Freshwater Ecosystem Services

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1 Freshwater Ecosystem Services 1 Surface freshwaters including lakes, rivers, and wetlands provide many goods and services to society. These include both use and non-use goods and services. Ecosystem type Value ($/hectare/year) Estuaries 22,832 Swamps/floodplains 19,580 Lakes/rivers 8,498 Coral reefs 6,075 Tropical forests 2,007 Temperate/boreal forests 302 Open ocean 252 Economic Value of Services Provided by Some of the World s Ecosystems Ecosystem type Value ($/hectare/year) Estuaries 22,832 Swamps/floodplains 19,580 Lakes/rivers 8,498 Coral reefs 6,075 Tropical forests 2,007 Temperate/boreal forests 302 Open ocean 252 From Costanza, et al

2 3 Freshwater Ecosystem Services 4 2

3 5 6 Direct Impacts on Freshwater ES 3

4 7 Direct Impacts on Freshwater ES Aylward, et al. "Freshwater ecosystem services." Ecosystems and Human Well-Being: Policy Responses 3 (2005): Tradeoffs among Freshwater ES Aylward, et al. "Freshwater ecosystem services." Ecosystems and Human Well-Being: Policy Responses 3 (2005):

5 Environmental Flows 9 Environmental flows can be defined as: the quality, quantity, and timing of water flows required to maintain the components, functions, processes, and resilience of aquatic ecosystems which provide goods and services to people (The World Bank) By implementing environmental flows, water managers strive to achieve a flow regime that provides for human uses while maintaining the essential processes required to support healthy freshwater ecosystems. Environmental flows do not necessarily require restoring natural flow patterns but, instead, are intended to produce a broader set of values and benefits from rivers than from management focused strictly on water supply, energy, recreation, or flood control. Environmental Flows 10 5

6 Environmental Flows 11 Environmental Flows 12 6

7 The Value of Environmental Flows Process or Function Recharge of groundwater Discharge of groundwater Water quality control Retention, removal and transformation of nutrients Habitat for aquatic species Corresponding Good and Service Increased water quantity Increased productivity of downstream fisheries Reduced costs of water purification Reduced costs of water purification Improvements in commercial and/or recreational fisheries & non-use appreciation of the species (Woodward and Wui, 2001) The Value of Environmental Flows Process or Function Habitat for terrestrial and avian species Biomass production and export (plant and animal) Flood control and storm buffering Stabilization of sediment Overall environment Corresponding Good and Service Bird watching and hunting & nonuse appreciation of species (habitat) Production of valuable food and fiber for harvest Reduced damage due to flooding and severe storms Erosion reduction Amenity values provided by the proximity to the environment (Woodward and Wui, 2001) 7

8 Environmental Flows 15 Before Drought After Drought 16 Options for Managing Tradeoffs Aylward, et al. "Freshwater ecosystem services." Ecosystems and Human Well-Being: Policy Responses 3 (2005):

9 17 Payment Sources and Means Aylward, et al. "Freshwater ecosystem services." Ecosystems and Human Well-Being: Policy Responses 3 (2005): Questions for Discussion 1. Do you think it is appropriate to treat water as an economic good? 2. If you had to pay (more) for water, do you think it would affect your water use patterns? 3. Do you think that putting a price on water is the best way to address issues of scarcity and quality in developing countries? Can you think of other ways? 9

10 Water Pricing Arguments for treating water as an economic good: Market-based approach will ensure that people are better stewards of water resources Encourages conservation Improves quality Helps allocate water to maximize benefits Arguments for treating water as a human right: Ensures water for all Helps set priorities of water policy Focuses attention on resolving water conflict Helps safeguard other human rights Conclusions It is difficult to estimate the value of freshwater ecosystems and it is even more difficult to translate it into monetary terms. Nevertheless, a valuation is needed in a world that holds monetary units as indicative of society s values. Only then can the benefits from freshwater ecosystem conservation stand in fair comparison against alternative development projects. The value of preserving freshwater ecosystems can be approximated by using estimates of how much would cost society to artificially provide the goods and services that the ecosystems provide (e.g., desalinization) Alternatively, one might use the cost of rehabilitating degraded ecosystems so they can continue to provide goods and services naturally. 10