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Overview of the Cost Benefit Analysis - Challenges

Overview of the Cost Benefit Analysis - Challenges. Rashid Sumaila Fisheries Centre, University of British Columbia Vancouver, Canada. Governance and CBA of WIO Workshop Nairobi, 18-19, January 2011. Goal for the CBA work (from this meeting).

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Overview of the Cost Benefit Analysis - Challenges

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  1. Overview of the Cost Benefit Analysis - Challenges Rashid Sumaila Fisheries Centre, University of British Columbia Vancouver, Canada Governance and CBA of WIO Workshop Nairobi, 18-19, January 2011

  2. Goal for the CBA work (from this meeting) • To benefit from your collective knowledge and wisdom on how best to conduct our study to make it as useful to the region as possible; • Leave meeting with a clear idea of what to do and how to do it; • Learn from the policy and governance work.

  3. Objectives 1 • Assessing the total economic value of marine and coastal resources of the ASCLME region and their contribution to the economy of the region’s countries: • Defining the scope; • Meeting data needs; • Timeframe.

  4. ASCLME region • What is it? • The whole Western Indian Ocean? • Only the Agulhas and the Somalia LMEs? • Which countries belong to the region? • Which countries use the resources of the ASCLME but do not belong to the region?

  5. Total economic value • Use and non-use values; • Market and non-market values; • Agreeing on which economic benefits to include in analysis.

  6. Coastal and marine resources • Identifying coastal resources of the ASCLME • Which resources to include? • How do we include and or demarcate resources that are not exclusively dependent on the ASCLME.

  7. Contribution to the economy • How do we measure this? • Which indicators to include?

  8. Objectives 2: Distribution of benefits • Scope of distributional analysis: • ASCLME countries versus non-ASCLME countries; • Between ASCLME countries; • Within ASCLME countries: • High versus low income earners; • Female versus male participants. • How do we do this: • Calculate the proportion of current total benefits to different groups? • Use indicators, which ones?

  9. Objectives 3: Marine & coastal resources and poverty alleviation • Scope: • Within and between ASCLME countries; • How to do it: • Distributional analysis in objective 2 will form the basis for the analysis here.

  10. Objectives 4: Indicators and policy analysis • Using the economic results of the assessment, provide local resource managers with: • indicators and policy analyses about the economic impact of different governance options for sustainable use of the resources; and • the economic trade-offs among different uses of the marine ecosystem. • Challenge here is that it is a huge task, whose scope needs to be carefully determined.

  11. Objectives 5: Capacity building • Increasing capacity for government and other stakeholders in the ASCLME region to use environmental economics effectively in their decision-making: • How do we do this? • What timeframe?

  12. Objectives 6: Report • Compile the final regional report on Cost benefit Assessment of the marine and coastal resources of the western Indian Ocean region: • This is the easy part, i.e., once earlier challenges are dealt with.

  13. Coverage/scope • Western Indian Ocean: • The Agulhas current; • The Somalia coast; • The Red Sea; • The Arabian Sea; • The High Seas.

  14. Coverage/scope • ASCLME countries • Comoros • Kenya • Madagascar • Mauritius • Mozambique • Seychelles • South Africa • Somalia • Tanzania

  15. Coverage/scope • Total economic value: Use or non-use values; • Use values: • Direct use values: Captures the direct use of coastal & marine ecosystem services from consumptive purposes such fish, wood and non-consumptive uses such as recreation, tourism and cultural activities.

  16. Coverage/scope • Use values: • Indirect use values: Captures the indirect ecosystem services provided such as waste assimilation, habitat and biodiversity protection, etc; • Option value: the value for maintaining the option to use the ecosystem in the future. • Non-use values: • Bequest • Existence

  17. Coverage/scope • Coastal and marine resources: • Small-Scale Fisheries; • Tourism; • Agriculture and forestry; • Mariculture; • Energy; • Ports and Coastal Transport; • Costal mining. • How do we include and or demarcate resources that are not exclusively dependent on the ASCLME.

  18. Method & data: Total economic value • Direct output impact (e.g., catch value for fish); • Economic rent; • Income to labour; • Returns to capital; • Jobs supported; • Multiplier effects – added value throughout the economy.

  19. Thanksfor your attention Photo by Asep

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