Rangeland Goods and Services:

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Rangeland Goods and Services: Identifying Challenges and Developing Strategies for Continued Provisioning David D. Briske Ecosystem Science & Management Richard T. Woodward Department of Agricultural Economics Texas A&M University

Benefits human s derived from nature

Social-Ecological System

Ecosystem Service Categories

ESSM Diverse Services Provisioned Provisioning Supporting Regulating Cultural

Global Dryland MEA 2005

Ecosystem Services Supply Ø Assess Earth s ecosystems ü 1360 scientists; 95 countries ü 4 yr preparation; 2001 2005 Ø 20 of 24 ecosystem services degraded in past 50 years ü Biodiversity loss ü Water quality & quantity ü Erosion regulation ü Pest regulation ü Natural hazards regulation

Supply of Rangeland ESs Ø Intensive livestock grazing increases: ü Carbon emissions ü Soil erosion ü Biodiversity loss Ø 10-20% rangelands degraded Ø 15% converted to cropland past 50 years Petz et al. Global Environ. Change 2014 Millennium Assessment 2005

Demand for Rangeland ESs Ø 70-100% greater food demand 2050 ü Human population approaching 9 billion ü Greater global affluence and diet quality Ø Increasing demand for animal protein ü 600M livestock added in past 30 years ü 830M livestock may be added by 2030 Ø Substantially greater forage demand Ø Ecological footprint of production Yahdjian et al. FEE 2015

A Rangeland Dilemma Ø Increasing demand for ESs Ø Decreasing ESs supply Ø Marginalized inhabitants Ø Effective policy? Ø Alternative approaches? Exurban Development Woody Plant Encroachment Cropland Conversion

Aldo Leopold Early American Conservationist Ø Promoted environmental ethics and land conservation in U.S. Ø 1887 1948 Ø Professor Univ. Wisconsin Ø Founder of wildlife management Ø A Sand County Almanac 1949 Crux of the problem is that every landowner is the custodian of two interests - the public interest and his own - 1934.

Crux of the Problem Ø Economic markets value goods, but not the ecosystems that supply them. Ø Provisioning services are private goods, while other categories of ESs are public goods regulating, cultural and supporting. Ø Provisioning services are internal to markets, while other ES categories are often external to markets. Ø External ESs are frequently perceived to have no value in land use decisions.

Private vs Societal Benefits Extensive Management Intensive Management Private Benefits $20/ha $40/ha Societal Benefits $50/ha $10/ha Total benefits $70/ha $50/ha Private Benefit = Positive $20; land use change beneficial Societal Benefit = Negative $40; land use change detrimental Societal benefits become an externality!

Land Use - ES Tradeoff Increase in one service decreases the supply of others. Foley et al. Science 2005

Aligning Private and Public Interests Jack et al. PNAS 2008

Payment for Ecosystem Services Ø Transparent system for additional provision of ESs through conditional payments to voluntary providers. Ø Requires a market of potential buyers, and contracts with providers focused on well-defined ESs. Ø Primarily focused on watersheds, C sequestration and biodiversity. Ø Agri-environmental schemes represents a type of PES. Ansink and Bouma 2015

ESSM Diverse Services Provisioned Provisioning Supporting Regulating Cultural

PES Appropriate for Rangelands? Ø Can the ESs framework support rangeland decision making? ü Required ecological knowledge ü Required institutional knowledge Ø If so, how should the framework be designed? ü Components and procedures ü Scale and scope ü Potential knowledge application

Potential Benefits of ESs Framework Ø More complete accounting of diverse ESs that are heterogeneously distributed across global rangelands. Ø Create markets for supporting and regulating services that are currently external to land use decisions. Ø More comprehensive valuation of rangeland systems, including ecological and social variables and drivers. Ø Improve livelihoods of the worlds most marginalized human inhabitants.

Attributes of Rangeland ES Ø ESs are limited per unit area, but they are vast in aggregate. Ø Aggregate non-market ESs may be of greater societal value than total provisioning services. Ø Societal payments for non-market ESs may reduce need for provisioning services by local inhabitants. Ø May provide a means for poverty alleviation and a reduction of rangeland degradation.

Required Ecological Knowledge Ø Key species supplying ESs ü Dominant species most important Ø Structure and processes underpinning ESs ü Originate from ecological processes Ø Influence of major environmental variables ü Informed by disturbance ecology & resilience theory Ø Spatial and temporal considerations ü Cross-scale interactions least understood Kremen 2005 Ecology Letters

Required Institutional Knowledge Ø Develop markets of potential buyers, contracts with sellers, and accounting procedures for transactions. Ø Organizational entity to assume this responsibility. Ø Remove perverse policies that over-value provisioning services to marginalize other ESs. Ø Minimize use of payments to marginalizing ESs in other areas leakage. Ø Effectiveness of PES schemes still uncertain minimal verification.

Land Use - ES Tradeoffs Increase in one service decreases the supply of others. Foley et al. Science 2005

Organization of PES Programs Spatial data GIS Database Land use/land cover map Ecosystem goods and services Non-spatial data ESs supply maps Ø Map major ecosystems Ø Categorize bundles of ESs Ø Past trends in LU change Ø Corresponding trend in ESs Ø Project future LU change Ø Impact on ES supply & demand Ø Policies to guide LU change Value assessment quantitative/qualitative Inform land use decisions and policy Baral et al. Ecological Complexity 2013

Map Ecosystem Service Bundles Raudsepp-Herne et al. PNAS 2010

Linear ES Response Appropriate? C sequestration Plant production Inappropriate? Biodiversity hotspots Wildlife corridors Watershed protection Riparian systems

Threshold ES Response Marginal costs Low when abundant Low when depleted Greatest value in middle

ESs Compatible with Resilience? Ø Resilience ability of systems to change in response to disturbance and yet retain critical function. Ø Supply of ESs could provide a useful metric for assessing resilience of SESs. ü Thresholds represent conditions at which capacity to supply specific ecosystem services is lost.

Reduce Perverse Incentives Ø 2.6M ha grassland converted to cropland in U.S. since 2000 for production of biofuel crops. Ø Renewable Fuels Standard stipulates that crops can only be produced on lands converted prior 2007. Ø 1.5M ha of ineligible land may have been enrolled because of insufficient accounting and enforcement. Ø Federal crop insurance in U.S. also incentivizes conversion of marginal lands to cropland. Lark et al. 2015 Environ. Res. Let.

Ecosystem Services: A Path Forward? Ø Value of aggregate non-market ESs to society relative to current provisioning services. Ø An accounting system capable of recording transactions of diffuse ESs distributed over vast areas. Ø Ability of payment for societal benefits to modify resource dependence of marginalized inhabitants. Ø Utility of ESs as a viable metric to assess resilience of SESs. Ø Exclusive emphasis on provisioning services is not a viable path forward.