Environmental Economics

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Our Work

The importance of assessing the true value of nature and biodiversity to the economy and to society is becoming increasingly recognised by citizens and policy makers.

This, together with growing concern over the loss of biodiversity worldwide, has led to the development of the high level study on The Economics of Ecosystems and Biodiversity (TEEB). IEEP has been involved in this study from its early stages having led or partnered key supporting studies on the costs of policy inaction, the state of scientific knowledge on ecosystem services and the economic value of ecosystem services.

IEEP coordinated the TEEB for Policy Makers Report, and authored sections on key issues including subsidy reform, biodiversity banking, biodiversity and ecosystem service indicators, and the value of protected areas.

We have also carried out detailed work on the socio-economic benefits of Natura 2000 sites, and have developed tools to help assess the economic value of biodiversity within protected areas.

Our key work includes the following:

Since 2008 IEEP has been a key contributor to the The Economics of Ecosystem and Biodiversity (TEEB). Patrick ten Brink coordinated the 2009 TEEB report for National and International Policy Makers, which focused on the use of economics to communicate the importance of ecosystems and biodiversity. A book is due to be published in February 2011. We contributed to the TEEB Synthesis report being presented at the meeting of Parties to the Convention on Biological Diversity in Nagoya, Japan in October 2010. IEEP has also contributed to three important studies feeding into this work (Cost of Policy Inaction, Scoping the Science, and the Review on the Economics of Biodiversity Loss) and was part of the core team contributing to the drafting of the TEEB interim report presented at COP9 in Bonn in 2008 TEEB for Policy Makers with Report Chapters.

In 2007-08 IEEP collaborated with several partners in to a European study on the Cost of Policy Inaction (COPI): The case of not meeting the 2010 biodiversity target. This study for DG Environment provided an inventory of the economic valuations of biodiversity, linked to changes in land cover and land use, to analyse the cost to terrestrial ecosystems of not halting biodiversity loss. This was an important input to TEEB process.

In 2008-09 we carried out the study Further Developing Assumptions on Monetary Valuation of Biodiversity: Cost of Policy Inaction (COPI II). This study, commissioned by DG Environment, aimed to further develop the monetary figures used in the 2007-08 COPI study and to better explore the issue of substitutability of capital also fed into TEEB.

In 2009 IEEP was involved in a DG Environment study Socio-Economic Benefits of Natura 2000, in collaboration with WWF and RSPB. The project investigated the socio-economic benefits of nature conservation and specifically of Natura 2000, and explored effective ways of communicating these benefits to stakeholders at the local, national and European level.

Our ongoing work includes:

The DG Environment study Taking into Account Opportunity Costs when Assessing Costs of Biodiversity and Ecosystem Action. This work aims to estimate the costs of biodiversity actions in the EU, with special consideration of opportunity costs, for which there is currently only limited coverage in existing literature.

A current status of The study The Economic and Social Benefits of Natura 2000. This study aims to support DG Environment in obtaining an accurate estimate on the costs of managing the EU Natura 2000 network, increasing awareness of the socio-economic benefits associated with the network, and developing a methodology for the systematic updating and refinement of the costs and benefits linked to Natura 2000. An important conference examining both the costs and benefits of the network was held on 15-16 July 2010 in Brussels.

We are working with partners on a study of The Social Dimension of Biodiversity Policy. This aims to characterise the impact of biodiversity loss or enhancement on jobs and social inclusion both in Europe and worldwide. The study will make use of the Millennium Ecosystem Assessment framework to characterise the links between biodiversity, the level of provision of ecosystem services, and the welfare of the population that benefits from such services.

More about our work in this area...

Latest in Valuing Biodiversity & Ecosystem Services

The Economics of Ecosystems and Biodiversity for Water and Wetlands

This new IEEP-led report presents insights on the importance of wetlands in delivering ecosystem services that are needed to support human life, and also for people’s livelihoods and the world’s economies. The report shows that demonstrating and using the values of ecosystem services related to water and wetlands can lead to better informed, more cost-effective, and fairer decision- making.
The Economics of Ecosystems and Biodiversity for Water and Wetlands

This new IEEP-led report presents insights on the importance of wetlands in delivering ecosystem services that are needed to support human life, and also for people’s livelihoods and the world’s economies. The report shows that demonstrating and using the values of ecosystem services related to water and wetlands can lead to better informed, more cost-effective, and fairer decision- making.
Socio-economic importance of ecosystem services in the Nordic countries

New TEEB-inspired regional assessment (published on 31 January) shows that nature and its ecosystem services are of high socio-economic significance for the Nordic countries. In order to be truly sustainable, Nordic economic systems need to build on a more comprehensive appreciation and understanding of the value of natural capital.
Increasing regional prosperity by investing in nature: Guidance to mainstream biodiversity

Investment in natural capital through the conservation of biodiversity and ecosystems has a lot to offer for regional development. A new publication authored by IEEP provides guidance on integrating biodiversity into EU Regional Development Fund (ERDF) in 2014-2020.
Resource mobilisation at the heart of CBD COP discussions

The eyes of the world’s biodiversity community are on Hyderabad as Parties to the Convention tackle the pressing challenges faced in implementing the Strategic Plan for Biodiversity 2011-2020, including mobilising sufficient resources to translate the Plan into concrete action.
What do we mean by Green Economy?

What is the Green Economy? What policy actions can contribute to achieving it? And how have EU-funded research projects supported these actions?
Green Economy in the European Union

Elements of the green economy concept are relatively well integrated in EU strategic documents - but the focus is on achieving green/sustainable growth, rather than achieving a ‘green economy’.
Estimating the Overall Economic Value of the Benefits provided by the Natura 2000 Network

Estimated benefits provided to EU citizens from the EU’s Natura 2000 Network could be in the range of €200 to €300 billion a year.
Nature and its role in the transition to a Green Economy

Published timely before the Rio+20 Conference, this executive summary of a paper by IEEP highlights the role of nature in the transition to a green economy.
Recognising the value of water and wetlands

New TEEB study announced at Rio+20 to highlight how conservation and restoration of wetlands can benefit biodiversity and provide cost-effective and sustainable solutions in the context of a Green Economy.
The Green Economy and Natural Capital

It’s time to account for the value of ecosystems and biodiversity in a Green Economy, this is IEEP’s message for the Rio Earth Summit.
Benefit Assessment Manual for Policy Makers: Assessment of Social and Economic Benefits of Enhanced Environmental Protection in the ENPI countries

This benefit Assessment Manual, originally for internal use, has been turned into a Benefit Assessment Manual for policy makers and experts for wider dissemination and provides an understanding of the methodologies applied for the country benefit assessments.
Analysis for European Neighbourhood Policy (ENP) Countries and the Russian Federation on social and economic benefits of enhanced environmental protection – Egypt Country Report

There are considerable benefits from taking immediate action to address the environmental problems facing Egypt, including in the area of air pollution, water quality and infrastructures and waste management, and safeguarding its natural heritage.
Regional Synthesis Report: ENPI South - Algeria, Egypt, Israel, Jordan, Lebanon, Morocco, occupied Palestinian territory, Syria and Tunisia

Investing in improving environmental standards in the ENPI South countries would offer huge benefits in terms of cost savings, improved security (food, water, energy and climate), and improved quality of life.
Regional Synthesis Report: ENPI East – Synthesis report on: Armenia, Azerbaijan, Belarus, Georgia, Moldova, Russian Federation and Ukraine

Investing in improving environmental standards in the ENPI East countries would offer huge benefits in terms of cost savings, improved security (food, water, energy and climate), and improved quality of life.
Value of ecosystem services – putting the ‘green’ into green economy

Presentation by Marianne Kettunen of IEEP on the value of ecosystem services in the context of green economy at Nordic conference on Green Growth, in Oslo, Norway March 2012.
On the road to Rio: European scientific community voices support for greener Green Economy

Helsinki, 12-14 October. European and North-American scientific and technological community agree on their message for Rio+20, emphasising role of natural capital in underpinning Green Economy and echoing key messages from TEEB.
The benefits associated with Sites of Special Scientific Interest in England and Wales

A report on the benefits provided to society by Sites of Special Scientific Interest (SSSIs) in England and Wales was just published. The study, led by GHK with support from others including IEEP, examines the range of ecosystem services provided by the network of SSSIs and estimates the monetary value of protecting them.
Taking into account opportunity costs when assessing costs of biodiversity and ecosystem action

The study provides an estimate the costs of biodiversity action in the EU with special consideration of opportunity costs.
Cutting-edge Book on the Economics of Ecosystems Out Now

Described by Nicholas Stern as a 'landmark' work, a full account of The Economics of Ecosystems and Biodiversity, edited by institute staff, is now published by Earthscan.

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Highlights

Cutting-edge Book on the Economics of Ecosystems Out Now

Described by Nicholas Stern as a 'landmark' work, a full account of The Economics of Ecosystems and Biodiversity, edited by institute staff, is now published by Earthscan.
The Economics of Ecosystems and Biodiversity in National and International Policy Making

The study demonstrates the value of ecosystems and biodiversity to the economy, society and individuals. It underlines the urgent need to transform our approach to natural capital, and demonstrates how we can practically take into account the value of ecosystems and biodiversity in policy decisions to promote the protection of our environment and contribute to a sustainable economy and to the wellbeing of societies.