An official website of the United States government
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.
more »
« less
Investing in nature can improve equity and economic returns
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.
more »
« less
- Award ID(s):
- 2020635
- PAR ID:
- 10479915
- Publisher / Repository:
- National Academy of Sciences
- Date Published:
- Journal Name:
- Proceedings of the National Academy of Sciences
- Volume:
- 120
- Issue:
- 27
- ISSN:
- 0027-8424
- Format(s):
- Medium: X
- Sponsoring Org:
- National Science Foundation
More Like this
-
-
Concurrently implemented green initiatives to combat global environmental crises may be curtailed or even sacrificed given the ongoing global economic contraction. We collected empirical data and information about green initiatives from 15 sites or countries worldwide. We systematically explored how specific policy, intended behaviors, and gains of given green initiative may interact with those of other green initiatives concurrently implemented in the same geographic area or involving the same recipients. Surprisingly, we found that spillover effects were very divergent: one initiative could reduce the gain of another by 22 % ~ 100 %, representing alarming losses, while in other instances, substantial co-benefits could arise as one initiative can increase the gain of another by 9 % ~ 310 %. Leveraging these effects will help countries keep green initiatives with significant co-benefits but stop initiatives with substantial spillover losses in the face of widespread budget cuts, better meeting the United Nations’ sustainable development goals.more » « less
-
Abstract There is about to be an abrupt step-change in the use of coastal seas around the globe, specifically by the addition of large-scale offshore renewable energy (ORE) developments to combat climate change. Developing this sustainable energy supply will require trade-offs between both direct and indirect environmental effects, as well as spatial conflicts with marine uses like shipping, fishing, and recreation. However, the nexus between drivers, such as changes in the bio-physical environment from the introduction of structures and extraction of energy, and the consequent impacts on ecosystem services delivery and natural capital assets is poorly understood and rarely considered through a whole ecosystem perspective. Future marine planning needs to assess these changes as part of national policy level assessments but also to inform practitioners about the benefits and trade-offs between different uses of natural resources when making decisions to balance environmental and energy sustainability and socio-economic impacts. To address this shortfall, we propose an ecosystem-based natural capital evaluation framework that builds on a dynamic Bayesian modelling approach which accounts for the multiplicity of interactions between physical (e.g. bottom temperature), biological (e.g. net primary production) indicators and anthropogenic marine use (i.e. fishing) and their changes across space and over time. The proposed assessment framework measures ecosystem change, changes in ecosystem goods and services and changes in socio-economic value in response to ORE deployment scenarios as well as climate change, to provide objective information for decision processes seeking to integrate new uses into our marine ecosystems. Such a framework has the potential of exploring the likely outcomes in the same metrics (both ecological and socio-economic) from alternative management and climate scenarios, such that objective judgements and decisions can be made, as to how to balance the benefits and trade-offs between a range of marine uses to deliver long-term environmental sustainability, economic benefits, and social welfare.more » « less
-
Levchenko, Andrei (Ed.)This paper studies international trade and macroeconomic dynamics triggered by economic sanctions, and the associated welfare losses, in a calibrated, asymmetric, three-country model of the world economy. We assume that there are two production sectors in each country, and the sanctioned country has a comparative advantage in production of a commodity (for convenience, gas) needed to produce final, differentiated consumption goods. We consider three types of sanctions: sanctions on trade in final goods, financial sanctions, and gas trade sanctions. We calibrate the model to an aggregate of countries that are currently imposing sanctions on Russia (the European Union, the UK, and the USA), Russia, and an aggregate of third countries (China, India, and Turkey). We show that, instead of reflecting the success of sanctions, exchange rate movements reflect the type of sanctions and the direction of the resulting within-country sectoral reallocations. Our welfare analysis demonstrates that the sanctioned country’s welfare losses are significantly mitigated, and the sanctioning country’s losses are amplified, if the third country does not join the sanctions, but the third country benefits from not joining. These findings highlight the necessity, but also the challenge, of coordinating sanctions internationally.more » « less
-
Gross domestic product (GDP) summarizes a vast amount of economic information in a single monetary metric that is widely used by decision makers around the world. However, GDP fails to capture fully the contributions of nature to economic activity and human well-being. To address this critical omission, we develop a measure of gross ecosystem product (GEP) that summarizes the value of ecosystem services in a single monetary metric. We illustrate the measurement of GEP through an application to the Chinese province of Qinghai, showing that the approach is tractable using available data. Known as the “water tower of Asia,” Qinghai is the source of the Mekong, Yangtze, and Yellow Rivers, and indeed, we find that water-related ecosystem services make up nearly two-thirds of the value of GEP for Qinghai. Importantly most of these benefits accrue downstream. In Qinghai, GEP was greater than GDP in 2000 and three-fourths as large as GDP in 2015 as its market economy grew. Large-scale investment in restoration resulted in improvements in the flows of ecosystem services measured in GEP (127.5%) over this period. Going forward, China is using GEP in decision making in multiple ways, as part of a transformation to inclusive, green growth. This includes investing in conservation of ecosystem assets to secure provision of ecosystem services through transregional compensation payments.more » « less
- Free Publicly Accessible Full Text
-
Accepted Manuscript1.0
- Journal Article:
- https://doi.org/10.1073/pnas.2220401120
