Economic Analysis: CEP Experiences & Lessons Learnt
Cape Town : 2007
1- Capacity Building effort :
Economic Valuation of Environment (EVE) workshop held in Ashgabat in November 2005; collaborative effort with the World Bank ; three from each country including environment and economic agencies
Lessons learnt : novelty of the concept;
strong resistance to the idea; need to focus on case studies; need to get participants
to apply their learning
Objective : to cost a number of options to deal with the Caspian rising level versus cost of doing nothing !
Concept : use of direct costs
Cost of no-action being defined on basis of ‘perceived’ inundated land and facilities plus references to number of people made homeless
Cost of various options mostly defined as ‘physical costs ‘ associated with structures plus un-costed ‘political’ consequences.
Lessons learnt :
worst case scenarios
do not always work;
lack of data forces huge guessestaimtes;
practically impossible to go for intrinsic values; figures always help to convince politicians
"Cost of Invasion"
Cost of Invasion
Objective : estimate cost of no- action to deal with invading ML
Kilka Catch rate in the Caspian
Cost of Invasion
Concept : Sum of direct and indirect costs including :
Cost of decline in catch from maximum sustainable yield
Lost wages of fishermen and kilka processing plants workers
Govt subsidies in lieu of fisheries halt
Annualized cost of fleet deprecations and stopped plants.
Lessons learnt : “causality’
is an assumption that will need be theoretically backed; hugely difficult to look at consequential damages
Economic valuation of environment
needs to be taken seriously.
Capacity needs to be built
Try to be simple
monetize but lo highlight the elements that can not be monetized.