Modelling the ecological-economic impacts of restoring natural capital, with a special focus on water and agriculture, at eight sites in South Africa

Date
2012-12
Authors
Crookes, Douglas John
Journal Title
Journal ISSN
Volume Title
Publisher
Stellenbosch : Stellenbosch University
Abstract
ENGLISH ABSTRACT: The restoration of natural capital has ecological, hydrological and economic benefits. Are these benefits greater than the costs of restoration when compared across a range of dissimilar sites? This study examines the impact of restoration at eight case study sites distributed throughout South Africa. The benefits of restoration include improved grazing values and crop yields, improvements in water yield and quality, soil carbon improvements, wild products, lumber, fuelwood and electricity. The impact of restoration on all forms of natural capital (i.e. cultivated, replenishable, renewable and non-renewable) is therefore quantified. The costs of restoration include depreciation on capital expenditure, labour costs, equipment and bond refinancing costs. The literature review done during this study presents three frameworks. The first framework classifies social science using the classification scheme of Burrell and Morgan. It shows that system dynamics modelling and neoclassical economics share the same epistemological and ontological characteristics, both of these fall within the naturalistic paradigm, which also characterises most of scientific research. System dynamics modelling and neoclassical economics, however, digress in the Flood and Jackson classification scheme, which is the second framework for classifying social science. Neoclassical economics is characterised by a small number of elements and few interactions between the elements. Systems dynamics modelling, on the other hand, is characterised by a large number of elements and many interactions between the elements. The nature-freedom ground motive is subject to a number of criticisms, including the fact that it introduces dualistic thinking into the analysis, as well as that it does not adequately address normative or moral issues. The framework of Dooyeweerd, the third framework, is presented as a means of transcending the nature-freedom ground motive. Although the nature-freedom ground motive is largely utilised in this study, the analysis does transcend the traditional economic approach in a number of areas. These include, for example, a focus on transdisciplinary methods, disequilibria, adopting a case study approach, and empirical estimation instead of theoretical models. The restoration case studies in this study are examples of individual complex systems. Eight system dynamics models are developed to model interactions between the economic, ecological and hydrological components of each of the case studies. The eight system dynamics models are then used to inform a risk analysis process that culminates in a portfolio mapping exercise. This portfolio mapping exercise is then used to identify the characteristics and features of the different case study sites based on the risk profile of each sites. This study is the first known application of system dynamics, risk analysis and portfolio mapping to an environmental restoration project. This framework could potentially be used by policymakers confronted with budgetary constraints to select and prioritise between competing restoration projects.
AFRIKAANSE OPSOMMING: Die restorasie van natuurlike kapitaal het ekologiese, hidrologiese en ekonomiese voordele. Maar is hierdie voordele groter as die kostes verbonde aan restorasie wanneer dit oor verskeie ongelyksoortige terreine vergelyk word? Hierdie studie bestudeer die impak van restorasie op agt verskillende studie terreine versprei regoor Suid-Afrika. Die voordele van restorasie sluit die volgende in: beter weiding waardes en oes opbrengste, verbeterde water lewering en water kwaliteit, verbetering van grondkoolstof, wilde produkte, hout, brandstofhout en elektrisiteit. Die impak van restorasie op alle vorme van natuurlike kapitaal (gekultiveerd, aanvulbaar, hernubaar en nie-hernubaar) is daarom gekwantifiseer. Die kostes van restorasie sluit in ‘n vermindering in kapitaal uitgawes, arbeidskoste, toerusting en verband herfinansieringskoste. Die literatuurstudie hou drie raamwerke voor. Die eerste raamwerk klassifiseer sosiale wetenskappe volgens die Burrel en Morgan klassifikasie skema. Dit wys daarop dat dinamiese stelsel modellering en neoklassieke ekonomie dieselfde epistemologiese en ontologiese eienskappe deel; beide val binne die naturalistiese paradigma, wat dan ook meeste wetenskaplike navorsing tipeer. Stelseldinamiese modellering en neoklassieke ekonomie wyk egter af na die Flood and Jackson klassifikasie skema, wat die tweede raamwerk is waarvolgens sosiale wetenskappe geklassifiseer word. Neoklassieke ekonomie word gekenmerk aan 'n klein aantal elemente en 'n beperkte hoeveelheid interaksie. Stelseldinamiese modellering het egter 'n groot aantal elemente met veel meer interaksies tussen hierdie elemente. Die natuur-vryheid grondmotief is onderworpe aan 'n aantal punte van kritiek, insluitende die feit dat dit dualistiese denke in analise inbring. Verder spreek dit ook nie voldoende die normatiewe of morele kwessies aan nie. Die raamwerk van Dooyeweerd, wat dan die derde raamwerk is, word voorgestel as 'n wyse waarop die natuur-vryheid grond-motief getransendeer kan word. Alhoewel die natuur-vryheid grondmotief grootliks gebruik word in hierdie studie, transendeer die analise die tradisionele ekonomiese benadering op 'n aantal gebiede. Hierdie gebiede sluit die volgende in: 'n fokus op transdissiplinere metodes, onewewigtigheid, 'n gevallestudie benadering, en empiriese skatting in plaas van teoretiese modelle. Die restorasie gevallestudies wat in hierdie studie gebruik word is voorbeelde van individuele komplekse sisteme. Agt dinamiese stelsel modelle word ontwikkel om die interaksies tussen ekonomiese, ekologiese en hidrologiese komponente in elke gevallestudie te modelleer. Hierdie agt stelseldinamiese modelle word dan gebruik in 'n risiko analise proses wat uitloop op 'n portefeulje plot oefening. Hierdie portefeulje plot oefening word dan gebruik om eienskappe en kenmerke van verskeie gevallestudie terreine te identifiseer gebaseer op die risiko profiel van elke terrein. Hierdie studie is die eerste bekende toepassing van dinamiese stesels, risiko analise en portefeulje plot tot 'n omgewingsrestorasie projek. Hierdie raamwerk kan potensieël gebruik word deur beleidskrywers wat met begrotings beperkinge gekonfronteer word om tussen restorasie projekte te kies en om hulle te prioritiriseer.
Description
Thesis (PhD)--Stellenbosch University, 2012.
Keywords
Conservation of natural resources -- South Africa, Environmental economics -- South Africa, Restoration ecology -- South Africa, Dissertations -- Economics, Theses -- Economics
Citation