STORIES Environment for Development Initiative Stories of economic research applied around the world. 2015/2016
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@EfD_initiative
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Africa
flickr: EfD Initiative
Asia
Latin America
Ethiopia
Tanzania
China
Costa rica
Sustainable energy transitions to support the Climate-Resilient Green Economy Strategy. Page 4
Striking a balance between revenue generation and conservation in national parks. Page 10
Bioenergy from crop residue can reduce coal consumption and greenhouse gas emissions. Page 12
Conservation policies are effective in reducing deforestation and poverty. Page 14
Kenya
Chile Bringing climate change to policy makers and communities. Page 16
Climate change is affecting food security. Page 6
South Africa Taking ecosystem services to the policy table. Page 8
Produced by the EfD Initiative
Cover photo: NASA and European Space Agency
EfD Secretariat:
Project management: Karin Jonson
(ESA) nighttime photograph showing what man-made
Department of Economics
Texts: Dawit Woubishet (Ethiopia), Richard Mulwa
light looks like from the International Space Station.
School of Business, Economics and Law
(Kenya), Leonie Joubert (South Africa), Salvatory Macha (Tanzania), Yibo Wang (China), Eugenia León (Central America), Felipe Vasquez Lavín (Chile) Editing: Cyndi Berck, IAES Proofreading: Po-Ts’an Goh Graphic Design: Anders Wennerström, Spiro Kommunikation AB
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Photo credits: Dawit Woubishet: page 5. Daniela Linares and Alessandra Baltodano: pages 7, 11, 19. Karin Jonson: page 9 (top images). Ecoprint, Shutterstock: page 9 (bottom). Edwin Muchapondwa: page 10 (top). Cesar Ogasawara: page 13 (top). Istock: page 13 (bottom). Daniela Linares: page 14. Laura Villalobos: page 15 (bottom). Felipe Vásquez: page 17.
University of Gothenburg www.efdinitiative.org info@efdinitiative.org
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he Environment for Development Initiative (EfD) focuses on the decisions that people make about climate change and natural resources. We believe that natural resources and the environment are the basis for sustainable global development. To achieve this, resources need to be managed in an efficient and equitable way with the support of high-quality research. EfD is our network for cross-country research collaborations, researchpolicy interaction and academic training. We apply evidence-based analytical tools to design policies that effectively manage scarce resources. The gap between research and policy is bridged through maintaining a dialogue with local communities and policy makers. We want our research findings to have a real impact on poverty reduction by supporting truly sustainable development. In September 2015, the Sustainable Development Goals (SDGs), officially known as ‘Transforming our world: the 2030 Agenda for Sustainable Development’, were adopted at the UN Sustainable Development Summit. These 17 goals are an intergovernmental set of aspirational goals with 169 targets. When presenting our stories, we relate all of them to one or more of the SDGs. We hope you enjoy our stories from EfD centers across the developing world.
United Nation’s Sustainable Development Goals (SDGs), officially known as Transforming our world: the 2030 Agenda for Sustainable Development.
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EfD IN Ethiopia
Sustainable energy transitions to support Ethiopia’s Climate-Resilient Green Economy Strategy Ethiopia aims to build a green economy and to follow a growth path that fosters sustainable development. Through the development of its Climate-Resilient Green Economy (CRGE) strategy, which is based on carbon-neutral growth, it envisions attaining middle-income status by 2025. Improving the productivity of the agricultural sector, protecting forests, expanding the coverage of electric power from renewable sources of energy and transitioning into modern and energy-efficient technologies are the main pillars of Ethiopia’s CRGE strategy.
programs: (i) Policy Research and Impact Evaluation (PRIE), (ii) Policy interaction and communication, (iii) Data management and knowledge repository, and (iv) Capacity building. The PRIE program, around which the other three programs will be built, focuses on the thematic areas of energy, industry, agriculture, forestry, water and urbanization. Focus on sustainable energy transition The energy sector is central to the CRGE strategy. Low-carbon energy can support green growth locally and has the potential to develop alternative energy sources regionally, with the goals of securing sources of income, contributing to development, and ultimately decoupling the country’s economy from the fluctuating prices and unsustainable nature of an oil-based economy. Ethiopia aspires
Supporting the CRGE strategy through four programs The Environment and Climate Research Center (ECRC),
to become a renewable energy hub in East Africa by ensuring ac-
hosted by the Ethiopian Development Research Institute, in partnership with EfD and the Global Green Growth Institute, is one of the partners
cess to affordable, clean and modern energy for all citizens by 2025. Furthermore, the two phases of the Growth and Transformation Plan have emphasized the energy sector, in an effort to meet energy de-
supporting Ethiopia’s CRGE strategy through research and development. The center aims to launch four longterm
mand in the country by providing sufficient and reliable power, with the further aims of exporting power to neighboring countries and developing alternative sources of renewable energy. At present, 85% of Ethiopian households are rural. Almost all of these rural households use biomass fuel for cooking and only 5% have access to electricity. This puts the country at the bottom of the “energy ladder.” The “energy transition” to clean fuels is at its early stage, and the traditional fuel sources are very carbon intensive. To address
Addis Ababa Light Rail opened in 2015. Photo: Francisco Anzola
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Images taken during a Controlled Cooking Test (CCT) at Awi Zone, Ethiopia. Left: An open fire stove. Middle: A baking stove. Right: An improved “injera” baking stove. (Injera is a yeast-risen flatbread made from teff flour).
these challenges, the two pillars of the CRGE strategy – expand-
and economy-wide impacts of electrification programs on growth
ing electricity generation and increasing the use of energy-efficient
and greenhouse gas emissions. The second theme emphasizes the
technologies – focus on energy transition and aim for massive
demand for improved cook stoves and the impact of this technol-
electrification in an effort to expand coverage to all regions by 2020.
ogy. Specifically, ECRC addresses how social networks among rural
The energy transition program has electric and non-electric energy
people affect technology adoption, how technologies spread to new
components, with the electric energy component further classified
users, and the role of local forest institutions in the adoption of im-
as on-grid electric and off-grid energy programs. The non-electric
proved biomass stoves and alternative fuel sources. The third theme
programs mainly focus on energy for cooking and aim at promoting
focuses on energy transition. It emphasizes households’ transition
clean, energy-efficient cook stoves and expansion of biogas produc-
from traditional fuel sources to modern and energy-efficient sources.
tion for households.
Specifically, we address the role of incentives in electric cook stove adoption and biomass fuel consumption, the effects of sudden or
Workshop to identify knowledge gaps
extreme energy price changes on energy demand, and households’
In June 2015, ECRC organized a three-day international workshop
responsiveness to energy price inflation. The effects of biofuel use,
on a Sustainable Energy Transitions Initiative (SETI) to identify key
such as the impacts of biodiesel production on food security land
knowledge gaps and fundamental research questions on tradeoffs,
use, are addressed in the last theme. The ultimate objective of the
drivers and impacts of energy transitions. A series of discussions
energy program at ECRC is to develop a research and strategic plan
have been held with relevant stakeholders (practitioners and re-
for the next five years on sustainable energy transition in Ethiopia in
searchers) in the energy sector. On top of this, the PRIE team for en-
line with other cross-cutting issues of the PRIE program to support
ergy is busy reviewing the economic literature and policy documents
the country’s CRGE strategy.
to identify what is needed to implement sustainable energy transition in Ethiopia. Demand for electrification and its impact, demand and impact related to improved cook stoves, energy transition and effects of biofuel use are research themes identified under the PRIE program that are crucial for the energy sector. The energy team at ECRC informs policy makers in two ways. The first approach is to generate evidence on the impacts of interventions in electric energy and non-electric energy programs. The second line
Researchers involved Alemu Mekonnen, Sied Hassen, Abebe Damte, Amare Fentie, Yonas Alem, Gunnar Köhlin, Subhrendu Pattanayak, Tensay Hadush and Zenebe Gebreegziabher. References “ECRC presented five-year research plan in high-level workshop.” http://www. efdinitiative.org/ethiopia/news/l/ecrc-presented-five-year-research-plan-high-level-
is to study different ways of providing electricity and energy-efficient
workshop/4514
technologies and to identify the most cost-effective approaches.
Sustainable Develpment Goals in focus
Four energy sub themes The research theme related to demand for electrification and its impact focuses on the adoption of electricity in grid-covered areas, estimating demand and incentives to create a sustainable market for solar technologies, as well as the socioeconomic impacts of different electrification technologies (grid extension vs. solar home systems) 5
EfD IN Kenya
A woman hoeing a vegetable garden in rural Kenya near Nairobi.
Climate change is affecting food security A recent study in Kenya shows that climate change and variability will increase food insecurity and that different food crops will respond differently to climate change variables. The study also highlights the different factors influencing food insecurity in a changing climate. This is important information for farmers as well as the government. Climate change and climate variability affect weather patterns and cause changes in historical patterns of seasonal temperature and rain, on which farmers have long relied in making crop-planting decisions. This is exerting pressures on agricultural systems and threatening to significantly increase the number of people at risk of food insecurity. This is especially true in regions where there is over-reliance on rain-fed agriculture, high levels of poverty, low levels of education, inadequate access to financial capital and poor infrastructure. More information about climate change impact is needed In Kenya, the problem is further exacerbated by the fact that 80% of total land cover is arid and semi-arid. Climate change is causing harvest failure, deteriorating pasture conditions, decreased water availability and livestock losses in both farming and pastoral communities, especially in these regions. Therefore, information on how Woman farmer at the Nyando Climate Smart Villages, Kisumu, Nyanza, Kenya. Photo: K. Trautmann
different stakeholders can help manage the adverse impacts of climate change and reduce the threat of food insecurity is important in tackling the climate change challenge. It is against this background
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Jane Kabubo-Mariara, Director, EfD Kenya.
that a research team led by the EfD Kenya Director, Prof Jane
adopt the appropriate adaption strategies.
Kabubo-Mariara, sought to address the link between climate change and food insecurity in Kenya. This research was carried out on farm-
Policy impact and the UN Sustainable Development Goals
level data from the same households over a decade on yields of four
The impact on policy from this research will be felt in both the short
major crops (maize, beans, sorghum and millet), climate variables
and long run. This is because the research can assist policy makers
(precipitation, temperature, runoff, and total cloud cover), population,
in drawing up and strengthening policies on adaptation to climate
soil and agro-ecological zones data.
change. This research can also help shape decisions that benefit environmental development through interaction between academia
Food security and the climate change debate
and policy makers. This study further enhances knowledge on ways
This is not the first study to address climate change in Kenya,
to improve food security, which is one of the main strategies for
but previous studies have concentrated on the impact of climate
poverty alleviation and sustainable development.
change on crop and livestock productivity, and on adaptation to
Further, the outcomes of this research support the second and
climate change. However, the link between climate change and food
thirteenth UN Sustainable Development Goals, whose aims include
security in Kenya had not been explored. What Kabubo-Mariara and
ending hunger and achieving food security and improved nutrition,
her co-author did was to introduce an important dimension of food
while promoting sustainable development and taking urgent action
security in the climate change and variability debate.
to combat climate change and its impact.
Their results have implications for all stakeholders, from farming households to the government. First, they are important in informing farming households, either directly or through their representatives – community-based or non-governmental organizations, etc. – about different technologies they can adopt in order to adapt to a changing climate. These potentially include drought-resistant crops and livestock. At the government level, the results can be used to determine the exact variables to be included in government strategies and action plans to combat climate change and variability. These include
Researchers involved Jane Kabubo-Mariara, Millicent Kabara References Kabubo-Mariara, J. and M. Kabara. 2015. “Climate Change and Food Security in Kenya.” EfD Discussion Paper 15-05. Sustainable Develpment Goals in focus
government-supported adaptation technologies, continuous climate change monitoring, intensified early warning systems and dissemination of relevant information to farmers in order to ensure that they 7
EfD IN South Africa
Taking ecosystem services research to the policy table It’s late on a hot December afternoon, and the discussion turns to whether or not game farmers in South Africa should be considered part of the conservation sector, or treated as farmers engaged in just another agricultural practice.
face the twin challenges of marrying their research with the needs of policy makers and getting evidence-based findings to them once the research is done. This workshop is the kind of face-to-face event that Turpie and the EPRU team hope will stimulate a rolling conversation between this EfD South Africa center and these two government agencies, which
This conversation takes place among a group of about 12 people,
are tasked with deciding how to manage the country’s environmen-
in a meeting room at the South African National Biodiversity Institute
tal and natural resources.
(SANBI) offices in Cape Town, and the question matters for two reasons. The first is because the answer to that question determines what
Several key areas emerge during the day’s discussions: important questions about the government’s ongoing efforts to understand the impact of alien invasive species, and attempts to clear them; how to
national departments, and the associated regulations, will oversee
handle the growing demand for medicinal plants harvested from the
these ranchers’ practices. The second is because of the people in
wild by traditional healers; whether there’s a gap between govern-
the room who are asking the question.
ment environmental policies and their implementation; and more.
Environmental Economics Policy Research Unit (EPRU) Director, Dr Jane Turpie and EfD Senior Research Fellow Prof Edwin
Ecosystem services: a key EPRU focus
Muchapondwa are leading the discussion with hand-picked rep-
EPRU’s work is geared toward influencing South African policy in
resentatives from the national Department of Environmental Affairs
three key areas: climate change; the value of nature conservation
(DEA) and SANBI, the state-appointed body managing the country’s
parks, biodiversity and ecosystem services; and marine fisheries.
biodiversity.
This year saw the team strengthen its research in the area of ecosys-
EPRU’s mandate is to do research relating to the economics of
tem services in several ways: by launching related research projects,
environmental and natural resource management, which can inform
writing up the findings in various papers and formats, and presenting
policy making in this country and across the region. The research-
their results at conferences and in workshops.
ers, based at the University of Cape Town’s School of Economics,
Kogelberg Mountains and South Atlantic Ocean. Photo: Christopher Griner
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Turpie says their job is to produce policy-relevant research that is
Mandy Driver, Director of Biodiversity Policy, SANBI and Jane Turpie, Director EPRU, at UCT.
Edwin Muchapondwa, EfD Senior Research Fellow, UCT.
geared toward solving problems faced on the ground, rather than
ners should consider the potential of the beauty of nature as a money-
just offering theory. In terms of the focus on ecosystem services, the
spinner because of their local tourism and recreational potential.
team still has plenty of work ahead of it, but they have made important strides this year, in terms of gauging the demand for research
These are just some of the examples of how this team of environmental economists is trying to highlight the economic benefits of
linked to the economics of ecosystem services, and where they can
preserving the region’s biodiversity and healthy, functioning environ-
use this to advise key decision makers.
mental systems.
Research geared toward assisting policy makers across southern
Dr Turpie concluded the December workshop addressing these
Africa includes Dr Susan Snyman’s study of the economic benefits
key SANBI and DEA representatives by reflecting on the importance
of ecotourism for rural communities, which looks at high-end lodges
of EPRU informing these institutions about precisely what it is that en-
across six southern African countries. Meanwhile, Prof Muchapond-
vironmental economists do, and what their methods are, in order for
wa’s analysis of the cost of entering national parks in South Africa,
them to appreciate the value of the research findings EPRU offers.
Botswana and Tanzania can inform environmental departments in all of those countries to structure their park entry fees appropriately
Researchers involved
for local and international tourists. SANBI’s Director of Biodiversity
Edwin Muchapondwa, Susan Snyman, Jane Turpie, Johane Dikgang, Herbert Ntuli
Policy, Ms Mandy Driver, is working with the United Nations through
References
EPRU to help draw up a standardized approach to environmental
Ntuli, H. and E. Muchapondwa. 2015. “A Bioeconomic Analysis of Community
accounting for the region. This work is toward Ms Driver’s doctoral
Wildlife Conservation in Zimbabwe.” EfD Discussion Paper Series 15-28.
research.
Snyman, S. 2014. “Partnership between a private sector ecotourism operator and
Their work also zooms down to the city scale, and can be useful for municipal managers. For instance, two studies have looked at the value of urban green spaces in Durban, on the South African east coast, and in Kampala, the capital of Uganda.
a local community in the Okavango Delta, Botswana: the case of the Okavango Community Trust and Wilderness Safaris.” Journal of Ecotourism 13(2-3): 110-127. Turpie, J. and J. de Wet. “Economic Value of the Kogelberg Coast, Western Cape, South Africa.” 2015. EfD Discussion Paper 15-30. Sustainable Develpment Goals in focus
The economic benefits of preserving the region’s biodiversity EPRU researchers have shown that parks and other green belts in Durban push up the value of surrounding properties, and that this can be a boon for municipalities, which can then ask for higher rates on those homes. Meanwhile, another study has shown that, if degraded wetlands are restored in Kampala – a city which has very few natural recreational spaces – it could have significant economic and recreational benefits for the people of the city. Residents currently have to drive several hours from the capital in order to find natural recreational spaces. Calculating the “amenity” value of nature – in these two cities, as well as in other areas like the Kogelberg coastline near Cape Town – suggests that municipalities, conservationists and development planShould farming with wildlife, like these wildebeest, be governed by South Africa’s conservation policies or agriculture?
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Photo taken during park pricing workshop in Kruger National Park.
EfD IN Tanzania
Striking a balance between revenue generation and environmental conservation in national parks National parks have long been the most common approach to biodiversity conservation. However, there are often tradeoffs between support for biodiversity and other social goals that rely on government revenue for primary funding and subsidies. As a result, governments in poor countries cannot afford to fully finance conservation due to budgetary limitations. This imposes pressure on park managers to find alternative financing mechanisms.
involved EfD researchers from South Africa, Tanzania and Kenya. Others were researchers, ecologists, park wardens and the management team from KNP. Increased competition for government spending – a threat to national parks National parks in Africa mostly rely on fiscal transfers from the state to fund their conservation activities. Increased demand for government spending on other sectors has increased the competition for funds for national parks conservation and threatens the existence of national parks and other protected areas.
“As much as we need the revenue to finance parks maintenance and other government activities,
that the maximum entrance fee that visitors
still we have the mandate to ensure that the
are willing to pay stands at USD 125, while
environment is conserved,� said Mr Gerald
the current entrance fee is USD 50. Around
Kibira, EfD Tanzania Junior Research Fellow, during his presentation of the research findings on an optimal park pricing study involving national parks in Kenya (Maasai Mara), Tanzania (Serengeti) and South Africa (Kruger). He was speaking at a
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Preliminary findings in the Serengeti National Park show
175,000 tourists visited Serengeti National Park in 2012/13. Entrance fees can be used for improving conservation and infrastructure at the park, as well as for other public services. However, only some visitors are willing and able to pay USD 125,
park pricing final paper workshop organized at
meaning the park would lose too many visitors, and revenue
Kruger National Park (KNP). The workshop
would end up decreasing. According to the study, the fee
Gerald Kibira, EfD Tanzania Junior Research Fellow.
increase that is acceptable to a large enough number of visitors is around USD 7 and thus the park authorities could raise the entry fee to USD 57. “Serengeti National Park is facing the challenge of limited revenue generation for operational costs and park maintenance,” said Mr Godlisten Kimaro, Tourism Warden at Serengeti National Park. In addition, there are limits to both domestic tourism and sustainable foreign tourism due to global security concerns and financial crises. Adjacent villages assist in protection of the wildlife Poaching is another major challenge facing the Serengeti. With limited resources, effective and continuous surveillance has been difficult to implement. “The park welcomes the Wildlife Management Areas (WMAs) arrangement with great enthusiasm,” said Mr Kimaro.
Another milestone of interaction between researchers
This is an arrangement in which villages own, maintain and protect
and policy makers
portions of the park that are adjacent to their villages. As a result,
“For EfDT, the optimal park pricing study is another achievement that
they assist in protection of the wildlife and other biodiversity.
promotes interaction between the center and the key policy makers in Tanzania” said Prof. Lokina, adding that, at the moment when the
Timely research findings to influence park pricing in
5th Phase Government is strategizing on increasing government
Tanzania
revenue, the research findings offer a key avenue to open up yet
Environment for Development Tanzania (EfDT) has shared their
another source of income through tourism.
preliminary findings with Tanzania National Parks (TANAPA) as part
“The remaining challenge is still to boost the dwindling domestic
of the center’s policy interaction with stakeholders and policy mak-
tourism,” said Dr Kirama, adding that it is very important for the
ers. “These are really timely research findings, given that TANAPA is
Ministry of Tourism and Natural Resources to widen awareness
strategizing to adjust its entrance fees,” said Mr Kimaro. He added
campaigns and promote park visits in order to boost domestic
“the main challenge is striking the balance between the objective of
tourism. The best way is to start with special awareness campaigns
income generation for park maintenance and government financing
for schools, colleges and other institutions, as well as promotional
of social services and environmental protection.”
subsidized park tours during the low seasons in order to curb the
In view of this, EfDT organized a workshop in February 2016, in which the research findings for the optimal park pricing were presented and discussed with the key stakeholders. “In the 2015/16
revenue gap resulting from low levels of foreign tourism during those seasons. While EfDT is proud of the preliminary research findings on
EfDT work plan, it is envisaged to conduct a key stakeholder work-
optimal park pricing, there is still much more to be done on related
shop to disseminate research findings,” said Dr Razack Lokina, EfDT
areas, such as alternative park financing, improvement of park infra-
Center Director. He added “one of the workshops is on park pricing,
structure, poaching of endangered species and involvement of the
in which the research findings for Maasai Mara, Kruger and Seren-
neighboring communities in protection of the natural wealth for both
geti will be disseminated.”
income generation and intergenerational heritage.
The collaborative research on optimal park pricing involved data collection by interviewing foreign tourists in the Serengeti, Maasai Mara and Kruger National Parks. “The concern about instituting optimal park pricing was noted and positively welcomed by all the tourists who were interviewed,” said Dr Stephen Kirama, EfDT Research Fellow and the coordinator of the field work for the Serengeti National Park. “Our expectation is that you don’t lower the fees to overpopulate the parks, but also you don’t inflate them so high that you depopulate it,” noted a German visitor to the Serengeti.
Researchers involved Gerald Kibira, Stephen Kirama References “The structure and level of entrance fees in Serengeti National Park in Tanzania” by Gerald Kibira (paper under review) Sustainable Develpment Goals in focus
EfDT is considering the findings from the park pricing research as a major breakthrough to ensure sustainable income generation for the Serengeti as well as for the maintenance of the Serengeti ecosystem. 11
EfD IN China
Bioenergy from crop residue can reduce coal consumption and greenhouse gas emissions China’s booming economy needs energy. Fortunately, agricultural waste offers the potential for relatively clean energy. That’s the conclusion of EfD China’s study on the potential to turn corn, wheat and rice crop residue into bioenergy.
ture, it can significantly reduce the use of coal, Dr Chen explained. It is possible to add biomass into the fuel mix at power plants that are currently coal-fired, a process known as “co-firing.” This approach could improve urban air quality while reducing carbon emissions that affect climate change.
“China’s demand for energy has increased more than four-fold dur-
Rice, wheat and corn can reduce coal consumption
ing the past 30 years, with coal being the primary energy source,”
“If crop residues can be effectively utilized, China can significantly
explained researcher Dr Xiaoguang Chen. “Over-reliance on coal has
reduce coal consumption and improve air quality,” continued Dr
led to China becoming the world’s largest emitter of sulfur dioxide and
Chen. His study looked at crop waste in some detail, at the county
greenhouse gases, with serious effects on health as well as climate.
level, to evaluate how much renewable energy can be produced
These problems motivated my study of the potential of bioenergy.”
from cellulosic biomass. Cellulosic biomass can be derived from ag-
A cyclist wears a mask to reduce inhaling polluted urban air in Beijing. Photo: Shutterstock
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While biomass will not entirely replace coal in the foreseeable fu-
Rice straw. Photo: Cesar Ogasawara
ricultural sources, such as crop residues and perennial grasses, as well as forest sources, such as forest residues and woody biomass. Crop residues mainly include corn stover (waste), wheat straw, and rice straw. As compared to the fossil fuels that they can displace, cellulosic biomass can offer greater potential for various environmental benefits. Farmers need incentives to collect crop residues for bioenergy purposes However, farmers need incentives to harvest this residue for purposes of bioenergy. “Our analysis shows that China could produce up to 250 million metric tons of crop residues annually if a biomass price of USD 100 per metric ton made this profitable,” explained
and residue collection technology.
Dr Chen. Rice straw is likely to be the main biomass type in China,
To encourage farmers to harvest crop residues for bioenergy
representing about 47% of total residue production, while corn sto-
production, the Chinese government should target areas with high
ver can potentially contribute 28% and wheat straw can potentially
yields and low costs for producing corn, wheat and rice, concluded
contribute 25%, according to his research.
Dr Chen. With the estimated large amount of crop residues, China
A longer-term goal is to maximize bioenergy production. To create
has great potential to reduce reliance on coal and improve urban air
the incentives for Chinese farmers to begin collecting crop residues
quality by co-firing agricultural biomass with coal at coal-fired power
for bioenergy purposes, biomass prices of USD 40-70 per metric ton
plants.
would be required, depending on production costs of crop residues
Researchers involved
Sustainable Develpment Goals in focus
Xiaoguang Chen References Chen, Xiaoguang. 2015. “Assessment of the Potential Biomass Supply from Crop Residues in China.” EfD Discussion Paper Series 15-06 Chen, Xiaoguang. In press. “Economic Potential of Biomass Supply from Crop Residues in China.” Applied Energy. Jiang, D., Zhuang, D., Fu, J., Huang, Y., and Wen, K. 2012. “Bioenergy Potential from Crop Residues in China: Availability and Distribution.” Renewable and Sustainable Energy Review 16: 1377-82.
A coal-fired power plant. Photo: Istock
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EfD IN Central America
Conservation policies are effective in reducing deforestation and poverty Costa Rica originally had a territory almost entirely covered by natural forests. By 1960, forest coverage was reduced to 60%. The high rate of deforestation in the following decades accelerated this process. In the 1980s, forest coverage was only 41%. However, in recent decades, this trend has changed. A restoration process started, with the goal of a forest cover equivalent to 52.4% of the country.
EfD researchers called upon to document impact of PES for State of Nation program
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A System of Protected Areas (SPAs) started in the 1970s with the
Researchers Dr Juan Robalino and Ms Laura Villalobos of EfD
establishment of national parks, biological reserves and other cat-
Central America (EfD-CA) were called upon as part of Costa Rica’s
egories of protection. Now, protected areas cover about 44% of the
State of the Nation Program to document evidence of the impact of
forest area, while the remaining 56% is private property which is also
protected areas and payments for environmental services on forest
regulated under the Forestry Act of 1996. Economists call the SPAs
conservation. The State of the Nation Program is an annual report
a policy of “command and control,” where the government sets rules
intended to improve citizen access to information about public af-
instead of providing incentives. By contrast, Payments for Environ-
fairs. Its slogan is “Know the Costa Rica we have and think about
mental Services (PES) is a market instrument, and is the leading
the Costa Rica we want,” and it reports on national performance
conservation policy for private property in Costa Rica. PES started
and trends in sustainable human development. Its main audience
in 1997. By 2014, 46,400 hectares, equivalent to 1% of the country,
consists of policy makers, researchers and academia, but it’s also a
were added to the program.
public access document for any interested parties.
Juan Robalino, EfD Central America Senior Research Fellow.
Laura Villalobos, EfD Central America Research Fellow and PhD Student.
tected areas. Rather, there is an effect of
Which policies are more effective? The work done this year by Dr Robalino and Ms Villalo-
reducing poverty and increasing wages
bos helped identify which policies are more effective in reducing
of those who are located near access to
deforestation, and under what conditions. Their research also
national parks,” stated Robalino and Villalobos
permits refining or modifying the design of policies to generate
in the State of the Nation Program presentation.
greater impacts or to generate the desired impacts with lower
The evidence so far leads to the following conclu-
costs, as has been done in previous years when EfD-CA
sions published by Dr Robalino and Ms Villalobos in
researchers worked with the Forestry Financing Fund of Costa Rica (FONAFIFO) on the design and improvement of PES. This work fits into Costa Rica’s development model. Since 1990, conservation policies have been founded on a system of national parks, which have
the State of the Nation 2015 Report: • The protected areas have managed to avoid deforestation within their boundaries. • Significant reductions in deforestation in areas adjacent to national parks are observed. • The additional conservation generated by protected areas
allowed Costa Rica to set up a tourism model based
does not imply a social cost. There is no evidence that poverty
on conserving the natural environment. Reducing
has increased on average in areas surrounding protected areas.
deforestation is part of this model. The study concluded that
• The complementarity between tourism and national parks
the policy of conservation through protected areas was effective in
generates positive socioeconomic outcomes for com-
reducing deforestation on land within these areas. However, while
munities. It could encourage tourism in the areas sur-
deforestation in adjacent private areas is also reduced by the SPAs,
rounding the parks that are less visited.
this effect is very small.
• The protected area program design has managed to curb deforestation.
Does conservation of protected areas have social costs? The researchers also asked, “Does conservation through the
In the early years of implementation, the PSA program had a limited
implementation of protected areas have a social cost?” These results
role in reducing deforestation nationwide. However, for the period
suggest that the effect of the expansion or creation of new protected
2000-2005, reductions in deforestation due to the program doubled.
areas depends on the ability of communities to find alternative sources of income. They also emphasize that the design of protected
In general, Robalino and Villalobos concluded that conservation
areas can make a difference in the socioeconomic impacts. Policies
policies have helped maintain and restore forest cover and this has
that promote tourism in protected areas will enhance the positive
not meant an increase in the poverty of local communities. However,
effects of conservation around these areas.
there is room to increase the positive impacts of these policies.
“If protected areas encourage the development of complementary tourism activities and/or increase the level of environmental awareness among the nearby residents, the protective effect could spread to surrounding areas,” Robalino and Villalobos stated. One of the highlighted results of this study is that “there is no evidence that poverty has increased, on average, in areas surrounding pro-
Researchers involved Juan Robalino and Laura Villalobos References State of the Nation Report, Costa Rica, 2015 Sustainable Develpment Goals in focus
Carrillo National Park in Costa Rica.
15
EfD IN Chile
Bringing climate change to policy makers and communities The economy of the Vergara River Basin in Chile is highly vulnerable to changes in water availability. The most vulnerable groups are poor indigenous populations and small farmers. Substantial reallocation of water between farmers and households is needed, and is made possible with the Vergara Hydroeconomic Model. This project has created a bridge between scientific research and policy makers who need this information to design and evaluate adaptation strategies.
ship among the expected climate change impacts, population growth, changes in land use, carbon sequestration, and the quality of life of the basins’ inhabitants. Finally, the study identified the most efficient adaptation options and the associated institutional changes needed to cope with the expected impacts of climate change. Reallocation of water use The major conclusion of this study is that the Vergara River Basin economy is highly vulnerable to changes in water availability. The project identified substantial reallocation of water between farmers and households and showed that the most vulnerable groups are poor indigenous populations and small farmers. For example, the
Some of the most relevant impacts of climate change in Chile are
researchers found that, at the basin level, water is being reallocated
associated with changes in water availability for agriculture, house-
from agriculture to household uses, and, within the agricultural
holds’ consumption (both urban and rural), and industry. Climate
sector, the water is being reallocated from fruits to cereals. This
change scenarios suggest that water resources will diminish in most
reallocation is driven by differences in the value of water in one use
agricultural zones within the country, imposing significant social
relative to another.
costs that will be unevenly distributed among the population. In this context, members of EfD Chile, together with almost 20
The Vergena Hydroeconomic model
researchers from Universidad del Desarrollo and Universidad de
The main output of the project is the Vergara Hydroeconomic
Concepción, developed a three-year project supported by the
Model (VHM). This is a computer model that can be used for policy
International Development Research Centre (IDRC, Canada), entitled
assessment because it allows for a rigorous economic analysis of
“Welfare and Economic Evaluation of Climatic Change Impacts on
climate change impacts on water availability and shows where these
Water Resources at River Basin Scale.” The project was led by EfD
impacts are located. We have developed the VHM with separate
researcher Dr Felipe Vásquez Lavín and was implemented in three
modules for each part of the analysis (hydrological, economic, and
Latin American basins: Vergara River (Chile), Chinchiná River (Co-
social) so that this tool can be easily replicated in other basins.
lombia), and Piraí River (Bolivia). Results are reaching society Interdisciplinary approach
We have participated in several meetings with private
Using an interdisciplinary perspective, the researchers
and public institutions, in Chile and abroad, that have
analyzed the changes in water availability due to climate
been interested in our results. Some of these institu-
change and its associated impacts on both the economy and the population. They com-
projects, including the Ministry of Environment,
bined a hydrological model, water demand
Ministry of Agriculture, Ministry of Finance, Re-
models for different users, and a geographic
gional Ministry of Environment, National Corpora-
information system in order to estimate the
tion of Forest (CONAF), mining companies
economic and social impact of changes in water
and water utility companies.
availability. The study aimed to quantify the relation16
tions have requested our expertise for their ongoing
At the local level, our research team
was invited by the Presidential Water Delegate to the Regional Government of the Araucanía Region to contribute scientific support for a broad initiative to set up a “water dialogue roundtable” within the basin. We used our results to motivate stakeholders to participate in this initiative, and we will use the VHM model to evaluate different public policies and adaptation strategies that can arise from this dialogue. Furthermore, we received funding from the Ministry of Economy to increase climate change awareness within local communities, with a special focus on secondary schools. Together with local authorities, we implemented an information campaign about the expected impacts of climate change. This project included workshops with communities, including government, indigenous groups, and farmers, and it aimed to inform them not only about the results of the project, but also about the institutional framework that governs water resources in Chile.
Close-up of the students’ models of the river basin.
Workshops with secondary schools Other workshops were targeted at secondary schools. Students were invited to discuss their ideas about issues such as the river basin, water resources as a key element for life (and also for the economy), climate change, and their expectations about the vulnerability of their communities. Additionally, a multidisciplinary team helped them build a representation of the Vergara River Basin using cardboard boxes, in which they were able to actually see how the water flows within the basin, the relationships across water users, and the external effects of water consumption. At the national level, we were invited by the Ministry of Environment to estimate the economic value of water, aimed at the inclusion of water resources within the national accounting system (“green accounting”). We provided figures for the economic value of water for different economic sectors, including residential, agricultural, industrial, and recreational. Finally, we are providing research support to evaluate the use of economic instruments for water resources management in the Villarrica Lake, located in the project region. Secondary school students building a model of the Vergara River Basin using cardboard boxes.
Researchers involved Felipe Vásquez Lavín, Roberto Ponce Oliva, Sergio Orrego Suaza, Alejandra Sthern, Diego Rivera, Francisco Fernandez, Alfredo Saldaña, Eduardo Letelier, Alejandra Chovar, Leonardo Vargas, Dario Felipe Jimenez References Fernandez, F., R. Ponce, M. Blanco, D. Rivera, and F. Vásquez-Lavín. 2016. “Water Scarcity and the Economic Impacts on Small-Scale Farmers at Basin Level: A Risk-Based Hydroeconomic Modelling Approach.” Water Resources Management http://link.springer.com/article/10.1007/ s11269-016-1227-8 Ponce, R., F. Vásquez, and S. Orrego. 2015. Gestión y Valoración de Riesgos Climáticos a Escala de Cuenca: Propuestas desde la Cuenca del Río Vergara. Chile. Edited by ECLAC, Chile. Sustainable Develpment Goals in focus
17
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Gaps and solutions
EfD program design builds on the premise that there are four important gaps that prevent research from permeating into policy processes in the developing world. Our program responds to these gaps with mutually reinforcing program components for policy impact. Capacity gap
Communications and policy interaction gap
There are too few environmental economists in developing countries
Even the knowledge that is created seldom makes it to the relevant
to carry out the necessary analysis of causes of and solutions to
policy processes.
environmental problems. Institutional gap Analytical gap
There is often no platform where researchers can be matched with
Too little analysis is carried out on environmental management for
resources to meet policy challenges. Similarly, academic institutions
sustainable inclusive growth.
in developing countries lack the resources and infrastructure needed to support knowledge based policies.
18
Climate change and scarcity of natural resources affect all aspects
We are proud that the EfD Initiative is run jointly with high-quality
of society, from the local to the global level. When facing the biggest
universities and research institutes in low and middle income coun-
challenges of our time, the role of research is to provide reliable,
tries, as well as with Resources for the Future in the US, the world’s
evidence-based knowledge for wise decisions.


leading academic think-tank in environmental and natural resource economics.
Our response as environmental economists is to analyze and design policies to manage climate change and to use natural resources in an efficient and sustainable way for the benefit of people today and future generations. For more than 25 years, we have built environ-
Sida, the Swedish International Development Cooperation Agency,
mental economics capacity globally, through the Environmental Eco-
provides core funding for the EfD Initiative.
nomics Program, managed by the Environmental Economics Unit at the Department of Economics, University of Gothenburg.
Find out more www.efdinitiative.org
The establishment of the EfD Centers over the past decade has been a collaboration among alumni, colleagues and partners in Cen-
Follow us on
tral America, Chile, China, Ethiopia, Kenya, South Africa, Sweden,
Twitter: @EfD_initiative
Tanzania and the USA. Three more EfD centers are in the process of
Facebook.com/EfDinitiative
setting up during 2016, in India, Vietnam and Colombia.
Flickr: EfD Initiative
19
EfD
Main Donor Swedish International Development Cooperation Agency
Main Partner
Environment for Development
EfD in China
EfD in Central America
EfD in Chile
Research Program in Economics and Environment for
Research Nucleus on Environmental and Natural Resource Environmental Economics Program in China (EEPC)
Development (EEfD/IDEA), Tropical Agricultural Research
Economics (NENRE)
National School of Development, Peking University
and Higher Education Center (CATIE)
Department of Economics, Universidad de Concepción
Beijing 100871, China
CATIE 7170, Turrialba 30501, Cartago, Costa Rica
Victoria 471, Barrio Universitario 4070374 Concepción, CH
Director: Prof. Jintao Xu
Director: Dr. Francisco Alpízar
Director: Prof. Carlos Chávez
Tel: +86 10 62767657
Tel: +506 2558 2624
Tel: + 56 41 220 4503
eepc@pku.edu.cn
efd@catie.ac.cr
nenre@udec.cl
www.efdinitiative.org/china
www.efdinitiative.org/central-america
www.efdinitiative.org/chile
Ethiopian Development Research Institute EfD in Ethiopia
EfD in Kenya
EfD in South Africa
Environment and Climate Research Center (ECRC)
School of Economics, University of Nairobi
Environmental-Economics Policy Research Unit (EPRU)
Ethiopian Development Research Institute (EDRI)
Harry Thuku Road, PO Box 30197-00100
University of Cape Town, School of Economics
Rm 401, 402, 408 and 409 Road and Transport Authority,
Nairobi, Kenya
Private Bag 7701, Rondebosch, South Africa
Blue Building, near National Stadium PO Box 2479,
Director: Prof. Jane Kabubo-Mariara
Director: Dr. Jane Turpie
Addis Ababa, Ethiopia
Tel: +254 20 318 262, +254 20 226 451 ext. 28122
Tel: +21 21 701 3420
Director: Dr. Haileselassie Medhin
efdkenya@gmail.com
jane@anchorenvironmental.co.za
Tel: +251 11 550 6066/+251 11 553 8632
www.efdinitiative.org/kenya
www.efdinitiative.org/south-africa
EfD in Sweden
EfD in Tanzania
EfD in the United States
Environmental Economics Unit (EEU), Department of
Department of Economics, University of Dar es Salaam
Resources for the Future (RFF)
Economics, University of Gothenburg
College of Social Sciences (CoSS) Tower Block, 3rd Floor
1616 P St. NW, Washington, DC 20036, USA
Vasagatan 1, Bldg E, PO Box 640
PO Box 35045, Dar es Salaam, Tanzania
Director, RFF’s EfD Center: Dr. Allen Blackman
SE 405 30 Gothenburg, Sweden
Tel: +255 22 241 0162 or +255 22 241 0252
Tel: +1 202 328 5073
Leader: Prof. Thomas Sterner
Director: Prof. Razack Lokina
blackman@rff.org
Tel: +46 31 786 4177
tanzania@efdinitiative.org
www.efdinitiative.org/rff
Thomas.Sterner@economics.gu.se
www.efdinitiative.org/tanzania
www.rff.org
EfD in India
EfD in Vietnam
EfD in Colombia
Centre for Research on the Economics of Climate, Food,
School of Economics, University of Economics Ho Chi
The Research Group on Environment, Natural Resources
Energy and Environment (CECFEE),
Minh City, 1A Hoang Dieu Street, Phu Nhuan District, Ho
and Applied Economics Studies (REES)
Indian Statistical Institute (ISI)
Chi Minh City, Vietnam
Universidad de los Andes
7 S.J.S. Sansanwal Marg, New Delhi 110 016, India
Director: Dr. Pham Khánh Nam
Director: Dr. Jorge Bonilla
Director: Dr. Mudit Kapoor
khanhnam@ueh.edu.vn
jobonill@uniandes.edu.co
ecrc@edri.org.et www.efdinitiative.org/ethiopia
mudit.kapoor@gmail.com