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REM 363/ENV 399 – Week 11 DIRECT VALUATION OF ECOSYSTEM SERVICES. What are “ecosystem services”?. The conditions and processes through which natural ecosystems, and the species that make them up, sustain and fulfill human life (Daily 1997)
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REM 363/ENV 399 – Week 11 DIRECT VALUATION OF ECOSYSTEM SERVICES
What are “ecosystem services”? • The conditions and processes through which natural ecosystems, and the species that make them up, sustain and fulfill human life (Daily 1997) • The benefits human populations derive, directly or indirectly, from ecosystem functions (Costanza et al. 1997) • The benefits people obtain from ecosystems (Millennium Ecosystem Assessment 2005) • The aspects of ecosystems utilized (actively or passively) to produce human well-being (Fisher et al. 2009)
Conceptual relationship between intermediate services, final services and human benefits from ecosystems Source: Fisher et al. 2009
Non-market Valuation Techniques • Direct or Expressed Preference Methods • contingent valuation (CVM) • choice experiments • contingent ranking • Indirect or Revealed Preference Methods i. hedonic price method (HPM) • travel cost method (TCM) • Production Function Approaches (e.g. dose response methods, bioeconomic models) • Cost-based approaches (e.g. replacement cost, etc.)
Direct or expressed preference techniques (contingent valuation method or CVM) • ask people directly about the values they place on environmental resources • elicit willingness to pay(WTP) or to accept compensation (WTA) for changes in environmental quality • use a survey questionnaire and typically one of four elicitation approaches: • open-ended • payment card • iterative bidding • dichotomous choice • require a payment vehicle (e.g. a tax, membership fee, entry charge, donation, etc.)
CVM has several advantages • Relatively easy to apply/use (e.g. survey) • Can measure non-use values • Can include all economic values and, therefore, capture total economic value (TEV) • Now a substantial body of literature supporting its use and analysis • More complex situations can be valued using choice experiments (multi-characteristics with multiple scenarios)
