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NATURAL RESOURCE ECONOMICS

Sponsored by a Grant TÁMOP-4.1.2-08/2/A/KMR-2009-0041 Course Material Developed by Department of Economics,

Faculty of Social Sciences, Eötvös Loránd University Budapest (ELTE) Department of Economics, Eötvös Loránd University Budapest

Institute of Economics, Hungarian Academy of Sciences Balassi Kiadó, Budapest

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NATURAL RESOURCE ECONOMICS

Week 4

The system of water circulation and the impact of its change

on well-being

Gábor Ungvári

Draft

• Nature is an independent system – view as a capital, its basic supporting services are the water, carbon, nutrient circulation and soil formation.

• The size and diversity of this capital define the benefits of the ecosystem services for well-being.

• The importance of water generates from the fact that it is the fuel and the carrying medium of these circulations at the same time.

• The connection of land use and the natural capital match the question of water management and well-being.

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Exploring the relationship between well-being and ecological performance

Costanza’s hypothesis

Summarising the economic examinations relevant to natural resources, ordered by types of ecological systems (biomes) and services.

The specific values relating to the given area change in conjunction with the ecological system’s level of water-usage.

Costanza et al: The Value of ecosystem services: putting the issues in perspective. In Ecological Economics 25(1998) 67–2.

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Grass / rangelands

Temperate / boreal forest Tropical forest

Tidal marsh / mangroves Swamps / floodplains

Grass / rangelands

Temperate / boreal forest Tropical forest

Tidal marsh / mangroves

Swamps / floodplains

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• The ability of transpiration drives the temperature of the plants, that influences the pace of warming above the surface

• The bottleneck condition of delaying warming up of the air is the quantity of available humidity in the soil.

Water intolerancy Kravchik, Varga – People and Water www.peopleandwater.sk

• Temperature differences between the sealed and non-sealed

surfaces, but:

• There are differences of non- sealed surfaces by the plant / habitat type – forest, plow-land

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Connection among the 3 basic supporting ecosystem

services, the climate and the water circulation

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The driving forces of climate processes:

sunshine – precipitation – transpiration, means ecosystem

functioning – seasonal water surplus – water retention – water scarcity

The vapour intake of the atmosphere are constrained by the available energy (from the sun)

The possibility of vapour intake is provided by the plants cover (and the soil if uncovered)

The rate of the process are defined by the type of plant cover – both the transpiration efficiency of the plants and the water retention capacity of the habitat – That gives the superior performance of forests

Y axis: cm precipitation, or the amount of energy that needs to transpirate it X axis: months from january – to january

Thornthwaite, Hare (Unasylva, 1955, 9. Évf./ 2)

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The effect of non-considering water retention – the example

of the Amazon basin

Thornthwaite, Hare (Unasylva, 1955, 9.

Évf./ 2)

http://earthobservatory.nasa.gov/Study/

AmazonEVI/

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The connection of transpiration and runoff in the Hidegvíz valley experiment site (Soproni

hegység).

Gribovski Zoltán: Evapotranspiráció hatása a lefolyás napi ritmusára erdősült kisvízgyűjtőkön. In: Erdő és Klíma füzetek IV. Sopron 2004

Mitigating climate interferes with the nature’s ability to transpirate The leveled runoff are provided by the soils ability to store water

Daily run-off of two streams at summer period (by two hours

periods)

Summer run-off time series 12 days with the trend-line of water

depletion

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The impact of ecosystem services on human well-being by

the Millennium Ecosystem Assessment research program

The 3 basic supporting service

Nutrient circulation Primary production Soil formation

www.maweb.org

Consequences of Ecosystem Change for Human Well-being

www.maweb.org Consequences of Ecosystem Change for

Human Well-being

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12 The possibility to draw

of usufructs, a capital embodied in the supporting processes The rate of water

retention is the indicator of the capital

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The historical trend of river valley changes in CE

Temperate Grasslands &

Woodlands Temperate Broadleaf Forest Tropical Dry Forest Tropical Grasslands Tropical Coniferous Forest Mediterranean Forests

Tropical Moist Forest

0 50 100 Percent of habitat (biome) remaining

Habitat Loss to 1990

Source: Millennium Ecosystem Assessment

Source: Heinz Ellenberg: Vegetation ecology of Central Europe (Vegetation Mitteleuropas mit den Alpen (1963)

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Millennium Ecosystem Assessment Conceptual Framework

Direct Drivers Indirect

Drivers

Ecosystem Services

Human Well-being

Direct Drivers of Change

 Changes in land use

 Species introduction or removal

 Technology adaptation and use

 External inputs (e.g., irrigation)

 Resource consumption

 Climate change

 Natural physical and biological drivers (e.g., volcanoes)

Indirect Drivers of Change

 Demographic

 Economic (globalization, trade, market and policy framework)

 Sociopolitical (governance and institutional framework)

 Science and Technology

 Cultural and Religious

Human Well-being and Poverty Reduction

 Basic material for a good life

 Health

 Good Social Relations

 Security

 Freedom of choice and action

Life on Earth:

Biodiversity

Millennium Ecosystem Assessment www.maweb.org

Direct Drivers Indirect

Drivers

Ecosystem Services

Human Well-being

Direct Drivers Indirect

Drivers

Ecosystem Services

Human Well-being

Direct Drivers of Change

 Changes in land use

 Species introduction or removal

 Technology adaptation and use

 External inputs (e.g., irrigation)

 Resource consumption

 Climate change

 Natural physical and biological drivers (e.g., volcanoes)

Indirect Drivers of Change

 Demographic

 Economic (globalization, trade, market and policy framework)

 Sociopolitical (governance and institutional framework)

 Science and Technology

 Cultural and Religious

Human Well-being and Poverty Reduction

 Basic material for a good life

 Health

 Good Social Relations

 Security

 Freedom of choice and action

Life on Earth:

Biodiversity

Millennium Ecosystem Assessment www.maweb.org

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The results of diminishing water circulation in the ecosystem services

The increasing lack of services results in loss of well-being, so reducing natural capital a well-being deficit is emerging

Increasing pressure on public sources to compensate the individual and

public damages of the impacts generated by the ecological deficit

Floods – Inland excess water – Growing irrigation needs Soil – decay of productivity – Erosion

Sink of subsoil water tables – droughts

www.maweb.org Millennium Ecosystem Assessment

Consequences of Ecosystem Change for Human Well-being

Air quality Climate mitigation

(cooling) CO2 sink Erosion mitigation

Water purification Disease control Pariasite control Mitigation of natural

disasters

Regulating functions

Floods – Inland excess water – Growing irrigation needs Soil – decay of productivity – Erosion Sink of subsoil water tables – droughts

Atmospheric extremities – Warming

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16 Atmospheric extremities – Warming

The aggregation of the small but subsequent steps

• The forests consumed, the waters gone – the landscape impoverished and so the communities co-existed in it

• The living force of the landscape seeps with the water

• The step-by step deforestation decreased the ecological productivity.

• The drainage of the floodplains cut the supporting ecosystem service production.

The accumulation of natural capital stopped

• The exploitation of the ecosystem services based on the yields of natural capital changed to the eat up of the natural capital itself.

• The portfolio of the used usufructs shrinked and its application homogenized

• The human well-being degraded with nature – the group of beneficiaries

concentrated, the ones crowded out increased. Common usufructs fall in expense of the private ones.

• Recent land use patterns are irrational, there is no place for water and forests. It results in a critically low productivity level of ecosystem processes – compared to its possible level

• As the missing amount of water grows as do the deficit of the ecosystem services

• The diminishing mitigation services of the ecosystem results in the growing frequency of climate extremities – rising negative impacts and rising costs to compensate them.

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The impact of forest loss on the water circulation parameters

and the utility of land

Legend:

• C – precipitation,

• P – transpiration,

• L – run-off,

• L1 – surface run-offs (floods),

• L2 – sub-surface, low-water run-offs,

• W – stored water

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