Module 4

• it implies the measurement of the extent to which people want or like?

  value
• it is the process of assigning monetary value to the Forest ecosystem services?

  economic valuation
• it is a process of attributing the value?

  valuation
• it is a step in the political decision-making process towards ensuring human wellbeing?

  valuing ecosystem services
• it provide to the decision makers with information on how society might balance the traade-offs?

  valuation and economic analysis
• it is a prerequisite for creating market-based mechanisms?

  valuation
• Reasons for Valuing Ecosystem Services (IICA SMDN)

  • identification of missing markets
  • internalization of externalities in planning and project formulation
  • correction of market failures
  • assessment of synergies and trade-offs among different land uses
  • setting of market-based instruments for ESs and development of market opportunities
  • management of uncertain future supply and demand scenarios for natural resources
  • design of ecosystem conservation initiatives and programs both private and public actors
  • natural resource accounting
• what are the three sets of value? (IAU)

  instrumental and intrinsic values, anthropocentric and biocentric values, and utilitarian and deontological value
• instrumental value is derived from the usefulness of the ES in achieving a given goal
• Intrinsic value exists independently of any usefulness and reflects the value of something for its own sake. It is also known as non-instrumental value.
• Anthropocentric value centered on the idea that only humans can assign value
• Biocentric Value is also known as ecocentric value
• Biocentric value is build on a non-anthropocentric view assuming that certsin goods and services have value even if no human thinks so
• Utilitarian Value

  • stem from the ability to provide “welfare”

  • viewed as a means toward the end result of increased human welfare, as defined by human preferences, without any judgment about whether those preferences are good or bad
• Deontological Value • imply a set of rights that includes a right to existence
• Valuation

  • the process of attributing a value (either economic or noneconomic) to something
• The aim of economic valuation is to measure, in monetary terms, people’s preferences for the benefits they obtain from, for example, ecosystem processes
• benefit pyramid for ecosystem services?

  monetary valuation, quantitative assessment, qualitative review, full range of ecosystem services
• Biophysical

  • have a “cost of production” perspective, meaning that they derive values from the measurement of the physical costs (e.g. labor, energy and material inputs) needed to produce a certain good or service
• Preference-based

  • rely on models of human behavior and center around the idea that values arise from individual preferences and therefore are individual-based, subjective, context-based and statedependent
• The value obtained from the various constituents of utilitarian value, including direct use value, indirect use value, option value, quasi -option value, and existence value?

  Total Economic value
• Market-based valuation method

  • a method to approximate the value of environmental goods that are bought and sold in the market.
• Replacement cost method is the amount of money it takes to replace an ecosystem service with human-made equivalent
• Avoided cost method is the method used on how much money would be spent on repairing or replacing property between situation of with or without the environmental service
• travel cost method consists of indirect cost and opportunity cost
• hedonic pricing method is the best method for estimating the ecosystem services that are captured in housing prices
• contingent valuation is a method for valuing the ecosystem services by surveying people
• warm glow effect is the person's willingness to pay may have nothing to do with the service
• choice experiment reveals the willingness to pay to the changes in the attributes of an ecosystem
• benefit transfer is applying the primary study to the another site for their benefits of the people
• The entire assemblage of organisms (plant, animal and other living beings) living together in a certain space with their environment?

  ecosystem
• Ecosystem Services

  The beneficial outcomes, for the natural environment, or for people, that result from ecosystem functions
• Provisioning Services Products obtained from ecosystems
• Regulating Services Benefits obtained from the regulation of ecosystem processes
• Cultural Services Nonmaterial benefits people obtain from ecosystems through spiritual enrichment, cognitive development, reflection, recreation, and aesthetic experiences
• Supporting Services Necessary for the production of all other ecosystem services
• Payments for Ecosystem Services (PES)

  A well defined environmental service (ES) is bought by at least one ES buyer from a minimum of one ES provider, if and only if the provider continues to supply that service (conditionality)
• PES is a cost-effective means to improve environmental management and improve livelihoods by rewarding people for their efforts in providing ecosystem services, such as watershed protection, soil stabilization etc.