Measuring the Contribution Measuring the Contribution of Ecosystem Services to of Ecosystem Services to

Human Well-BeingHuman Well-Being

July 30, 2009 　 エマ　アバソロ

Outline of DiscussionOutline of Discussion

What are Ecosystem Services (ES)?How to measure the ES’ contribution to human well-being?

Ecological valuesEconomic valuesSocial values

What is Payment for Ecosystem Services? What is RUPES?

Ecosystem Services:Ecosystem Services:the benefits that people obtain from the functioning of ecosystemsprovided by natural processes and components to satisfy human needs directly or indirectly (de Groot 1992)consist of flowsflows from materials, energy, and information from natural capital stocksstocks that combine manufactured and human capital services to produce human welfare (Costanza et al, 1997)

Ecosystem ServicesEcosystem Services

fertilizerinsecticide

Sun

Fields

Rice field

Clean water

Clean air

Shelter Fuel

Food Urban area

Organic wastes Industrial wastes

River

Nutrient cycling

Air purification

Water purification

Wastewater treatment

Carbon sequestratio

n

Recreation

Habitat for wildlife

Heat island effectCooling effect

Forest

Why are ES important to Why are ES important to US?US?

Quality Of Life - the degree of enjoyment and satisfaction Well-being - the state derived from the satisfaction of wants or needs Welfare - an individual’s well-being on incomeStandards of living (livability) - conditions of the environment in which people liveHappiness - feelings of positive emotions, such as joy, serenityHealth - state of complete physical, mental, and social well-being

Millennium Ecosystem Millennium Ecosystem AssessmentAssessment

Why are ES important to Why are ES important to US?US?Collados and Duane (1999)

summarized the importance of ES to humans: They are used as raw materials in the production of human-made goods for the economy;they offer benefits to humans that cannot be provided elsewhere; and they are indispensable for reproducing additional goods and services.

How to measure?How to measure?De Groot et al. (2002) proposed an integrated assessment and valuation of ES in three types:

ecological, economic, and socio-cultural values.

Measuring ecological Measuring ecological valuesvalues

Systematic cataloguing of the sources and consumers of ES

What are the ES that could be provided by the ecosystems? Who benefits from the use of ecosystem goods and services?

Ecosystem Services in

the Urban Areas

Sources Consumers

1) Air filtration Trees Cities, prefecture 2) Heat island modification

Green spaces Cities, prefecture

3) Carbon sequestration

Trees Cities, prefecture, basin-wide

4) Storm/ floodwater protection

Vegetation Cities, prefecture

5) Groundwater supply

Forest, urban area Cities, prefecture

6) Water pollution control

Forest, green spaces

Cities, prefecture

7) Food Local farmland Cities, prefecture, basin-wide

8) Recreation Parks, urban forest, agricultural

area

Cities, prefecture *Final table will be filled up by experts and urban residents

Example: sources and consumers Example: sources and consumers of urban ES at basin-wide scaleof urban ES at basin-wide scale

Measuring ecological Measuring ecological valuesvalues

Classifying and mapping the study area for the assessment of ES stocks and flows.

►An indicator can be a useful tool in assessing the level of ecosystem goods and services

usually determined by the magnitude and rate of the goods harvested (the flow) size and quality (the stock)

Mapping ES with ArcGIS and Mapping ES with ArcGIS and City Green using indicators City Green using indicators

Ecosystem Services in

the Urban Areas

Example of Indicators

Units of Measurement

1) Air filtration Air pollutants removed

Pound removeda

2) Heat island modification

Cooling effect of vegetation

Wind velocity ratiob

3) Carbon sequestration

Amount of carbon stored in the tree

Tons of carbon sequestereda

4) Storm/ floodwater protection

Volume of water needed to mitigate peak flow

Runoff volume (inches) and peak flow (cubic feet)a

5) Groundwater supply Water use Water use (cubic kilometer per year)c

6) Water pollution control

Water pollutants removed

Percentage change in the amounts of water pollutantsb

7) Food Food production Yield (kilograms per hectare per year)c

8) Recreation Recreational value Number of persons visiting the park perc

Economic valuation Economic valuation approachesapproaches1) determining the total value of the

current flow of benefits from an ecosystem,

2) determining the net benefits of an intervention that alters ecosystem conditions,

3) examining how the costs and benefits of an ecosystem are distributed, and

4) identifying potential financing sources for conservation

Measuring economic Measuring economic valuesvalues

Attempts to measure all services in monetary termsThe total economic value (TEV) of ES can be grouped into two: use values and non-use values.

Use values: direct use values, indirect use values. Non use values

TEV = ΣESq x $ESwere: TEV = total economic value ESq = quantity of each ES $ES = economic value of each ES

Ecosystem Services in the Urban Areas

Values Commonly Used Economic Valuation Methods

Method to be Used for my Research

1) Air filtration Indirect use Avoided cost Avoided cost (The "externality" cost-that is a cost that society would have to pay in areas such as health care, if trees did not remove the air pollutants)a

2) Heat island modification

Indirect use Avoided cost Avoided cost (The cost of energy conservation benefits of trees from direct shading of residential buildings)a

3) Carbon sequestration

Indirect use Avoided costReplacement cost

Avoided cost (The cost of replacing the carbon storage function of vegetation)a

4) Storm/ floodwater protection

Indirect use Avoided cost Replacement cost

Contingent valuation

Avoided cost (The cost of reducing the volume of water that a containment facility must store due to slowing of storm flow by trees)a

5) Groundwater supply

Indirect use Direct market Replacement cost

Direct market (Total market value of water abstracted from underground)b

6) Water pollution control

Indirect use Avoided costReplacement cost

Contingent valuation

Avoided cost (The cost to remove water pollutants if not removed by vegetation)a

7) Food Direct consumptive use, option

value

Direct marketFactor income

Contingent valuation

Direct market (Total market value of food products)b

8) Recreation Direct non-consumptive

use, existence value

Direct marketFactor income

Contingent valuation

Travel costHedonic pricing

Direct market (The total cost of visiting parks)b

Measuring social valuesMeasuring social values

Social values, attitudes and perceptions play an important role in determining the importance of ES and their functions to human society. Social valuations are usually done through survey questionnaire, focus groups, or interviews.

Action Grid AnalysisAction Grid Analysis

Flow (production functions)Measured in quantity of

service per unit time

Stocks (regulating, Stocks (regulating, habitat and information habitat and information

functions)functions)Measured in physical Measured in physical

quantities (number and quantities (number and units of service)units of service)

Direct and indirect use values

Importance and satisfaction

ES classification and mapping

Measuring the Contribution of Measuring the Contribution of ESES

What is PES?What is PES?PES concept is unclear because of different forms of ‘paying’.Often used to mean any payment or “cash transfer” intended to promote environmental service. A broad definition deteriorates its usefulness to refer to anything innovative. A definition of PES should reflect its nature as a market-based policy instrument –aiming primarily for EFFICIENCY.

Defining PES Defining PES

A voluntary transaction wherea well-defined environmental service (or a land-use likely to secure that ES) is being ‘brought’ by an ES buyer (s)from a provider (s)if and only if the provider secures conditionality that payment secures continuous provision of the environmental service (or protection of land use) (Wunder 2005)

Types: According to ES Types: According to ES (baseline) measurement(baseline) measurement

Area-based schemes – payment contracts stipulate land use caps for a pre-agreed number of land units

protected conservation areasforest carbon projects

Product-based schemes – green premiums on environmentally friendly products

certified timberorganic coffee

According to directness in According to directness in buyer’s paymentbuyer’s payment

Public schemes - state acts on behalf of ES buyers collecting payments and ‘ideally’ paying the ES providers

Private schemes - buyers pay directly to providers

IloIlo Watershed Reservation

According to ES status and According to ES status and objective of paymentobjective of payment

Use-restricting schemes - payments are made for the opportunity costs of maintaining the ES

Asset-building schemes - payments aim to restore an area’s ES.

What is RUPES? (Rewarding the Upland What is RUPES? (Rewarding the Upland Poor for Environmental Services They Poor for Environmental Services They Provide)Provide)

An innovative strategy to rewarding Asia’s upland poor for preserving and improving our environmentEnvironmental Services Rewarded:(1) carbon sequestration and storage (e.g., northern electricity companies paying tropical farmers to plant or maintain additional trees), (2) biodiversity protection (e.g., conservation donors paying landholders for creating set-aside areas for biological corridors), (3) watershed protection (e.g., downstream water users paying upstream farmers for adopting land uses that limit soil erosion or flooding risks), and(4) protection of landscape beauty (e.g., tourism operators paying a local community not to hunt in a zone used for wildlife viewing).

Environmental Services (ES)

Environmental resource

Upland poor

Sustainable farming practices

Protection of natural resources

Rehabilitation of degraded areas

EnvironmentalRewards

Public Provision

Assistance by IA,NGO,PO

Payments by ES Beneficiaries

Watershed ProtectionBiodiversity ProtectionCarbon SequestrationLandscape Beauty

Source: Francisco, 2005