Mainstreaming ecosystem services in European policy impact assessment

The concept of ecosystem services as developed for the Millennium Ecosystem Assessment (MA) is currently the most extensive, international, scientific concept dealing with the interaction between the world's ecosystems and human well-being. The fundamental asset is seen in the relevancy of the concept at the science–policy interface. Albeit, the mainstreaming of ecosystem services into policy making requires a framework that allows the transition of the scientific concept into the rationale of policy making. We hypothesize that the procedure of policy impact assessment is a suitable venue for this transition. This brings up two questions: 1) where in the process of policy impact assessment can ecosystem services be mainstreamed? 2) How can the impact on ecosystem services properly be accounted for? In this paper we distinguish two groups of policy cases: explicit cases directly addressing ecosystem services, and implicit cases of policies that follow other purposes but may have unintended impacts on ecosystem services as a side effect. The second group covers a wide range of policies for which we set out a framework for mainstreaming of ecosystem services. The framework is exemplary designed for the instrument of ex-ante impact assessment at European policy making level. We reveal that the two concepts of the MA and of the European policy impact assessment are indeed compatible, which makes the integration of the ecosystem service concept possible. We conclude that the linkage of the scientifically validated concept of ecosystem services with the policy concept of impact assessment has the potential of improving the credibility of the latter.     

Ecosystem services in environmental assessment — Help or hindrance?

This paper presents a critical analysis of the potential role of ecosystem services within environmental assessment, including both strategic environmental assessment (SEA) and environmental impact assessment (EIA). It identifies some of the common problems with current environmental assessment practice and then explores whether integrating ecosystem services may be able to help address some of these problems. Case studies are included to illustrate different approaches to using ecosystem services within environmental assessment and to highlight how context (e.g. sector, scale, environmental situation) will influence the most appropriate way of integrating ecosystem services into environmental assessment practice. The analysis also reflects on how ecosystem services' potential role may, or may not, differ from previous integrated approaches to environmental assessment and what lessons can be learnt from their development.Two main approaches are recognised from the literature and the case studies to integrating ecosystem services within environmental assessment: firstly a comprehensive approach, where the assessment framework is entirely guided by ecosystem services; and secondly a philosophical approach that applies more of a light-touch ecosystems-thinking mind-set, helping to frame the assessment methodology rather than fundamentally defining it. Inevitably, there are variations between these two extremes, and benefits and criticisms of both.The authors conclude that ecosystem services provides a potentially valuable framing for environmental assessment, but that it requires a pragmatic, context specific consideration of how ecosystem services can be used to help address some of the common problems with current environmental assessment practice. There is also a need to recognise that at times it may just not be appropriate if it does not provide added value.     

Ecosystem services inclusive strategic environmental assessment

A consistent framework to address biodiversity, ecosystem services and their societal values is now established with the MEA (Millennium Ecosystem Assessment) and the TEEB (The Economics of Ecosystems and Biodiversity). These and other studies point to the urgency in considering actions that can revert the process of degradation of biodiversity values and its supporting ecosystems. Safeguarding livelihoods is a common objective in ecosystem approaches as well as in strategic environmental assessment (SEA) effort to promote sustainability. Human activities, as direct and indirect development drivers, are crucial targets for SEA to have a strategic contribution in influencing priorities, by showing strategic reasons for change. Rather than keeping only a control and mitigation role on the assessment of effects and impacts of development on the environment, SEA has the capacity to understand the decisional and development context and to drive development opportunities into pathways that are inclusive of environmental and sustainability priorities. The development opportunities provided by ecosystem services can be explored in SEA through strategic approaches to enhance the value of the benefits and avoid the negative impact of human actions on ecosystem services. SENSU, a research team at IST-Portugal, advocates the strategic-based and collaborative oriented approach in SEA based on Partidario (2007) SEA framework of critical decision factors (CDF). A methodology to allow the consideration of ecosystem services in SEA is being developed and tested. This paper will share research advances on how ecosystem services can be incorporated into SEA as a fundamental component of strategic assessment in support of decision-making.     

Environmental economic impact assessment in China: Problems and prospects

The use of economic valuation methods to assess environmental impacts of projects and policies has grown considerably in recent years. However, environmental valuation appears to have developed independently of regulations and practice of environmental impact assessment (EIA), despite its potential benefits to the EIA process. Environmental valuation may be useful in judging significance of impacts, determining mitigation level, comparing alternatives and generally enabling a more objective analysis of tradeoffs. In China, laws and regulations require the use of environmental valuation in EIA, but current practice lags far behind. This paper assesses the problems and prospects of introducing environmental valuation into the EIA process in China. We conduct four case studies of environmental economic impact assessment (EEIA), three of which are based on environmental impact statements of construction projects (a power plant, a wastewater treatment plant and a road construction project) and one for a regional pollution problem (wastewater irrigation). The paper demonstrates the potential usefulness of environmental valuation but also discusses several challenges to the introduction and wider use of EEIA, many of which are likely to be of relevance far beyond the Chinese context. The paper closes with suggesting some initial core elements of an EEIA guideline.     

Integrating ecosystem services into environmental impact assessment: An analytic–deliberative approach

Analytic–deliberative techniques have been suggested as a promising approach to ecosystem service (ES) valuation but are still at an experimental stage. This paper contributes to the development of ES valuation in the environmental impact assessment (EIA) procedure by introducing an analytic–deliberative approach to assessing restoration options for a regulated river in Finland. Multi-criteria decision analysis (MCDA) with a value-focused approach was applied and compared with a desktop application of the ES-focused MCDA approach. We found out that the concept of ES could bring added value to the assessment process by: 1) enabling the framing and valuing especially of provisioning services — final ecosystem services, such as salmon catch in a more understandable way for the stakeholders, and 2) taking into account ecosystem processes and supporting services more precisely. However, some potential dangers of using the ES-based approach could include ES's appearing as a distant mode of thinking to affected groups and other stakeholders, and neglect of the trade-offs between ES and other relevant value and impact categories. Thus, although the ES framework is promising, it should not form a rigid ‘checklist’ way of making assessments but should rather be used to widen perspectives about potential issues in linking ecosystem properties to human benefits and values. It is argued that by combining the ES framework with the interactive MCDA approach, we can form a comprehensive and integrated approach to incorporating ESs into EIA.     

A review of EIAs on trade policy in China: Exploring the way for economic policy EIAs

During the discussion on the “Environmental Protection Law Amendment (draft)” in 2011, it was decided to drop the proposed clauses related to environmental impact assessments (EIAs) on policy, which means that there remained no provisions for policy EIAs, and China's strategic environmental assessment system stayed limited to the planning level. However, considering that economic policy making is causing significant direct and indirect environmental problems and that almost every aspect of governmental policy has an economic aspect, EIAs on economic policies are of the utmost urgency. The purpose of this study is to review the EIA work that has been carried out on trade policy in China through four case studies, and illustrate how trade policy EIAs can be helpful in achieving better environmental outcomes in the area of trade. Through the trade policy EIA case studies we try to argue for the feasibility of conducting EIAs on economic policies in China. We also discuss the implications of the case studies from the point of view of how to proceed with EIAs on economic policy and how to promote their practice.     

Evaluating environmental impact assessment (EIA) in the countries along the belt and road initiatives: System effectiveness and the compatibility with the Chinese EIA

BRI has a great potential to improve necessary infrastructure, regional development, connectivity, and industrialization, and promote the sustainable transformation of the countries along the routes. Despite the remarkable aims, economic growth ambition of BRI may clash with the sustainability of the ecosystem given the scales of operations in environmentally sensitive regions, and the amount of material and energy needed. Therefore, the sustainable potential and environmental stewardship of the BRI will largely depend on the standard of strategic environmental and social management, and integration between China and partner countries of respective priorities, policies, and regulations. The effectiveness and compatibility of environmental impact assessment systems (EIA) remain largely unknown, especially across the diverse ecological, social, economic and political contexts represented in countries along the BRI. We review and compare EIA systems on the contextual factors that moderate the effectiveness and compatibility with China's policy. This work helps to identify strategies to more efficiently and effectively implement BRI towards sustainable development.     

A web application to support the quantification and valuation of ecosystem services

Assessing the impacts of policies on a wide range of ecosystem services can support the development of cost-effective policies that establish win–win situations across different environmental domains. To explore the quantity and value of ecosystem services, the web-based application “nature value explorer” was developed. The application allows to estimate the impact of land use and land cover change on regulating and cultural ecosystem services in Flanders, Belgium. To ensure the applicability in day-to-day decision making as part of environmental impact assessments, user requirements were investigated prior to tool development. Finding the optimal balance between accuracy and complexity on the one hand and flexibility and user-friendliness on the other hand was an important challenge. To date, the nature value explorer has been successful in drawing the interest of policy makers and has been used several times to support decisions in infrastructure projects as well as in nature restoration projects in Flanders. This paper discusses the user requirements, the main tool characteristics, potential policy applications and future improvements. Three case studies illustrate the functionalities of the tool in day-to-day decision making. The tool can be consulted on http://www.natuurwaardeverkenner.be.     

Transitions-based strategic environmental assessment

Strategic environmental assessment (SEA) is emerging as an important tool for sustainability transitions, yet there has been limited research conceptualizing transitions-based SEA. If SEA's primary goal is to facilitate strategic change and guide decision-processes toward sustainability, an assessment framework that accounts for the multi-dimensional factors and relationships influencing transition processes seems highly relevant. This paper advances the transitions-based SEA design – an approach to SEA that is focused on the institutional environment and policy context for the development of strategic initiatives including institutional commitments, supporting policies, and opportunities. We do so within the context of energy transitions, bridging strategic planning theories, decision making, and transition management. Building on existing SEA frameworks that advance strategic thinking, the paper presents the foundational principles and strategic questions to be asked in a transitions-based SEA design. The framework was developed based on a review of sustainability transitions and SEA literature supplemented by expert input. The SEA design focuses on the guiding vision for transitions, the institutional context and governance arrangements, opportunities and risks of proposed sustainability pathways, progress indicators for on-going transition management, and impacts of the exogenous landscape. The framework defines a new functionality for SEA, pushing the boundaries of what SEA can achieve, and should accomplish, as a strategic assessment tool while also challenging conventional thinking and practice beyond its application to policies, plans and programs.     

Conceptualizing strategic environmental assessment: Principles,approaches and research directions

Increasing emphasis has been placed in recent years on transitioning strategic environmental assessment (SEA) away from its environmental impact assessment (EIA) roots. Scholars have argued the need to conceptualize SEA as a process designed to facilitate strategic thinking, thus enabling transitions toward sustainability. The practice of SEA, however, remains deeply rooted in the EIA tradition and scholars and practitioners often appear divided on the nature and purpose of SEA. This paper revisits the strategic principles of SEA and conceptualizes SEA as a multi-faceted and multi-dimensional assessment process. It is suggested that SEA can be conceptualized as series of approaches operating along a spectrum from less to more strategic – from impact assessment-based to strategy-based – with each approach to SEA differentiated by the specific objectives of SEA application and the extent to which strategic principles are reflected in its design and implementation. Advancing the effectiveness of SEA requires a continued research agenda focused on improving the traditional SEA approach, as a tool to assess the impacts of policies, plans and programs (PPPs). Realizing the full potential of SEA, however, requires a new research agenda — one focused on the development and testing of a deliberative governance approach to SEA that can facilitate strategic innovations in PPP formulation and drive transitions in short-term policy and initiatives based on longer-term thinking.     

Regulation of pesticide discharge into surface and groundwater under uncertainty: A model for environmental risk‐profitability tradeoffs and policy selection

The presence of contaminants in environmental media as well as the desire to maintain a high level of economic activity has led to an important and difficult decision‐making problem for both public policy decision makers and the general public. In one sense, all of the interested parties are likely to be concerned about the potential health risks posed by the presence of contaminants in environmental media and the need to design/implement policies for their mitigation and/or removal. At the same time, however, there also appear to be concerns about the cost of these policies. These costs could be measured in terms of the potential losses in economic activity that are likely to occur when a policy is adopted. The policy can be selected from a range of alternatives, with the choice being driven in part by the stakeholders represented in the policy decision problem. In this case, two general goals might be considered: minimizing environmental risk and minimizing the economic impact of the policy considered. These two objectives are likely to be viewed as conflicting goals, and the nature of the tradeoffs between them must be taken into account in the policy selection process. This paper presents the development of a zero–one weighted goal programming model that can be used to select a preferred policy that minimizes surface and groundwater contamination as well as the economic costs of environmental policy selection. A safety rule model is developed first and then extended to the zero–one weighted goal programming formulation. The stochastic aspects of these structures are emphasized throughout. The paper also addresses a number of issues related to implementation of the model.     

Integrating ecosystem services in spatial planning and strategic environmental assessment: The role of the cascade model

Over the last decade, the ecosystem service (ES) approach has gained increasing attention because it offers important advantages for enhancing decision-making. However, a key and remaining challenge is how to implement this approach in real-world decision problems. This challenge is particularly relevant for governance and policy instruments, such as spatial planning and strategic environmental assessment (SEA), where including the ES approach is recognized as a great opportunity for achieving sustainable development goals. Consequently, this opinion paper proposes the use of the ES cascade model, as the basis to develop a framework that makes explicit the links among development objectives, sustainability goals, and the overall dependency on the ES supply. The main reflections address the need for a collaborative work between policy and science as a cross-cutting aspect for an interactive, participative and transparent research process that allows 1) the development of spatial indicators of ecosystem structures, 2) valuation and spatial modeling of ES, 3) identification of benefits and networks of actors, 4) the definition of values and, 5) generation of scenarios for a trade-off assessment of development alternatives. Finally, in addition to the information and knowledge generation regarding multi-scale relationships of the different components of the ES cascade, real-world evidence is urgently needed.     

Evaluating the environmental sustainability of biomass-based energy strategy: Using an impact matrix framework

A roadmap for a more sustainable energy strategy is complex, as its development interacts critically with the economic, social, and environmental dimensions of sustainable development. This paper applied an impact matrix method to evaluate the environmental sustainability and to identify the desirable policy objectives of biomass-based energy strategy for the case of Alberta. A matrix with the sustainability domains on one axis and areas of environmental impact on the other was presented to evaluate the nexus effect of policy objectives and bioenergy production.As per to our analysis, economic diversification, technological innovation, and resource conservation came up as the desirable policy objectives of sustainable development for Alberta because they demonstrated environmental benefits in all environmental impact categories, namely climate change, human health, and ecosystem. On the other hand, human health and ecosystem impacts were identified as trade-offs when the policy objectives for sustainability were energy security, job creation, and climate change. Thus, bioenergy can mitigate climate change but may impact human health and ecosystem which then in turn can become issues of concern. Energy strategies may result in shifting of risks from one environmental impact category to another, and from one sustainable domain to another if the technical and policy-related issues are not identified.     

Using Microsimulation to Maximise Scarce Survey Data: Applications for Catchment Scale Modelling and Policy Analysis

Microsimulation can be used to extend the use of scarce survey resources by creating simulated populations whose characteristics are close to those of the real population. The technique involves merging detailed survey observations with variables from more extensive data sets in order to create a simulated population. We illustrate how microsimulated data enable analysis of the economic and environmental impact of different policies on a catchment for which detailed farm level data was unavailable. Use of microsimulation for agri-environmental policy analysis is applicable to diverse problems from simulation of nitrogen trading to modelling of agent response to policy shocks. Scale flexibility is easily implemented since data can be aggregated or disaggregated to the preferred scale. Simulated catchment data allows better understanding of the effects of policies on different types of farm and should be extremely valuable to organisations that want to minimise the economic impact of environmental policies.     

The theoretical frameworks behind integrated environmental,ecosystem, and economic accounting systems and their classifications

The integration of ecosystem services and accounting systems can help different stakeholders understand the economic implications of environmental impacts. Any such integration requires clear understanding of how ecosystem services may match and integrate with traditional accounts. The Experimental Ecosystem Accounts (EEA) of the System of Integrated Environmental and Economic Accounts (SEEA) is developing quickly with applications at different administrative levels. One emerging feature is lack of agreement on conceptual notions and definitions that could reconcile different approaches. Some basic issues can be developed and solved only once a theoretical basis has been established. Since the first step of any application is to identify which ecosystem services to account for, this paper explores whether and to what extent the theoretical frameworks behind ecosystem services classification systems match the theoretical framework behind the SEEA EEA. This attempt first tackles the conceptual framework on the accounting side, then the conceptual framework on the ecosystem services classification side. Combining the two sides, it is possible to visualize matches or mismatches and to infer a few consequences and implications. Ecosystem services classification systems can guide separation of intra-ecosystem processes from final ecosystem services, and help disentangle ecosystem services from benefits, key requirements for integrating accounts.     

主体功能区环境政策导向研究

环境政策是主体功能区区域政策的重要组成部分，从环境准入政策、环境管理政策和环境经济政策3个方面研究提出了不同主体功能区域的环境政策导向，以推动主体功能区分类别环境政策框架体系的形成。     

Natural capital in ecology and economics: an overview

The Brundtland Commission report, Our Common Future, defined sustainable development as development that meets the needs of the present without compromising the ability of futuregenerations to meet their own needs. Although the idea of sustainable development has been widely accepted, it has proveddifficult to identify and implement policies and practices thatpromote sustainable economic growth. Some economists, environmental scientists and policy analysts believe that they can transform the consensus about sustainability into manageablepractices. They propose to accomplish this feat with a set of new ideas about the relationships between the economy and theenvironment offered under the banner of 'natural capital'. An ideal account of natural capital would be one or more standard measures or models that would allow the direct comparison of environmental goods, like forests, fresh water and clean air, with economic goods, like money, capital and productivity. By bringing economic science and environmental science to an objective common ground, a natural capital model has the potentialto provide a concrete means of comparing the economic and ecological costs and benefits of particular policies and programmes. This paper offers a survey and analysis of several new contributions to the formation of the natural capital concept from economists, ecologists, policy analysts, biometricians, foresters and a philosopher. The paper concludes that existingmicroeconomic theory may be 'ungreenable', if it is not reformulated. While macroeconomic approaches to natural capitalhave been more successful, they share the limitation that ecosystems and species are valued solely in monetary terms. These problems are taken to suggest that the development of a successful natural capital model may require economic theory tobe recast to include non-monetary social preferences and values.     

Impact of environmental policy on eco-efficiency in country districts in Poland: How does the decreasing return to scale change perspectives?

In macroeconomic analyses usually a simple proportional trade-off between economic growth and environmental pressure is assumed, i.e. constant return to scale (CRS). In this study authors show how changing CRS assumption affects environmental policy effectiveness based on Polish example. The problem revealed in the conducted analysis is actual in many countries, where the local perspective may efface global threats. The empirical objective of this paper is to assess cost-effectiveness of environmental policies at the county level under various return to scale (RTS) scenarios. First, environmental pressure was measured in four dimensions: air, soil, water pollution and bio-uniformity; second, the double-bootstrapped truncated regression model under different RTS were estimated, verifying the cost-effectiveness of county and transnational policies. The results send a message that the adoption of CRS assumption recommended in a such case by literature and usually followed by local authorities may lead to misleading assessment of the eco-efficiency level. It was found that local policy loses its impact on the eco-efficiency under VRS and 40% of local authorities in Poland can no longer benefit from economies of scale. The article offers original methodology, first, for measuring eco-efficiency in macroeconomic approach, second, a frontier-based cost-effectiveness analysis (CEA), adopting the double-bootstrapped modelling procedure.     

Reflecting on mainstreaming through environmental appraisal in times of financial crisis — From ‘greening’ to ‘pricing’?

The issue of mainstreaming has witnessed a revival over the last few years, not least because the latest financial crisis has triggered a renewed enthusiasm and a remarkable comeback amongst policy-making and environmental appraisal (EA) communities. Traditionally, environmental mainstreaming is linked to ideas of (environmental) integration and to the ‘greening’ of public policies. Yet, more recent mainstreaming efforts are building on the idea that the achievement of economic growth and of social well-being is not only dependent upon the protection of the environment, but on the fact that the environment should be valued as a source of goods and a provider of services, as well. In this context and despite the many shortcomings that EA has experienced as a mainstreaming tool over the last two decades, calls for EA to engage with ecosystem services and incorporate pricing valuations in its approach to mainstreaming are emerging, raising questions about the role and purpose of EA as an environmental mainstreaming tool.This paper aims to reflect on the role of EA as a mainstreaming tool, in terms of the extent to which it is mainstreaming the environment into policies for sustainable development and changing ‘the mainstream’ by breaking down the false dichotomy of environment and (economic) development. If mainstreaming through EA was to incorporate both greening and pricing logics, could EA be more effective in reframing the environment and development as correlated variables rather than competing variables?     

A new market instrument for sustainable economic and environmental development

The regenerative capacity of ecosystems provides a regulatory basis for sustainable economic growth and development. A natural valuation of an ecosystem's services will arise in a market for developmental rights in the ecosystem using a unit of tradable 'right': E-Scrip. The amount of e-scrip needed for a development may be set by Environmental Assessment. The capacity of the ecosystem to regenerate with developmental pressure may be represented by an independent trader or Factor Proxy for the Environment who provides e-scrip to the market.