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Mesoamerican Biological Corridor and the Environmental Goods, Services and Impacts.

Mesoamerican Biologicas Corridor – promotes conservation of biodiversity and economic development. Mesoamerican Biological Corridor and the Environmental Goods, Services and Impacts. Rado Barzev (MSc), rbarzev@hotmail.com.

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Mesoamerican Biological Corridor and the Environmental Goods, Services and Impacts.

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  1. Mesoamerican Biologicas Corridor – promotes conservation of biodiversity and economic development Mesoamerican Biological Corridor and the Environmental Goods, Services and Impacts. Rado Barzev (MSc), rbarzev@hotmail.com

  2. Mesoamérica (Central America and the South of Mexico) is a region between two continental bodies (North and South America), that is a natural biological bridge, making possible the flow of flora and fauna.

  3. BIOLOGICAL TREASURES MESOAMERICAS World Biodiversity World Territory Mesoamérica0.5% Mesoamérica10% Out of the 250,000 species, described worldwide, about 20000 can be found in the Region.

  4. PLANTS ANIMALS INDIVIDUALS ECOSYSTEMS COMMUNITY ASSOCIATION SOIL, ENERGY, AIR, WATER BIODIVERSITY GENES POPULATION COMMUNITY

  5. BIODIVERSITY = ENVIRONMENTAL GOODS AND SERVICES

  6. ENVIRONMENTAL GOODS AND SERVICES GENES SPECIES Genetic Resources Raw materials for the pharmaceutics Biological Control Food Production Wood, Fire Wood Soil formation Water supply and quality Erosion control Climate regulation Nutrients Recycling Flood control Oxygen production and carbon sequestration Landscapes Species habitat Waste recycling ECOSYSTEMS

  7. MARKET PRICES FOR SOME GENETIC RESOURCES AND THEIR DERIVATIVES (US $/KG) Growth Hormones 20,000,000. Taxotere-Docetaxol (anti leukemia) 12,000,000. Viscristine sulfato 11,900,000. Cocaine 150,000. Camptothecin 85,000. Anti AIDS 5,000. Tiger bone 3,000. Shark oil 550. Coffee 10. Cotton 1.5

  8. MBC Land use planning under CBM Protected Areas Environmental Goods and Services BIODIVERSITY

  9. Z Y Y Y Y Y Y Y Y Y Y Y Y Y Y Y Y Y Y X X X X X X X X X X Y Y X X X Y Y Y Y X Y X X Y X X Y y Z Z Z Z Z Z Z Z Z X X X X X X X X X X X X X X X X X X X X X X X X X X X y x X X X X X X X X X X X X X X X X X X y Y Y Y Y Y Y Y Y Y x x X X X X X X X X X y Y Y Y Y Y Y Y Y Y Y Y Y Y Y Y Y Y Y Z Z Z Z Z Z Z Z Z x z Z Z Z Z Z Z Z Z Z Z Z Z Z Z Z Z Z Z X X X X X X X X X Z Z Z Z Z Z Z Z Z z Z Z Z Z Z Z Z Z Z Y Y Y Y Y Y Y Y Y y x z y z x y z x y z y x x FRAGMENTATION

  10. Biological Corridors Z y y x y x x y Y Y Y X Y Y X X X x z Z Z X X X X X X X X X X z Y Y X X Y Y Y Y Z Z Z Z Z Z X X Z Z Z Z Y Y y x z y z x y z x y z y x x

  11. Example of land use planning in order to establish the Mesoamercian Biological Corridor Protected Areas Country X

  12. Biological Corridors

  13. Buffer zones

  14. A corridor of protected areas surrounded by other multiuse and nature friendly areas Mesoamerican Biological Corridor

  15. Protected Areas The neighbor country Y

  16. Repeat the process

  17. MBC spreads

  18. DEFINITION OF THE MBC (SUMMARY) * A land use planning system for the Central American Protected Areas System (SICAP), including buffer zones and multiuse areas. * It provides several environmental goods and services to the central American society and also benefits societies from all over the world. * The system promotes as well the sustainable use of the natural resources. This happens through a process of consulting a wide range of population in order to improve the sustainable livelihoods.

  19. COMPONENTS OF THE MBC – The Project I. Strengthen the Institutional Capacity of Management of the MBC. II. Strengthen the Sustainability Conditions of the MBC. III. Establish construction processes for Local Biological Corridors, focusing on the border areas.

  20. CCAD - Central American Commission for the Environment and Development Agendas MBC (1) Green (2) Grey Biodiversity, EGS Clean Production/ Pollution Envir. Benefits Envir. Costs Economic Instruments for the Conservation in the Mesoamerican Biolgical Corridor

  21. MESOAMERICAN BIOLOGICAL CORRIDOR RESERVA DE LA BIOSFERA MAYA Priority Areas of the Central American Protected Areas System GOLFO DE HONDURAS SOLIDARIDAD CAYOS MISQUITOS TRIFINIO GOLFO DE FONSECA SIAPAZ BAHIA DE SALINAS GANDOCA-BOCAS PILA RB DARIEN Map Source: DCW, 1975 ; CIAT, 1998; USGS, 1995

  22. OBJECTIVES • General: • Analyze and make available the results from the efforts in Economic Valuation of the Natural Resources in the Region and the Establishment of Payments for the Use of the Environmental Goods and Services. • Specifics: • Introduce the concepts and methodologies in economic valuation of the natural resources and the establishment of Payments for the Use of the Environmental Goods and Services. • Describe the process of negotiation between the supply and the demand of the natural resources, in order to establish the Payments for the Environmental Goods and Services (PES) (key players, environmental funds, environmental commission, environmental legislation). • Determine the economic viability of the implementation of the Payments for the Environmental Goods and Services (conservation of the biodiversity). • Present some successful experiences of PES in Central America.

  23. Environmental Goods – Tangible Products of hte Nature (Row materials) Environmental Services – Ecosystemic Functions that benefit Humans • -Water for Domestic use • Water for the Agriculture • Water for Industrial use • -         Wood • -         Medicine Plants • -         Firewood • -         Seeds • -         Food • -         Plants y Fruits • -         Other products of the forest • -         Biological raw material • Flora and fauna • -         Handicraft • -         Cattle • - Agricultural products. -Underground water supply -         Soil water retention -         Soil protection -         Carbon sequestration -         Flood control -         Erosion control -         Nutrients retention -         Landscape attraction - Watershed protection ENVIRONMENTAL GOODS AND SERVICES THAT GENERATES AN ECOSYSTEM

  24. GEOGRAPHIC DISTRIBUTION OF THE NATURAL RESOURCES (ENVIRONMENTAL GOODS AND SERVICES) Natural Protected Areas Plantations Natural Forest Natural Protected Areas Private lands Plantations Crops Private lands Communities

  25. USE OF THE ENVIRONMENTAL GOODS AND SERVICES COST/BENEFIT ANALYSIS Production Costs (PC) Distribution Costs (DC) Extraction Transfor mation Consumption Decision making Benefits Contamination Costs (CC) ECONOMICS Wastes: Impacts, Externalities Environmental Goods and Services Benefits>Costs (Costs = PC + DC + CC + EC) Costs • ENVIRONMENT • - Ecosystem • Protected Areas • Watershed Environmental Costs (EC) = Depreciation Costs + Reposition and Recycling Costs

  26. CONSERVACION: Management and use of the biodiversity, guaranteeing the higher and most sustainable benefits, without endangering its potential for the future generation. It implies activities such as protection, maintenance, sustainable use, restoration and improvement of the environment. A) Internalize the Environmental Costs: With the Cost/Benefit analysis find out if Benefits are higher than Costs. Achieve an environmental management system: Economic viability and competitiveness • Costs Reduction: Cost/Efficiency analysis to achieve the productive goals at the lowest costs possible.

  27. TOTAL ECONOMIC VALUE Use Value Non Use Value Direct Use Value Indirect Use Value Option Value Existence Value • Wood • Firewood • - Food products • - Handicraft • - Water supply • Landscape and • Tourism • - Medicines • Construction • materials • - Raw materials • - Research • - Education • Plant and • Animal Species - Flood Control - Disaster Prevention - Erosion Control - Nutrients Retention - Water Quality - Habitat - Oxygen Production - Carbon Sequestration - Watershed protection - Species - Habitat Conservation - Biodiversity Protection - Pharmaceutics Potential - Recreational Potential - Endangered Species - Esthetic Value - Cultural and Historical Values VET=VUD+VUI+VO+VE TEV = Total Economic Value DUV = Direct Use Value IUV = Indirect Use Value OV = Option Value EV = Existence Value

  28. Methodologies Effects measured Valuation bases 1. Change in Productivity Productivity Technical/physical Assumed behavior A) Objective Valuation 2. Health Costs Health (Desease) Technical/physical Assumed behavior 3. Human Capital Health (Deth) Technical/physical Assumed behavior 4. Replacement Costs Capital, Natural Resources Technical/physical Assumed behavior Economic Valuation Methodologies

  29. B) Subjective Valuation 1. Preventive and Mitigation Costs Health, Productivity, Capital, Natural Resources Revealed behavior 2.Hedonic Prices Property Values Wage Differential Environmental quality Health Revealed behavior 3. Travel Cost Natural Resources quality Revealed behavior 4. Contingent Valuation Health, Natural Resources quality Revealed behavior

  30. EXTERNALITIES Social Marginal Cost – Negative Externalities Px Private Marginal Cost - Supply Price Increment Social Marginal Cost – Positive Externalities Price Reduction Demand X

  31. BENEFITS FOR THE ECONOMY

  32. SERVICIO AMBIENTAL OWNER Local Mechanisms COUNTRY National Mechanisms THE WORLD International Mechanisms Sustainable Wood Production  Water for different use  Landscape  Biodiversity    Carbon sequestration   BENEFITS DISTRIBUTION AND IMPLEMENTATION OF THE ECONOMIC MECHANISMS FOR THE ENVIRONMENTAL GOODS AND SERVICES PAYMENTS 

  33. ENVIRONMENTAL AND ECONOMIC INDICATORS PHYSICAL INDICATORS ECONOMIC INDICATORS SOCIAL AND ECONOMIC ASSESMENT

  34. MITIGATION COSTS FOR THE NEGATIVE IMPACTS (EXTERNALITIES) Costs Damage by each additional unit of contamination C2 C1 Cost for each unit of contamination mitigated Contamination Q2 Q1

  35. LA NEGOCIACIÓN – SITUACIÓN “TODO EL MUNDO GANA (WIN-WIN SITUATION) Down the River Up the River $ Benefits for each additional unit of commodity Costs for each additional unit of contamination A B Q0 Q equilibrium Q2 Q1 Level of Production and Level of Contamination

  36. PAYMENTS FOR ENVIRONMENTAL SERVICES (PES) ECOSISTEM DEMAND Consumers SUPPLY Owners of the Natural Resources Paying the Owner of the Natural Resources Charging Consumers Environmental Services Commission PES: - Fees - Environmental Taxes - Trading Permissions - Licenses - Penalty, etc. Environmental Fund Paying the Nature

  37. BASIC PROCEDURES FOR ESTABLISHING PAYMENTS FOR ENVIRONMENTAL SERVICES Identify the consumers of the Environmental Goods and Services (the Demand). Physical and economic quantification of the Demand. Identify the owners of the Environmental Goods and Services (the Supply). Physical and economic valuation of the Demand. Determine and characterize the geographic area where the PES will be implemented. Determine the Investment and Costs required for implementing activities for sustainable management of the Environmental Services considered. Economic valuation of the Environmental Goods and Services: Quantify in monetary terms the Supply and Demand.

  38. Establishing economic mechanisms for capturing financial resources (establishing the Payments for Environmental Services). Form the Environmental Services Commission. This commission will be in charge of monitoring the process of implementation of the PES. Establishing the Environmental Fund. Based on negotiations, agreements are achieved and there will be contractual relationship between Owners and Consumers. Hire experts who will provide technical assistance on activities required for the conservation of the Environmental Goods and Services (Technological changes – Environmental Management System). Certification of the Environmental Management System proposed. Monitoring the Environmental Management System implemented and the PES established.

  39. BASIC FUNCTIONS OF THE ENVIRONMENTAL SERVICES COMMISSION Help negotiation process between owners and consumers. Monitor the transparent use of the Environmental Funds. Involve different sectors of society into the Conservatión Effort proposed through the establishment of PES. Coordinate activities with Certification Experts. Coordinate activities con Experts on Technical Assistance.

  40. The Process of establishing the PES Programme Environmental Problem Needs Demands EV Study and other technical studies Economic Mechanism Proposal Training Negotiation Environmental management policies change Implementation

  41. THANK YOU

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