The social and economic value of geodiversity
Michelle Guthrie
University of Wales Aberystwyth

Introduction

The scientific importance of geodiversity has been evident and recorded for hundreds of years. However, the economic, social and cultural contribution of geodiversity and the conservation of geodiversity to human welfare has been largely overlooked. PhD research funded by English Nature is being carried out to determine the social and economic value of geodiversity in the UK. This paper will provide a summary of the reasons why we should value geodiversity followed by a discussion of the different types of value and the specific values of geodiversity. Finally, a brief discussion of how we can measure these values using specific case studies is presented.

Purpose of research

The purpose of this research is to provide evidence to support funding for policies to promote, protect and enhance geodiversity. The results of this research will provide stronger cases to protect geological sites against development pressures. The contribution of geodiversity to income and employment generation within local communities will also be highlighted. This research will also raise the profile of geodiversity. Why value geodiversity? There are many reasons why we should value geodiversity, these are summarised below:

• People obtain satisfaction and well-being from geodiversity
• Geodiversity provides products and services
• Governments need to make decisions on the appropriate and sustainable management of geodiversity
• Geodiversity research for the advancement of science and industry
• To train earth scientists
• To provide teaching facility for schools
• Sites have aesthetic, amenity, cultural, historical and wildlife value.

Types of value

Economists define total economic value as a combination of use and passive-use values. Environmental valuation techniques (e.g. contingent valuation and choice experiments) allow the use and passive-use values associated with geodiversity to be quantified. A use value is one that is derived from making direct use of a resource, for example the benefit derived from a person visiting a geological site. Passive-use value arises from a person knowing that a geological site exists, even if that person has no actual or planned use of the site (existence value). For example, the benefit associated with the knowledge that geodiversity is protected for future generations to enjoy (bequest) value. Passive-use value also includes option and altruistic values. Option value is the future demand or supply of the resource. Altruistic value relates to the resource existing to be used by other people in the present. There are also many other social, cultural and geodiversity values.

Geodiversity values

The benefits of geodiversity to human welfare can be illustrated by considering the different values that arise, both directly and indirectly. Research that describes the benefits of nature provided a starting point from which to explore the benefits of geodiversity in more depth (see De Groot, 1992; Daily, 1997; English Nature, 2002; Gray, 2003). The approaches developed take into account all the ways in which nature contributes to our quality of life. These are classified into four main groups – appreciation, knowledge, products and ecosystem/natural functions – with each group split into detailed categories (English Nature, 2002). The many benefits offered by geodiversity and the conservation of geodiversity are summarised in Figure 1.

Measurement of values

These values can be measured using a range of environmental valuation techniques which have been developed from economic theory. Indirect or revealed preference approaches observe actions within surrogate markets taken in response to environmental change. Examples of these include the travel cost method, which is based on the cost of time and travel, and the hedonic pricing method, which is based on house prices. Direct or stated preference approaches attempt to elicit preference by experiment or questionnaires. These techniques employ carefully structured questionnaires to ascertain public willingness to pay for the protection of the environmental good in question. Contingent valuation and choice experiment are examples of stated preference techniques. These techniques provide a means to measure the total economic value of geodiversity.

Economic impact studies use multiplier analysis to determine income and employment impacts to local communities. This highlights the importance of geodiversity to certain local economies.

A study of the public's perception of geodiversity through analysis of focus groups and interview transcripts provides descriptive evidence of the values of geodiversity.

Case study sites

Four geological sites within the UK have been utilised for this research:

• Dorset as part of a World Heritage Site
• the Isle of Wight 'the dinosaur isle'
• Dudley for its Silurian fossils, industrial heritage and urban setting
• Snowdonia National Park for its distinctive upland environment.

Economic impact

Economic impact studies were carried out in Dudley and on the Isle of Wight. A questionnaire surveyed respondents spending on travel, accommodation, and spending on geological activities. This gives a figure for the visitor expenditure within an area. The impact on the local economy can then be generated using specific multiplier coefficients. Data can also be used to determine the employment impacts by estimating the full time equivalent jobs that would be created as a result of visitor expenditure.

A simple travel cost survey was also incorporated into the questionnaire by asking visitors where they had travelled from. This, along with data about the respondents' number of visits, socio-economic data and the cost of travel means that the consumer surplus for the site can be calculated.

Public perception

Focus groups have been carried out at each of the case study sites. Transcripts of focus groups have been analysed using special software (NVivo). Analysis provides descriptive quotes, themes and ideas. Terms quoted by the public include stratigraphy and the geological time periods. Many people have learned this information from the media, and television programmes such as 'Walking with dinosaurs'. When questioned about their views towards geological features being preserved for the future, the majority of respondents were positive towards this. Focus group participants also highlighted their concern about the level of education of geology.

Further specialist focus groups with groups from industry, academia, school children, fossil collectors and tourists, will provide more descriptive evidence for the perceptions of geodiversity.

Environmental valuation

A choice experiment (CE) was carried out in Wren's Nest National Nature Reserve, Dudley, West Midlands to determine the use and passive use values of geological attributes. The CE method elicits people's preferences for an environmental good or a change in that environmental good by using carefully structured questionnaires or interviews. These attributes were determined from focus groups and the survey was presented as a questionnaire. The respondents are shown choice scenarios based on different levels of geological attributes and different levels of annual household council tax increases. These attributes were:

• Access and interpretation (Wren's Nest NNR)
• Access and interpretation (Seven Sisters Caverns)
• Fossil collecting
• Annual council tax increase

There are three levels of the access and interpretation, fossil collecting attributes, the tax attribute has five different levels. This creates 135 total combinations of attributes and too high a number of scenarios for respondents to choose between, making this impractical to survey. Fractional factorial design is used to determine the main effects combinations, giving 50 combinations. These combinations are presented as five sets of choice sets, each containing 10 choice scenarios. Choice scenarios are presented as three policy options, Option A, Option B or the current situation (see Figure 2 example choice scenario). Respondents choose which option they prefer. Data can then be modelled and analysed to provide an implicit price for each of the attributes. This can then be translated into an economic value for the resource at Wren's Nest NNR. Data are currently being analysed (January 2005), results will be available later this year.

Conclusion

Geodiversity has many social and economic values, which can be measured using environmental valuation techniques, qualitative methods and economic impact studies. Further public perception focus groups and economic impact questionnaires will be collected this year. Results of this research will provide further evidence of the benefits of geological and geomorphological conservation. The valuation of environmental goods has been developed as a valid means to aid policy development and appraisal by measuring the benefits associated with environmental policies. In the UK, much funding has been contributed by government departments and agencies such as the Forestry Commission, Department for the Environment, Food and Rural Affairs and the Environment Agency towards environmental valuation studies. These methods can therefore be applied to geodiversity and used by those individuals and organisations involved in the conservation of geodiversity. This research will not only provide new and policy-relevant information, but will also provide a unique and comprehensive insight into the value of the UK's Earth heritage.