1. Ecosystem Services

2. What is an ecosystem service?
Pollination is just one type of ecosystem service. Humankind benefits in a multitude of ways from ecosystems. Collectively, these benefits are becoming known as ecosystem services.
 Ecosystem services are regularly involved in the provisioning of clean drinking water and the decomposition of wastes.

3. Measuring Ecosystem Services

4. Provisioning Services
Food
Pollination
Fiber
Medicines
Alternative Energy

5. Regulating Services Water Air Pollution

6. Cultural Services Recreation Aestestic Values

7. Ecosystem Services https://www.youtube.com/watch?v=wMIUglBligI

8. Ecosystem Services

9. Ecosystems products and services
Food
Fuel wood
Non-timber forest products
Fisheries products
Marine products
Wetlands products
Medicinal and biomedical products
Forage and agricultural products
Water
Reeds
Building material
Functions/Services
Hydrological services
Purification of water
Capture, storage and release of surface and groundwater
Mitigation of floods and droughts
Biodiversity
Maintenance of biodiversity (plants and animals)
Climate
Partial stabilization of climate through carbon sequestration
Moderation of temperature extremes and the force of winds and waves
Source: Adapted from Simpson (2001)

10. USE VALUES NON-USE VALUES
Direct values Outputs that can be consumed or processed directly, such as timber, fodder, fuel, non-timber forest products, meat, medicines, wild foods, etc.
Indirect values Ecological services, such as flood control, regulation of water flows and supplies, nutrient retention, climate regulation, etc.
Option values Premium placed on maintaining resources and landscapes for future possible direct and indirect uses, some of which may not be known now.
USE VALUES
NON-USE VALUES
Existence values
Intrinsic value of resources and landscapes, irrespective of its use such as cultural, aesthetic, bequest significance, etc.

11. 9min https://www.youtube.com/watch?v=BCH1Gre3Mg0

12. Why value?
Understand how much an ecosystem contributes to economic activity or society. For example, on average forests benefits in the Med region amount to about 1% of GDP. Indirect use value such as watershed protection contributes about 35% of total estimated value.
Understand what are the benefits and costs of an intervention that alters the ecosystem (conservation investment, development project, regulation or incentive) and make ecosystem gods and services comparable with other investments
How are costs and benefits of a change in ecosystem distributed?
How to make conservation financially sustainable?

13. https://www. youtube. com/watch
Value of Ecosystem services

14. Stated Preference Methods
Cost- Based Methods
Revealed Preference
Methods
Stated Preference Methods
Contingent Valuation
Conjoint Analysis
Choice Experiments
Replacement Costs
Cost of providing substitute services
Damage cost avoided
Effect on Production
Productivity Approach
Surrogate Market Approaches
Travel
Costs
Hedonic Pricing
Market Price Method
Market Prices

15. Productivity & cost-based approaches
Direct values
Goods and products
Indirect values
Ecosystem services
Option values
Existence values
Nature tourism
Market Prices
Effect on Production
Replacement Costs
Cost of Providing Substitutes
Cost of Avoided Damage
Productivity & cost-based approaches
Travel Costs
Contingent Valuation
Surrogate market & stated preference approaches

16. Revealed Preference Methods Stated Preference Methods
Cost- Based Methods
Revealed Preference Methods
Stated Preference Methods
Contingent Valuation
Conjoint Analysis
Choice Experiments
Replacement Costs
Cost pf providing substitute Services
Damage Cost Avoided
Effect on Production
Production Function Approaches
Surrogate Market Approaches
Travel
Costs
Hedonic Pricing
Market Prices

17. REPLACEMENT COSTS
E.g. Ream National Park, Cambodia:
Value of mangrove ecological services (flood barriers, upstream erosion control)
Storm protection $60,000
Silt trapping $220,000
TOTAL VALUE $280,000
The costs of replacing an environmental good or service A minimum estimate of money saved

18. People’s actual willingness to pay
MARKET PRICES
E.g. Nam Et & Phou Loei NBCA, Lao PDR:
Value of NTFP use for Viengthong District villages
Cash income $634,000
Plant foods $45,000
Wild meats $476,000
Fuel and housing $480,000
Crop consumption $241,000
TOTAL VALUE $1,876,000
What it costs to buy or sell a good or product
People’s actual willingness to pay

19. Watershed services: supply and demand
Supply of services:
Upstream land uses affect the Quantity, Quality, and Timing of water flows
Demand for services:
Possible downstream beneficiaries:
Domestic water use
Irrigated agriculture
Hydroelectric power
Fisheries
Recreation
Downstream ecosystems
Source: World Bank 2003

20. Applying ecosystem valuation to payment for ecosystem service: simple in theory
Conservation without payment
Conventional resource use:
no conservation
Minimum payment willing to receive to change damaging behaviour to ecosystem
Conservation with payment
for service
Payment
Benefits to producers
Costs to offsite populations
Maximum payment
willing to pay to reduce
environmental damage
Source: Adapted from World Bank 2002

21. In practice, not so simple…

22. In practice not so simple… Complex biophysical linkages (Brand 2003)

23. Ecosystems Services and Natural Capital

24. In practice still not so simple…valuing effects of change in ecosystem conditions on agricultural production

25. Use-and non use- of economic valuation to design payments for ecosystem services
Public payments
Costa Rica: $20-44/ha/yr for forest conservation- based on old subsidy based on opportunity cost of land use change
USA (Conservation Reserve Program): $50/ha/yr. Opportunity cost and cost of conservation measures
Ecuador: municipal water and electrical utility companies each donate 1% of total revenues for watershed protaction (oroginally 5% had been proposed by TNC)
Brazil – a water utility in the city of Sao Paulo pays 1% of total revenues ($2,500 per month) for the restoration and conservation of the Corumbatai watershed. Funds are used to establish tree nurseries and for reforestation along riverbanks. Payment is outcoem of political negotiation.

26. Use-and non use- of economic valuation to design payments for ecosystem services
Private payments
France: US$320/ha/year for 7 years, equivalent to 75% of farm income Opportunity cost and actual cost of switching agricultural technology
Costa Rica: a hydropower company pays US$10 per ha/year to a local conservation NGO for hydrological services in the Peñas Blancas watershed
Australia: Since 1999, farmers in the Murray Darling watershed pay $AUD 85/ha/yr for forest conservation for 10 years or $AUD 17 per million liters of transpired water. Based on increase in marginal benefits due to reduced soil salinity resulting of 100 ha of reforested area.