María Loureiro-'Los retos del Planeta y propuestas de soluciones desde la bioeconomía'

La Bioeconomía Marina ante los
Retos Socio-Económicos
Simposio Internacional: Los retos del Planeta y propuestas de soluciones desde
la bioeconomía
Fundación Ramón Areces, 01/02/2017
Maria Loureiro- USC
MARIA.LOUREIRO@USC.ES

Bioeconomía Marina ante los Retos
Socio-Económicos
http://ec.europa.eu/assets/mare/infographics/

Marine Protected Areas and High
Priced Products

BLUE GROWTH: Motivation for an
economic evaluation of ecosystem services
• Ecosystems provide a wide array of goods and
services of value to people
• Provision of ecosystem services often is not
factored into important decisions that affect
ecosystems
• Distortions in decision-making damage the
provision of ecosystem services making
human society and the environment poorer

Two main issues
1. Valuation: how can we assess the relative
value (importance) of various ecosystem
services?
2. Creation of Incentives (economic, social...):
how can we provide rewards for providing
ecosystem services?

Why do we value ecosystem services?
• To define a sustainable pattern of use and extraction
• Cost-benefit-analysis and environmental policy making
 Protection of the natural environment under uncertainty
• Legal claims and natural resource damage assessment
 Exxon Valdez , Prestige oil spill…
• Environmental accounting ( mainly national level)
 Satellite national accounting system
 Valuing Natural Capital (UNEP; WAVES by Worldbank)

Value of ecosystem
services
Decision-Making
Ecosystems
Ecosystem services
Ecological production
function
Economic valuation
methods
Human actionsInformation &
Incentives
A framework for mapping & valuing
ecosystem services
Note: Framework by
Polasky

PORTFOLIO OF CASE STUDIES
1. Jellyfish outbreaks and tourism impacts in Catalonia
2. Poaching and Shellfish gathering in Galicia
3. Oil spills and environmental damage assesmments
4. Future projects: Marine litter (http://www.eea.europa.eu/es/senales/senales-
2014/en-detalle/basura-en-nuestros-mares)
5. Marine traffic and weather forcasts (sistemas de salvamento marítimo)

CASE STUDIES: 1) COASTAL TOURISM
IN CATALONIA
Analyzing Beach Recreationists´Preferences for
the Reduction of Jellyfish Outbreaks: Economic
Results from a Stated Choice Experiment in
Catalonia
Paulo A. L.D. Nunes, Maria L. Loureiro, Laia Piñol,
Sergio Sastre and Louinord Voltaire

Area of Study
Map of Spain and Catalonia Area of Study: Catalonia

Objective
• To asses the impact of jellyfish outbreaks in
recreationists´preferences in Catalonia (Spain).
• Catalonia is a world leading tourism destination: 580
Kms of coastline, 263,7 million beach recreational visits
in 2011.
1. We assess the impact of risk of jellyfish outbreaks on beach
recreationists, understanding preferences of beach attributes
(including services and water quality).
2. Cost-benefit analysis results useful for the Administration

Data collection procedure
• Selection of beaches has been done according
to different morphological and locational
characteristics of beaches.
• Face to face interviews were conducted in
summer 2012 at selected beaches.
– 362 completed questionnaires were collected at
selected beaches.

Questionnaire design
• The design of the interview was tested by several
focus groups and pilot experiences.
• Enumerators took the shortline as a reference line
and walked ten meters straight ahead between each
respondent, randomly inquired.
• Interviewers were carried out only to beachgoers.
• Beachgoers were approached while sunbathing or
walking along shoreline.

Survey Structure
• Six sections:
– Initial questions about beach use and travel habits to the
beach
– Second section about expenses on traveling to the beach
– Third section (not used for this paper) about contigent
behavior type of questions
– Forth section socio-economic impact of jellyfish outbreaks:
stings and treatment costs
– Fifth section about choice exercise between beach type A
and B
– Sixth section concluded with socio-demographic questions

Choice Experiment: Example of a
choice card

Choice Experiment: Attributes levels
Attributes Levels
Jellyfish risk Low risk
(=<2days/week)
High risk (more
than 5 days/week)
Water quality
Average Above average
Services Parking and
toilettes
Parking, toilettes
and children play
area
Parking, toilettes,
children play area
and security
Additional Time
A B C

Choice experiment results (1)
• Conditional Logit (Clogit)
CLOGIT
Variable Coefficient Std. Err. P|z|>Z*
Risk -0.349 0.049 0.000
Water 0.730 0.036 0.000
Environment 0.409 0.038 0.000
Nominal time 0.079 0.016 0.000
Nominal time^2 -0.001 0.000 0.000
1 2 3 4ij ij ij ij ij ijU additional time water quality services jellyfish risk        

Monetarizing traveling time
• The additional travel time an individual (who
travels more than 25 min) was willing to incur
to move to a beach with the same
characteristics but with lower risk of jellyfish
bloom equated to 10.1 additional minutes
• In salary 10.1 minutes= €3.20 foregone.

Monetary Figures
• Time has value: monetarization technique employing
earned income per hour.
• In total, we find that Catalan tourists are willing to
pay about 274,6-316,1 million Euro/year.
• This implies that beach recreationists are willing to
pay 16%-19% of the Catalonian tourism receipts just
to avoid jellyfish outbreaks.

Conclusions
• Jellyfish outbreaks cause important nuisense to tourists.
• Tourists are willing to make sacrifies on time in order to
visit beaches with less probability of outbreaks.
• Results show that cost-benefit analysis of jellyfish control
operations pass a cost-benefit analysis as long as anual
costs are below the estimated WTP to avoid outbreaks.
• Important niche for information devises such as smart
phone applications (medjelly iphone application).

Summer 2012 Pilot trial
Barcelona, Spain
37 beaches, 8 municipalities
- Rescue services (municipalities) fill a form daily with
data on jellyfish presence or absence in the beaches
- Our own field work and surveys
Objective: Enlarge the number of potential users
of the daily collected data

The MEDJELLY app
www.medjelly.com
Jellyfish species in the beach
With data on its biology and risk
Useful information about
jellyfish stings
Flag status on the beach
Temperature (max/min), humidity
(max/min), UV, wind direction and
speed

Between July and September
7679 downloads

Which beach is most looked on the app/web?

60% of the users used the
iPhone App and about 40%
used the web interface
Type of access from the users?

MEDJELLY 2.0
• Android Version
• New Beaches
• Community Section
– Forum
(Two way interaction between users and researchers)
– Surveys
(Researchers asking relevant information from users)
• Users can report existence of jellyfish in the
application
• Added a “jellyfish information phone number”
• Researchers can respond to comments left on a
beach
• New icons created for services offered at each beach

Network of volunteers,
Rescue Services,
Municipalities
Training courses and
sessions every summer at
the beginning of the season
FASE II: Establiment i control d’una xarxa de vigilància de presència de
meduses, durant tot l’any a les aigües litorals de Catalunya
Obtenció, recol·lecció i processament de dades
per part de l’ACA i l’ICM
platges-ACA
arcacions
ACA
Avioneta
ACA
per part de l’ACA i l’ICM
Avioneta
ACA
aments /
veis de
ament i
sme (SSS)
Voluntaris
Record systematically the presence
and absence of jellyfish species
along the Catalan coastline

Data collected from the APP
All the data about the presence/absence of jellyfish related to the
environmental data daily.
Data about the users behaviour in the App and on the Website:
- Which beach is most looked on the app/web?
- Type of access from the users?
- Days with most visits?
- What language is most used?
- The degree of satisfaction of the users?

Case study II: Promoting conservation on
shellfish gathering: economic incentives and
social norms in shellfish fisheries: the role of
economic incentives and social norms

Promoting conservation in shellfish fisheries:
the role of economic incentives and social
norms
Maria Loureiro & Maria Alló
Universidad de Santiago de Compostela

1. OBJECTIVES
To use a choice experiment (CE) to analyze the preferences of shellfish
gatherers’ towards a particular conservation management program
To analyze the impact of social norms and Marine Protected Areas (MPA)
(Ostrom, 1990)

WHY IS THIS IMPORTANT?
• The Food and Agriculture Organization (FAO, 2012) has presented evidence on
the overexploitation and depletion of many fish populations
• This is a recursive problem, despite the fact that different management
initiatives have been developed to deal with this issue.
– Individual Transferable Quotas (ITQs), which require the allocation of units
of harvest
– Territorial Use Rights for Fishing (TURFs), which allocate units of space, are
the most commonly proposed systems.

• However, it is also important to take into account that apart from
establishing these types of management initiatives, other requirements
for sustainable management are needed.
– In this sense, Ostrom (1990) also argued that in order for collective management to be
successful, social issues, such as community leadership, education or the social cohesion
of members have to be taken into account.
– De la Torre Castro and Lindström (2010) show that the origin of the problem of fishery
management is based on the interactions of human and natural domains
– Pretty and Smith (2004) state that economic incentives are important, but sometimes
these are not enough in order to achieve a certain conservation objective.
– Pretty (2003) highlights that social links and norms are important for sustainability.
– Cardenas (2009), who argues that economic incentives and institutional actions can
sometimes serve to promote personal interests instead of public motivations.
WHY IS THIS IMPORTANT?

2. AREA OF STUDY
 North West of Spain, Galicia.
 Artisanal shellfish gathering
activity
 It is an important source of
income for more than 3,903
fishers, in large part, women
(more than 84% in 2013)
 Shellfish fisheries are
grouped:
 Own organizations
 Fishermen’s guilds
(Cofradías).
 Legal permit
 In our area of study, TURFs
have been applied in the
shellfish sector since 1992.
Allocation of units of space
www.elmundo.es

• Main species collected in this sector are three types of clams
(Ruditapes decussatus, Ruditapes philippinarum and Venerupis
pullastra) and cockles (Cardium edule)
• Sold in the local markets for an amount of 53€ million in 2014
(gross value), and registering 6,000 tons sold.
2. AREA OF STUDY

www.lavozdegalicia.es
2. AREA OF STUDY
This sector still suffers from overexploitation
(Freire and García-Allut, 2000) and a severe
poaching activity.
This is a worrying situation that frequently
appears on the front pages of the major
national newspapers, showing how poaching
causes outbreaks of violence in these
communities

• Poachers:
-individuals who catch the resource without
having a legal permit
-they may not respect the months when
extraction is banned, or the limits in terms of the catch
sizes or number of kilos that can be extracted per day.
• Poaching has been qualified as a criminal
offense
www.lavozdegalicia.es

4. DATA
Socio-economic characteristics
Women 93%
Age 50
Higher education 15.40%
Lower income 72.70%
Current problems affecting the natural
environment
Illegal shellfishing 88.50%
Climate change 52.80%
Pollution 67.90%
Homogeneous sample

• We consider the role of economic incentives and the role of social norms
• We observe that shellfish gatherers positively value the improvement of
the resource and the possibility of the inclusion of new coworkers.
• Shellfish gatherers value negatively the delay and the extraction ban even
though this was compensated with an economic subsidy.
• Another important factor that should be taken into account in the design
of new effective policies is the effectiveness of the MPA, where the
principles proposed by Ostrom (1990) serve as tools to preserve the
resource.
• Social norms matter: despite the application of TURFs, management
problems still exist and therefore the consideration of social norms could
help management strategies.
7. CONCLUSIONS

Case Study III: Oil Spills and Compensations

Socioeconomic and environmental
impacts of the Prestige oil spill in
Spain
Maria L. Loureiro
(maria.loureiro@usc.es)
University of Santiago de Compostela (Spain)

The Prestige Accident
• On November 13, 2002, the single-hull 26 year-old oil
tanker, Prestige, suffered a serious accident just 46
kilometers away from the Finisterra Cape, in the
Northwest of Galicia (Spain).
• It carried about 77,000 metric tons (MT) of heavy low-
quality oil.
• The Prestige sank 222 Kilometers away from the Cies
Islands on November 19, 2002, after splitting in two
during a storm.

The Prestige Spill
• The Prestige spilled more than 60,000 MT of oil, polluting more
than 1,300 kilometers of coastline. Its spill was the most serious
environmental accident ever suffered in Spanish and European
waters.

Objective
• This present work contributes to the previous
assessment literature mostly assessing the
total damages (total economic value) of the
Prestige oil spill in Spain, including
environmental damages.
• It has been used by the Prosecutor in the
Spanish trial against the Prestige tank.

Testifying in trial
• 8 hours of oral
testification
• MAIN ISSUES: causality,
causality, causality....

SOCIAL COST of PRESTIGE OIL SPILL
Oil Spill
Direct Cost
Cleaning Cost
Restoration Activities
Other losses
Daño ambiental puroTotal Economic Cost
Ecosystem
Services
Damages to Fisheries
Canning and Fish
Processing Sector
Marine Transport
Health Damages
Tourims and Recreational
Losses
Pure Environmental
Damage (Non-Use Values)

The largest oil spill in Europe in the last 30 years
Ship Year Place Oiled Birds Collected Mortality
Torrey Canyon 1967 Cornualles (UK) 7,000 25,000
Amoco Cadiz 1978 Bretaña (France) 5,000 22,000
Exxon Valdez 1989 Alaska(USA) 30,000 100,000-300,000
Braer 1993 Shetland (UK) 1,500 5,000
Sea Empress 1996 Gales (UK) 4,600 10,000-15,000
Erika 1999 Bretaña (France) 77,000 150,000-300,000
Prestige 2002 Galicia (Spain) 15,610 115,000-230,000

Premises of Work
ECONOMIC
MAGNITUDES:
expressed in 2011
(prices updated via
CPI)
Sources:
OFFICIAL DATA
GEOGRAPHICAL
AREA: GALICIA
AND CANTABRIC
COAST
SHORT TERM
(accident- 2004)
& MID_TERM
COSTS (accident-
2006)

LOSSES IN THE FISHERIES
SECTOR

FISH CATCH LOSSES
0
20,000,000
40,000,000
60,000,000
80,000,000
100,000,000
120,000,000
140,000,000
160,000,000
180,000,000
200,000,000
1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008
Total Fish Catches in Kilos
Capturas (Kg)
Elaborado a partir del Cuadro 3.2 Pág 21, Informe
Pericial

PRICE DROP AFTER SPILL
0
20
40
60
80
100
120
140
160
180
199819992000200120022003200420052006
Media anual
crustaceos, moluscos y
preparados de pescado
España
Media anual
crustaceos, moluscos y
preparados de pescado
Galicia
Figura Pág 31, Informe Pericial
Fuente: INE
Evolución del IPC de las rúbricas crustáceos, moluscos y preparados de pescado en
Galicia y España durante el período 1998-2006 (Precios constantes, base 1996=100

Fishing and Sellfish sectors
– Data from different regional statistical departments from all the
Cantabric coast in North Spain (all affected regions).
– Total losses for the entire Spanish fishing sector: 296.26 millions
for the period 2002-2006.
Economic value of fisheries
Mean 1999-2001 2002 2003 2004 2005 2006
Galicia 471.76 406.12 400.94 452.37 463.72 469.85
Asturias 49.17 48.02 49.24 52.89 57.64 48.94
Cantabria 40.42 36.91 24.47 28.24 26.67 32.31
Basque
Country 115.05 98.66 84.59 111.12 90.27 129.75
Losses at real prices -86.69 -117.24 -35.50 -46.57 -10.24

Examples of price drop: Mackarel

Objetive: To assess whether fish prices have suffered from Stigma
Método: Hedonic Price Models
Data bases www.pescagalicia.com & newspaper databe:
STIGMA IMPACT ON FISH PRICES

NUMBER OF PUBLISHED NEWS OVER TIME
 Definición de variables:
• Periodo 1: antes del hundimiento del buque Prestige
• Periodo 2: desde la fecha del accidente hasta el 31/12/2003
• Periodo 3: Año 2004
236
478
379
259252
187199
171
139119102107
179
115
8474
968767
89
52524359
120
3847
7659425451382218
4334371811111018251625203026160
100
200
300
400
500
600
Noticias totales por meses
El Mundo La Voz de Galicia ABC El Pais
Figura Pág 323,
Informe Pericial

STIGMA EFFECT: HEDONIC MODEL
• The model was estimated as:
• Price=F(lagged news, fish species, local
variables….)
• The hypothesis to be tested:
–Do news impact in a negative way….?

PELAGIC SPECIES : HEDONIC REGRESSION MODEL
Precio Coeficiente Std. Err. P>|t|
Periodo 1=Antes del Prestige 4,561 0,048 0,000
Periodo 2= 4,298 0,049 0,000
Periodo 3=2003 4,211 0,048 0,000
Periodo 4=2004 4,220 0,048 0,000
Periodo 5=2005 4,198 0,048 0,000
Noticias no negativas -0,015 0,006 0,013
Vigo -0,433 0,016 0,000
Pontevedra -0,357 0,016 0,000
Muros -0,654 0,019 0,000
Fisterra -0,320 0,024 0,000
Costa da Morte -0,444 0,017 0,000
Cedeira -0,208 0,021 0,000
Mariña -0,814 0,016 0,000
Coruña-Ferrol -0,787 0,016 0,000
Abadejo 1,796 0,047 0,000
Bonito del Atlántico 0,442 0,083 0,000
Bacaladilla -2,902 0,048 0,000
Merluza 1,171 0,047 0,000
Quenlla -2,410 0,056 0,000
Sardina -2,852 0,048 0,000
Caballa -3,150 0,047 0,000
Jurel -2,862 0,047 0,000
Invierno 0,211 0,013 0,000
Primavera 0,020 0,012 0,086
2
0,692R 
N=114.720
Figura Pág 68-69,
Informe Pericial

Cantidades
vendidas (kg)
Diferencias de
precios(€/kg)
Pérdida por periodo(€)
12/11/2002-
31/12/2003
71.196.720 -0,263 -18.706.867
Año 2004 87.811.882 -0,350 -30.697.453
Año 2005 97.437.816 -0,340 -33.168.125
Año 2006 100.716.070 -0,363 -36.559.128
TOTAL -119.131.573
Pérdidas de Imagen: GALICIA
Modelo de Regresión del Precio: Especies Pelágicas
Pérdidas de imagen en los pescados pelágicos(€ nominales)
Figura Pág 71, Informe Pericial

Conclusion
• Total amount of damages:
– Galicia 2002-2006: €2413 million
– Spain 2002-2006: €3551.81 million
– Spain + France 2002-2006: €3635.18 million
• Public Administration expenditure:
– Galicia: €451.69 million
– Spain: €737.18 million

Conclusion II
• Nowadays, such important losses have not been yet
compensated/awarded to the affected parties.
• The capitan was found not guilty of negligence or
wrong doing. Decision revoked by Spanish Supreme
Court (Jan 2016).
• Thus, although human and governmental actions were
significant in order to restore the affected ecosystems,
still much work has to be done to restore the damage
caused to the private affected parties, and to the
public.

For more information
Muchas gracias por su atención!!
(maria.loureiro@usc.es)

María Loureiro-'Los retos del Planeta y propuestas de soluciones desde la bioeconomía'

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María Loureiro-'Los retos del Planeta y propuestas de soluciones desde la bioeconomía'