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POLLINATORS POLLINATION AND FOOD PRODUCTION

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THE ASSESSMENT REPORT ON <strong>POLLINATORS</strong>, <strong>POLLINATION</strong> <strong>AND</strong> <strong>FOOD</strong> <strong>PRODUCTION</strong><br />

magnitude of impacts and the probability of them<br />

occurring (ISO, 2009). Economic theory usually assumes<br />

that people are either risk-averse (avoid risks), risk-neutral<br />

(indifferent to risk) or risk-loving (seeking risk) in different<br />

situations. Economic analyses often assume that agents<br />

are risk-averse and will therefore typically make decisions<br />

that have lower risks than other decisions (i.e., are either<br />

less likely to occur and are less likely to be negative)<br />

than other decisions. Changes to pollinator populations<br />

can increase the risk of inadequate pollination service<br />

delivery if key species decline. Managed pollinators can<br />

reduce these risks but over-reliance can impose other<br />

risks to growers should production costs rise (Rucker<br />

et al., 2012). By increasing the flow of genetic materials<br />

within plant populations, pollination can also increase<br />

resistance to disease, reducing the risks of yield loss from<br />

disease outbreaks. For example, Mexican production<br />

of bat pollinated Agave cacti, farmed as the basis for<br />

tequila production, has suffered substantial losses from<br />

outbreaks of vascular wilt (Fusarium oxysporum) due to a<br />

reliance upon cloned varieties with little resistance to the<br />

fungus (Ávila-Miranda et al., 2010).<br />

• Vulnerability measures the degree to which a system<br />

is susceptible to and is unable to cope with adverse<br />

effects (McCarthy et al., 2001). Vulnerability is a function<br />

of three elements: exposure, sensitivity and adaptive<br />

capacity (Turner et al., 2003). In the case of pollination,<br />

the exposure can be represented by the dependency<br />

of a plant upon pollination to reproduce or, for crops,<br />

the change in crop yields or economic outputs affected<br />

by changes in pollinator populations. The sensitivity<br />

is indicated by the shape of the relationship between<br />

pollination and benefit (linear, concave or convex yield<br />

loss). The adaptive capacity of the cropping system<br />

can be approximated by the capacity of alternative<br />

techniques to substitute animal pollinators (e.g.,<br />

substituting managed pollinators for wild species or<br />

increasing other inputs).<br />

• Resilience (in the context of social-ecological systems 3 )<br />

refers to the capacity of a system to return to its original<br />

state after being disturbed and the magnitude of change<br />

it can sustain before it changes to a radically different<br />

state (e.g., Berkes et al., 2003; Folke, 2006). In the case<br />

of pollinator communities, resilient communities are those<br />

that can continue to provide a reliable level or services<br />

even in the case of temporary or permanent loss of<br />

major pollinators. Communities that are more resilient<br />

will recover from temporary declines in key species (e.g.,<br />

temporary population declines due to extreme weather)<br />

than less resilient communities (which may permanently<br />

cease to provide any services).<br />

3. The concept of resilience has also been used for many decades in<br />

material sciences or in psychology.<br />

4.2 Incorporating stability into<br />

standard valuation methods<br />

Although variation in pollination services can result in<br />

uncertain benefits (e.g., Bauer and Wing, 2014), to date,<br />

most valuation studies have not considered issues of<br />

service variability within the benefits of pollination services<br />

(Melathopoulos et al., 2015), often only providing a single<br />

estimate of benefits rather than a range of possible values<br />

(see Section 7). Uncertainty has been incorporated into<br />

some existing dependence ratio and surplus analysis studies<br />

by assessing the impacts that variations in certain factors,<br />

such as dependence ratios (Lautenbach et al., 2012), price<br />

elasticities (Gallai et al., 2009a) or substitution parameters<br />

(Bauer and Wing, 2014) can have on estimates of value. In<br />

yield analysis, uncertainty can be incorporated by estimating<br />

value subject to inter-site or inter-annual variance in the<br />

benefits observed. The production function method can<br />

directly capture the effects of variation in several aspects of<br />

pollinator communities on service delivery, identifying how<br />

community variations may cause the output to vary.<br />

Risks from potential honeybee losses have been<br />

incorporated into some dependence ratio (Section 2.2.)<br />

and surplus analysis (Section 2.4) studies (e.g., Cook et al.,<br />

2007; Southwick and Southwick, 1992) using hypothetical<br />

or expert derived weights that reflect the capacity of wild<br />

pollinators to replace honeybee losses. In these studies, the<br />

risk value of honeybee loss is the value of production that<br />

cannot be compensated for by other pollinators. However,<br />

these weights are subject to many of the assumptions of<br />

dependence ratios themselves and often stem from the<br />

assumption that honeybees are presently the majority<br />

pollinator, which may not be the case (Garibaldi et al., 2013).<br />

Within stated preference studies, risk can be applied to<br />

non-market benefits by including an attribute representing<br />

the probability that the benefits will not be delivered as<br />

described. Vulnerability of producer benefits can be<br />

quantified by estimating the proportion of the total economic<br />

value of the agricultural sector (Gallai et al., 2009a) or<br />

agricultural GDP lost in the event of pollinator community<br />

collapse (e.g., Lautenbach et al., 2012).<br />

4.3 Additional methods for<br />

assessing the economic value of<br />

stability<br />

A number of methods from the wider ecological economics<br />

literature are also suitable to specifically assess the<br />

economic value of stability and resilience in benefits from<br />

pollinators, the most relevant of which are reviewed below.<br />

These values are generally considered distinct from the<br />

direct use value of service benefits themselves but can draw<br />

upon methods to estimate use values, becoming an additive<br />

factor in assessing TEV by quantifying the uncertainty<br />

237<br />

4. ECONOMIC VALUATION OF POLLINATOR GAINS<br />

<strong>AND</strong> LOSSES

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