Sustainable development requires jointly achieving economic development to raise standards of living and environmental sustainability to secure these gains for the long run. Here, we develop a local-to-global, and global-to-local, earth-economy model that integrates the Global Trade Analysis Project (GTAP)-computable general equilibrium model of the economy with the Integrated Valuation of Ecosystem Services and Tradeoffs (InVEST) model of fine-scale, spatially explicit ecosystem services. The integrated model, GTAP–InVEST, jointly determines land use, environmental conditions, ecosystem services, market prices, supply and demand across economic sectors, trade across regions, and aggregate performance metrics like GDP. We use the integrated model to analyze the contribution of investing in nature for economic prosperity, accounting for the impact of four important ecosystem services (pollination, timber provision, marine fisheries, and carbon sequestration). We show that investments in nature result in large improvements relative to a business-as-usual path, accruing annual gains of $100 to $350 billion (2014 USD) with the largest percentage gains in the lowest-income countries. Our estimates include only a small subset of ecosystem services and could be far higher with inclusion of more ecosystem services, incorporation of ecological tipping points, and reduction in substitutability that limits economic adjustments to declines in natural capital. Our analysis highlights the need for improved environmental–economic modeling and the vital importance of integrating environmental information firmly into economic analysis and policy. The benefits of doing so are potentially very large, with the greatest percentage benefits accruing to inhabitants of the poorest countries.
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Can we avert an Amazon tipping point? The economic and environmental costs
Abstract The Amazon biome is being pushed by unsustainable economic drivers towards an ecological tipping point where restoration to its previous state may no longer be possible. This degradation is the result of self-reinforcing interactions between deforestation, climate change and fire. We assess the economic, natural capital and ecosystem services impacts and trade-offs of scenarios representing movement towards an Amazon tipping point and strategies to avert one using the Integrated Economic-Environmental Modeling (IEEM) Platform linked with spatial land use-land cover change and ecosystem services modeling (IEEM + ESM). Our approach provides the first approximation of the economic, natural capital and ecosystem services impacts of a tipping point, and evidence to build the economic case for strategies to avert it. For the five Amazon focal countries, namely, Brazil, Peru, Colombia, Bolivia and Ecuador, we find that a tipping point would create economic losses of US$256.6 billion in cumulative gross domestic product by 2050. Policies that would contribute to averting a tipping point, including strongly reducing deforestation, investing in intensifying agriculture in cleared lands, climate-adapted agriculture and improving fire management, would generate approximately US$339.3 billion in additional wealth and a return on investment of US$29.5 billion. Quantifying the costs, benefits and trade-offs of policies to avert a tipping point in a transparent and replicable manner can support the design of regional development strategies for the Amazon biome, build the business case for action and catalyze global cooperation and financing to enable policy implementation.
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- PAR ID:
- 10407024
- Date Published:
- Journal Name:
- Environmental Research Letters
- Volume:
- 17
- Issue:
- 12
- ISSN:
- 1748-9326
- Page Range / eLocation ID:
- 125005
- Format(s):
- Medium: X
- Sponsoring Org:
- National Science Foundation
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