Advanced Search
MyIDEAS: Login to save this paper or follow this series

A Hybrid Approach to the Valuation of Climate Change Effects on Ecosystem Services: Evidence from the European Forests

Contents:

Author Info

  • Helen Ding

    (University of Venice and FEEM)

  • Silvia Silvestri

    (University of Venice)

  • Aline Chiabai

    (FEEM)

  • Paulo A.L.D. Nunes

    (University of Venice and FEEM)

Abstract

In this paper we present a systematic attempt to assess economic value of climate change impact on forest ecosystems and human welfare. In the present study, climate change impacts are downscaled to the different European countries, which in turn constitute the elements of our analysis. First, we anchor the valuation exercise in the Millennium Ecosystem Assessment (MEA) Approach and therefore the link between the different forest ecosystem goods and services, including provisioning, regulating and cultural services, human well-being and climate change. Second, climate change is operationalized by exploring the different storylines developed by the International Panel on Climate Change (IPCC) and applied, downscaled, for each of the European countries under consideration. Third, and bearing in mind the different nature of the benefits provided by the different types of forest ecosystems under examination, we shall explore different economic valuation methodologies so as to shed light on the magnitude of the involved welfare changes. According to the estimation results the four different IPCC scenarios, i.e. A1F1, A2, B1 and B2, are associated to different welfare impacts. First, these reveal to depend on both the nature of the forest ecosystem service. For example, cultural values reveal to be more sensitive to the four IPCC scenarios than the other ones, with the wood forest products being more resilient to climate change. Second, the distributional impacts of climate change on the provision of these goods and services do also depend on the geo-climatic regions under consideration. For the Scandinavian group of countries, B1 is ranked with the highest level of provision of carbon sequestration services, amounting to 46.3 billion dollars. In addition, we can see that cultural services provided by forest ecosystems have their highest levels in the Mediterranean countries, ranging from 8.4 to 9.0 million dollars, respectively in the B2 and B1 scenarios. Finally, we can see that the total value of wood forest products ranges between 41.2 and 47.5 million dollars for Central Europe to 5.4 and 7.2 million dollars in Northern Europe, respectively A1 and A2 scenarios. For this service, Mediterranean Europe provides a relatively weak role in the provision with values ranging from 6.4 million dollars in A1 scenario to 8.7 million dollars in the B2. In short, and to conclude, the valuation results (1) may contribute to a better understanding of the potential welfare loss in the context of climate change and the economic trade-offs between potential mitigation or adaptation strategies; and (2) confirm that climate change will be responsible for a re-distribution of welfare among the European countries, signalling the potential for a(n) agreement(s) among these same countries focus on the re-allocation of potential trade-offs among the countries.

Download Info

If you experience problems downloading a file, check if you have the proper application to view it first. In case of further problems read the IDEAS help page. Note that these files are not on the IDEAS site. Please be patient as the files may be large.
File URL: http://www.feem.it/userfiles/attach/20104161234144NDL2010-050.pdf
Download Restriction: no

Bibliographic Info

Paper provided by Fondazione Eni Enrico Mattei in its series Working Papers with number 2010.50.

as in new window
Length:
Date of creation: May 2010
Date of revision:
Handle: RePEc:fem:femwpa:2010.50

Contact details of provider:
Postal: Corso Magenta, 63 - 20123 Milan
Phone: 0039-2-52036934
Fax: 0039-2-52036946
Email:
Web page: http://www.feem.it/
More information through EDIRC

Related research

Keywords: Wood Products; Biodiversity; Climate Change; Market and Non-market Valuation Methods; Ecosystem Goods and Services; Millennium Ecosystem Assessment;

Find related papers by JEL classification:

This paper has been announced in the following NEP Reports:

References

References listed on IDEAS
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
as in new window
  1. Nordhaus, William D., 1993. "Rolling the 'DICE': an optimal transition path for controlling greenhouse gases," Resource and Energy Economics, Elsevier, Elsevier, vol. 15(1), pages 27-50, March.
  2. Maria Berrittella & Andrea Bigano & Roberto Roson & Richard S.J. Tol, 2004. "A General Equilibrium Analysis Of Climate Change Impacts On Tourism," Working Papers, Research unit Sustainability and Global Change, Hamburg University FNU-49, Research unit Sustainability and Global Change, Hamburg University, revised Nov 2004.
  3. Edward B. Barbier, 1994. "Valuing Environmental Functions: Tropical Wetlands," Land Economics, University of Wisconsin Press, vol. 70(2), pages 155-173.
  4. Nordhaus, William D, 1991. "A Sketch of the Economics of the Greenhouse Effect," American Economic Review, American Economic Association, American Economic Association, vol. 81(2), pages 146-50, May.
Full references (including those not matched with items on IDEAS)

Citations

Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
as in new window

Cited by:
  1. Bosello, Francesco & Eboli, Fabio & Parrado, Ramiro & Nunes, Paulo A.L.D. & Ding, Helen & Rosa, Renato, 2011. "The economic assessment of changes in ecosystem services: and application of the CGE methodology," Economia Agraria y Recursos Naturales, Spanish Association of Agricultural Economists, Spanish Association of Agricultural Economists, vol. 11(1).
  2. Ding, Helen & Nunes, Paulo A.L.D., 2014. "Modeling the links between biodiversity, ecosystem services and human wellbeing in the context of climate change: Results from an econometric analysis of the European forest ecosystems," Ecological Economics, Elsevier, Elsevier, vol. 97(C), pages 60-73.

Lists

This item is not listed on Wikipedia, on a reading list or among the top items on IDEAS.

Statistics

Access and download statistics

Corrections

When requesting a correction, please mention this item's handle: RePEc:fem:femwpa:2010.50. See general information about how to correct material in RePEc.

For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (barbara racah).

If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

If references are entirely missing, you can add them using this form.

If the full references list an item that is present in RePEc, but the system did not link to it, you can help with this form.

If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your profile, as there may be some citations waiting for confirmation.

Please note that corrections may take a couple of weeks to filter through the various RePEc services.