FROZEN HEAT | Volume 2

4.2 GAS HYDRATES AND SOCIETY

4.2.1 Socio-economic challenges

while those with more experience will seek to improve upon previous goals and/or identify other goals (CCA 2008).

The contribution of gas hydrates to social and develop- ment goals would depend on a region’s, a nation’s, and/or a community’s state of development, its gas hydrate endow- ment, and other living, non-living, and human capital en- dowments. The key for each geographic region would be to determine where and whether gas hydrates might fit in a larger development framework and whether the extraction, processing, and marketing of natural gas from gas hydrates would provide a net advance in achieving its goals. Another consideration for countries and communities would be the degree to which they can meet their goals without ex- ploiting gas hydrates. Many developing countries are tapping emerging markets that generate income directly from ecosys- tems. These income streams come fromfisheries, tourism, and direct payments to protect marine biodiversity and the carbon held in coastal habitats (UNEP et al. 2012; Solgaard et al. 2012). Nations around the world are also finding new opportunities in service and technology sectors, as well as trade and finance. Still, for many countries, non-extractive resources and human capital might be insufficient to meet social and development targets. For these countries, gas hydrates could offer one ap- proach to achieving higher levels of socio-economic well-being, while preserving the quality of the natural environment. 4.2.2 Socio-economic opportunities A report on gas hydrate research and development in Canada (CCA 2008) concluded that questions will and should be asked about the societal impacts of gas hydrate development in areas where the scale and extent of the development exceeds what has been experienced to date. In industrialized and diversified economies, the report noted, the potential social impacts of re- source development tend to be focused in the area experienc- ing the development. Those having limited experience with development will seek to have specific social and/or economic goals met and to ensure clear benefits for their communities,

These basic social drivers are equally applicable to communi- ties in developing states, where gas hydrates might someday represent a new way to meet development goals. If this hap- pens, nations or communities will need a portfolio of options for meeting development needs equitably and sustainably, and for considering how new opportunities, such as those possibly provided by gas hydrates, might affect other options. A green economy approach provides a strategic and integrat- ed framework for considering how a variety of development options can be balanced and managed, and how economic capital or financial returns can be reinvested to build the nat- ural and social capital upon which a sustainable and resilient economy depends (UNEP 2010b). In the case of a proposed gas hydrate development, a green approach would try to en- sure that the development: • Would improve the social and economic well-being of so- ciety through equitable capture and distribution of rents and economic opportunities associated with the utiliza- tion of non-renewable resources; • Would not threaten environmental and ecological resil- ience or productivity; • Would not raise the cost of living faster than the standard of living; • Would guarantee the sustainability of human well-being and the ecological health that people depend upon; and • Would keep options open for future generations. A full cost-benefit analysis would yield benefits when evaluat- ing potential gas hydrate development in regions with lim- ited experience with such development, especially in develop- ing countries. The cost-benefit analysis would include both the likely monetary and non-monetary costs and benefits (Hanley and Barbier 2009). It would also provide a clear ac- counting of how these costs and benefits would be distribut- ed across society, with special attention to costs and benefits that accrue to the host country/region/community and to

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