Assessment and Valuation of Water Ecosystem Services

This article discusses the framework of water ecosystem services assessment and valuation, including steps such as scoping, linking pressures, biophysical assessment, and economic valuation. It also explains the challenges of assigning real values of ecosystem and aspects to consider when estimating the true value of a river or lake used as a source of domestic water supply.

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Q1. Steps of the framework of water ecosystem services assessment and valuation
Step 1: Scoping-Ecosystem services related to water
This step focuses on ecosystems that are related to water and aquatic ecosystems. The ecosystem
services were analyzed per typology in which the services delivered by lakes, rivers,
groundwater and wetlands as part of the fresh water pilot were studied. Still, the services offered
by the coastal waters, transitional waters, open oceanic water and shelf water as part of the
marine ecosystems were also taken into consideration (Kotagama, 2012). Using a different
approach, hydrologic ecosystem services were also discussed which were defined as ecosystems
that are made up of the benefits to people generated by the effects of the terrestrial ecosystem on
freshwater. Each of the hydrological services has been characterized with hydrological attributes
among them location, quality, timing and quantity.
Step 2: Framework-Linking of pressures, ecological status and ecosystem services for water
management
This step involves understanding the relationship between ecological status and anthropogenic
pressures to come up with cost effective measures that can be used in the achievement of good
ecological status for all the water bodies. Water pollution, hydrological alterations and over-
abstractions are among the significant pressures that most of the water bodies in Europe face. In
general, changes in the quality and quantity of water and variations in the physical habitat and
the biological components can be classified as the main pressures for ecosystems (Ochona,
2015). A framework is thus developed, which is used in supporting users in defining the
relationship between the services of the ecosystem and pressures and thereafter design a
conceptual scheme that is used in assessing and analyzing the scenario.

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Step 3: Biophysical assessment
This step involves the assessment and mapping of the ecosystem using various assessment
strategies and tools (Kotagama, 2012). It assesses the complex interactions of the climate, land
cover management, geology and topography and any other anthropogenic interactions that affect
the quality, quantity of water and ecosystem services related to water. An ability to predict and
effects of land use and changes in the climate on water resources is important in the making of
decisions that are related to ecosystem services.
Step 4: Economic valuation
This step focuses on the estimation of the economic value of the services of fresh water
ecosystems, which mainly involves three categories: revealed preferences, cost-based and stated
preferences categories of approaches. The initial steps in assessing the economic values of
ecosystems involve the identification of the benefits that are accrued from the services offered by
the ecosystems that are to be valued. This is the easiest way of a valuation exercise as it
eliminates chances of double counting during valuation. Only those services that have a direct
welfare impact are valued using thus approach (Boelee, 2013).
Q2. Describe the valuation approach (step 4) and explain the challenges of assigning real values
of ecosystem
The valuation approach focuses on the estimation of the economic value of the services of fresh
water ecosystems, which mainly involves three categories: revealed preferences, cost-based and
stated preferences categories of approaches. Cost based approach takes into consideration the
costs that come with the provision of services while revealed preferences approach is on
techniques that adopt actual data that are relating to the preferences of an individual for a

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marketable good. Methods founded on structured surveys to evoke the preferences of individuals
for non-market environmental goods. Still, benefit transfer method is usable in the valuation of
ecosystems. In this approach, economic estimates from previous studies are used in valuing the
ecosystem of interest (Tracy, 2015). The initial steps in assessing the economic values of
ecosystems involve the identification of the benefits that are accrued from the services offered by
the ecosystems that are to be valued. This is the easiest way of a valuation exercise as it
eliminates chances of double counting during valuation. Only those services that have a direct
welfare impact are valued using thus approach. The challenges of assigning real values of
ecosystem include a decision on the size of the population reaping from the ecosystem, dealing
with the complex and subjective nature of matter and cases of services that have no material
benefits
Q3. What aspects would you consider when estimating the true value of a river or lake that is
used as a source of domestic water supply?
 The quantity of water supplied: It defines that amount of water that the river or lake
supplies to the beneficiaries at a given time.
 The quality of water supplied: It defines of how much benefit in terms of the various
applications of the supplied water (Grigg, 2016).
 The number of beneficiaries: The beneficiaries is the size of the population that reap from
the water ecosystem

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References
Boelee, E. (2013). Managing Water and Agroecosystems for Food Security. London: CABI.
Grigg, N. S. (2016). Integrated Water Resource Management: An Interdisciplinary Approach.
London: Palgrave Macmillan UK.
Kotagama, H. (2012). Ecosystems and Integrated Water Resources Management in South Asia.
Kansas: Routledge.
Martin-Ortega, J. (2015). Water Ecosystem Services. Cambridge: Cambridge University Press.
Ochona, K. (2015). Harnessing Land and Water Resources for Improved Food Security and
Ecosystem Services in Africa. New York: United Nations University Institute for Natural
Resourc.
Tracy, B. (2015). Baseline review and ecosystem services assessment of the Tana River Basin,
Kenya. Nairobi: International Water Management Institute (IWMI).