and

Director of the Beijer International Institute of Ecological Economics at the Royal

Swedish Academy of Sciences.

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Mohan Munasinghe is Division Chief for Environmental Policy and Research at the World

Bank, Washington DC.

Urvashi Narain is completing a PhD at the Department of Agricultural and Resource

Economics, University of California at Berkeley.

Theodore Panayotou is Director of the International Environment Program at the Harvard

Institute for International Development, Harvard University.

David Pearce is Professor of Environmental Economics at University College London, and a

director of the Centre for Social and Economic Research on the Global Environment

(CSERGE).

Charles Perrings is Professor of Environmental Economics and Environmental Management

at the University of York, and Director of the Beijer Institute's Biodiversity

Programme.

Annika B. Persson is an environmental economist at the Environment Department of the

World Bank.

Louise Fallon Scura, an independent consultant, is a resource economist specialising in

economic analysis of natural resource and environmental impacts, with Edward D.

Scura & Associates, Inc., based in Guatemala.

Lena Unemo is an environmental economist working with the Swedish International

Development Authority.

Tom van't Hof, is an independent consultant, specialising in coral reef ecology.

Brian Walker is director of the Division of Wildlife and Ecology of the Australian CSIRO.

Michael Wells is an independent consultant specialising in the economic and policy aspects

of environmental conservation in developing countries working with the World Bank,

Asian Development Bank and the MacArthur Foundation's World Environment and

Resources Programme.

PREFACE

This volume IS one of a number of pubhcatlOns to carry the results of the flfSt research programme of the Royal Swedish Academy of SCience's BelJer Institute The Instltute was formed m 1991 m order to promote mterdlsclplmary research between natural and social sClentlsts on the mterdependency between economic and ecological systems In Its first research programme, the BlOdlverslty Programme, the Instltute brought together a number of leadmg economists and ecologists to address the theoretlcal and pohcy Issues associated with the current high rates of blOdlVefSlty loss m such systems - whether the result of direct depletlOn, the destructlOn of habitat, or speclahsatlOn m agnculture, forestry and flshenes ThiS volume reports some of the more pohcy-onented work carned out under the programme 1

The broad aim of the programme IS to further our understandmg of the causes and consequences of blOdlverslty loss, and to Identlfy the optlOns for addressmg the problem The results have turned out to be surpnsmg to those who see blOdlverslty loss pnmarlly III terms of the eroslOn of the genetlc hbrary In vanous ways the work carned out under the programme has already begun to alter our perceptlOn of where the problem m blOdlverslty loss hes and what pohcy optlOns are aVailable to deal with It Indeed, the programme has provided a powerful set of arguments for reappraISIng not Just the econormc and ecologlcallmplicatlOns of blOdlverslty loss, but the whole case for development based on speCIalisatlOn of resource use

It has shown that the real slgmflcance of loss of diverSity hes less m Its Impact on the genetlc hbrary than m the effect It has on the range of envlfonmental conditions under which ecosystems can contmue to functlon Loss of biodiversity Imphes loss of ecosystem reSilience For thiS reason It poses problems for pohcy wherever It occurs, not Just m megadlVerslty areas charactensed by high levels of endermsm Indeed, biodiversity may be a much more presslllg Issue m low diverSity agro-ecosystems The solutlOns to the problem of biodiversity loss are accordmgly to be found more m reform of local IllstltutlOns and local pohcles than m mternatlOnal mstItutlOns and transfer systems established to address the threat to the global genetic lIbrary Thcse are Important and novel fmdmgs, and deserve to be taken senously by policy-makers at all levels

Not all partiCipants m the Biodiversity Programme are represented III thiS volume, but the results reported here do Illdlrectly reflect their contnbutlOn 2 Although many of the chapters

I For other pohcy-onented results of the BlOdlvefSlty Programme see Folke C , Maler KG and Pernngs C (eds) AmblO SpeCIal Issue on the EconomIcs of BIOdIverSIty Loss, 21, 3, May 1992, Folke C , Myers N , McNeely J , Pernngs C (eds) Amblo SpeCIal Issue on BlOdlverstty Ecology, EconomIcs, Pohcy, 22, 2 3, May 1993, Pernngs C and Opschoor J B (eds) EnVIronmental and Resource EconomIcs SpeCIal Issue on BIOdIversIty ConservatIon, 4, I, February 1994, and BarbIer, Burgess and Folke [1994]

2 Parttclpants m BIOdIverSIty Programme Included I-M Andreasson-Gren, BelJer InstItute, E B BarbIer, UnIversIty of York, S Barrett, London BUSIness School, G Brown, Umverslty of Washmgton, J Burgess, Umverslty of York, M S Common, Austrahan NatIOnal Umverslty, R Costanza, Umverslty of Maryland P Dasgupta, Cambndge Umverslty, G DaIly, Stanford Umverslty, J DIxon, World Bank, P Ehrhch, Stanford UmverSIty, A FIsher, Umverslty of Cahfornla, Berkeley, C Folke, Stockholm Umverslty and BelJer Insutute, M Gadgll, IndIa Instttute of SCIence, Bangalore, C S Holhng, Umverslty of Flonda, A M and B 0 Jansson, Stockholm Umverslty, M Kemp, Umverslty of Maryland, A Lugo, US Forest SerVIce, A Markandya, Harvard Umverslty, K-G Maler, Stockholm School of EconomIcs and BelJcrInstltute, J McGlade, WarWIck UmverSIty, J A McNeely, IUCN, M Munasmghe, World Bank, B Norton, GeorgIa Instttute of Technology, T Panayotou, Harvard Umverslty, D W Pearce, Umverslty College London, C Pernngs, Umverslty of York, A Persson, World Bank, M Rauscher, InstItute of World EconomIcs, Klel, J Roughgarden, Stanford Umverslty, R Serafm Umverslty of Waterloo, D Southgate, OhIO State Umverslty, T Swanson Cambndge Umverslty,

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are rooted in one or other of the two main disciplines represented in the volume, they have been informed by discussions involving a multidisciplinary group. The results reported here also reflect the very productive environment offered by the Royal Swedish Academy of Sciences and the Beijer Institute. The intellectual stimulus provided by the Institute's Chairman: Partha Dasgupta, Director: Karl-Goran Maler, and Editorial Board: Buzz Holling, Bengt-Owe Jansson and Carl Folke has been enormous. Core funding for the programme derived from the Beijer Foundation and the Swedish International Development Authority (SIDA). Additional sources of funding are acknowledged separately by the chapter authors. Joydeep Gupta and Torn van Rensburg provided technical editorial support. Robin Dong and Duncan Knowler provided valuable assistance in preparing the final camera-ready copy.

Charles Perrings York

R.K. Turner, University of East Anglia; L. Unemo, SIDA; B. Walker, CSIRO; M. Weitzman, Harvard University; M. Wells, formerly with the World Bank, now an independent consultant.