Valuing Ecosystem Services
David Batker
Earth Economics
History/Importance
Identify Ecosystem Services
Valuation
Mapping and Modeling
Funding Mechanisms
The Big Picture
Economy Environment
Economy Environment
The Big Picture
Economy Environment
Economy Environment
Economies Change
Economics Changes
Caernarvon 1927
Flood risk reduction has never been more important
Loss of Natural Capital
Figure 1. Track of Hurricane Katrina, August 23-29, 2005, showing spatial extent and storm intensity along its path (source: NOAA)
$200 Billion
Identify Ecosystem Services
Food Carbon Sequestration
Recreation Medicinal Resources Ecosystem Services Constituents of Well-Being
Provisioning Security Basic material for Freedom of Supporting Regulating good life choice and Health action
Cultural Good social relations
Source: Millennium Ecosystem Assessment Provisioning Functions
Water Supply
Food
Medicinal Resources
Fiber and Fuel
Regulation Functions
Flood Protection
Gas & Climate Stability
Water Quality
Soil Erosion Control
Biological Control
Soil Formation
Water Regulation Supporting Functions
Pollination
Biodiversity and Habitat
Nutrient Cycling
Net Primary Production Cultural Functions
Aesthetic
Recreation
Spiritual & historic
Science & education
Valuation of Ecosystem Services
Rivers and Lakes Wetlands Riparian Forest
Flood Protection x x x Gas and Climate Regulation x x Habitat Refugium x x x Pollination x Soil Erosion Control x x Water Flow Regulation x x x Nutrient Cycling x Water Supply x x x Water Quality x x x Biological Control x Aesthetic & Recreational x x x Soil Formation x x Food Provisioning x x x x x
SERVES database of ecosystem service valuation studies
Avoided Cost Replacement Cost Factor Income Travel Cost Hedonic Pricing Marginal Product Estimation Contingent Valuation Group Valuation
Appropriate Method for Ecosystem Service Valuation Transferability Across Sites
Ecosystem Serv. Value Quality Method Transferability
Flood haz. red. High AC, RC, H, P Medium
Waste treatment High RC, AC, CV Medium to high
Genetic resources Low M, AC Low
Spiritual resources None None None Rivers and Lakes Wetlands Riparian Forest
Gas and Climate Regulation $29.43 $43.56 Flood Protection $117.87 $7.56 Habitat Refugium $17.13 $58.89 $269.85 Pollination x x
Soil Erosion Control
Water Flow Regulation x x x Nutrient Cycling x Water Supply $58.89 $199.11 $2,105 Water Quality x x
Biological Control
Aesthetic & Recreational $1.69 x $1,043
Soil Formation
Food Provisioning x x Rivers and Lakes Wetlands Riparian Forest
Gas and Climate Regulation $29.43 $43.56
Flood Protection $117.87 $7.56
Habitat Refugium $17.13 $58.89 $269.85
Pollination
Soil Erosion Control
Water Flow Regulation x x x
Nutrient Cycling x
Water Supply $58.89 $199.11 $2,105
Water Quality x x
Biological Control
Aesthetic & Recreational $1.69 x $1,043
Soil Formation
Food Provisioning x x
Biodiversity x x Total Low Value of Rivers and Lakes
Rivers and Lakes Wetlands Riparian Forest
Gas and Climate Regulation $29.43 $43.56
Flood Protection $117.87 $7.56 Rivers & Lakes
Habitat Refugium $17.13 $58.89 $269.85
Pollination
Soil Erosion Control
Water Flow Regulation x x x $77.71 per acre Nutrient Cycling x
Water Supply $58.89 $199.11 $2,105 Water Quality x x each year Biological Control
Aesthetic & Recreational $1.69 x $1,043
Soil Formation
Food Provisioning x x
Biodiversity x x Rivers & Lakes Open Water Perennial Ice/Snow Deciduous Forest Evergreen Forest $77.71 per acre Mixed Forest Scrub/Shrub Grassland/Herbaceous each year Pasture/Hay Cultivated Crops Woody Wetlands Herbaceous Wetlands Rivers and Lakes Eelgrass
Total Low Value of each Acres ] [ landcover type * Land Use Low Values High Values
Fresh Water Marsh 2,834 11,077 Intermediate Marsh 1,832 4,430 Brackish Marsh 1,510 3,669 Saline Marsh 1,098 2,760 Wet Shrub-scrub 394 1,531 Forested Swamp 3,335 13,258 Open Fresh Water 428 2,960 Open Estuarine Water 68 6,823 Shrub-Scrub 9 135 Upland Forest 76 699 Agriculture and Pasture 38 43
Total 11,953 47,385 Annual Service Value of the Mississippi River Delta
High $47 Billion
Low $12 Billion
Each Year Mississippi Delta Asset Value
High $1,300 Billion
Low $330 Billion
BP Asset Value: $70 - $120 Billion Scenario Analysis
Net Benefits $62 Billion
Low $12 Billion
With an Aggressive Restoration
Mapping and Modeling Ecosystem Services
Mississippi River Drainage Basin
Basin Facts Drains 41% of continental U.S.
Includes 31 states & 2 Canadian provinces
Total area drained 1.2 million square miles Mississippi River Watershed
1 DOT = 20,000 acres drained land RED ZONE
Coastal Zone
Provisioning Assets
Beneficiaries
Impairments
Critical Areas Providing Flood Protection Benefits Flood Protection Value Uncertainty Funding Mechanisms for Flood Hazard Reduction
Combining Services
Watershed Investment District Benefit/Cost Analysis
Rate of Return on Investment
Environmental Impact Assessment
Economic Returns on Conservation
Thank You [email protected]
Loss of Natural Capital Provisioning Functions
Water Supply
Food
Medicinal Resources
Fiber and Fuel
Regulation Functions
Flood Protection
Gas & Climate Stability
Water Quality
Soil Erosion Control
Biological Control
Soil Formation
Water Regulation Supporting Functions
Pollination
Biodiversity and Habitat
Nutrient Cycling
Net Primary Production Cultural Functions
Aesthetic
Recreation
Spiritual & historic
Science & education
Rivers and Lakes Wetlands Riparian Forest
Flood Protection x x x Gas and Climate Regulation x x Habitat Refugium x x x Pollination x Soil Erosion Control x x Water Flow Regulation x x x Nutrient Cycling x Water Supply x x x Water Quality x x x Biological Control x Aesthetic & Recreational x x x Soil Formation x x Food Provisioning x x x x x Rivers and Lakes Wetlands Riparian Forest
Gas and Climate Regulation $29.43 $43.56 Flood Protection $117.87 $7.56 Habitat Refugium $17.13 $58.89 $269.85 Pollination x x
Soil Erosion Control
Water Flow Regulation x x x Nutrient Cycling x Water Supply $58.89 $199.11 $2,105 Water Quality x x
Biological Control
Aesthetic & Recreational $1.69 x $1,043
Soil Formation
Food Provisioning x x Rivers and Lakes Wetlands Riparian Forest
Gas and Climate Regulation $29.43 $43.56
Flood Protection $117.87 $7.56
Habitat Refugium $17.13 $58.89 $269.85
Pollination
Soil Erosion Control
Water Flow Regulation x x x
Nutrient Cycling x
Water Supply $58.89 $199.11 $2,105
Water Quality x x
Biological Control
Aesthetic & Recreational $1.69 x $1,043
Soil Formation
Food Provisioning x x
Biodiversity x x Total Low Value of Rivers and Lakes
Rivers and Lakes Wetlands Riparian Forest
Gas and Climate Regulation $29.43 $43.56 Flood Protection $117.87 $7.56 Rivers & Lakes Habitat Refugium $17.13 $58.89 $269.85
Pollination
Soil Erosion Control Water Flow Regulation x x x $77.71 per acre Nutrient Cycling x
Water Supply $58.89 $199.11 $2,105 Water Quality x x each year Biological Control
Aesthetic & Recreational $1.69 x $1,043
Soil Formation
Food Provisioning x x
Biodiversity x x Rivers & Lakes Open Water Perennial Ice/Snow Deciduous Forest Evergreen Forest $77.71 per acre Mixed Forest Scrub/Shrub Grassland/Herbaceous each year Pasture/Hay Cultivated Crops Woody Wetlands Herbaceous Wetlands Rivers and Lakes Eelgrass
Total Low Value of each Acres [ landcover type * ] Land Use Low Values High Values Fresh Water Marsh 2,834 11,077 Intermediate Marsh 1,832 4,430 Brackish Marsh 1,510 3,669 Saline Marsh 1,098 2,760 Wet Shrub-scrub 394 1,531 Forested Swamp 3,335 13,258 Open Fresh Water 428 2,960 Open Estuarine Water 68 6,823 Shrub-Scrub 9 135 Upland Forest 76 699 Agriculture and Pasture 38 43
Total 11,953 47,385 Mississippi River Drainage Basin
Basin Facts Drains 41% of continental U.S. Includes 31 states & 2 Canadian provinces Total area drained 1.2 million square miles Mississippi River Watershed
1 DOT = 20,000 acres drained land
Thank You [email protected]