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Reducing acidification: the benefits of increased nature quality

Reducing acidification: the benefits of increased nature quality Investigating the possibilities of the Contingent Valuation Method. Dr.ir. E.C.M. Ruijgrok,09/02. Acidification abatement leads to costs, but it also generates benefits: reduced health risks; less damage to buildings;

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Reducing acidification: the benefits of increased nature quality

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  1. Reducing acidification: the benefits of increased nature quality Investigating the possibilities of the Contingent Valuation Method Dr.ir. E.C.M. Ruijgrok,09/02

  2. Acidification abatement leads to costs, • but it also generates benefits: • reduced health risks; • less damage to buildings; • less damage to crops; • increased nature quality. monetarised € ?

  3. Core question Can CVM be used to include the benefits of increased nature quality in Cost Benefit Analyses for acidification abatement scenarios? Method Trial and error; a CVM survey was set up and tested

  4. Research questions 1. Which functions of nature are affected by acidification? 2. Can these functions be monetarised by means of CVM? 3. Is it possible to distinguish different nature benefits peracidification abatement scenario?

  5. A previous study showed that the following functions are affected by acidification: • CO2 fixation • Nitrogen storage • Aluminium binding • Binding heavy metals • Recreational perception • Non-use CVM

  6. What is CVM? • survey method • it measures willingness to pay

  7. Essential elements of CVM: non-use value little story explaining the effects of acidification on nature to lain man description of the good Option B: prevent deterioration Option A: realise improvement The government takes extrameasures to reduce acidification to such an extent thatnature ishealthy again in the year 2030 hypothetical market payment vehicle a yearly donation per household

  8. Essential elements of CVM: perception value photos of affected and unaffected forests, health lands, fens, grass lands and dunes description of the good hypothetical market Entrance fees for nature areas depend on beauty payment vehicle Entrance fee per visit

  9. Sources of bias • The design of the questionnaire influences answers • Unfamiliarity with and difficulty of the questions • The respondent does not state his actual wtp ?

  10. Bias: Precaution: Socially correct behaviour Provide opportunity to say no Starting point Open ended questions Filter, zoom in Part whole Register different types of bidders: • bidders • zero bidders • protest bidders • ‘whole bidders’

  11. Distinguishing benefits per scenario Dutch acidification abatement scenarios: A. Netherlands NEC, rest of the world Gothenburg B. Ammonium and nitrogen deposition minimized C. EU NEC, rest of the world Gothenburg D. All countries Gothenburg E. Netherlands extra strong policy, rest Gothenburg

  12. Abatement scenarios

  13. The scenarios differ little in biodiversity effects Physical differences cannot be explained to lainman nor be shown on photos CVM cannot distinguish benefits per scenario BUT: Different paths to the same deposition level Extra question on time

  14. Possible solution: Determine benefits of extreme scenarios Derive benefits of less extreme scenarios from these This requires agreements, decision rules

  15. Pre Test and Preliminary results A small pretest was held in nature reserve Meijendel and the city centre of Zoetermeer • Findings: • most respondents were familiar with acidification • Euro leads to higher bids • bids for sooner improvements • Is acidification the biggest threat to nature? Part whole bias ?

  16. Preliminary results • non-use value varied from €0 to € 100 per hh per year • Averge wtp : €30 per hh per year • Households: 6.2 million • Rough estimate: €207 million per year • recreational use: average wtp 6 per visit

  17. Comparing the different benefits of acidification Nature: ± € 207 million per year Health: € 900 million per year (2010) Ground water contamination: € 60 million in total Damage to materials: € 59 million per year

  18. Conclusion • The benefits of nature are worth investigating • CVM can be used to estimate the non-use • and recreational benefits of nature • CVM is not suited for distinguishing benefits per • abatement scenario if scenarios differ little • Decision rules for derivation are needed Recommendation For a Europe wide application adaptations are needed, paying attention to sources of bias: Which?

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