The Economic Value of Environmental Liabilities: Addressing One of the Greatest Challenges for the Maintenance of Socioecological Potentialities in Colombia

This document provides an economic evaluation of the loss of ecological and sociocultural potential derived from the environmental liabilities (ELs) of the extractive sector in Colombia. Seventy-two environmental liabilities and 13 ecosystem services and sociocultural elements affected in 4 departments were analyzed. In total, an economic loss of 42 billion dollars/year was estimated, equivalent to 15% of the national GDP (gross domestic product), of which 51% falls on indigenous and Afro-Colombian communities. Ecosystem services of regulating water flow and water quality, food supply, and opportunities for recreation and tourism were valued at a greater loss. Gold and coal extraction activities were associated with 98% of the estimated economic loss, which represents, in a cost internalization scenario, an increase of 174% and 295% in the current price of these commodities. Furthermore, 81% of the economic value reported for environmental liabilities is affecting river ecosystems. This research measures for the first time for Colombia the magnitude of national uncompensated socio-environmental damages associated with extractive activities in economic terms under the key concept of environmental liability. The results obtained function as a complementary tool to the country’s conservation and sustainable economic development efforts, generating estimates that function as evidence within economic-based decision making; Although there are limitations in the development and scope of this research, the results and the proposed methodological approach address the need to overcome the theoretical analysis of this type of impact, creating a baseline of knowledge and a starting point for perfecting the method. This investigation represents a necessary first step to initiate responsibility assignment processes.