Economic valuation of aquatic ecosystem services in developing countries

Abstract

An important challenge of integrated water resources management (IWRM) is to balance water allocation between different users. While economically and/or politically powerful users have well developed methods for quantifying and justifying their water needs, this is not the case for ecosystems—the silent water user. A promising way of placing aquatic ecosystems on the water agenda is by economic valuation of services sustained by ecosystems. In developing countries, the livelihoods of rural people often depend directly on the provision of aquatic ecosystem services. In such situations, economic valuation of ecosystem services becomes particularly challenging. This paper reviews recent literature on economic valuation of aquatic ecosystem services in developing countries. “Market price” is the most widespread method used for valuating marketed ecosystem services in developing countries. “Cost based” and “revealed preference” methods are frequently used when ecosystem services are non-marketed. A review of 27 existing valuation studies reveals a considerable range of estimated total economic value of aquatic ecosystem services in developing countries, that is from US$30 to 3,000/ha/year. The paper concludes that economic valuation is vital for bringing ecosystems to decision-making agendas in developing countries and that great effort must be made to bridge the gap between scientists and decision makers.

Total Economic Value of Wetlands Products and Services in Uganda

“…However, the benefits associated with nonuse values accrue over a much larger area, to rural and urban residents, and most of them are of public goods nature and deserve special consideration. This is recognised by different studies as one of the strong justification of leaving some wetland areas intact, with minimal disturbance as justified by Emerton et al [11], Balmford et al [38], Bullock and Acreman [39], and Korsgaard and Schou [40]. …”

“…This is likely to affect their perceived value of wetlands and would further encourage even more unsustainable levels of resource use, ultimately leading to the destruction of wetland ecosystems as observed by Korsgaard and Schou [40] and Bai et al [41, 42]. The estimates of wetland benefits as for this study illustrate the magnitude of the economic value of wetlands in addition to their biodiversity, scientific value, climate regulation, potential tourism, social, cultural and other important wetland values.…”

Managing Rivers for Multiple Benefits–A Coherent Approach to Research, Policy and Planning

“…Asymmetries of power mean that decisions about trade-offs are rarely objective; the poor and marginalized often lose out to more influential actors (Acreman, 1996;Komakech et al, 2012). Disadvantages in access and entitlements can be exacerbated because vulnerable groups often rely disproportionately on ecosystem services, such as fisheries, particularly as a livelihood strategy of last resort (Korsgaard and Schou, 2010). Measures to enhance water security for some sections of society can lead to insecurity in supplies of water or other ecosystem services to others.…”

Key issues and trends in the water policy literature

“…In 2010 there were two papers published which dealt with the economic value of rivers and water quality (Korsgaard and Schou 2010;Nallathiga and Paravasthu 2010). Two papers focused upon nitrates and phosphates in water (Neset, Drangert et al 2010;Ngatcha and Daira 2010).…”