GIS-based Valuation of Ecosystem Services in Mountain Regions:

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1 GIS-based Valuation of Ecosystem Services in Mountain Regions: A Case Study of the Karlovo Municipality in Bulgaria Boian Kulov 1, Ekaterina Ivanova 2, Bilyana Borisova 3, Assen Assenov 4, Aleksandra Ravnachka 5 1,5 National Institute of Geophysics, Geodesy and Geography, Bulgarian Academy of Sciences, Sofia, Bulgaria 2 Space Research and Technology Institute, Bulgarian Academy of Sciences, Sofia, Bulgaria 3,4 Faculty of Geology and Geography, Sofia University St. Kliment Ohridski, Sofia, Bulgaria Supported by Sofia University's "Alma mater" Center of Excellence in the Humanities

2 Center of Excellence in the Humanities Sofia University St.Kliment Ohridski project The MOUNTAIN Models of Socio-economic and Cultural Development: Regional Challenges and Transborder Cooperation.

3 Aim Test a pilot GIS-based, local model for ES valuation of a mountain municipality (Ivanova et al., 1996) Identify patterns of ES geographic distribution to support the sustainable governance of the Karlovo Municipality in Bulgaria Tasks: - Identification & selection of the ES, which form the current & future basis of the local economy & the welfare of the local population; - Assessment of the individual ES & proposing an integrated valuation for the municipality; - Geospatial analysis of the ES distribution, identification of hotspots & trade-offs (due to particular geographic patterns & their combinations, results from joint utilization of some ES: synergies & dysergies - the use of one ES can diminish/destroy the potential of another); - Conclusions, referring to ES utilization to support local spatial planning.

4 Study Area Karlovo Municipality Area: 1044 км2 Inhabitants:

5 Data and Methods Literature and Data Review Methods, Tools, Indicators Identification of Ecosystem Types & Subtypes Selection of ES - specific for the local economy & welfare ES Valuation Integrated Assessment: Combined Economic Value GIS Analysis &Visualization of Hotspots/Conflicts/Prioritization of ES in particular areas

6 Data and methods Selection of Methods, Tools, and Indicators for ES Assessment Local scale of analysis & assessment on the basis of readily available, open source statistical data & indicators (problem: EU NUTS data collection does not necessarily include local levels); Study of the ES supply (not demand) flows; Integration of the Biophysical Method & Economic Valuation techniques; GIS Mapping, visualization, analysis, & assessment.

7 Data and methods Identification of Ecosystem Classes & Subclasses Representative for the Karlovo Municipality Geo-database - CORINE LU/LC 2012 (National Reference Centre) Focus: Land Use Only the Terrestrial ecosystems (see MAES 2013) are considered here. Field identification & selection results: - 5 ecosystem classes (level 2): Urban, Cropland, Grassland, Woodland & forest, Sparsely vegetated areas - 11 ecosystem SUBclasses (level 3, Annex 2, table 3), represented by CLC Classes.

8 Data and methods Selection of Ecosystem Services Representative for the Karlovo Municipality ECOSYSTEM SERVICES (CICES 4.3) Section Division Group Class Class type Cultivated crops Vegetables, wheat, barley, oats, corn, sunflower, rye, plums, pears, apples, dessert grapes, wine grapes Provisioning Nutrition Materials Biomass Reared animals and their outputs Meat and milk (Cow, Goat, Sheep Buffalo), Eggs, Honey Wild plants, algae and their outputs Wild berries and herbs Water Surface water for drinking By amount Fibres and other materials from Timber plants, algae and animals for Wool direct use or processing Materials from plants, algae and Biomass animals for agricultural use Fodder Game and Wild plants by forest ecosystems, Genetic materials from all biota Damask rose Damask rose Results: 11 ES classes 29 ES class TYPES (see CICES 4.3) Regulation & Maintenance Cultural Mediation of flows Maintenance of physical, chemical, biological conditions Physical and intellectual interactions with biota, ecosystems, and land/seascapes [environmental settings] Mass flows Liquid flows Atmospheric composition and climate regulation Physical and experiential interactions Mass stabilisation and control of erosion rates Hydrological cycle and water flow maintenance Global climate regulation by reduction of greenhouse gas concentrations Physical use of land-/seascapes in different environmental settings Erosion regulation Water flow maintenance Greenhouse gas/carbon sequestration Recreation and tourism

9 Data and methods: ES Valuation Cropland Ecosystem classes (level 2) Cultivated crops ECOSYSTEM SERVICES (CICES 4.3) Class Class type vegetables, wheat, barley, oats, corn, sunflower, rye, plums, pears, apples, dessert grapes, wine grapes Indicator Economic method Data Average yield per year (t/ha/yr, ) Woodland and forest Surface water for drinking By amount Investments in forest plantations Grassland Woodland and forest Woodland and forest Grassland Sparsely vegetated Cropland Urban Reared animals and their outputs Meat and milk (Cow, Goat, Sheep Buffalo), Eggs, Honey Grassland Sparsely vegetated land Wild plants, algae and their outputs Wild berries and herbs Grassland Fibres and other materials from plants, algae and animals for direct use or processing Materials from plants, algae and animals for agricultural use Woodland and forest Cropland Genetic materials from all biota Timber Wool Fodder Game and Wild plants by forest ecosystems Average yield per year (t/ha/yr, 2015) Quantities of non-timber products gathered from the Central Balkan NP, (kg/yr, ) Quantities of timber harvested from the Central Balkan NP, (m 3 /ha/yr, ) Average yield per year (kg/yr, 2015) Average yield per year (kg/ha/yr, 2015) Number of permits, Central Balkan NP (2014) Market price Net financial contribution (NFCu) Market price Market price Market price Market price Market price Value transfer Damask rose Average yield per year (t/ha/yr) Market price Woodland and forest Mass stabilization and control of erosion rates Erosion regulation Cost of restoring soil quality Replacement cost Woodland and forest Hydrological cycle and water flow maintenance Water flow maintenance Investments in forest plantations Woodland and forest Woodland and forest Urban Global climate regulation by reduction of greenhouse gas concentrations Physical use of land-/seascapes in different environmental settings Greenhouse gas/carbon sequestration Recreation and tourism Carbon sequestration forest ecosystems (CO 2 /yr/ha) Number and capacity of accommodation sites, Site visitation (number/yr) Net financial contribution (NFCu) Value transfer Market price National and regional statistics, 2015; Municipality Karlovo statistics, 2016 Central Balkan National Park, Dimitrova et al., 2015 National and regional statistics, 2015 Central Balkan National Park, Dimitrova et al., 2015 Central Balkan National Park, Dimitrova et al., 2015 National and regional statistics, 2015; Municipality Karlovo, 2016 National and regional statistics, 2015 Central Balkan National Park, Dimitrova et al., 2015 National and regional statistics, 2015 Central Balkan National Park, Dimitrova et al., 2015 Central Balkan National Park, Dimitrova et al., 2015 Central Balkan National Park, Dimitrova et al., 2015 Municipality Karlovo statistics, 2016

10 Data and methods Ecosystem services valuation for the Karlovo Municipality C1: C2: Ecosystem subclasses (represented by CLC2012) with potential to provide particular ES C3: Currently provided ecosystem services by class type C4: Econom ic value ( /ha/y) C5: Ecosystem services consumed from other ecosystems C4: Econom ic value ( /ha/y) C7=C4-C6: Economic value accounting the interaction between ecosystems ( /ha/y) 1 Forests: coniferous forest, broad-leaved & mixed forest Water for drinking purpose; Timber; Game and wild plants by forest ecosystems; Erosion regulation; Water flow maintenance; Carbon sequestration; Recreation and tourism 719,3 719,3 2 Heathland and shrub & Sparsely vegetated areas Goat milk 145,92 145,92 3 Fruit trees and berry plantations; Transitional woodland/shrub; Pastures; Natural grasslands; Land principally occupied by agriculture with significant areas of natural vegetation; Nonirrigated arable land; Complex cultivation patterns Honey 1,90 1,90 4 Pastures and Natural grasslands Milk (Cow, Sheep and Buffalo); Wool; Fodder 1969,61 Carbon sequestration; Erosion regulation 433, ,98 5 Land principally occupied by agriculture with significant areas of natural vegetation Cultivated crops (vegetables) 5709,16 Carbon sequestration; Water flow maintenance; Water for drinking purpose 621, ,12 6 Non-irrigated arable land & Complex cultivation patterns: Cultivated crops (wheat, barley, oats, corn, sunflower, rye); Damask rose 6012,01 Carbon sequestration; Water flow maintenance; Erosion regulation 467, ,12 7 Fruit trees and berry plantations Cultivated crops (plums, pears, apples) 8034, ,03 8 Vineyards Cultivated crops (dessert grapes; wine grapes) 5070,06 Carbon sequestration; Erosion regulation 433, ,43 9 Forests (coniferous forest, broad-leaved & mixed forest); Sparsely vegetated areas; Transitional woodland/shrub; Pastures; Natural grasslands Wild berries and herbs 1,56 1,56 10 Discontinuous urban fabric & Pastures Eggs 628,56 Recreation and tourism - Karlovo 1501,41 Carbon sequestration; Water for drinking purpose; Erosion regulation 525,89 29,67 611,67 889,74 11 Discontinuous urban fabric Recreation and tourism - Kalofer 4587,21 611, ,54 Recreation and tourism - Bania 1554,56 Carbon sequestration; Water for drinking purpose; Physical use of land in environmental settings 611,67 942,89 Recreation and tourism - Klisura 1115,10 611,67 503,43 Recreation and tourism - Sokolitsa 773,71 611,67 162,04

11 Data and methods Integrated Assessment 1 Valuated ecosystem classes and subclasses (represented by CLC codes, 2012) Forests (coniferous forest, broad-leaved & mixed forest): 311, 312, 313 Economic value ( /ha/y) 719,3 Ecosystem services by class type Water for drinking purpose; Timber; Game and wild plants by forest ecosystems; Erosion regulation; Water flow maintenance; Carbon sequestration; Recreation and tourism 2 3 Transitional woodland/shrub & Sparsely vegetated areas: 333, 324 Fruit trees and berry plantations; Transitional woodland/shrub; Pastures; Natural grasslands; Land principally occupied by agriculture with significant areas of natural vegetation; Nonirrigated arable land; Complex cultivation patterns: 222, 324, 231, 321, 243, 242, ,92 Goat milk 1,90 Honey 4 Pastures and Natural grasslands: 231, ,61 Milk (Cow, Sheep and Buffalo); Wool; Fodder 5 Land principally occupied by agriculture with significant areas of natural vegetation: ,16 Cultivated crops (vegetables) 6 Non-irrigated arable land & Complex cultivation patterns: 242, ,01 Cultivated crops (wheat, barley, oats, corn, sunflower, rye); Damask rose 7 Fruit trees and berry plantations: ,03 Cultivated crops (plums, pears, apples) 8 Vineyards: ,06 Cultivated crops (dessert grapes; wine grapes) 9 Forests (coniferous forest, broad-leaved & mixed forest); Sparsely vegetated areas; Transitional woodland/shrub; Pastures; Natural grasslands: 311, 312, 313, 333, 324, 231, 321 1,56 Wild berries and herbs 10 Discontinuous urban fabric & Pastures: 112, ,56 Eggs Karlovo 1501,41 11 Discontinuous urban fabric by settlement: 112 Kalofer 4587,21 Bania 1554,56 Recreation and tourism Klisura 1115,10 Sokolitsa 773,71

12 Results

13 Results

14 Results

15 Discussions and Conclusions These pilot results enlarge the currently available information & knowledge basis that support geospatial planning & sustainable development of the Karlovo Municipality. The estimated combined economic value of the selected currently utilized ES in the municipality is /ha/y, i.e., the selected ESs should produce an annual revenue of close to 4 billion. The highest contributions are due to the following three services: cultivated crops, genetic material from all biota, and rearing animals (a.k.a., animal husbandry). Serious prerequisites exist within the municipality to economically absorb the really high value of its ecological assets, particularly for development of alternative types of tourism and local production of clean, renewable, and eco- products. The proposed GIS-aided model of spatial valuation of ES will mainly serve as a benchmark for future valuation research, especially in bringing to light a substantial share of currently underreported and undervalued ES, for comparative area studies, as well as for a tool for stimulation of public interest in the concepts of ES and sustainable regional development. A lot of assumptions and serious limitations related to economic ES valuation exist in this investigation. They include, but are not exhausted by, lack of data, reduction of services to "products and the other way around, the regulation and maintenance ES that need much deeper investigation, and a number of cultural and aesthetic ES and functions that are currently unaccounted for on the market.

16 Bibliography Assenov,A., K.Vassilev, Н.Padeshenko, B.Koulov, E.Ivanova, B.Borisova. Research of the Biotope Diversity for the Purposes of Economic Valuation of Ecosystem Services in Chepelare Municipality (The Rhodope Region of Bulgaria). European Journal of Sustainable Development, 5:4, Dimitrova et al., 2015 Valuation of Ecosystem Services provided by the Forest in the Central Balkan National Park 1%82/NPCB_EcosystemServicess.pdf Ivanova E., B. Koulov, B. Borisova, A. Assenov, K. Vassilev. GIS-based Valuation of Ecosystem Services in Mountain Regions: A Case Study of the Chepelare Municipality in Bulgaria. European Journal of Sustainable Development, 5:4, 2016, National Reference Centre, Executive Environmental Agency at the Bulgarian Ministry of Environment and Waters, National Statistical Institute, Republic of Bulgaria Karlovo Municipality

17 Thank you for your attention! Acknowledgements This research is sponsored by the "Alma Mater" Center of Excellence in the Humanities at Sofia University "Saint Kliment Ohridski", funded by the Bulgarian Ministry of Education and Science Scientific Research Fund.