Estimating the Value of Ecosystem Services
The EcoValue
project draws from recent developments in the economic valuation of ecosystem
services, ecological-economic database design, WWW technology, and spatial
analysis techniques to create a web-accessible, GIS decision support system for
the valuation of nonmarket goods and services associated with distinct land
cover types. The basic idea behind ecosystem value transfer is to synthesize available
information from past valuation studies and transfer these new estimates to a policy
site for which no explicit valuation estimates exist. The end result is a
web-based GIS valuation assessment tool capable of generating meaningful and
reliable value estimates of ecosystem goods and services that can then be
integrated into research, decision-making and planning.
The EcoValue
research team has developed a set of decision rules for selecting empirical
studies from the published literature that allow us to estimate with sufficient
accuracy the economic value of ecosystem services in project sites. Using
scientific data search engines such as ISI Web of Science ®, the research team
periodically reviews the best available economic literature and selects
valuation studies which are:
-
Peer
reviewed and published in journals or books
-
Focused
on temperate regions in either North America or Europe
-
Focused
primarily on non-consumptive use
Thus far, our
search criteria have yielded 42 viable studies which were then inputted into a
relational Microsoft Access® database. The results of each study were then
standardized to 2001 U.S. dollar equivalents to provide a consistent basis for
comparison .The end result was a query sensitive relational database containing
65 valuation data points.
Given the
aforementioned restrictions, we believe this approach yields conservative,
baseline economic values. It also means
that some land cover types where no applicable peer-reviewed research exist,
such as sandplains and heathlands, received no economic value estimate, even
though these areas are widely recognized as having high social and ecological
value.
Once the
EcoValue research team has selected empirical valuation studies, inputted them
into the relational database, and standardized estimates for value transfer, we
assign the resulting value estimate to the appropriate land cover categories in
a spatially explicit manner. The
following formula is used:
V(ES
k) =
Where A(LUi) = Area
of i (Land Use in hectares) and V(ES
ki) = Annual value of k
ES (Ecosystem Services) for each i
LU (in $/ha/yr).
The final
economic estimates result from carefully matching the spatial resolution and
coverage of the original 'study site' with the characteristics of the 'policy
site'. For example, even though many land cover types documented for the State
of Maryland support pollinators and benefit from
pollination services, the only available empirical research from the literature
documented replacement costs for pollination services on agricultural
land. We were also constrained by the
quality and extent of land cover measured in the original analysis.
For example, several studies estimated the
economic benefits associated with water based recreation.
Since the area of study was limited to the
lake or river itself, we could only assign a value to water, even through the
surrounding beach area or wetlands may have contributed to its recreational
value.