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Ecosystem Services

Ecosystem Services: Background Concepts and Economics Steven E. Kraft Dept. of Agribusiness Economics Southern Illinois University Carbondale sekraft@siu.edu. Ecosystem Services.

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Ecosystem Services

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  1. Ecosystem Services: Background Concepts and EconomicsSteven E. KraftDept. of Agribusiness EconomicsSouthern Illinois University Carbondalesekraft@siu.edu

  2. Ecosystem Services • Ecosystem services are the goods and services derived from natural and managed ecosystems upon which human welfare depends

  3. Fresh water Water supply and ground water recharge Flooding • Habitat Soil Maintenance of air quality • Noise abatement Nutrient storage and recycling (N, P) Pollution control and detoxification Pollination of crops Maintenance of biological and genetic diversity Eco-tourism, recreation Food and biofuels The Diversity of Ecosystem Services-Examples

  4. Wetland Ecosystem Riparian Ecosystem

  5. Working Agricultural Landscapes and Ecosystem Services: these Productive Lands Produce --Traditional Agricultural Commodities—these have well established markets --Ecosystem Services —in most instances these have no markets, hence there are no market values; consequently, landowners whose land generate these ecosystem services cannot derive a stream of income from providing them and they have no incentive to continue providing them

  6. Ecosystem Services • Changes in land use, e.g., result in changes in the flow of ecosystem services

  7. Evolving PPF    Exploration of Improvement Space      0 Ecosystem Services Objective The Evolving Ecological-Economic Production Possibilities Frontier Monetized Objectives

  8. Ecosystem Services and Policy • Agriculture: Multifunctionality the existence ofmultiple commodity and noncommodity outputsthat are jointly produced by agriculture and its working landscape • WTO trade negotiations –gov’ts can pay farmers for the provisioning of ecosystem services and still be WTO compliant as long as such payment are not trade distorting

  9. Ecosystem Services and 2007 Farm Bill • Some of the proposals for the 2007 farm bill include scenarios for paying farmers to provide and/or maintain/enhance one or more ecosystem services • Encourage market development for ecosystem services • Protection of water quality with riparian buffers • Carbon sequestration • Wildlife habitat

  10. Ecosystem Services and Policy • Maintenance or enhancement of the flows of ecosystem services • Systems approach to understanding the relationships between a landscape providing ecosystem services and traditional agricultural commodities • Challenge for the 21st Century—future viability of ecosystem services in adequate quality, quantity, and timing and location of availability • Questions

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