VALUATION

OF
ECOSYSTEM
SERVICES

ECOSYSTEM SERVICES
THE MILLENIUM
ECOSYSTEM ASSESSMENT
[MA] PUBLISHED ITS
DEFINITION IN 2005 AND
DEFINES ECOSYSTEM
SERVICES AS THE:
BENEFITS PEOPLE OBTAIN
FROM ECOSYSTEM

ECOSYSTEM PROCESS :
INTERACTION OF BIOTIC
AND ABIOTIC COMPONENT
ECOSYSTEM FUNCTION :
RESULT OF ECOSYSTEM
PROCESS

Strength of linkages between different ecosystem services and

components of human well-being

DRIVERS OF CHANGE IN ECOSYSTEM

SERVICES
DIRECT DRIVERS
Physical

,
chemical and
biological
such as habitat
change ,
overexploitation ,
invasive alien
species , pollution
and climate
change

INDIRECT DRIVERS
Population change,
change in economic
activity,
sociopolitical
factors,
cultural services and
technological
changes
e.g. trade legal
framework believes ,
consumption choices

ECOSYSTEM SERVICES :
VALUATION
THE MILLENNIUM ECOSYSTEMS
ASSESSMENT 2005 STATED THAT :
ECOSYSTEM SERVICES VALUTION IS A TOOL
THAT ENHANCES THE ABILITY OF DECISION
MAKERS TO EVALUATE TRADE-OFFS BETWEEN
ALTERNATIVES ECOSYSTEM MANAGEMENT
REGIMESAND COURSES OF SOCIAL ACTIONS
THATALTER THE USE OF ECOSYSTEMS AND
THE SERVICES THEY PROVIDE.

WHY VALUATION IS NEEDED

TO ASSES THE IMPACT OF THE
CHANGES IN ECOSYSTEM GOODS AND
SREVICES ON HUMAN WELL-BEINGS.

IT HELPS TO UNDERSTAND HOW

ECOSYSTEM MANAGEMENT OCCURS.

TOTAL ECONOMIC VALUE (TEV)

(SUM OF USE AND NON-USE
VALUE)

USE VALUE
DIRECTLY GET FROM
ECOSYSTEM
(ACTUAL VALUE)

REVEALED
PREFERENCE

NON USE VALUE

INDIRECTLY GET
FROM ECOSYSTEM
(AN OPTION TO USE)

STATED
PREFERENCE

REVEALED PREFERENCE AND

STATED PREFERENCE
REVEALED PREFERENCE

RANDOM UTILITY
(WTP)
TRAVEL COST (WTP)
HEDNOIC
VALUE(WTA/WTP)
AVEITING VALUE
(WTP)
MARKET VALUE(WTP)

REVEALED PREFERENCE

CHOICE
MODELNG(WTA/WTP)
CONTIGENT
MODELING(WTA/WTP)

THANK YOU