Measuring the Contribution of Ecosystem Services to Human Well-Being July 30, 2009 エマ アバソロ

Outline of Discussion What are Ecosystem Services (ES)? How to measure the ES’ contribution to human well-being? Ecological values Economic values Social values What is Payment for Ecosystem Services? What is RUPES?

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

Ecosystem 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 sequestration Recreation Habitat for wildlife Heat island effect Cooling effect Forest

Why are ES important to 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 income Standards of living (livability) - conditions of the environment in which people live Happiness - feelings of positive emotions, such as joy, serenity Health - state of complete physical, mental, and social well-being

Millennium Ecosystem Assessment

Why are ES important to 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? De Groot et al. (2002) proposed an integrated assessment and valuation of ES in three types: ecological, economic, and socio-cultural values.

Measuring ecological values 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 SourcesConsumers 1) Air filtrationTreesCities, prefecture 2) Heat island modification Green spacesCities, prefecture 3) Carbon sequestrationTreesCities, prefecture, basin-wide 4) Storm/ floodwater protection VegetationCities, prefecture 5) Groundwater supplyForest, urban areaCities, prefecture 6) Water pollution control Forest, green spacesCities, prefecture 7) FoodLocal farmlandCities, prefecture, basin-wide 8) RecreationParks, urban forest, agricultural area Cities, prefecture *Final table will be filled up by experts and urban residents Example: sources and consumers of urban ES at basin-wide scale

Measuring ecological values 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 City Green using indicators Ecosystem Services in the Urban Areas Example of Indicators Units of Measurement 1) Air filtrationAir pollutants removedPound removed a 2) Heat island modificationCooling effect of vegetation Wind velocity ratio b 3) Carbon sequestrationAmount of carbon stored in the tree Tons of carbon sequestered a 4) Storm/ floodwater protection Volume of water needed to mitigate peak flow Runoff volume (inches) and peak flow (cubic feet) a 5) Groundwater supplyWater useWater use (cubic kilometer per year) c 6) Water pollution controlWater pollutants removed Percentage change in the amounts of water pollutants b 7) FoodFood productionYield (kilograms per hectare per year) c 8) RecreationRecreational valueNumber of persons visiting the park per c

Economic valuation approaches 1)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 values Attempts to measure all services in monetary terms The 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 = ΣES q x $ES were: TEV = total economic value ES q = quantity of each ES $ES = economic value of each ES

Ecosystem Services in the Urban Areas ValuesCommonly Used Economic Valuation Methods Method to be Used for my Research 1) Air filtrationIndirect useAvoided costAvoided 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 useAvoided costAvoided cost (The cost of energy conservation benefits of trees from direct shading of residential buildings) a 3) Carbon sequestration Indirect useAvoided cost Replacement cost Avoided cost (The cost of replacing the carbon storage function of vegetation) a 4) Storm/ floodwater protection Indirect useAvoided 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 supplyIndirect useDirect market Replacement cost Direct market (Total market value of water abstracted from underground) b 6) Water pollution control Indirect useAvoided cost Replacement cost Contingent valuation Avoided cost (The cost to remove water pollutants if not removed by vegetation) a 7) FoodDirect consumptive use, option value Direct market Factor income Contingent valuation Direct market (Total market value of food products) b 8) RecreationDirect non- consumptive use, existence value Direct market Factor income Contingent valuation Travel cost Hedonic pricing Direct market (The total cost of visiting parks) b

Measuring 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 Analysis

Flow (production functions) Measured in quantity of service per unit time Stocks (regulating, habitat and information functions) Measured in physical quantities (number and units of service) Direct and indirect use values Importance and satisfaction ES classification and mapping Measuring the Contribution of ES

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 A voluntary transaction where a 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 (baseline) measurement Area-based schemes – payment contracts stipulate land use caps for a pre-agreed number of land units protected conservation areas forest carbon projects Product-based schemes – green premiums on environmentally friendly products certified timber organic coffee

According to directness in buyer’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 objective 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 Poor for Environmental Services They Provide) An innovative strategy to rewarding Asia’s upland poor for preserving and improving our environment Environmental 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).

Watershed Protection Biodiversity Protection Carbon Sequestration Landscape Beauty Source: Francisco, 2005