Putting a Price Tag on Nature’s Defenses

June 5th, 2014, By Carl Zimmer, The New York Times

After Hurricane Katrina devastated New Orleans, the United States Army Corps of Engineers got to work on a massive network of levees and flood walls to protect against future catastrophes. Finally completed in 2012, the project ended up costing $14.5 billion — and that figure didn’t include the upkeep these defenses will require in years to come, not to mention the cost of someday replacing them altogether.

But levees aren’t the only things that protect coasts from storm damage. Nature offers protection, too. Coastal marshes absorb the wind energy and waves of storms, weakening their impact farther inland. And while it’s expensive to maintain man-made defenses, wetlands rebuild themselves.

Coral reefs have proved valuable to coastal regions by helping to blunt shore erosion from storm waves. - Reuters

Coral reefs have proved valuable to coastal regions by helping to blunt shore erosion from storm waves. – Reuters

Protection from storms is just one of many services that ecosystems provide us — services that we’d otherwise have to pay for. In 1997, a team of scientists decided to estimate how much they are actually worth. Worldwide, they concluded, the price tag was $33 trillion — equivalent to $48.7 trillion in today’s dollars. Put another way, the services ecosystems provide us — whether shielding us from storms, preventing soil erosion or soaking up the greenhouse gases that lead to global warming — were twice as valuable as the gross national product of every country on Earth in 1997.

“We basically said, ‘It’s an imprecise estimate, but it’s almost definitely a pretty big number, and we’ve got to start paying attention,’” said Robert Costanza, a professor at Australian National University who led the study.

That study proved to be hugely influential. Many governments, from Costa Rica to the United Kingdom, started to take the value of ecosystem services into account when they planned environmental policies. But the study also set off a lot of controversy. Some economists argued that it was based on bad economics, while some conservation biologists argued that price tags were the wrong way to save ecosystems.

Seventeen years later, the debate is getting re-energized, just as the nation becomes immersed in an intense fight over the Obama administration’s attempt to tackle the emissions that scientists say could threaten many of these ecosystems. Dr. Costanza and his colleagues have now updated the 1997 estimate in a new study, published in the May issue of the journal Global Environmental Change, and concluded that the original estimate was far too low. The true value of the services of the world’s ecosystems is at least three times as high, they said.

“As we learn more, these estimates increase,” Dr. Costanza said.

That’s putting it mildly. The enormous rise in the price tag stems from hundreds of new studies carried out on ecosystems around the world. Taken as a whole, these studies reveal that ecosystems do more for us than Dr. Costanza and his colleagues could appreciate in 1997.

Coral reefs, for instance, have proved to be much more important for storm protection than previously recognized. They also protect against soil erosion by weakening waves before they reach land. As a result, Dr. Costanza and his colleagues now consider the services provided by coral reefs to be 42 times more valuable than they did in 1997. They estimate that each acre of reef provides $995,000 in services each year for a total of $11 trillion worldwide.

 Most of the 17 services that Dr. Costanza and his colleagues analyzed in 16 different kinds of ecosystems — including tropical forests, mangroves and grasslands — also turned out to be more valuable. When they added up all their new figures, they came up with a global figure of $142.7 trillion a year (in 2014 dollars).

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Carbon taxes? Inslee wants a look

 

By John Stang, crosscut.com

Gov. Jay Inslee wants a climate change panel to consider a cap-and-trade program on industrial emissions and a carbon tax to be sent to the Washington Legislature as recommendations.

Meanwhile, the panel’s two Republican members want the economic costs of any climate change-related proposals researched before any are adopted.

The panel met Monday in Olympia with each of its five members — Inslee, two Republican legislators and two Democratic legislators  — saying what he or she wants explored more. “My concerns is that we go forward without determining the costs to the the people of Washington state of going forward,” said panelist Sen. Doug Ericksen, R-Ferndale.

“We’re going to look for the single most cost-effective way of doing this,” Inslee said.

Inslee wants the upcoming recommendations to come with the best available estimates of how much carbon emissions each will trim from the state’s long-range greenhouse-gas picture. That is to ensure that the panel’ meets the goals set by a 2008 law.

In 2008, Washington’s Legislature set a goal of reducing the state’s greenhouse emissions to 1990 levels by 2020, with further trimming of emissions to 25 percent below Washington’s 1990 level by 2035 and to 50 percent below by 2050. So far, nothing has happened. Early this year, Inslee successfully lobbied the Legislature to set up a task force to map out how those goals can be reached. The task force is supposed to have recommendations for the state Legislature by Dec. 31.

“Failure is not an option to meeting these legislatively mandated goals,” Inslee said.

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Carbon pricing is catching on around the globe — just not in Washington, D.C.

June 5, 2013  By John Upton

More than 40 national governments and 20 states or other “sub-national” governments are now charging polluters for emitting greenhouse gases, or plan to start in the coming years, according to a new report from the World Bank.

The U.S., of course, is not one of the countries with a national cap-and-trade plan or carbon tax, but California and parts of New England are pushing ahead despite Congress’ refusal to act.

All in all, about 7 percent of the world’s greenhouse gases are now priced — the equivalent of 3.3 gigatons of carbon dioxide out of the total 50 gigatons emitted annually worldwide. Not a lot. But, says the report, “If China, Brazil, Chile, and the other emerging economies eyeing these mechanisms are included, carbon pricing mechanisms could reach countries emitting 24 [gigatons of CO2 equivalent] per year, or almost half of the total global emissions.”

From The Washington Post:

The World Bank report also notes that many cap-and-trade programs are beginning to join together — California is partnering with Quebec, and the E.U. has joined up with Switzerland — which, in theory, should make it easier for companies to make the easiest cuts first. And many programs are trying to expand coverage. Australia and Korea are hoping to get 60 percent of their emissions covered, while California is aiming for 85 percent.

That said, the World Bank concludes that there hasn’t been nearly enough progress to avoid the worst effects of global warming. “The current level of action puts us on a pathway towards a 3.5–4°C warmer world by the end of this century, [which] would threaten our current economic model with unprecedented and unpredictable impacts on human life and ecosystems in the long term.”

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