Document 186946

How to do a Cost-­‐Benefit Analysis in ELD: a case study from the Ethiopian Highlands Hans Hurni University of Bern ELD Ethiopia Project Scope: Soil degradaBon and sustainable land management in rain-­‐fed agriculture LocaBon: Ethiopian Highlands SpaBal scale: MulB-­‐scale from local to naBonal Strategic focus: Provide a spaBally explicit model for cost-­‐benefit analysis (CBA) of sustainable land management (SLM). Define further inputs for modelling the total economic value (TEV) of the Ethiopian Highlands. Inform decision-­‐makers about best opBons for sustainable water and land management in Ethiopia. The Ethiopian Highlands 3 C. Hormann 2006
H. Hurni 1998
4 The ELD Ethiopia Team in Addis Abeba on 13-­‐15 January 2014 Defini9on of Total Economic Value (TEV): “The full economic value allocated by society as a whole. This includes use value (direct and indirect, opBon value) and non-­‐use value.” ELD IniBaBve 2013 Case study Ethiopian Highlands: -­‐  direct use value through agricultural (crop and livestock) producBon -­‐  indirect use value through water (and sediment) delivery for lowland irrigaBon -­‐  opBon value for ecotourism and biodiversity (e.g. wildlife) conservaBon -­‐  non-­‐use value through water (and sediment) delivery for lowland irrigaBon Cost-­‐benefit analysis: “A comparison of all of the costs and benefits associated with taking acBon, compared to ‘business-­‐as-­‐usual’ (changing nothing). ” ELD IniBaBve 2013 ELD Ethiopia Project 2014 Spa9ally explicit case study of the direct agricultural use value of land in the Ethiopian Highlands: -­‐  Costs and benefits of past and actual (SWC) acBon -­‐  Costs and benefits of opBmum (SLM) acBon -­‐  Costs and benefits of ‘business-­‐as-­‐usual’ (inacBon) 8 H. Hurni, 1981
Recalling the 6+1 steps to es9mate the economic benefits and costs of ac9on 1. Incep9on: IdenBficaBon of the scope, locaBon, spaBal scale, and strategic focus of the study 2. Geographical characteris9cs: Assessment of quanBty, spaBal distribuBon, and ecological characterisBcs 3. Types of ecosystem services: Analysis of ecosystem services stocks and flows 4. Role of ecosystem services in community livelihoods and economic valua9on: Role of the assessed ecosystem services in the livelihoods of the communiBes; role of overall economic development 5. Land degrada9on paRerns and pressure: IdenBficaBon of land degradaBon paaerns, drivers and pressure on the sustainable management of land resources 6. Cost-­‐benefit analysis and decision-­‐making: Assessment of sustainable land management opBons +1 step: Take ac9on!
UNCCD; in ELD Methodology 2013