History of Economic Thought

Water and Forest Environmental
Service Payments in Costa Rica
Dr. René Castro
Email: [email protected]
Paris, OECD 2008
Costa
Rican
Strip
tease
Forest covert is growing back
drive by local and global ESPs
Part of Financing is coming from CO2
markets
Proje
cts
Internationally
Certified
CO2
Pioneer 1997: Certified tradable
Offsets (CTOs),
Standardized 2005: Certified
Emissions Reductions (CERs)
Ref: Castro et al. 2005
The Central American CERs
Potential* is Substantial at a
Market Price of $28/ton
Potencial de Reducción de Carbono en Centroamérica
(En Toneladas Métricas de Carbono)
País
Combustibles Deforestación
Costa Rica
1,223,000
3,360,000
El Salvador
1,991,000
1,584,000
Guatemala
1,608,000
10,125,000
Honduras
964,000
16,218,000
Nicaragua
747,000
13,200,000
Panama**
NA
NA
Belize**
NA
NA
Total
6,533,000
44,487,000
Actividad
Plantaciones
648,000
324,000
644,000
227,000
648,000
NA
NA
2,491,000
* Carbon estimates comes from the Harvard-INCAE-CABEI project, for
Aforestación Total por País
1,400,000
6,631,000
84,000
3,983,000
2,150,000
14,527,000
2,826,000
20,235,000
2,626,000
17,221,000
NA
1,260,736
NA
318,000
64,175,736
9,086,000
the range between 6.5 and 62 million
tons per year cost estimates are less than $20 per ton (Castro Salazar, 1999; Boscolo et al., 2000)
** Estimates for Panama and Belize come from a CCAD study conducted in 1998.
Overhead 5
First Steps
toward full
pricing in 2001

Amount proposed: ±
$0.07 per m3 of water
• Amount approved only
2% of the water bill
($0.005) per m3
Water prices with a ratio of more than
4,000 times between bottled and tap
water part of a new market
Tap and Bottled water attributes
Ref. CID/Gallup survey, December 2002

Bottled water
retailed price is
around $0.90 per
liter and is not
regulated

Tap water retail
price is around $
0,00019 per liter
is regulated
Part II
Opportunities in the electricity
sector
Fuente: IEA 2007
Potencial y costos de generación de energía eléctrica a partir de Biomasa
67
57
47
11.5
0
Piña: 68.2 MW
0
10.5
20
100
17
7
-1
6.5
Gallinaza: 6.22 MW
Palma Af ricana: 50 MW
0
AHORRO 27%
Proy ectos Comunidades
Temporizadores a
Aisladas
Demanda Pico 2007
Cascarilla de Arroz: 17.5 MW
-1.5
Calentadores 1%
Casc. Caf é: 8.9 MW
Térmico
Calderas Eficientes 1%
Demanda fuera de pico
Motores Eficientes 12%
Costo marginal de poblaciones aisladas
-2
0
50
100
150
200
Cogeneración 22% Refrigeración Eficiente 20%
250
Demanda pico teórica
300
350
Buena(MW)
Vista
Potencial de Producción
Porcentaje de Ahorro
y Eficiencia (%)
Camastros
70
Las Nubes.
60
40
3561.0
120
Hermosa Pta.Mala
Argentina
Eficiencia E
Ahorro
100
Alumbrado Eficiente 17%
80
50
80
EFICIENCIA 73%
8.5
5.5
60
Bagazo de Caña: 139 MW
-2.5
90
27
40
9.5-0.5
7.5
Cásc de Naranja: 8.3 MW
Leña: 15.4 MW
4.5
37
-3
Pinzot e de Banano: 4MW
Costos en centavos USD/KWh
Costos de generación(centavos USD/KWh)
77
Costos de generación
(CentavosUSD/KWh)
Costos de generación ( centavos
USD/KWh)
Estimación
deyAhorro
y Eficiencia
según. actividad
Curva
de
costo
marginal
real
potencial
de
C.R
12.5
Angostura Otras Hidro
Jabalina
Cachí
Yuav en
3561.2
500
Arenal
Surtubal Carara
3561.4
3561.6
1000
3561.8
3562.0
1500
Potencia (MW)
Biomasa
Priv ados
Geotermia
3562.2
2000
3562.4
Potencia MW
3562.6
2500
3562.8
3000
3500
Estudio de INCAE en proceso
Conclusions
Countries are already suffering the impact
they are in
Permanent reconstruction,
of climate change:
Some mitigation opportunites may arise
from Co2 trade, clean energy and water
conservation to protect the natural
environment and
social well being of
the poor
people