Assessment and valuation
Assessing the condition and value of different ecosystem services to different stakeholders is essential to identify practical management solutions and generate arguments to negotiate with farmers and other users of the ecosystem services.
Why do we need to assess and value ecosystem services?
The basis of any intervention to protect and manage agricultural ecosystem services is a comprehensive understanding of the different ecosystems in the area, the services they deliver and the beneficiaries of these services. It is important to identify and map ecosystem service users to understand their value and, therefore, how to enhance and maintain them.
The valuation of ecosystem services considers two types of value: Use and non-use.
Use-values include the direct use of the products delivered by ecosystems: for example, making use of water for irrigation. Indirect use values relate to the fact that we indirectly use the ecosystem’s regulating services (such as water infiltration and cycling) when we make a direct use of its water. The value people attribute to the future availability of this ecosystem service has an option value, too.
Non-use values refer to the inherent value of that same body of natural water even when it is not in use at the moment. This includes the pure right of existence of an ecosystem, and its potential future value of other generations to use. Including both these values enables IES negotiations to be more equitable for providers, beneficiaries and the ecosystems themselves. However, there are likely to be trade-offs between services and their users, and this needs to be carefully acknowledged and adequate incentives negotiated.