ECON371/UBCO2024WT1/NewsWiki/group8/Week 2
Source
Problem
The issue highlighted in the news report from the perspective of environmental economics is the integration of the conservation of the marine ecosystem of the Great Bear Sea and the development of the Indigenous communities, enforcing development practices that do not ignore global warming and loss of nature by implementing coordinated investments which include public and private funds.
Summary
The Great Bear Sea Project Finance for Permanence is a groundbreaking conservation effort led by 17 First Nations, alongside the Government of Canada and British Columbia. This effort secures $335 million in new investments to protect one of the world's most diverse and productive cold water marine ecosystems off the BC coast. Over the next 2 decades, these investments are expected to climb to $750 million, creating new jobs, funding Indigenous programs, and helping to establish Marine Protected Areas .The project aims to blend traditional Indigenous knowledge with modern science to protect endangered species and restore fish stocks.This represents a powerful example of collaboration, aiming to ensure the long-term health of the ecosystem.
Economic concepts
Non-Market Benefits are the advantages from goods and services that are not traded in markets and do not have any monetary value. They are hard for scientists to quantify but they have a few methods of measuring them. Using The Great Bear Sea as an example is that conserving the local habitiats will keep the water clean which will save the local indigenous communities from waterborne disease that come from contamination. There could also be an opportunity loss, if the area was wiped out, scientific and cultural innovations that would result from studying The Great Bear Sea would go with it.
Total Value Analysis is the sum of Use Value, Option Value, and Existence Value
1. Use Value
This refers to the practical benefits that people derive from a good or service. For example, if we consider a park, the use value includes the enjoyment and recreational opportunities it provides to visitors. It can be measured by how much people are willing to pay for access or how often they use the park.
2. Option Value
Option value represents the worth of having the option to use a resource in the future, even if that option is not currently exercised. Using the park example again, option value would capture the potential enjoyment or benefits that individuals may want to retain for future use, such as future generations enjoying the park. It reflects a kind of insurance value against uncertainty about future preferences or conditions.
3. Existence Value
Existence value is the value that people place on knowing that a resource or good exists, regardless of whether they will ever use it. This can apply to endangered species or natural parks where individuals value their preservation simply for their existence, reflecting broader ethical or ecological concerns. People might express this value through donations or willingness to pay for conservation efforts.
Application of concepts
1. Market and Nonmarket Benefits
This article illustrates an evaluation of environmental protection that considers market and nonmarket benefits. The market benefits include ecotourism opportunities and sustainable fisheries, the article communicates these benefits in monetary terms, as a $750 million dollar return on a $335 million dollar investment over the next 20 years. These benefits support the economy in the local communities through job creation and business revenue, both benefits measured for their dollar value. The nonmarket benefits highlighted in the article pertain to the health of the ecosystem and cultural heritage of the local indigenous communities. The Great Bear Sea is described to be one of the richest, most productive, and most biodiverse cold-water ecosystems on earth, providing clean water, habitat to a large variety of species, and carbon sequestration. The Indigenous communities local to this ecosystem rely on it for identity and their cultural practices, preservation is therefore critical to support their customs, livelihood, and heritage rights. These attributes portray the significant value of Great Bear Sea and the importance of its protection in ways that cannot be easily quantified monetarily.
2. Total Value Analysis
As depicted above, this article expresses certain values to the Great Bear Sea that are difficult to understand monetarily thus requiring other economic evaluation approaches. The value of this ecosystem is the sum of its use value, option value, and existence value. The use value represents the direct benefits derived from using the marine resources, such as fishing and recreational activities. Sustainable management of the fisheries will ensure that these resources remain available for current and future generations. The potential future benefits of preserving the ecosystem are significant as its option value. By maintaining biodiversity, we retain the option for this ecosystems future uses, such as discovering new marine species or developing new sustainable industries. The existence value reflects the intrinsic value of the Great Bear Sea’s natural beauty and biodiversity, even if individuals do not directly use these resources. Many people derive satisfaction from knowing that these ecosystems exist and are protected, which contributes to overall well-being.
Prof: I agree with these concepts being reflected in the article, and by the decision being made to integrate ecosystem protection into the overall management of the area.
Conclusion
It is easy to overlook the value behind conserving special habitats similar to The Great Bear Sea. At face value one can see the profit from fishing, mining, and manufacturing in the area. Economists and Conservationists have shown the value that The Great Bear reef has on the community by analyzing its intrinsic value and organizing funding to conserve it for future generations to enjoy. As the local indigenous communities preserve The Great Bear Sea, it will also conserve their culture and livelihood.