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Guide to valuing

ecosystem services

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Guide to valuing

ecosystem services

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Translation of:

Naturvårdsverket. 2015. Guide för värdering av ekosystemtjänster. Naturvårdsverkets rapport 6690.

Orders

Order Tel: +46 (0)8-505 933 40

Order fax: +46 (0)8-505 933 99 Email: natur@cm.se Postal address: Arkitektkopia AB, Box 110 93, 161 11 Bromma

Internet: naturvardsverket.se/publikationer

Swedish Environmental Protection Agency

Tel: +46 (0)10-698 10 00, Fax: +46 (0)10-698 10 99 Email: registrator@naturvardsverket.se

Postal address: Swedish Environmental Protection Agency, SE-106 48 Stockholm Internet: www.swedishepa.se

ISBN 978-91-620-6854-7 ISSN 0282-7298 © Naturvårdsverket 2018

Printer: Arkitektkopia AB, Bromma November 2018

Graphic production: BNG Communication AB/Reform Act och AB Typoform Cover photos: Dan Lepp/Johnér (façade with foliage) and

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Foreword

Ecosystem services are essential to our well-being. Yet we often take them for granted. By perceiving and valuing ecosystem services, we can affect our future well-being and quality of life. Politicians, public authorities, municipalities, businesses, organisations, and individuals can thereby make more conscious and well-informed decisions. For example, the value of ecosystem services should be included in planning and decisions about land and water use.

Perceiving the value of ecosystem services is necessary for a society that aspires to sustainable development. Valuation of ecosystem services provides a basis for decisions on questions such as: Which areas should be preserved, and which should be developed? Which ecosystem services do our activities and operations depend on to function properly? Should the new residential area be located east or west of the motorway? How should we design green spaces in the new residential area to promote public health?

This guide does not provide answers to all possible questions on ecosystem services but will guide you in finding the answers in your work. The content is practice-oriented, with step-by-step instructions and a number of examples, and it is intended for people who work in municipalities, business, public authorities, county administrative boards, and interest groups. The Swedish Environmental Protection Agency hopes that this guide will facilitate and inspire more people to start valuing ecosystem services.

This guide has been developed in cooperation between Swedish authorities within a Swedish government initiative on communication and ecosystem services. This project is part of the effort to achieve the Sweden´s environmental milestone target regarding the importance of biodiversity and valuation of ecosystem ser-vices. Kerstin Bly Joyce, Swedish Environmental Protection Agency, is the contact person for the guide.

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Contents

Foreword 3

INTRODUCTION 5 About the guide

What is economic valuation? 6

Why should we value ecosystem services? 8 Reading and working with the guide 8

VALUATION OF ECOSYSTEM SERVICES IN SIX STEPS 10 Step 1. What are you going to use the valuation for? 12 Step 2. Identify ecosystem services 16

Step 3. Limit the scope of the analysis 23

Step 4. Determine the starting points for the valuation 25 Step 5. Apply valuation methods 31

Step 6. Do a review 37 PRACTICAL EXAMPLES 37

C/O City – ecosystem services in urban planning 42

Lomma municipality – ecosystem services in local planning 47 Saltå Kvarn – a toolbox for action in the cultural landscape 51 Riksbyggen – a tool for assessing ecosystem services

in the construction sector 54

NCC – an analysis of ecosystem services at the company’s headquarters 60

Sveaskog – markets for ecosystem services 64 Good marine environment – the importance of ecosystem services for tourism and recreation 66 After-treatment of contaminated land

– the impact on ecosystem services 74 Monetary valuation studies

– the value of ecosystem services in monetary terms 78 BIBLIOGRAPHY 84

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Introduction

Over the last few decades, the concept of ecosystem services has gained ground as a way to make the functions and processes of ecosystem services and their connec-tion to human well-being visible. The concept is relatively new; however, the way of thinking is not. Plato stated about 2,400 years ago that deforestation around Athens had led to soil erosion and dried up water sources.1 In short, people need

functioning ecosystems for society to work well.

The purpose of placing a value on ecosystem services is to shed light on and build an understanding of people’s dependence on well-functioning and healthy ecosystems by describing the values that are associated with ecosystem services. Without such a valuation, there is a risk that ecosystem services will be given too little weight in decision-making, which jeopardises the welfare of both current and future generations. A valuation serves to shed light on the chain of relationships linking ecosystem processes and functions to our well-being. In order to make well-informed decisions, we need to implement the values of ecosystem services in order to make well-informed decisions regarding sustainable development.

About the guide

How is a valuation done? The answer is, it depends. There are many guides in the international literature, on how to do valuations. The form valuations can take may vary depending on the purpose and context. The literature is sometimes technical and sometimes oriented towards specific forms of valuation or towards specific decision-making processes. Much of the Swedish literature on environ-mental valuation has until now lacked a clear connection to ecosystem services and has been oriented towards establishing a value solely in monetary terms.

This guide focuses on methodological aspects of valuation.2 It was originally

intended primarily for municipalities, businesses, public authorities, county administrative boards, and interest groups in Sweden, This guide was translated to inspire others within the Convention of Biological Diversity community to develop their own processes and to illustrate how valuation of ecosystem services can be done. The guide contains a step-by-step method for valuation, which accommodates valuation studies with a variety of purposes and types. The guide is brief and

pro-1 Daily, G., (ed), 1997.

2 In other words, the guide does not address issues such as how to best implement the

findings from a valuation in an organisation or administration, or the staff resources that may be required to implement the analysis, etc.

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vides references to literature for further study. Moreover, the latter part of the guide contains practical examples that show how valuation has been done.

The Swedish Environmental Protection Agency is responsible for this guide and supporting documents have been produced by Anthesis Enveco (environmental economics consultant). Feedback on the content and approach was provided by authorities participating in the project, as well as the Network on Ecosystem Services that was initiated by the project.

This guide has one main message: a valuation must be done methodically so that important values are not missed, and the analysis should produce as much information as possible in relation to the purpose of the valuation. Therefore, the guide is based on covering relevant steps from a relatively early stage of analysis. Accordingly, the guide does not contain detailed descriptions of, for example, the various methods of monetary valuation, which should be done in a relatively late phase of the evaluation. References to the literature are instead provided for further study.

What is economic valuation?

There are many ways to establish a value. How that value is to be expressed is a discussion in itself. This guide is about economic valuation, which means that ecosystem services are valued based on the benefits they generate for people and society. Economic valuation deals with how people’s well-being is affected by their conceptions (preferences) about what plays a role in their well-being, given a world with limited resources. As we continue writing about valuation in this guide, reference is made to economic valuation, but values are not always expressed in monetary terms, but rather the benefits of ecosystem services to socie-ty (well-being) and business profitabilisocie-ty.3

Values can be expressed in different ways

One limitation of economic valuation is that it does not necessarily mean that values can be expressed in monetary terms. Later in the guide, we describe a num-ber of ways to value relevant considerations or factors:

• Qualitative valuation: Values expressed in words.

• Semi-quantitative valuation: Values expressed in a point scale.

3 Benefits to society are theoretically represented by the sum of consumer and producer

surpluses, roughly, well-being and profits. Economic benefit for a business can be regarded as a contribution to a company’s profitability in the short-term and long-term. Business management benefit analysis and socio-economic benefit analysis might therefore differ.

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• Quantitative valuation: Values expressed in terms of some physical unit, such as the amount of raw materials produced during a certain period or the number of visits to a recreational area.

• Monetary valuation: Values expressed in monetary units. Valuation is based on a chain of events

Ecosystem services can be defined as the direct and indirect contributions of ecosystems to human well-being.4 This means that it is important to increase

the visibility of structures, functions, and processes in different ecosystems that ultimately benefit society. The interaction between the ecosystem and people can be described through a chain of events. This chain of events may have different appearances and terminologies, but usually the meaning is similar, as seen in the following two examples:

• The ability of the ocean to cleanse water from environmental toxins results in good water quality in conjunction with other oceanic processes, thus creating favourable conditions for swimming, which many people value.

• Vegetation in the urban environment contributes to natural noise protection, which positively affects our health.

A division of the services into indirect and direct ecosystem services is often used. What is direct and indirect can sometimes be difficult to determine, but it is clear that such a way of thinking is necessary to understand the ecosystem in relation to people. In the ocean example above, water purification is regarded as an indirect ecosystem service, while good water quality is a direct ecosystem service, and bathing/ swimming is an activity asset that generates value.

The conceptual approach can vary among different reports and contexts, but the main point is the same: valuation is based on a chain of events. If we eliminate the ecosystem’s ability to cleanse dangerous substances from the water, it will have consequences for people. If we do not create the prerequisites for vegetation, the urban environment becomes noisier and our well-being suffers. Therefore, we need to understand the processes of ecosystems, how human activities and decisions affect them, and what we can do to improve or restore their function.

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Why should we value ecosystem services?

Making the value of ecosystem services visible means that we can arrive at sound-er decisions in relation to people’s need for functioning ecosystems. Decisions affecting ecosystems are made daily by politicians, public authorities, munici-palities, businesses, and other organisations as well as by individuals. By valuing the ecosystem services that may be affected by different decisions, balance can be achieved between different options to ensure that the long-term needs of society for functioning ecosystem services are met. Here are some examples of purposes a valuation can serve;

• To determine if a project, a plan or a policy leads to socio-economic profita-bility and to prioritise among different measures or alternatives.

• To investigate conflicting objectives and to facilitate trade-offs between different objectives.

• To serve as a basis for decisions on land use: where can we place buildings or infrastructure and what is the prospect for this to contribute to and not degrade, the ability of the ecosystem to generate ecosystem services?

• To help communicate the value of an endangered ecosystem service (“the cost of inaction”) or the value of a project that improves the ability of ecosystems to generate social benefits by, for example, restoration or re-creation of natural environments.

• To form the basis for decisions about a company’s strategic direction – for example, to prepare the organisation for future risks in the supply chain associated with impact on the environment or to support a company’s efforts to make a positive contribution to public welfare.

• To develop the basis for environmental accounts in a municipality or nationally.

Reading and working with the guide

This guide can be read either from start to finish or in individual sections. The guide has two parts: the first section is a step-by-step guide for economic valuation with bibliographical references, and the second section provides practical exam-ples of how various actors have applied these methods.

The guide is intended to be a means of support rather than a handbook. It is meant to be a practical source of inspiration for how valuation can be done. However, different situations entail different analytical needs, and in some cases, things need to be done in another way or in another order. For example, one

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alternative might be to stop after the identification of ecosystem services in step 25

because this step provides a relatively good first overview. Another alternative is to focus on individual aspects and thus not do undertake the broad survey that tak-ing all of the steps entails. The guide covers a variety of different types of purposes and contexts. It is necessarily “watered down” to a certain extent. References are provided to more specialised literature in various areas, instead of a detailed text in the guide. The guide can also serve as a starting point for the preparation of more specific guides and handbooks in different contexts.

5 See the next section ”Valuation of ecosystem services in six steps”.

SOU 2013:68 concerning ecosystem services provides many thorough lines of reasoning and an abundance of literature references. For example, see section 1, which has a wide-ranging discussion of the ecosystem services concept and its valuation.

SOU 2013, 2013. Making the value of ecosystem services visible. Proposals to enhance well-being through biodiversity & ecosystem services. Swedish Govern-ment Inquiries. English Summary of SOU 2013:68.

The Swedish Environmental Protection Agency’s white paper provides an

overview of ecosystem services in Sweden according to different habitat types. It also explains the background of the concept of ecosystem services and valua-tion. See, for example, pp. 34–36: “Why should we value ecosystem services?” Swedish Environmental Protection Agency, 2012. Compiled information on ecosystem services. White paper 2012-10-31. In Swedish

LEARN MORE:

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Valuation of ecosystem

services in six steps

The following premises have been of vital importance for the guide:

• A valuation of ecosystem services should be broad in terms of ecosystem services that are covered in the analysis. What we are striving for is to not miss essential values because of a limitation in the scope of the analysis. We should also be aware of the possibility that essential values have been missed because of the limitation in the scope of the analysis.

• Analytical resources are limited. This means that there must be a balance between what should be covered and how deep the analyses should be. • Everything does not have to be measured in numbers and monetary units;

it is possible in many cases to come a long way with qualitative studies. • There are always uncertainties, and these should be made clear to a

reasona-ble extent. However, the complexity of the ecosystem makes it impossireasona-ble to clarify everything.

• It is better to do something than nothing at all. However, we need to consider that good decisions require a good basis for decisions.

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What are you going to use the valuation for? Identify ecosystem services

Defining the analysis

Determine starting points for the valuation Apply valuation method(s)

Do a review

1

2

3

4

5

6

The following six steps for valuation were developed based on the basic premises given above and to reflect the relevant (scientific) literature, and at the same time allow for many possible purposes for valuation. These six steps are:

Please note that the process is not always done one step at a time, from step 1 to 6, repetition of some steps may be needed. For example, a preliminary assessment of the value of an ecosystem service (step 5) could form the basis for limiting the scope of the ecosystem services that will be analysed further (step 3).

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Step 1. What are you going to use the valuation for?

At the heart of the valuation is that it is designed to fulfil some specific purpose, and that purpose is important for the way the study is set up. Consequently, you should specify what you are going to use the valuation for. A number of possible starting points could be to:

• Balance different interests and prioritise among different things that require

funding. Which areas should be preserved, and which should be developed?

Which environmental improvement measures are most important for a com-pany or municipality? What level of ambition is reasonable in environmental work?

• Make ecosystem services visible in relation to your activities. How do your activities affect various ecosystem services? Which ecosystem services do your activities depend upon to function, and what possible business risks and opportunities do you envision?

• Make a positive contribution to the provision of ecosystem services or minimise the negative impact. What measures are needed for a project or a certain operation to be sustainable?

• Choose among alternative development options. Should the new commercial area be located east or west of the motorway? Should we go in for a park or a nature reserve in a specific place? How should we design green open spaces in the new residential area?

You can surely find one or more among these starting points that are more rele-vant than the others. Often, but not always, one valuation of ecosystem services is linked with another broader process; see Box 1 for some typical areas of applica-tion.

What are you going to use the valuation for?

Identify ecosystem services Defining the analysis

Determine starting points for the valuation Apply valuation method(s)

Do a review

1

2

3

4

5

6

• The purpose of the valuation should be related to the overall goal of the activity. • Different purposes require different approaches for valuation.

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Box 1. Valuation of ecosystem services is often, but not always, linked to some broader process. Given the overall formulation of purpose and the intended fields of application, it is necessary to more exactly define what is to be measured. Possible types of valuation studies and what could be measured are:

• Supporting data for a socio-economic impact assessment. The socio-economic costs and benefits, distributional aspects, and financial effects that can be expected given the implementation of some project or a plan or policy. • A valuation of existing ecosystem services at a certain location. For example, in

physical planning the location and importance of ecosystem services can be pointed out.

• An analysis of the contribution of ecosystem services to the regional economy or health. Descriptions of how various ecosystem services contribute to employ-ment, tax revenues or various measurements of public health.

• An “eye-opener”. Developing supporting documents that can powerfully com-municate the value of a specific ecosystem service that is threatened or that could be improved.

• A business-economics risk analysis or an analysis of the impact on ecosystem services. Dependencies are identified. What ecosystem services is the compa-ny dependent on and to what extent? What ecosystem services are affected by the company’s activity and to what extent?

• A basis for environmental accounting. Supporting data, such as that which can be included in “green” national or municipality environmental accountings. The purpose of valuing ecosystem services governs how you should design your study – for example, with respect to how ecosystem services should be identified (step 2), which ecosystem services should be given extra focus (step 3), the starting points that should apply to valuation (step 4), and how the value should be expressed (step 5) – for example, whether the valuation should be qualitative,

• Physical planning.

• Environmental impact assessment.

• A socio-economic impact assessment of a particular decision or project. • Development of municipal strategies.

• Development of corporate sustainability or business strategies. • Risk analyses.

EXAMPLES OF PROCESSES WHERE

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quantitative, or monetary. Table 1 provides some examples of valuation studies and how these relate to the requirements in steps 2–5 of the analysis. The text in the table is intended to illustrate the approach that is most common or possible in relation to different types of valuation studies. Other approaches or schemes are also possible.

Table 1. Different types of valuation studies entail different approaches. The purpose of the

analysis (Step 1) Is a complete identification of ecosystem services need-ed? (Step 2) Should the scope of the analysis be limited in some way? (Step 3)

What are the starting points for the valuation?

Which expression of value is common? (Step 5)

A basis for a socio- economic impact assessment

Yes Preferably not • Define environmental

changes resulting from the project, plan, or policy • Describe how the envi-ronmental changes affect ecosystem services

• Words • Scores

• Some physical units (e.g., quantity of a good) • Monetary units

A valuation of existing ecosystem services at a certain location

Yes Preferably not Value the aggregate existing

resources at different locations

• Words • Scores

• Some physical units (e.g., areas of a certain natural habitat type)

An analysis of the con-tribution of ecosystem services to regional economy or health

Maybe Yes Make a link between

ecosystem services and tax revenues, jobs, health meas-urements, etc.

• Words • Scores

• Job, health measure-ments

• Monetary units (in tax revenue)

An “eye opener” No Yes • What is at risk of being lost?

or

• Aggregate value of any particular type of nature?

• Monetary units • Some physical units (e.g., the quantity of a good)

A business-management risk analysis or analysis of impacts on ecosystem services

Yes Preferably not • How does a change in

access to ecosystem services affect production?

or

• How do the company’s operations affect ecosystem services

• Monetary units • Impacts on production • Scores

A basis for environmental accounts

Maybe Maybe How big is the aggregate

resource?

• Monetary units • Physical units

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Valuation for physical planning/land use: The United Nations Environment Programme (UNEP) has issued a handbook on how ecosystem services can be integrated into physical planning and strategic environmental assessments.

UNEP, 2014. Integrating Ecosystem Services in Strategic Environmental Assessment: A guide for practitioners. A report of Proecoserv. Geneletti, D.

____

The value of ecosystem services in the regional economy: See, for example, Boston Consulting Group, 2015, which has calculated municipality economic effects of a better Baltic Sea environment.

Boston Consulting Group, 2015. Restoring Waters in the Baltic Sea Region – A strategy for municipalities and local governments to capture economic and environmental benefits. February 2015.

____

Monetary valuation as “eye-openers”: See, for example, the Swedish Environ-mental Protection Agency’s guide to “scenario methods”, which is an in-depth report in support of the implementation and procurement of valuation studies based on scenario valuation. See also the suggested literature presented in step 5.

Swedish Environmental Protection Agency, 2011 Ekonomisk värdering med scenariometoder – en vägledning som stöd för genomförande och upphandling Economic valuation with scenario methods – a guide in support of implementation and procurement. Report 6469, November 2011. In Swedish with English summary.

____

Valuation for companies: See the World Resources Institute report on Corporate Ecosystem Services Review (ESR), which contains a step-by-step guide to illustrating the risks and opportunities for a company in relation to ecosystem services.

Hanson, C., Ranganathan, J., Iceland, C., Finisdore, J., 2012. The Corporate Ecosystem Services Review: Guidelines for Identifying Business Risks and Opportunities Arising from Ecosystem Change. Version 2.0. Washington, DC: World Resources Institute.

____

Environmental accounts: Ecosystem services have not yet taken a giant step into environmental accounts.

SCB, 2013. Inventory of data sources for quantification of ecosystem services. Environmental

accounts 2013:2.6

Björk, O., Palm, V., Steinbach, N., Lone, Ø., Kolshus,K., Gravgård. Pedersen, O., Krarup, S., Kolttola, L., and Lindblom, A., 2016. Making the ecosystem count. Nordic accounts and

indicators for analyzing and integrating environment and economy. TemaNord 2016:507.7

LEARN MORE:

VALUING FOR DIFFERENT PURPOSES AND CONTEXTS

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6 https://www.scb.se/statistik/_publikationer/MI1301_2013A01_BR_MI71BR1303.pdf 7 https://norden.diva-portal.org/smash/get/diva2:915431/FULLTEXT01.pdf

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What are you going to use the valuation for?

Step 2. Identify ecosystem services

After the purpose of the analysis has been established, relevant ecosystem services are identified. A comprehensive strategy can be to base the identification on a gross list of ecosystem services. Various lists or classification schemes and catego-risations of this nature are available in the literature (see the suggested literature at the end of this section). Different classification schemes may be suitable for dif-ferent environments and habitat types. Figure 1 provides examples of an overview of ecosystem services in the forest. The Economics of Ecosystems and Biodiversity (TEEB) has prepared a general classification with categories that are designed to be generally applicable (see the suggested literature at the end of this section). The

PROVISIONING For example: • grain • drinking water • timber • bioenergy REGULATING For example: • pollination • purification of air and water • climate regulation

SUPPORTING

So that other services will function, such as: • photosynthesis, soil formation, biogeochemical cycles

CULTURAL For example: • outdoor recreation • health and inspiration • natural heritage and tourism

Ecosystem services are usually categorised as provisioning, regulating, cultural, and supporting services.

Identify ecosystem services

Defining the analysis

Determine starting points for the valuation Apply valuation method(s)

Do a review

1

2

3

4

5

6

• A broad identification of ecosystem services is needed.

• Also try to identify which ecosystem services depend on each other.

• Use a list of eco-system services; there are many to use as a basis.

• Describe the way the ecosystem service appears to be or is affected.

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Swedish Environmental Protection Agency has developed a classification scheme adapted to Swedish conditions. There are also more specific lists, such as for agri-culture, the marine environment, the forest, and so on.

Most classifications are based on the system used by the Millennium Ecosystem Assessment, including provisioning, regulating, cultural and supporting ecosystem services (see illustration on page 16).8 Provisioning services provide products and

benefits such as food and wood fibre. Regulatory services affect or govern the natural processes of the ecosystem, such as its capacity for water retention and biological control of pests. Cultural services provide experiential values such as recreation, while supporting services are the prerequisites that enable the other ecosystem services to function, such as photosynthesis and soil formation.9

When you have found a suitable list or classification scheme of ecosystem services, you should describe them, based on a number of aspects. A possible start for this description is provided in table 2, which gives some examples of key questions for each of the ecosystem services. To answer the questions, you may

8 MEA, 2005.

9 Note that biodiversity is not mentioned as an ecosystem service in most classifications. The

reason for this is that biodiversity per se is not regarded as a prerequisite for all ecosystem

5. 5

Food

Pollination

Pest control

Wood and bioenergy Stable and secure land

Nature experiences

Nutrient supply

Climate regulation Flood protection

such as berries, mushrooms, and meat from game.

through the felling of trees for the pulp and paper industry and for sawmills, as well as for biofuel using thinned-out branches and tops. through the ability of roots to

bind soil and water

with all that entails for the quality of life of individuals and for tourism.

through water absorption by trees and abundant litter layers (soil layers with partially decomposed plant material) and water retention in wetlands covered by boreal forest.

and recycling of nutrients that the forest needs is provided by fungi and microorganisms in the soil. by storing carbon in trees and

soil and temperature equalisation. Through the forest’s own

large and small predators and parasites that are natural enemies of species that can become harmful agents

of both the forest’s own species, such as blueberries and lingonberries, and for agricultural and horticultural crops.

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need the support of other existing data, specialist expertise from different fields of study, or discussions with relevant interested parties.

Try to identify and explain the uncertainties that exist when you answer the questions.

1. Does the ecosystem service exist in the area?

If your analysis is oriented towards a particular geographic area, you need to first ascertain whether the ecosystem service exists in the area. Even if you determine that the scope of the service is small, you should, for the time being, include the ecosystem service for further analysis.

It is a good idea to give some thought to the time perspective: Even if an eco-system service is not perceived as being particularly important at present, it could become important in the future. An example is flood protection, which can be expected to become more important in the future as a result of changes in precipi-tation patterns and amounts. Natural functions such as infiltration or transpiration can help to reduce or intercept peak flows. Another example may be the number and accessibility of green spaces in urban areas that are presently available for nature experiences, but as a result of development will become scarcer.

2. What areas are especially important for the ecosystem service?

Try pinpointing the places or geographic areas that are particularly important for the ecosystem service. For example, this can involve pointing out recreational areas or investigating where there are important habitats for key species that contribute to important functions in the ecosystems or identifying areas with soil conditions that contribute to flood protection.

3. In what way does the ecosystem service create benefits?

Describe in a general way how the ecosystem service creates benefits for people. You should have an ecosystem perspective combined with a social perspective – that is, you should describe in a general way processes in the ecosystem that ultimately lead to a positive impact on society. In the case of the flood protection service, for example, this may include a description of how the ecosystem contributes to flood protection and what this service subsequently leads to, such as a reduced need to construct other flood protection or completely avoiding the risk of flooding. 4. Who benefits?

Describe who benefits from the ecosystem service. Some ecosystem services, especially the supporting and regulating services, benefit society at large by sus-taining important functions. Other services are more clearly linked to stakeholders in some particular area or in some particular industry. Try to describe these various geographical scales.

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5. Is the ecosystem service threatened?

Make an assessment of the scarcity of the ecosystem service locally, regionally, nationally and/or globally. Ideally, think long term; in other words, try to describe how the threat to the ecosystem service is likely to be in the future. It may be difficult to assess, but it can be helpful to use literature surveys or local knowledge. It can be particularly threatening if a negative effect can lead to threshold effects in the ecosystem that are difficult to repair. Therefore, try to include a risk perspective in your assessments.

6. What other ecosystem services does it depend on or affect?

An additional task that is important before the valuation is the investigation of interactions among ecosystem services. In this way, underlying ecological connec-tions that ultimately lead to benefits are made visible. For example, the production of fish depends on a functioning habitat, which in turn is dependent on water quality, which in turn is dependent on a number of supporting and regulating services, such as water purification and flood control.

As described in the introduction, the concepts of direct and indirect ecosystem services are often used to distinguish between ecosystem services that generate ben-efits directly and the underlying services that are the basis for the creation of these benefits. In the above case, fish production is a direct service, while habitat, water purification, and flow control are indirect services.

If your valuation study involves assessing the consequences of a particular project, plan or policy, or some other form of change, you will also need to identify which ecosystem services are affected. The above six questions serve as a basis for mov-ing forward with this analysis. At any rate, it is important to ask the followmov-ing four questions (7-10):

7. Is the ecosystem service affected by the project?

This question is easy to ask but can be difficult to answer. Even if you determine that the effect is small, you should answer yes to this question to further investigate the ecosystem service at a later stage. Effects may be direct, such as when a previ-ously undeveloped area is developed, or indirect, such as through

on-going effects over a period of time. 8. In what way is it affected?

Is the effect positive or negative? Try to describe what aspects of the project lead to the effect. Use a systems perspective in which you describe what depends on what.

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9. Who benefits or suffers?

Your answer to question 4 should give you a good basis for answering this question. Remember to also consider how an improvement or deterioration of ecosystem services affects the ecosystem at large and thus people in places other than just the where the project is implemented.

10. How can negative effects be avoided, minimised, remedied, or compensated? If the project, plan, or policy leads to negative consequences for ecosystem services, consider what measures can be taken so that the damage can be avoided, mini-mised, remedied, or compensated. In some cases, it may be possible to avoid certain negative impacts on ecosystem services or even to generate a net positive outcome in the end. This may then have consequences for the valuation. If the project/plan/ policy essentially leads to a positive impact on ecosystem services, you can here, as a final step in the identification process, reflect on whether any action is relevant to further reinforce these positive impacts.

When you have answered these questions, you have to some extent already valued many aspects. Feel free to summarise your findings and gather points of view from those affected or other experts.

Box 2. In doing the identification, you can get help from a variety of tools and resources. • A “complete” list of ecosystem services from the literature that is suitable for

the specific case, or alternatively a general list from TEEB or elsewhere. • Available surveys of the ecosystem services in an area or in a particular habitat

type or other analyses of the consequences of a certain type of project. • Maps.

• Geographic information system (GIS) data.

• Information related to protected areas, where relevant. • Aerial photos and satellite images.

• Field surveys (geological inventories, species inventories, etc.). • Consultation with experts and stakeholders.

• National or international ecosystem service assessments, such as various applications of TEEB.

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Ecosystem service

If you are assessing the consequences of a project, plan,

or policy

, use these columns

1. Exists in the area? (Y es/No) 2. What areas are especially important? (Feel free to use map tool) 3. How is benefit created? (Describe) 4. Who benefits? (Describe) 5. Is the ecosystem service threatened? (If Y es, describe in what way) 6. What other ecosystem services does it depend on or affect? (T ry to describe the chain of effect) 7. Is it affected by the project? (Y es/No) 8. In what way is it affected? (Describe) 9. Who benefits or suffers? (Describe) 10. How can negative effects be avoided, mini mised, remedied, or compensated? (Describe possi -ble strategies) Supporting EST 1 EST 2 ... osv Regulating EST 1 EST 2 ... osv Provisioning EST 1 EST 2 ... osv Cultural EST 1 EST 2 ... osv

Table 2. A possible checklist for the identification of ecosystem services in an area as well as for the identification of ecosystem services that are affected by a project.

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TEEB provides a general classification that can be adapted to many contexts. One of the TEEB reports also offers an overview of TEEB’s classification in relation to some others; see p. 40 in the following document:

TEEB, 2013. The Economics of Ecosystems and Biodiversity – Ecological and Economic Foundations. Chapter 1 – Integrating the ecological and economic dimensions in biodiversity and ecosystem service valuation.

IPBES, 2018. Summary for policymakers of the IPBES Regional Assessment Report on

Biodiversity and Ecosystem Services for Europe and Central Asia. 10

____

For the marine environment, Garpe’s division from 2008* is often used.

Garpe, K., 2008, Ecosystem services provided by the Baltic Sea and Skagerrak. Report 5873, Swedish Environmental Protection Agency, Stockholm.

____

For the forest, the Swedish Environmental Research Institute’s compilation can be used, for example, see p. 14.

Swedish Environmental Research Institute (IVL), 2014. Ecosystem services in Swedish forests. IVL Report B2190.In Swedish. English summary in: Hansen, K. and Malmaeus, M., Ecosystem Services in Swedish forests. Working papers of the Finnish Forest Research

Institute, Finér, L., Karvinen, L., And Stupak, , I., (ed.) pages 43–44.11

Swedish Agency for Marine and Water Management, 2015a. Ecosystem services in Swedish forests. Bryhn, A., Lindegarth, M., Bergström, U., Bergström, L., Swedish Agency for Marine and Water Management’s report 2015:12.

____

For groundwater, the Geological Survey of Sweden’s report from 2014 takes up the concept of groundwater services, which does not necessarily have a link with the biotic processes of the ecosystem, but definitely to people and to land use decisions, among other things.

Geological Survey of Sweden (SGU), 2014. Grundvattnets ekosystemtjänster (Groundwater ecosystem services and their economic value — an initial mapping). SGU report 2014:40. In Swedish,

Griebler, C. and Avramov, M., 2015. Groundwater ecosystem services: a review. Freshwater Science 34: 355 -367.

LEARN MORE:

LISTINGS OF ECOSYSTEM SERVICES

IN DIFFERENT ENVIRONMENTS

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10 https://www.ipbes.net/system/tdf/spm_2b_eca_digital_0.pdf?file=1&type=node&id=28318 11 http://www.metla.fi/julkaisut/workingpapers/2014/mwp316.pdf#page=43

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Step 3. Limit the scope of the analysis

Limiting the scope of what is to be further analysed may be necessary. The basis for limiting the scope of the analysis may look different depending on the purpose of the valuation. Examples of factors that can govern your choice of limits in the scope of the analysis can be:

• Local priorities – there may be policy documents or other explicit wishes. As a result, the valuation may be particularly important for some ecosystem services that occur or should occur locally.

• Available resources – access to time, available knowledge, data, and expertise can mean that you will be able to go in-depth for some ecosystem services, whereas this may be more difficult for other ecosystem services. This can be a basis for limiting the scope of the study. However, this should not be the overriding factor for the analysis. Remember to define the limits based on your overall objective.

• Time perspective – do you want to give priority to ecosystem services that generate value now or ecosystem services that could generate value in the future?

• The degree of impact – perhaps you want to focus on valuing ecosystem services that are expected to be affected to a large extent by your project, plan, or policy and are content with the analysis made in the identification step for the ecosystem services that are expected to be affected to a lesser degree.

• Type of ecosystem services – for some reason, you may want to focus on fur-ther analysing a particular ecosystem service or a specific group of ecosystem services.

Defining the analysis Identify ecosystem services

What are you going to use the valuation for?

Determine starting points for the valuation Apply valuation method(s)

Do a review

1

2

3

4

5

6

• Often, no specific limitation in the scope of the analysis is needed, but a more overarching analysis is made.

• Limit the scope of the analysis on the basis of your overall objective.

• Consider what the consequences will be if you choose to not consider some ecosystem services.

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Limiting the scope of the analysis means that you disregard something. It is particularly important to reflect on what this entails when you subsequently draw conclusions. Furthermore, you need to make trade-offs given the available time and other resources. Do you want a broad overview, or to focus on something in particular? It is difficult to do both. A good identification in step 2 provides a platform that helps you limit the scope of the analysis without losing the necessary holistic perspective. Be transparent in your description of the limits that have been made and that motivate your choice.

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Step 4. Determine the starting points for the valuation

When you have identified relevant ecosystem services in step 2 and determined what is to be further analysed in step 3, you should take the next step towards being able to value them by establishing guidelines for valuation. Given your identification in step 2, you have already come a long way towards describing the types of values that are generated, who is affected, and the interaction between different ecosystem services.

In step 4 you should:

• Further investigate how values are created by the ecosystem services you have identified.

• Investigate the type of values created.

• Decide how the value should be expressed. (Do you want to describe the value in terms of words, scores, physical units, or monetary units?) In addition to these aspects, you also should make clear what it is you want to value. For example, do you want to describe the value of existing ecosystem services at a specific place or do you want to study the effects of a particular project or decision? Being able to provide answers to this question is the key to structuring your analysis and moving forward with determining the starting points for the valuation.

What are you going to use the valuation for?

Determine starting points for the valuation Identify ecosystem services

Defining the analysis

Apply valuation method(s) Do a review

1

2

3

4

5

6

• Investigate the value creation chain and va-lue direct ecosystem services as a priority. • Investigate whether

you are overlooking any important values. • It is important to also

describe the values that can be generated or be at risk in the future. • Values can be described in words, scores, physical measurements, or monetary units. Choose approaches based on the purpose and conditions.

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It is important to remember the following fundamental principles for valuation: • The contributions of ecosystems to human well-being is what should be valued. • The value is site-specific.

• The value depends on the scarcity of the service locally, regionally, nationally, and/or globally.

• Double counting of values should be avoided. Investigate how values are created

As much as possible, you should try to value ecosystem services based on their “final benefit”. This means that the interactions between different ecosystem services that you identified in step 2 should be concretely classified as direct and indirect ecosystem services and that you are valuing the indirect ecosystem services through their contributions to the direct services. Otherwise there is a risk of double counting, much like the double counting that would occur if the value of a loaf of bread were calculated as the value of the loaf plus the value of the input goods – i.e., the value of the flour plus the value of the wheat and so on. Instead,

Food

such as berries, mushrooms and meat from reindeer, other domestic animals and wild game.

Cultural heritage

both the unique biological cultural heritage and the cultural heritage of the Sámi people and others in the alpine area are a source of inspiration and art.

Recreation

and nature tourism

opportunities for skiing, hunting and fishing, combined with unique nature experiences, enhance quality of life for people and contribute to tourism.

Natural heritage

distinctive biodiversity is not only a prerequisite for the ecosystems’ ability to provide ecosystem services but also a value in the form of the heritage associated with the mountains.

Natural water regulation vattenreglering

The flood zone along unregulated streams provides capacity for natural flow regulation and water absorption. Flood zones also create important spawning environments for fish and counteract regrowth of the riparian zones.

Climate regulation

by storing carbon in vegetation and peat (carbon stored in partially decomposed plant material). Temperature equalization in winter through reflection of solar radiation by snow in open areas, what is called the albedo effect.

Resource for research and development

unique opportunities for research and education in climate, ecology and geology.

Figure 2. Ecosystem services in the mountains. Which of the ecosystem services affect each other and what is a prerequisite for what? SOURCE: SWEDISH ENVIRONMENTAL PROTECTION AGENCY

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the value of the input goods is included in the value of the loaf. Therefore, try to capture and describe the interactions between ecosystem services.

A tool that can be used, as illustrated in the introduction, is a value creation chain from indirect to direct services that leads to benefits and that can then be valued. Sometimes it can be difficult to place the various components under their correct label. Ecosystem services can be regarded as direct from some points of view and as indirect from others. For example, good water quality can be considered a direct service that enables water extraction for drinking water, but also as an indirect service that leads to the supply of fish, which in turn enables commercial fishing yields.12 It is important to ask the questions: “What leads to

what, which services generate benefits for us and that ultimately can be valued”? A possible approach can be to start from the end of the chain – in other words, the final benefit – and work backwards. For example, ask yourself the question: What ecosystem services are prerequisites for commercial fishing?

When the value creation chain is prepared, it is also important to ask yourself if something is missing. Figure 2 illustrates ecosystem services in the mountains and at least one value chain is seen. One value chain is “natural water regulation” which affects the production of food, and recreation and tourism. Water regula-tion may also affect many of the other ecosystem services, such as natural heritage and climate regulation. In addition, water regulation can also mitigate the risk of flooding downstream.

Different types of values

We continue with the example of ecosystem services in the mountains. Different benefits generate different types of values. The ability of the ecosystem to produce and create benefits in the form of food and recreational angling lead to what is known as use values – that is, values based on the use of a certain resource. However, people can place great value on natural heritage, regardless of whether we visit the area or not. This is what we refer to as a non-use value (see Box 3 for more details). Some valuation methods are more suitable for capturing use values while others are more suitable for capturing non-use values.

12 In the process of mapping the value chain, it may also be relevant to reflect on what investment capital or what input goods are required to make use of a service.

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Words, scores, physical units, or monetary units?

When you have an overview of the aspects explained above, it may be appropriate to start thinking in detail about how you can proceed with measuring the value. A number of possible groups of valuation methods are available:

• Qualitative valuation: Value is expressed in words.

• Semi-quantitative valuation: Value is expressed in some form of score or grading scale.

• Quantitative valuation: The value is expressed in a physical unit, such as the area of a particular habitat type, number of expected visits to an area, the quantity of certain goods that can be produced, etc.

• Monetary valuation: Value is expressed in monetary units.

The selection of the valuation method can be governed, for example, by; a) what you want to use the valuation for; b) what resources for the analysis are available;

The term use values refers to values that are generated as a result of using goods or benefits. For example, this may involve the use of raw materials or the use of a nature area for recreation.

The term use values also encompass future use as well as more indirect values, such as option values and information values, which in brief reflect the fact that an ecosystem service can be beneficial and create use values in the future, but we do not yet know how or the size of the values involved. These aspects are often overlooked in the valuation literature, but it is nonetheless important to describe them to get a more complete picture of the total value of an ecosystem service. Often the term “insurance value” is used in this context. However, it is often difficult to quantify insurance values in monetary units. This requires developing long-term scenarios for how the world around us may evolve and what role ecosystem services may play in the future given this evolution. The term non-use values refers to values such as the desire to pass on healthy ecosystems for future generations or the values associated with the knowledge that ecosystems are in good condition.

Often the term total economic value (TEV) is used to ascertain that the total economic value generated by an ecosystem service, is the sum of use values and non-use values. Moreover, both use and non-use can be divided further into various types (see the “Learn More” section at the end of the section).

THERE ARE DIFFERENT TYPES OF VALUES

Box 3. Different types of values. Investigating the types of values that an ecosystem service helps create can increase understanding of what is valued and also affect which valuation method is most appropriate.

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Table 3. Summarise the starting points for valuation according to this type of table. Ecosystem service Direct or indirect service? If indirect, what direct services does it lead to? Activities/ benefits/goods generated or affected Type of values (For example, use or exist-ence values?)

How should the value be measured? (Qualitatively, semi-quantitatively, quantitatively, or monetary?) EST 1 EST 2 EST 3

and c) if there are available indicators for the service(s) you want to value. Furthermore, monetary valuation can sometimes be difficult to do when it comes to the total availability of an ecosystem service and not the valuation of a change. Valuation of the total availability of an ecosystem service entails an estimate of the total value of one or more existing ecosystem services at a specific place. A valua-tion of a change is based on estimating the value of the change in the provision of the ecosystem service–as a result of a project, plan, or policy. This is an important distinction to make, both to better define what is valued and because it can affect the conditions for a valuation in monetary terms. Monetary valuation can be problematic to use when it comes to valuing the aggregated supply of ecosystem services because the underlying theory is based on valuing (rather small) changes.

The next section provides additional details on these valuation methods. Some-times it may be appropriate to use a combination of different methods to describe the value of a certain ecosystem service. At other times different methods are needed for different ecosystem services in the very same study.

Summarise your starting points

A good approach can be to summarise the starting points for valuation in an overview table for each ecosystem service. Table 3 illustrates this.

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The line of reasoning about the chain of indirect services (direct services – benefit – value) is noted in the United Kingdom’s National Ecosystem Assess-ment (UK NEA, Chapter 2) as well as in a scientific article by Boyd & Banzhaf:

UK NEA, 2011. UK National Ecosystem Assessment – Understanding nature’s value to society. Technical report. Chapter 2: Conceptual Framework and Methodology.

Boyd, J., Banzhaf, S., 2007. What are ecosystem services? The need for standardized environmental accounting units. Ecological Economics 63: 616–626.

____

Different types of values are discussed, including in SOU 2013:68.

SOU 2013, 2013. Making the value of ecosystem services visible. Proposals to enhance well-being through biodiversity & ecosystem services. Swedish Government Inquiries. English Summary of SOU 2013:68.

LEARN MORE:

VALUE CREATION CHAIN

AND VALUES, STRUCTURING THE ANALYSIS

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Apply valuation method(s)

Step 5. Apply valuation methods

This section discusses some possible methods for measuring the value of eco- system services. Step 4 demonstrated that the value can be expressed:

• by means of words (qualitatively),

• by means of scoring (semi-quantitatively),

• in the form of various physical units (quantitatively), or • in monetary terms.

A monetary valuation is not necessarily more informative than, for example, a qual-itative or quantqual-itative valuation. However, a monetary valuation can make matters easier when comparison of trade-offs is to be made between costs and benefits. In some cases, market prices can be the basis for monetary comparison. In many cases, however, the value of the ecosystem service is not visible in any specific market – or only a certain component of the value is visible. For example, the ability of the ecosystem to produce raw materials can be valued through production values, but a functioning ecosystem also provides many other benefits.

There are uncertainties in all valuation studies. Furthermore, the valuation of ecosystem services is an area that often involves a relatively long-time perspective. Therefore, give some thought to the following:

• It is relevant to not only express the most likely outcome. Use a “worst case” and “best case” approach as well.

• It is relevant to reflect on how the world around us is changing. An ecosys-tem service can be extensive or functioning well today, for example, but may be expected to become scarcer in the future. This should be reflected in its value.

What are you going to use the valuation for? Identify ecosystem services

Defining the analysis

Determine starting points for the valuation

Do a review

1

2

3

4

5

6

• All methods have their pros and cons. • Consider

supplemen-ting with a “worst case” and “best case” approach. • Future changes in the

surrounding world can affect the value of an ecosystem service. • A solid valuation study

takes time and requi-res requi-resources. Reflect on which aspects are most important for you to study.

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Qualitative valuation

There are many ways to describe a value in qualitative terms. The purpose of qualitative valuation is to provide a more in-depth understanding of the value without necessarily linking it to any particular measurement. Examples of aspects that can be studied are:

• What the public thinks about a certain environmental issue. • How an area is used and how people feel about the area.

• What various experts or the literature says about the relationships in the ecosystems that deliver particular ecosystem services.

Methods for this kind of valuation can be:

• In-depth ecological surveys. For example, this can involve a more thorough investigation of how much various indirect ecosystem services are affected by development or a certain environmental improvement measure.

• Contact with interested parties. Focus groups, in-depth interviews, and ques-tionnaire studies can provide information about how different areas tend to be used, for example, or which natural values are considered to be particular-ly important.

• Description of values based on stories or historical events. A story, a set of quotes, or the like can show how individuals value various ecosystem services.

In a 2014 study in Gothenburg, a test group consisting of 200 teachers and technology students were shown photos of different urban environments while listening to various bird sounds. The study showed that urban environments were perceived as more positive with bird sounds. Songs and sounds from a combination of the willow warbler, chaffinch, blue tit, European robin, great tit, blackbird, and great spotted woodpecker ranked highest in the test group.

This result is a form of qualitative valuation of habitats for birds in the urban environment.

Hedman, M., Heyman, E., Antonsson, H., Gunnarson, B., 2014. Bird song diversity influences young people’s appreciation of urban landscapes. Urban Forestry and Urban Greening 13 (3): 469-474.

The Nedre Dalälven River, from its mouth up to the Älvkarleby Falls, has histo-rically constituted one of the most important salmon fishing areas in Sweden. The town of Älvkarleby is strongly associated with salmon fishing, which can be exemplified by the name of a local restaurant – Salmon Restaurant and Pizzeria.

It is easy to conclude that salmon fishing in Älvkarleby carries great cultural values and is an expression of local identity.

TWO EXAMPLES OF QUALITATIVE VALUATION

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Semi-quantitative valuation

This type of method is based on quantifying values by assigning them points. This is often done as a desktop study, but scoring can be derived from information based on discussions with stakeholders and other experts, for example, or field studies of species compositions and the use of an area.

The starting point for semi-quantitative methods is some type of scale, such as a score from −5 to + 5, or from great negative impact to large positive impact, and so on. Using such an assessment, it is possible, for example, to rank the importance of various ecosystem services to people or the degree of importance of the ecosystem services in terms of who is affected the most and the least by a particular project.

An important aspect in semi-quantitative valuation is to affix the scale to some reasonable framework. It should be possible to understand what is meant by a score of “5” or “3” or “low impact” so that the analysis is transparent. See the example in the next chapter about the treatment of contaminated land and the example of tourism and recreation by the sea for a few illustrations of the method. Quantitative valuation

Quantitative valuation means that the value of an ecosystem service is described using one or more indicators for the service. The idea is that some measurable aspects of the environment, or our use of it, can reasonably reflect the contribu-tions of different ecosystem services to our well-being. For example, a particular area of a particular habitat type may be a good starting point for valuing the ser-vices generated by that habitat type. Furthermore, the number of visits to an area that is used for recreation can be an indicator of recreational value. A starting point for the selection of indicators is provided, for example, by the EU work with the mapping and analysis of ecosystem services (MAES) (see suggested literature at the end of this section). Feel free to use this, but also try to be creative. Indicators can be of different types. Three possible indicator types are listed below:

• Complete indicator – matches the ecosystem service well. For example, carbon dioxide absorption from a wooded area can be a good indicator of the con-tribution of the area to global climate regulation.

• Partial indicator – measures a part of an ecosystem service, but not all of it. For example, the number of visits to a recreational area may be an indicator of its aesthetic values, but it is also possible that the aesthetic values can change without this being reflected in the number of visits.

• Directional indicator – a change in the indicator is not proportional to the change in the ecosystem service but can be used to predict whether the ecosystem service will increase or decrease. For example, the amount of dead hardwood could be an indicator of the availability of habitat for the white-backed woodpecker. If the amount of dead hardwood decreases, this can also be

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expected to have a negative impact on the living conditions of the white-backed woodpecker, but the exact magnitude of the impact can be difficult to predict. The choice of indicators can be tricky, but if you can find good indicators for a particular service, you will potentially be able to describe the scope of a change in the extent of an ecosystem service or its current state.

Often modelling can be useful in quantitative valuation. For example, given different types of land use, a model can be used to describe the amount of air pol-lution a particular activity generates; how different environmental quality levels affect the occurrence of different species; the effects of an increase in temperature on vegetation; or the risk profile for flooding. Feel free to investigate existing models that are available and what you can learn from their past applications. See the suggested literature at the end of the section for a few references. Monetary valuation

Monetary valuation entails measuring the value of an ecosystem service in mone-tary units. Such a valuation can be used, for example, as the basis for considering socio-economic consideration of trade-offs between costs and benefits of an environmental action, or to determine what a reasonable level of an environment tax or subsidy might be. Furthermore, a monetary valuation can be practical from a communications perspective.

The basis for monetary valuation is that people make trade-offs between different things that create well-being. For example, individuals are often willing to make economic sacrifices to have access to good environmental quality for themselves or so that others will. This is reflected, for example, in property prices located near beautiful natural settings, costs spent on trips to such areas, voluntary contributions to environmental organisations, or willingness to pay more for organic products.

Here are two main groups of methods for monetary valuation:

• Scenario valuation methods (Stated Preferences): Often based on presenting different hypothetical scenarios to respondents in a survey, in which they are asked to indicate their willingness to pay for achieving the scenarios described (see the example about mosquitoes in the next chapter)

• Market data methods (Revealed Preferences): Based on studying the rela-tionships between ecosystems and actual behaviours, prices, and production, such as:

– The contribution of an ecosystem service to the production of, for exam-ple, fish or timber (see the example about plaice in the next chapter). – The role of the natural environment in pricing of properties.

– Environmental quality’s influence on the choice of destinations for outdoor activities.

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– Actual expenditures for protection from contaminated water, noise, flood-ing, etc.13

Sometimes the value transfer method is used to provide an approximate valuation of an ecosystem service. This method is based on attempting to generalise a value from a study done in another geographical place. However, values are often site-specific, requiring special methods for the transfer. Furthermore, you must ultimately accept the knowledge that the value is associated with considerable uncertainty. See the example about the value of water quality improvements in Sweden in the next chapter for a more detailed description.

A form of value transfer also takes place when you make use of standardized values for a certain type of environmental impact. These are convenient to use, but they involve uncertainties as well. There are several handbooks and textbooks on monetary valuation, both in a Swedish and international context. A few of these are mentioned in the literature list at the end of this section.

Relatively extensive preparatory work is often required to place a monetary value on ecosystem services. For example, it is necessary to describe the anticipated impacts of a particular project on environmental quality or various ecosystem services. This is a valuation per se, which can be a valuable process in itself. Accordingly, it is not just the resulting value that is interesting when a monetary valuation study is conducted.

13 Using costs to estimate benefits, however, can be problematic; for example, see the discussion in SGU, 2014 (beginning on p. 23).

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A general review of valuation methods is provided in SOU 2013:68, Appendix 2.

SOU 2013:68 2013. Making the value of ecosystem services visible. Proposals to enhance well-being through biodiversity & ecosystem services. Swedish Government Inquiries. English

summary of SOU 2013:68.13

____

Regarding possible indicators for various ecosystem services, such as for use in quantitative valuation, a European Union working team (MAES) has developed a broad analytical framework:

European Commission, 2014. Mapping and Assessment of Ecosystems and their Services – Indicators for ecosystem assessments under Action 5 of the EU Biodiversity Strategy to 2020. 2nd Report – Final, February 2014.

Freeman, A.M., III., 2003. The Measurement of Environmental and Resource Values. Theory and Methods. 2nd Edition. Resources for the Future, Washington.

____

For standard values – that is, standardised values in monetary units of environ-mental effects of various kinds – the following literature is relevant to Sweden:

Noring, Marie, 2014. Ecovalue. An updated set of valuation factors for environmental systems analysis tools. Included in the dissertation “Valuing ecosystem services – linking ecology and

policy. Royal Institute of Technology. School of Architecture and Built environment.14

____

For discussion about modelling as a tool in the valuation of ecosystem services, see for example:

COWI, 2015. Support Policy Development for Integration of Ecosystem Service Assessments into WFD and FD Implementation. Resource Document, January 2014. (see pp. 67–68 on modelling)

LEARN MORE:

VALUATION METHODS

1415 14 https://www.regeringen.se/49bba7/contentassets/ba53cd9f18b74f348eb0ff31e8280d60/ engelsk-version-sammanfattning-av-sou-201368 15 http://www.diva-portal.org/smash/get/diva2:763108/FULLTEXT01.pdf

Figure

Table 1. Different types of valuation studies entail different approaches. The purpose of the
Figure 1. Ecosystem services in the forest.   SOURE: MINISTRY OF THE ENVIRONMENT AND ENERGY
Figure 2. Ecosystem services in the mountains. Which of the ecosystem services affect each  other and what is a prerequisite for what?  SOURCE: SWEDISH ENVIRONMENTAL PROTECTION AGENCY
Table 3. Summarise the starting points for valuation according to this type of table. Ecosystem  service Direct or indirect  service? If indirect,  what direct  services does  it lead to? Activities/ benefits/goods generated or affected Type of values (For
+7

References

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