Valuing Ecosystem Services

David Batker

Earth

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

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 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]