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Valuation of Ecosystem Services

Valuation of Ecosystem Services An Integrated Hydrological and Economic Model to Value the Enhanced Nitrogen Retention in Renaturated Streams. Ingo Bräuer & Rainer Marggraf. Institute of Agricultural Economics University of Göttingen. Contents. Introduction

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Valuation of Ecosystem Services

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  1. Valuation of Ecosystem Services An Integrated Hydrological and Economic Model to Value the Enhanced Nitrogen Retention in Renaturated Streams Ingo Bräuer & Rainer Marggraf Institute of Agricultural Economics University of Göttingen

  2. Contents • Introduction • The Replacement Cost Method (RCM) • General Idea and Problems at Application • Chemical Processes in the River • Modelling Changes in the Nitrogen Retention • Valuation of the Nitrogen-Retention • Practical Problems using the RCM

  3. Aims Development of a user-friendly procedure to evaluate the ecosystem function N-retention to promote the use of RCM Discussion of the choice of technical substitutes

  4. Case study: the enhanced N-retention in renaturated streams to evaluate a conservation program The Replacement Cost Method Valuation by comparison of an ecological function and a corresponding technical substitute

  5. Quantity 1. Quantification of the ecosystem function X 2. Determination of the technical substitute and its marginal costs Price = Value 3. Economic benefits of the ecosystem service Replacement Cost Method Valuation Procedure

  6. Replacement Cost Method Valuation Procedure Quantity 1. Quantification of the ecosystem function X 2. Determination of the technical substitute and its marginal costs Price = Value 3. Economic benefits of the ecosystem service

  7. Study Area

  8. Distelbach Pegel „Kreuzgrund" Jossa-Insel Sahlensee Oberndorf Pfaffenhausen Investigated River

  9. GIS Lower runnig velocity Denitrification:N-Compounds N2 Increase in flooded Area Increase in flooded Area Model: Behrendt & Opitz (2000) Rates of Denitrification (Literature) Non-point N-Imission pointN-Imission Problem River System Influence of Beavers on the Structure of the River River Floodplain Floodplain Denitrification-Processes 1 Models

  10. + 710 kg/a + 460 kg/a + 1.170 kgN/a Diffuse N-Imission punktuelleN-Imission Problem River System Jossa Influence of Beavers on the Structure of the River River Floodplain Floodplain Hydraulic Load +15% Denitrification-Processes +15.500 m² Increase in flooded area 1 Models

  11. Valuation Procedure 1. Quantification Quantity Spessart: 4.700 kgN/a X Price = Value

  12. Valuation Procedure (RCM) Quantity 1. Quantification of the ecosystem function X 2. Determination of the technical substitute and its marginal costs Price = Value 3. Determination of the economic benefits

  13. Drinking Water Sewage Plant Agricul. Politics +non-point and point emissions - Standard too high +similar process and output - non-point emissions - no cost-efficient alternative +most efficient method - atmospheric emissions Overestimation Not identical Underestimation 55 € 7,5 € 2,5 € Replacement Costs Price

  14. Valuation Procedure (RCM) 2. Replacement Costs Quantity Avoidance of N-Emissions X Price 2,5 €/kgN = Value

  15. ca. 4.700 kgN/a 2,5 €/kgN ca. 12.000 €/a Valuation Procedure (RCM) 3.Economic Value Quantity X Price = Value 12%

  16. 290 % 40 % 12 % Factor >20 Reference-Scenario 1. Drinking Water 2. Sewage Plant 3. Agricul. Pol. 55 € 7,5 € 2,5 € 260.000 €/a 36.000 €/a 12.000 €/a

  17. Summary • An estimation of economic values is possible • The results depend highly on the reference scenario • A transparent procedure is essential to assess the quality of the results

  18. etc. Non-Evaluated Compounds ? Flood Prevention Recharge Ground Water Self-purificationof o.E. Nitrogene-Retention Evaluated Compound Replacement Cost Method Total Econ. Value

  19. The investigated Program: • When: 1987 Reintroduction of 18 Beavers • Where: Spessart (n-w) Jossa und Sinn • What: Program included Purchase of Land and Habitat-Develpoment • 2001: Population of ca. 180 Ind. in severeal River systems (u.a. Kinzig)

  20. CVM CVM CVM CVM CVM Hedonic Pricing Replacement Cost Method Travel-Cost- Method Total Economic Value (TEV) TEV Use Values Non-Use Values Direct UV Indirect UV Option Value Bequest V. Existence V. Habitat Habitat Ecosystem Recreation genetic Resources Functions Species Species Species Obs.

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