Climate Change Economics Panel - Sutinen

Climate Change: Implications for the Socioeconomics & Governance of Large Marine Ecosystems Jon G Sutinen Department of Environmental & Natural Resource Economics University of Rhode Island

University of Rhode Island

Perspective • How society prepares for & responds to the challenges of climate change will depend on – The system that governs humans’ interactions with marine ecosystems

• This governance system has not performed well to date – Currently being restructured • E.g., Ocean Action Plans in US & Canada

University of Rhode Island

Status & Trends of Marine Ecosystems • Global – ‘Coastal & marine environmental degradation not only continues but has intensified.’ • Marine pollution • Overexploitation of living marine resources • Coastal habitat loss

– Major threats ‘still exist, despite national and international actions to address these problems.’ Source: UNEP. 2002. Global Environment Outlook 3

University of Rhode Island

The Issues • Why do we find ourselves with degraded ecosystems? • How do we mitigate the degradation & improve the status of marine ecosystems? • What are the governance challenges unique to climate change? • What is needed to adapt to climate changes in marine ecosystems? University of Rhode Island

Governance: A framework for explaining outcomes • 3 basic mechanisms that govern humans’ interactions with ecosystem resources – Markets – Government – Civil society

University of Rhode Island

Governance Mechanisms Civil Society

Markets Government

Economic Drivers

Legal/Political Drivers

Social Drivers

Human Uses of Marine Ecosystems University of Rhode Island

Markets • Principal drivers of – Excessive extraction of resources – Disposal of pollutants – Habitat alteration

• Market prices ‘Do not tell the ecological truth’ – Prices do not reflect the full cost of products made from ecosystem resources University of Rhode Island

Market driven impacts • Fisheries – overexploitation

Atlantic cod catch 1950-2002. Northeast Atlantic blue), northwest Atlantic (green) and total (red)

University of Rhode Island

Market driven impacts • Oil and gas production – Spills – Discharges • Drilling byproducts

• Shipping & transportation – Spills – Waste discharges University of Rhode Island

Market driven impacts • Coastal development – Population concentration in coastal areas • 25% in Canada • 55% in US

– Waste water discharge – Alterations of coastal land

• Agriculture – Nutrient runoff • Nitrogen & phosphorus University of Rhode Island

Ancillary Cause: Government • Jurisdictions – Incongruent with ecosystem boundaries in some cases

• Policies & regulations – Developed separately to date • Not integrated • Fragmented, disjointed, ineffective, counter-productive

• Political dynamics – Lack of ‘political will’ – Political interference, such as ‘End runs’

• NW Atlantic local, regional, national, international organizations – Two countries, many states, provinces, tribal, & local authorities – Regional fishery management councils & commissions – NAFO, NASCO, Gulf of Maine Council on the Marine Environment University of Rhode Island

Institutions and Arrangements of

Civil Society • Social norms & networks (social capital) – Influence public policy & societal behavior patterns – Incompatible social norms & conflicts among interest groups impede ecosystem protection efforts

• Civil Organizations (NGOs) – Manifestations of social capital – NW Atlantic NGOs include • Atlantic Coastal Action Program (ACAP) – 14 watershed/estuary-based local organizations throughout Atlantic Canada

• WWF-Canada, Conservation Law Foundation, The Ocean University of Rhode Island Conservancy

Dealing with Governance Challenges • Correcting & mitigating market failures – Design or reform markets to ‘tell the ecological truth’ • Calculate ecological costs – Economists & natural resource scientists • Calculate the costs of pollution, habitat destruction, overexploitation, etc

• Incorporate ecological costs into market prices – Shift taxes & subsidies to work in ecological benign ways • Reduce income & property taxes in exchange for • Adding taxes on environmentally damaging activities • User charges & other forms of sustainable financing – Cap-and-trade programs

University of Rhode Island

Dealing with Governance Challenges • Correcting & mitigating government weaknesses – Harmonize policies & regulations – Combat shortsighted effects • Harmonize the interests of political leaders, agency managers, & resource users with the goal of sustainable development

– Avoid decoupled costs & benefits • Sustainable financing – E.g., apply the user (beneficiary) pays principle

– Neutralize ‘special interests’

University of Rhode Island

Dealing with Governance Challenges • Institutions & arrangements of civil society – Build & strengthen social capital for sustainable development • Active involvement of NGOs • Partnerships between government and civic organizations • Devolve some rights & responsibilities to NGOs – E.g., monitoring, habitat rehabilitation projects

University of Rhode Island

Concluding Remarks • The governance of human interactions with marine ecosystems has not performed well in the past. • Significant improvements in the structure of governance have been & are being made. – But more needs to be done • To mitigate market failure, • To improve government performance, & • To strengthen civil society’s constructive involvement University of Rhode Island

Concluding Remarks • How will the challenges of climate change differ from the challenges presented by humaninduced changes to marine ecosystems? – External forcing of changes will trigger disruptions in markets, governments & civil society – Given their inherent weaknesses, will markets, government & civil society respond in desirable ways? University of Rhode Island

Governance Mechanisms Civil Society

Markets Government

Economic Drivers

Legal/Political Drivers

Social Drivers

Human Uses of Marine Ecosystems University of Rhode Island

For more information, see →

Available online at www.iwlearn.net/abt_iwlearn/pns/learning/b2-2lme/riworkshop University of Rhode Island