Challenges in using valuation in ecosystem-based management in a marine context: the case of UK Marine Protected Area designation - Ocean Sustainability in the 21st Century - page 250

7.3.2.5 Aggregation
Summing together all the marginal benefits of MCZ designation provides the aggregate be-
nefits in terms of extra ecosystem service provision. In economic appraisal, benefits are
generally presented in unadjusted per annum terms and also in discounted form, i.e. allow-
ing for the presumption that a benefit or cost accrued in the near future is worth more to
society than an equivalent benefit or cost in the distant future. Following UK government
guidance (BERR, 2008 ) , a discount rate of 3.5% was applied so as to allow comparability
withthecostestimates. Withdiscounting thebenefit estimate was£10.2billion fortheleast
extensive proposed network (scenario A) with the less restrictive management regime. The
present value of the most extensive/restrictive scenario (J/more restrictive) is over double
this (£23.5 billion). The undiscounted mean annual benefits range from around £0.92 billi-
on to £1.95 billion, depending on network/restrictions.
The assessment of costs was carried out separately from Hussain et al . ( 2010 ) .
ABPMer ( 2007 ) carried out surveys of affected industry stakeholders to estimate costs of
MCZ designation, and the discounted cost estimate range was £0.4 billion and £1.2 billion.
As such the minimum benefit-cost ratio is around seven.