Staff Research Highlight - Accounting impacts of renewable energy expansions on ecosystem services to balance the trade-offs
Aziz, T. (2023). Accounting impacts of renewable energy expansions on ecosystem services to balance the trade-offs. In Science of The Total Environment (p. 162990). Elsevier BV. https://doi.org/10.1016/j.scitotenv.2023.162990
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This new study, authored by Aquanty staff member and environmental economist Dr. Tariq Aziz, and published in Science of the Total Environment, investigates the complex and often competing relationship between two vital components of our world: renewable energy systems and ecosystem services. Renewable energy is becoming increasingly popular as the demand for energy rises and appeal for fossil energy sources, such as oil, gas, or coal, diminishes.
While renewable energy sources, such as solar, wind and hydro, present a promising solution to reduce fossil fuel emissions and mitigate climate crisis, it is crucial to factor in any negative impacts of their expansions on ecosystem services in the overall cost-benefit analysis of renewable energy projects. For instance, land cover changes concomitant with renewable energy expansions tend to degrade ecosystem services, such as clean water, pollination, and climate and flood regulation.
This study, for the first time, proposes a methodology to assess the impact of renewable energy expansions on ecosystem services. By combining spatially explicit modeling and ecosystem services valuation, it monetizes the effects of solar, wind, and hydro energy expansions. The successful application of the methodology to Pakistan's landscape shows that the country can expand its renewable energy sources to about one-fifth (18.35%) of its total area, with solar being the most suitable at 14.83%, followed by wind at 3.48%, and hydro at 0.04%. In terms of agriculture, solar and wind energy expansions are likely to have a greater impact, with both expansions occupying predominantly agricultural lands (85.61% for solar and 63.60% for wind). In contrast, hydropower expansion is expected to have a more significant impact on tree cover and shrublands (47.84%), herbaceous vegetation (17.32%), and agricultural lands (17.32%).
Furthermore, the valuation results show that hydropower expansions will cause the highest permanent loss of ecosystem services, followed by solar and wind. The reason for hydropower causing the highest permanent loss is the significant impact of water storage reservoirs on the landscape, which require vast areas of land. The cost-effective mix for 2030 will impact the ecosystem services value by $9.6 billion per year, of which 13% will be completely lost.
The study, by introducing a novel approach to assess the effects of renewable energy developments on the environment, draws out overarching insights and conclusions that are relevant to a global audience. The findings of this research provide valuable insights into the trade-offs that must be made to achieve a sustainable future, and therefore, will enable policymakers to make informed decisions regarding investments in renewable energy development.
Finally, as we transition to renewable energy sources, we must consider the potential environmental impacts that may arise. The expansion of renewable energy systems can lead to a decline in the value of ecosystem services, which are essential for maintaining the health and balance of ecosystems and ultimately, human well-being. The ecosystem services valuation based on spatially explicit modeling is expected to gain popularity in the future as a means in shaping land use and environmental policies at both local and national levels.
If you are interested in utilizing a multidisciplinary approach of ecosystem services valuation in your jurisdiction, please feel free to contact Aquanty at info@aquanty.com for more information and support.
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Abstract:
Renewable energy systems and ecosystem services, both vital for human society, are often at odds. The land cover change brought about by renewable energy expansions tends to degrade ecosystem services. An effective approach for appraising the effects of renewable energy expansions on ecosystem services is therefore urgently needed. Faced with recent acute power shortages, Pakistan has embarked on renewable energy expansions to meet its future energy demands. These expansions, in turn, will degrade ecosystems in the country, leading to a further decline in the value of its already dwindling ecosystem services. To quantify this decline, I combine spatially explicit modeling and ecosystem services valuation techniques to monetize the impacts of the potential expansions of three energy systems: solar, wind, and hydro. The results show that 18.35 % of Pakistan's total area is suitable for potential renewable energy expansion, with 14.83 % of that total appropriate for solar, 3.48 % for wind, and 0.04 % for hydropower. The average value of ecosystem services from the areas of impact by potential expansions of solar, wind, and hydropower energy systems are respectively $2026, $2160, and $2824 per hectare per year (in 2020 U.S. dollars). Furthermore, the permanent loss of ecosystem services from the expansions decreases in the order of hydropower > solar > wind. The renewable energy expansions based on the potential energy mix for the year 2030 will cause a total impact of up to $9617 million per year thereafter, with a complete loss of $1259.4 million per year in ecosystem services values. These results can help achieve a finely balanced trade-off between renewable energy expansions and ecosystem services in the country. This novel approach for assessing the environmental footprints of energy expansions can be a trailblazer for countries and regions aiming at transitioning to renewable energy systems.