This document summarizes a presentation on identifying, quantifying, and valuing ecosystem services in the context of ecological restoration. It defines ecosystem services and discusses how restoration can benefit ecosystem services. It also describes frameworks for identifying, quantifying, and valuing ecosystem services. The document then outlines the presenter's own work conducting an assessment of ecosystem services from different land uses in Southeast Austria, finding the highest economic values associated with mature plantations but noting a need for more comprehensive valuation. It concludes by stating the importance of understanding linkages between ecology, economics, and society to ensure human well-being and sustainability.

1. Himlal Baral
International Seminar on
Land Reclamation Technologies for Sustainable Land Use
Jambi University
7-8 November 2014
Identifying, quantifying and valuing ecosystem
services in the context of ecological restoration

2. Identification, quantification and valuation of ES
• Definition & concepts
• Restoration benefits
• Concept of ecosystem services
• Identification, quantification, valuation
and mapping
• Example of recent work on SE Austrian
context
• Concluding comments

3. Ecological restoration and ecosystem
services
‘the benefits human populations
derive directly or indirectly from
ecosystem functions’ (Costanza et al.
1997, Nature)
Ecological restoration is the process of
assisting the recovery of an ecosystem
that has been degraded, damaged, or
destroyed... (Society of Ecological
Restoration, 2004)
Foley et al. (2005)

4. Land management choices – trade-offs

5. Credit: DeGroot

6. Credit: DeGroot

7. Main disciplines associated with restoration
 Restoration ecology provides
opportunities to link
environmental science,
technology, and engineering
within a socially relevant
context
 Ecological restoration
projects must involve
proactive dialogue with local
people, social scientists,
engineers, and other
professionals.
Armesto et al (2007)

8. ES restoration and environmental markets
 Restoration of ecosystem
services that can be bought,
sold, or traded requires actions
(use of “tools”) that directly
influence biophysical processes
 These processes interact with
ecosystem features (e.g., suites
of species or surrounding land
use) and are collectively called
ecosystem functions or
ecological processes
Palmer and Filoso (2009)

9. Restoration benefits
Bullock et al. (2011)
An integrated hydrology– ecology–economic model was developed based on the multi-user potential
for managing and restoring the natural capital of Ukombe at farmstead and watershed scales in South
Africa
Compared against current intensive management, restoration actions provide potential returns in
terms of several services.

10. Restoration trade-offs
Baral et al 2014

11. Concept of Ecosystem services
• Ecosystems provide vital goods and services to
human beings
• Ecosystems services and human well-being are
linked
• Human well-being and long-term economic
success depend on ecosystem services, the
benefits that people get from nature
• Provision of ecosystem services is not often
factored into important decisions that affect
ecosystems
• Distortions in decision-making damage the
provision of ecosystem services making human
society and the environment poorer

12. Ecosystem services

13. The status of the world’s ecosystem services
Capture fisheries
Wild foods
Biomass fuel
Genetic resources
Biochemicals
Fresh water
Air quality regulation
Climate regulation
Erosion regulation
Water purification
Pest regulation
Pollination
Natural hazard regulation
Spiritual values
Aesthetic values
Degraded EnhancedMixed
Provisioning
Cultural
Regulating
Crops
Livestock
Aquaculture
Carbon sequestration
Timber
Fiber
Water regulation
Disease regulation
Recreation & ecotourism
Millennium Ecosystem Assessment, 2005
The status of the world’s ecosystem services

14. Ecosystem services trend since 1970

15. Characteristics of Ecosystem Services
 Marketed and non-marketed
 Heterogeneous across the landscape and change through time
 Multiple services production from same area
 Complex/ non linear
 Benefit dependence (according to choice of stakeholders)
Fischer et al (2009)

16. ES classification based on spatial characteristics
1. Global importance
• Climate regulation, cultural/existence value
2. Local importance
• Strom regulation, habitat
3. Directional flow related
• Water regulation, Nutrient regulation
4. Point of use
• Soil formation, raw materials,
5. User movement related: flow of people to
unique natural features
• Genetic resources, recreational potential
Costanza (2008)

17. Quantification of Ecosystem services
 ES quantification enables:
• Documentation of ecosystem value of a parcel of property
• Documentation of ecosystem cost/benefit of an action
• Comparison of ecosystem benefits/costs between actions
• Selection/modification of actions that maximise ecosystem
benefits
 Subsequently, quantified values provide supporting information
for ecological restoration

18. Valuation of ecosystem services
 Ecosystem service valuation assigns a dollar value to
goods and services provided by a given ecosystem
 Key reasons to value ecosystem services
• The economy and ecosystems are interrelated
• Helps to protect the natural ecosystems and the
essential public benefits they provide
• The economy functions best when it recognises all
ecosystem values
• Markets fail to maximise net benefits if ecosystems
services have no prices to guide their allocation to
higher valued uses
• Potential to improve financial viability of non-industrial
and small-scale plantations

19. A framework for identification, quantification valuation of
ecosystem services
Quantify the ecosystem services
• estimate the services based on biophysical units,
Quantify the total service-each LULC
• determine the characteristics necessary for service provision
• quantify the relationships between LULC and potential service
supply
• quantify the components of biodiversity that support by LULC
Identify and value
potential alternatives for
providing the service
Evaluate options:
• compare valuations and examine trade-offs
• determine implications for biodiversity conservation
• determine implications for policy and alternative scenarios
Define and identify the ecosystem services:
• identify the ecosystem service beneficiaries from a landscape
• identify the spatio-temporal scale of services
• identify the ecosystem service providers based on LULC
1. IDENTIFICATION
2. QUANTIFICATION
Value the service as
provided by the LULC
3. APPRAISAL/VALUATION

20. Common approaches to assess ES
Time
Cost
Quantification and economic
valuation
Use of economic principles and
valuation approaches on top of
biophysical quantification
Quantitative assessment
Biophysical quantification using
field measurement, estimation, and
regional/local proxies
Qualitative assessment
Expert opinion, professional
judgement, rankings, surveys
Baral et al 2014, JEPM

22. ES valuation methods
 Revealed-preference approaches
• Travel cost: site-based amenities (e.g., cleaner recreational lakes)
• Market methods: directly obtained from market (e.g., timber)
• Hedonic methods: people’s willingness to pay for (e.g., open-space amenities)
 Cost-based approaches
• Replacement cost: what it would cost to replace that service (e.g., tertiary
treatment values of wetlands)
• Avoided cost: on the basis of costs avoided (e.g., clean water reduces costly
incidents of diarrhea)
 Stated-preference approaches
• Contingent valuation: willingness to pay or accept (e.g., willingness to pay
for cleaner air)

23. My work on ES assessment

24. Study area and major land use categories
• Rainfall ~350 mm, 70 m asl
• Size: 30,000 ha
• High conservation value
Himlal Baral © University of Melbourne 2013

25. List of potential Ecosystem
Services for valuation
Spatial data
Non spatial
data
GIS
Database
Land cover classification and
mapping
List of Eco services identified
from GIS
Total Economic value
Non-market
valuation technique
Market-based
valuation
Environmental value
transfer
Economic value of
Ecosystem services
Government & non
government agencies,
Forest companies
Spatial Economic Valuation (SEV)
Methodological framework

26. EGS trend under various scenarios
Land use scenarios
Ecosystem Services
Carbon Agri prodn Water Biodiversity Timber
Business-as-usual
 =   =
Future farming
landscapes
  =  
Eco-centric
  =  
Agro-centric
    =
Land abandonment
  ?  =
Himlal Baral © University of Melbourne 2013

27. ES from various land use/cover types
Baral et al 2014, JEPM

28. • The value of selected ecosystem services (timber, carbon, biodiversity, water)
have distinctly different spatial distributions
• Mature plantations represent the highest economic value per unit area due to
the detailed valuation of consumptive services
• Quantification and valuation of timber and carbon were relatively
straightforward due to readily available information
• Value of native vegetation was relatively low due to the lack of proper
techniques that reflect the true value of native vegetation and because this
land use is not readily bought and sold in the market place
• A detailed valuation of additional ecosystem services is required to identify
conservation priority sites for restoration planning and assessment
Reflection from ES assessment work

29. Concluding comments
 20th century record:
• Rapid expansion of human economy
• Notable gains in human welfare
• But negative environmental consequences that threaten sustainability
(MEA 2005)
 21st century challenge:
• Provide for human wellbeing
• AND do so in a sustainable manner
 This requires understanding consequences of our actions in both
near and long term – linkage of ecology, economics and society
to see effects on full range of ecosystem services
 Ecological restoration opens opportunities for flexible land-use
strategies that maximise the provision of ES at minimum cost
 Effectiveness of restoration action depends on ecosystem
services provided to the society
 Quantification and valuation of services due to restoration
activities is vital to continue restoration activities...

30. References and further readings
Armesto et al (2007) Towards an ecological restoration network: reversing land degradation in Latin America, Front
Ecol & Env 5 (4)
Benayas, et al (2009) Enhancement of Biodiversity and Ecosystem Services by Ecological Restoration: A Meta-Analysis
Science 325
Bullock et al. (2011) Restoration of ecosystem services and biodiversity: conflicts and opportunities, Trends of Ecol and
Evol
Costanza R (2008) Ecosystem services: Multiple classification systems are needed. Biol Conserv 141:350-352
Fisher et al (2009) Defining 495 and classifying ecosystem services for decision making. Ecol Econ 68:643-653
Foley et al (2005) 2005. Global consequences of land use. Science 309 (5734), 570–574.
Palmer and Filoso (2009) Restoration of Ecosystem Services for Environmental Markets, Science 325, DOI:
10.1126/science.1172976
Turner et al (2008) Valuing ecosystem services: the case of multifunctional wetlands. Earthscan Publications Ltd,
London