Ecosystem Services

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 • https://www.youtube.com/watch?v=-Jw9dPYVT_Y

4. Provisioning Services • Food • Pollination • Fiber • Medicines • Alternative Energy

5. Regulating Services • Water • Air • Pollution • https://www.youtube.com/watch?v=HqAaeQ5ylKw

6. Cultural Services • Recreation • Aestestic Values https://www.youtube.com/watch?v=otaYZ60wK5I

7. Ecosystem Services • https://www.youtube.com/watch?v=wMIUglBligI • https://www.youtube.com/watch?v=BCH1Gre3Mg0&t=80s

8. Ecosystem Services

9. Products 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) Ecosystems products and services

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

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

12. Understand how much an ecosystemcontributes to economicactivity or society. For example, on averageforestsbenefits in the Med regionamount to about 1% of GDP. Indirect use value such as watershed protection contributes about 35% of total estimated value. Understandwhat are the benefits and costs of an intervention thatalters the ecosystem (conservation investment, developmentproject, regulation or incentive) and makeecosystemgods and services comparable withotherinvestments How are costs and benefits of a change in ecosystemdistributed? How to make conservation financiallysustainable? Why value?

13. https://www.youtube.com/watch?v=q8AZHtF2f50 Value of Ecosystem services

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

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

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

17. 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 REPLACEMENT COSTS The costs of replacing an environmental good or serviceA minimum estimate of money saved

18. 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 MARKET PRICES 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. Conservation with payment for service Payment 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 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 • https://www.youtube.com/watch?v=i1OTQvNV1lo

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

25. 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. Use-and non use- of economic valuation to design payments for ecosystem services

26. 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. Use-and non use- of economic valuation to design payments for ecosystem services