Speaker: Apurva Sharma
M.Sc. II
F-2016-27-M
 Introduction
 Categories of ecosystem services
 Evaluation of ecosystem services
 Conclusion
 Ecosystem is a dynamic complex of plants, animals and
micro-organism communities and the non living
environment interacting as a functional unit .
 Initially known as “natural capital”, ecosystem services
are the benefits provided by ecosystems.
 The term “Ecosystem Services" was introduced in a 1970
report of the Study of Critical Environmental
Problems, which listed services including insect
pollination, fisheries, climate regulation and flood
control.
Provisioning Services
Regulating Services
Cultural Services
Supporting Services
Preservation Services
Products obtained from ecosystem
Benefits obtained from regulation of
ecosystem
Services necessary for the production of
all other ecosystem services
Non-material benefits obtained from
regulation of ecosystem
Preservation of ecosystem services
Products obtained from ecosystem
Food Fresh
Water
Fuel
Fiber
Bio-
chemicals
Genetic
Resources
3. INVASIVE SPECIES AND FOREST PATHOGENS
1. URBANIZATION 2. CLIMATE CHANGE
Source: Adeosun et al., 2016
Effect of developmental activities on the water quality parameters in Abeokuta
reservoir, Nigeria
Effect of drought on rainfed crop yield in Dharwad District
 The benefits obtained from
the regulation of ecosystem
processes, including, for
example, the regulation of
climate, water, and some
human diseases.
Climate
regulation
Water regulation
Water purification Pest control
1. URBANIZATION
3. INVASIVE SPECIES AND FOREST
PATHOGENS
2. CLIMATE CHANGE
Evaluation of ecosystem services
 The non-material benefits people obtain from
ecosystems through spiritual enrichment, cognitive
development, recreation, and aesthetic experiences”.
Spiritual and
Religious
Recreation and
Aesthetic
Inspirational and
Educational
Ecotourism
1. URBANIZATION 2. CLIMATE CHANGE
Most at risk tourism destinations for mid to late 21st century due to
climate change
Source: UN World Tourism
Organization
 Services that are
necessary for the
production of all other
ecosystem services.
 Soil formation, nutrient
cycling
Primary
production
Soil
formation
 Soil also acts as a buffer as it has the ability to stop
nutrient or pH changes by absorption.
Nutrient
cycling
Pollination
1. URBANIZATION 2. CLIMATE CHANGE
3. INVASIVE SPECIES AND FOREST
PATHOGENS
Source: Song and Deng (2015)
Effects of urbanization on ESV in NCP between 1988 and 2008
Effects of Urbanization-Induced Cultivated Land Loss on Ecosystem
Services in the North China Plain
Evaluation of ecosystem services
De Groot et al., 2002
 Recharged ground water, fertile soil, plant biomass
created by photosynthesis etc. appear to be seemingly
free.
 Ecosystem services- food, water, recreation, protection
from natural hazards are all reviewed as a right that is
free and infinite.
 However, with the ever increasing biotic-pressure, their
is a gradual decline in the vigour of eco-systems to
provide services to the same degree.
 Ecosystem values are measure of how important ecosystem services are to
people - what they worth.
 Environmental values are measured in money terms through the concept of
individuals willingness to pay (WTP).
 WTP measured by the maximum amount of money that that person
would be willing to pay in return for receiving the benefit.
Evaluation of ecosystem services
1. Market price method
2. Productivity method
3. Hedonic pricing method
4. Travel cost method
5. Contingent valuation method
 The market price method estimates the economic value
of ecosystem products or services that are bought and
sold in commercial markets.
 The standard method for measuring the use value of
resources traded in the marketplace is the estimation of
consumer surplus and producer surplus using market
price and quantity data.
 Hypothetical Situation:
Water pollution has caused the closure of a commercial
fishing area, and you want to evaluate the benefits of
cleanup.
 Application of the Market Price Method:
The objective is to measure total economic surplus for the
increased fish harvest that would occur if the pollution is
cleaned up.
This is the sum of consumer surplus plus producer surplus.
Consumer surplus is measured by the maximum amount that
people are willing to pay for a good, minus what they
actually pay.
Producer surplus is measured by the difference between
the total revenues earned from a good, and the total
variable costs of producing it.
Result
The results of the analysis can be used to compare the
benefits of actions that would allow the area to be
reopened, to the costs of such actions.
 The productivity method, is used to estimate the
economic value of ecosystem products or services that
contribute to the production of commercially marketed
goods.
 For example, water quality affects the productivity of
irrigated agricultural crops, or the costs of purifying
municipal drinking water. Thus, the economic benefits
of improved water quality can be measured by the
increased revenues from greater agricultural
productivity, or the decreased costs of providing clean
drinking water.
Hypothetical Situation
A reservoir that provides water for a city’s drinking water system is
being polluted by agricultural runoff. You want to determine the
economic benefits of measures to eliminate the runoff.
Application of the Productivity Method
 Step 1:
Estimate how the cost of purification changes when reservoir water
quality changes. Calculate the quantities of purification chemicals and
filters needed for different levels of reservoir water quality.
 Step 2:
The final step is to estimate the economic benefits of protecting the
reservoir from runoff, in terms of reduced purification costs. For
example, if all runoff is eliminated, the reservoir water will need very
little treatment and the purification costs for drinking water will be
minimal.
Results
The results of the analysis can be used to compare the benefits of
achieving different levels of water quality in the reservoir with the cost
of programs to reduce or eliminate the polluting runoff, and thus improve
water quality.
 The hedonic pricing method is used to estimate the
value of environmental amenities that affect prices of
marketed goods.
 The basic premise of the HP method is that the price of
a marketed good is related to its characteristics, or the
services it provides.
Evaluation of ecosystem services
 The travel cost method determines the value of an ecosystem
based on the amount of money spent to reach the particular
destination.
 It is used to value sites that are used for recreation purposes.
Hypothetical Situation:
 A site used mainly for recreational fishing is threatened by
development in the surrounding area. You want to determine
the value of actions to protect fish habitat at the site.
Application of Travel Cost Method:
 Collect information on the number of visitors and the
number of visits made in the last year.
 With an average price per visit the total profit to the
authorities is calculated.
 If the actions cost is less than the total profit per year, the
action will take place.
 The contingent valuation method involves directly
asking people, in a survey, how much they would be
willing to pay for specific environmental services.
 It is the only environmental valuation technique that
takes into account non-use values.
 Situation
Rivers in the Four Corners Region provide 2,500 river miles of critical
habitat for nine species of fish that are listed as threatened or
endangered. Continued protection of these areas required habitat
improvements, such as fish passageways, as well as bypass releases of
water from dams to imitate natural water flows needed by fish. A
contingent valuation survey was used to estimate the economic value
for preserving the critical habitat.
 Application
Survey respondents were provided detailed maps that highlighted the
areas designated as critical habitat units for the fish. They were asked if
they would contribute to the Four Corners Region Threatened and
Endangered Fish Trust Fund.
 The questionnaire was sent to a random sample of 800 households in
the Four Corners states of Arizona, Colorado, New Mexico, and Utah.
The average willingness to pay was estimated to be $195 per
household. When extrapolated to the general population, the value of
preserving the habitat areas was determined to be far in excess of the
costs.
Intangible
Benefit
Annual Value Location Methodology
used
Recreation/
Ecotourism
Rs. 427/ visitor
( Rs. 16,197/ha)
Keoladeo
National Park,
Bharatpur
Travel Cost
Method
Recreation/
Ecotourism
Rs. 516/ visitor
( Rs. 20,944/ha)
Keoladeo
National Park,
Bharatpur
Contingent
Valuation
Method
Recreation/
Ecotourism and
other benefits
Rs. 90/
household/ year
(Rs. 23,300/ ha)
Boriwali National
Park, Mumbai
Contingent
Valuation
Method
Water Supply Annual rental=
Rs. 4,745/ha
Almora forests Indirect Methods
Watershed
Values (Soil
Conservation)
Rs. 2.0 lakh/ha Lower Shiwalik
(Yamuna Basin)
Indirect Methods
Nature of Forest
Produce
Nature of
benefits
Value of Annual Flow of Goods and
Services per ha (Rs.)
Minimum Maximum
Timber Tangible 2,701 9,270
Non-timber
forest products
Tangible 538 2,957
Ecological
functions
Intangible 624 2.0 lakh
Ecotourism Intangible 676 2.0 lakh
Carbon Store Intangible 20,125 1.2 lakh
• The benefits that we get from the nature in the form of
ecosystem services are numerous.
• The well being of living forms largely depends on well being
of these services. Hence, it is provided that necessary
management practices should be adopted to enhance and protect
the ecosystem services.
• WHAT GETS MEASURED GETS MANAGED. There are
various economic methods to valuate the various ecosystem
services.
• With the various threats that the ecosystem services are facing,
it becomes all the more important to assign values to them.

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Evaluation of ecosystem services

  • 2.  Introduction  Categories of ecosystem services  Evaluation of ecosystem services  Conclusion
  • 3.  Ecosystem is a dynamic complex of plants, animals and micro-organism communities and the non living environment interacting as a functional unit .  Initially known as “natural capital”, ecosystem services are the benefits provided by ecosystems.  The term “Ecosystem Services" was introduced in a 1970 report of the Study of Critical Environmental Problems, which listed services including insect pollination, fisheries, climate regulation and flood control.
  • 4. Provisioning Services Regulating Services Cultural Services Supporting Services Preservation Services Products obtained from ecosystem Benefits obtained from regulation of ecosystem Services necessary for the production of all other ecosystem services Non-material benefits obtained from regulation of ecosystem Preservation of ecosystem services
  • 7. 3. INVASIVE SPECIES AND FOREST PATHOGENS 1. URBANIZATION 2. CLIMATE CHANGE
  • 8. Source: Adeosun et al., 2016 Effect of developmental activities on the water quality parameters in Abeokuta reservoir, Nigeria Effect of drought on rainfed crop yield in Dharwad District
  • 9.  The benefits obtained from the regulation of ecosystem processes, including, for example, the regulation of climate, water, and some human diseases.
  • 12. 1. URBANIZATION 3. INVASIVE SPECIES AND FOREST PATHOGENS 2. CLIMATE CHANGE
  • 14.  The non-material benefits people obtain from ecosystems through spiritual enrichment, cognitive development, recreation, and aesthetic experiences”.
  • 17. 1. URBANIZATION 2. CLIMATE CHANGE
  • 18. Most at risk tourism destinations for mid to late 21st century due to climate change Source: UN World Tourism Organization
  • 19.  Services that are necessary for the production of all other ecosystem services.  Soil formation, nutrient cycling
  • 21.  Soil also acts as a buffer as it has the ability to stop nutrient or pH changes by absorption.
  • 23. 1. URBANIZATION 2. CLIMATE CHANGE 3. INVASIVE SPECIES AND FOREST PATHOGENS
  • 24. Source: Song and Deng (2015) Effects of urbanization on ESV in NCP between 1988 and 2008 Effects of Urbanization-Induced Cultivated Land Loss on Ecosystem Services in the North China Plain
  • 26. De Groot et al., 2002
  • 27.  Recharged ground water, fertile soil, plant biomass created by photosynthesis etc. appear to be seemingly free.  Ecosystem services- food, water, recreation, protection from natural hazards are all reviewed as a right that is free and infinite.  However, with the ever increasing biotic-pressure, their is a gradual decline in the vigour of eco-systems to provide services to the same degree.
  • 28.  Ecosystem values are measure of how important ecosystem services are to people - what they worth.  Environmental values are measured in money terms through the concept of individuals willingness to pay (WTP).  WTP measured by the maximum amount of money that that person would be willing to pay in return for receiving the benefit.
  • 30. 1. Market price method 2. Productivity method 3. Hedonic pricing method 4. Travel cost method 5. Contingent valuation method
  • 31.  The market price method estimates the economic value of ecosystem products or services that are bought and sold in commercial markets.  The standard method for measuring the use value of resources traded in the marketplace is the estimation of consumer surplus and producer surplus using market price and quantity data.
  • 32.  Hypothetical Situation: Water pollution has caused the closure of a commercial fishing area, and you want to evaluate the benefits of cleanup.  Application of the Market Price Method: The objective is to measure total economic surplus for the increased fish harvest that would occur if the pollution is cleaned up. This is the sum of consumer surplus plus producer surplus. Consumer surplus is measured by the maximum amount that people are willing to pay for a good, minus what they actually pay.
  • 33. Producer surplus is measured by the difference between the total revenues earned from a good, and the total variable costs of producing it. Result The results of the analysis can be used to compare the benefits of actions that would allow the area to be reopened, to the costs of such actions.
  • 34.  The productivity method, is used to estimate the economic value of ecosystem products or services that contribute to the production of commercially marketed goods.  For example, water quality affects the productivity of irrigated agricultural crops, or the costs of purifying municipal drinking water. Thus, the economic benefits of improved water quality can be measured by the increased revenues from greater agricultural productivity, or the decreased costs of providing clean drinking water.
  • 35. Hypothetical Situation A reservoir that provides water for a city’s drinking water system is being polluted by agricultural runoff. You want to determine the economic benefits of measures to eliminate the runoff. Application of the Productivity Method  Step 1: Estimate how the cost of purification changes when reservoir water quality changes. Calculate the quantities of purification chemicals and filters needed for different levels of reservoir water quality.  Step 2: The final step is to estimate the economic benefits of protecting the reservoir from runoff, in terms of reduced purification costs. For example, if all runoff is eliminated, the reservoir water will need very little treatment and the purification costs for drinking water will be minimal. Results The results of the analysis can be used to compare the benefits of achieving different levels of water quality in the reservoir with the cost of programs to reduce or eliminate the polluting runoff, and thus improve water quality.
  • 36.  The hedonic pricing method is used to estimate the value of environmental amenities that affect prices of marketed goods.  The basic premise of the HP method is that the price of a marketed good is related to its characteristics, or the services it provides.
  • 38.  The travel cost method determines the value of an ecosystem based on the amount of money spent to reach the particular destination.  It is used to value sites that are used for recreation purposes.
  • 39. Hypothetical Situation:  A site used mainly for recreational fishing is threatened by development in the surrounding area. You want to determine the value of actions to protect fish habitat at the site. Application of Travel Cost Method:  Collect information on the number of visitors and the number of visits made in the last year.  With an average price per visit the total profit to the authorities is calculated.  If the actions cost is less than the total profit per year, the action will take place.
  • 40.  The contingent valuation method involves directly asking people, in a survey, how much they would be willing to pay for specific environmental services.  It is the only environmental valuation technique that takes into account non-use values.
  • 41.  Situation Rivers in the Four Corners Region provide 2,500 river miles of critical habitat for nine species of fish that are listed as threatened or endangered. Continued protection of these areas required habitat improvements, such as fish passageways, as well as bypass releases of water from dams to imitate natural water flows needed by fish. A contingent valuation survey was used to estimate the economic value for preserving the critical habitat.  Application Survey respondents were provided detailed maps that highlighted the areas designated as critical habitat units for the fish. They were asked if they would contribute to the Four Corners Region Threatened and Endangered Fish Trust Fund.  The questionnaire was sent to a random sample of 800 households in the Four Corners states of Arizona, Colorado, New Mexico, and Utah. The average willingness to pay was estimated to be $195 per household. When extrapolated to the general population, the value of preserving the habitat areas was determined to be far in excess of the costs.
  • 42. Intangible Benefit Annual Value Location Methodology used Recreation/ Ecotourism Rs. 427/ visitor ( Rs. 16,197/ha) Keoladeo National Park, Bharatpur Travel Cost Method Recreation/ Ecotourism Rs. 516/ visitor ( Rs. 20,944/ha) Keoladeo National Park, Bharatpur Contingent Valuation Method Recreation/ Ecotourism and other benefits Rs. 90/ household/ year (Rs. 23,300/ ha) Boriwali National Park, Mumbai Contingent Valuation Method Water Supply Annual rental= Rs. 4,745/ha Almora forests Indirect Methods Watershed Values (Soil Conservation) Rs. 2.0 lakh/ha Lower Shiwalik (Yamuna Basin) Indirect Methods
  • 43. Nature of Forest Produce Nature of benefits Value of Annual Flow of Goods and Services per ha (Rs.) Minimum Maximum Timber Tangible 2,701 9,270 Non-timber forest products Tangible 538 2,957 Ecological functions Intangible 624 2.0 lakh Ecotourism Intangible 676 2.0 lakh Carbon Store Intangible 20,125 1.2 lakh
  • 44. • The benefits that we get from the nature in the form of ecosystem services are numerous. • The well being of living forms largely depends on well being of these services. Hence, it is provided that necessary management practices should be adopted to enhance and protect the ecosystem services. • WHAT GETS MEASURED GETS MANAGED. There are various economic methods to valuate the various ecosystem services. • With the various threats that the ecosystem services are facing, it becomes all the more important to assign values to them.