Ecosystem services are the benefits that people obtain from ecosystems. They are indispensable to the well-being of all living organisms, everywhere in the world. They include provisioning, regulating, and cultural services that directly affect people, and supporting services needed to maintain the other services (Anon., 2005). From the availability of adequate food and water, to disease regulation of vectors, pests, and pathogens, human well-being depends on these services and conditions from the natural environment. Ecosystem services depend on ecosystem conditions, and if these are impacted via pressures, consequently ecosystem services will be as well (Daily G, 1997). Human use of all ecosystem services is growing rapidly. Approximately 60% of the ecosystem services (including 70% of regulating and cultural services) are being degraded or used unsustainably. Certain changes place the sustained delivery of ecosystem services at risk. Human activity is impairing and destroying ecosystem services. Services by the ecosystem are facing some serious threats from urbanization, climate change and introduction of invasive species and pathogens which have come into existence through human activities (Anon., 1997). Ecosystem evaluation is a tool used in determining the impact of human activities on an environmental system, by assigning an economic value to an ecosystem or its ecosystem services. Ecosystem values are measures of how important ecosystem services are to people – what they are worth. Economists classify ecosystem values into several types. The two main categories are use values and non-use, or passive use values. Whereas use values are based on actual use of the environment, non-use values are values that are not associated with actual use, or even an option to use, an ecosystem or its services (Brookshire, et al.,1983). There are several methods of valuation of environmental assets, goods and amenities, services and functions like market price method, productivity method, hedonic pricing method, travel cost method and contingent valuation method.

1. Speaker: Apurva Sharma
M.Sc. II
F-2016-27-M

2.  Introduction
 Categories of ecosystem services
 Evaluation of ecosystem services
 Conclusion

3.  Ecosystem is a dynamic complex of plants, animals and
micro-organism communities and the non living
environment interacting as a functional unit .
 Initially known as “natural capital”, ecosystem services
are the benefits provided by ecosystems.
 The term “Ecosystem Services" was introduced in a 1970
report of the Study of Critical Environmental
Problems, which listed services including insect
pollination, fisheries, climate regulation and flood
control.

4. Provisioning Services
Regulating Services
Cultural Services
Supporting Services
Preservation Services
Products obtained from ecosystem
Benefits obtained from regulation of
ecosystem
Services necessary for the production of
all other ecosystem services
Non-material benefits obtained from
regulation of ecosystem
Preservation of ecosystem services

5. Products obtained from ecosystem

6. Food Fresh
Water
Fuel
Fiber
Bio-
chemicals
Genetic
Resources

7. 3. INVASIVE SPECIES AND FOREST PATHOGENS
1. URBANIZATION 2. CLIMATE CHANGE

8. Source: Adeosun et al., 2016
Effect of developmental activities on the water quality parameters in Abeokuta
reservoir, Nigeria
Effect of drought on rainfed crop yield in Dharwad District

9.  The benefits obtained from
the regulation of ecosystem
processes, including, for
example, the regulation of
climate, water, and some
human diseases.

10. Climate
regulation
Water regulation

11. Water purification Pest control

12. 1. URBANIZATION
3. INVASIVE SPECIES AND FOREST
PATHOGENS
2. CLIMATE CHANGE

14.  The non-material benefits people obtain from
ecosystems through spiritual enrichment, cognitive
development, recreation, and aesthetic experiences”.

15. Spiritual and
Religious
Recreation and
Aesthetic

16. Inspirational and
Educational
Ecotourism

17. 1. URBANIZATION 2. CLIMATE CHANGE

18. Most at risk tourism destinations for mid to late 21st century due to
climate change
Source: UN World Tourism
Organization

19.  Services that are
necessary for the
production of all other
ecosystem services.
 Soil formation, nutrient
cycling

20. Primary
production
Soil
formation

21.  Soil also acts as a buffer as it has the ability to stop
nutrient or pH changes by absorption.

22. Nutrient
cycling
Pollination

23. 1. URBANIZATION 2. CLIMATE CHANGE
3. INVASIVE SPECIES AND FOREST
PATHOGENS

24. Source: Song and Deng (2015)
Effects of urbanization on ESV in NCP between 1988 and 2008
Effects of Urbanization-Induced Cultivated Land Loss on Ecosystem
Services in the North China Plain

26. De Groot et al., 2002

27.  Recharged ground water, fertile soil, plant biomass
created by photosynthesis etc. appear to be seemingly
free.
 Ecosystem services- food, water, recreation, protection
from natural hazards are all reviewed as a right that is
free and infinite.
 However, with the ever increasing biotic-pressure, their
is a gradual decline in the vigour of eco-systems to
provide services to the same degree.

28.  Ecosystem values are measure of how important ecosystem services are to
people - what they worth.
 Environmental values are measured in money terms through the concept of
individuals willingness to pay (WTP).
 WTP measured by the maximum amount of money that that person
would be willing to pay in return for receiving the benefit.

30. 1. Market price method
2. Productivity method
3. Hedonic pricing method
4. Travel cost method
5. Contingent valuation method

31.  The market price method estimates the economic value
of ecosystem products or services that are bought and
sold in commercial markets.
 The standard method for measuring the use value of
resources traded in the marketplace is the estimation of
consumer surplus and producer surplus using market
price and quantity data.

32.  Hypothetical Situation:
Water pollution has caused the closure of a commercial
fishing area, and you want to evaluate the benefits of
cleanup.
 Application of the Market Price Method:
The objective is to measure total economic surplus for the
increased fish harvest that would occur if the pollution is
cleaned up.
This is the sum of consumer surplus plus producer surplus.
Consumer surplus is measured by the maximum amount that
people are willing to pay for a good, minus what they
actually pay.

33. Producer surplus is measured by the difference between
the total revenues earned from a good, and the total
variable costs of producing it.
Result
The results of the analysis can be used to compare the
benefits of actions that would allow the area to be
reopened, to the costs of such actions.

34.  The productivity method, is used to estimate the
economic value of ecosystem products or services that
contribute to the production of commercially marketed
goods.
 For example, water quality affects the productivity of
irrigated agricultural crops, or the costs of purifying
municipal drinking water. Thus, the economic benefits
of improved water quality can be measured by the
increased revenues from greater agricultural
productivity, or the decreased costs of providing clean
drinking water.

35. Hypothetical Situation
A reservoir that provides water for a city’s drinking water system is
being polluted by agricultural runoff. You want to determine the
economic benefits of measures to eliminate the runoff.
Application of the Productivity Method
 Step 1:
Estimate how the cost of purification changes when reservoir water
quality changes. Calculate the quantities of purification chemicals and
filters needed for different levels of reservoir water quality.
 Step 2:
The final step is to estimate the economic benefits of protecting the
reservoir from runoff, in terms of reduced purification costs. For
example, if all runoff is eliminated, the reservoir water will need very
little treatment and the purification costs for drinking water will be
minimal.
Results
The results of the analysis can be used to compare the benefits of
achieving different levels of water quality in the reservoir with the cost
of programs to reduce or eliminate the polluting runoff, and thus improve
water quality.

36.  The hedonic pricing method is used to estimate the
value of environmental amenities that affect prices of
marketed goods.
 The basic premise of the HP method is that the price of
a marketed good is related to its characteristics, or the
services it provides.

38.  The travel cost method determines the value of an ecosystem
based on the amount of money spent to reach the particular
destination.
 It is used to value sites that are used for recreation purposes.

39. Hypothetical Situation:
 A site used mainly for recreational fishing is threatened by
development in the surrounding area. You want to determine
the value of actions to protect fish habitat at the site.
Application of Travel Cost Method:
 Collect information on the number of visitors and the
number of visits made in the last year.
 With an average price per visit the total profit to the
authorities is calculated.
 If the actions cost is less than the total profit per year, the
action will take place.

40.  The contingent valuation method involves directly
asking people, in a survey, how much they would be
willing to pay for specific environmental services.
 It is the only environmental valuation technique that
takes into account non-use values.

41.  Situation
Rivers in the Four Corners Region provide 2,500 river miles of critical
habitat for nine species of fish that are listed as threatened or
endangered. Continued protection of these areas required habitat
improvements, such as fish passageways, as well as bypass releases of
water from dams to imitate natural water flows needed by fish. A
contingent valuation survey was used to estimate the economic value
for preserving the critical habitat.
 Application
Survey respondents were provided detailed maps that highlighted the
areas designated as critical habitat units for the fish. They were asked if
they would contribute to the Four Corners Region Threatened and
Endangered Fish Trust Fund.
 The questionnaire was sent to a random sample of 800 households in
the Four Corners states of Arizona, Colorado, New Mexico, and Utah.
The average willingness to pay was estimated to be $195 per
household. When extrapolated to the general population, the value of
preserving the habitat areas was determined to be far in excess of the
costs.

42. Intangible
Benefit
Annual Value Location Methodology
used
Recreation/
Ecotourism
Rs. 427/ visitor
( Rs. 16,197/ha)
Keoladeo
National Park,
Bharatpur
Travel Cost
Method
Recreation/
Ecotourism
Rs. 516/ visitor
( Rs. 20,944/ha)
Keoladeo
National Park,
Bharatpur
Contingent
Valuation
Method
Recreation/
Ecotourism and
other benefits
Rs. 90/
household/ year
(Rs. 23,300/ ha)
Boriwali National
Park, Mumbai
Contingent
Valuation
Method
Water Supply Annual rental=
Rs. 4,745/ha
Almora forests Indirect Methods
Watershed
Values (Soil
Conservation)
Rs. 2.0 lakh/ha Lower Shiwalik
(Yamuna Basin)
Indirect Methods

43. Nature of Forest
Produce
Nature of
benefits
Value of Annual Flow of Goods and
Services per ha (Rs.)
Minimum Maximum
Timber Tangible 2,701 9,270
Non-timber
forest products
Tangible 538 2,957
Ecological
functions
Intangible 624 2.0 lakh
Ecotourism Intangible 676 2.0 lakh
Carbon Store Intangible 20,125 1.2 lakh

44. • The benefits that we get from the nature in the form of
ecosystem services are numerous.
• The well being of living forms largely depends on well being
of these services. Hence, it is provided that necessary
management practices should be adopted to enhance and protect
the ecosystem services.
• WHAT GETS MEASURED GETS MANAGED. There are
various economic methods to valuate the various ecosystem
services.
• With the various threats that the ecosystem services are facing,
it becomes all the more important to assign values to them.