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05.06.2013 Views

INTEGRATING ECOSYSTEM AND BIODIVERSITY VALUES INTO POLICY ASSESSMENT Box 4.1: Mapping links between supply of ecosystem services and beneficiaries The diagram below shows how a partially forested watershed provides different services to different populations in the vicinity some benefit downstream from the services it provides; others are in the area but do not benefit; and others not only benefit from those services but also influence them through activities that degrade or enhance the natural capital. This type of information is useful to understand which stakeholders need to be involved or taken into account when designing ecosystem management approaches and choosing instruments to reward benefits (see chapter 5), or avoid impacts (see chapter 7). 4.1.3 APPLYING TOTAL ECONOMIC VALUE FRAMEWORKS TO ECOSYSTEMS To correct the current distortion in policy trade-offs, valuation is a critical step towards ensuring that ecosystem services are given the right weight in decisions. The Total Economic Value (TEV) framework is a well structured way to consider all of the values that an ecosystem provides. figure 4.3 presents key elements of TEv, well known to some, and gives links to different ecosystem services) 1 . It is based on two broad categories of value: • ‘Use values’ include direct and indirect use of ecosystems and options for future use. Direct use value arises from the direct use of an eco- Source: Adapted from Balmford et al. 2008 system good or service and can include consumptive use (e.g. timber production) and non-consumptive use (e.g. wildlife viewing). Indirect use value refers to benefits derived not from direct consumption but from effects on other goods and services which people value (e.g. regulating services for water are valued because they protect people and property against flooding; pollination is important for food production). Option use values represent the value of having the option of using (both directly and indirectly) the ecosystem good or service in the future. • Non-use values exist because people derive pleasure from simply knowing that nature and its elements (e.g. a rare species) exist, or because they wish to bequest it to future generations. TEEB for NATIoNAL AND INTErNATIoNAL PoLIcy MAKErs - chAPTEr 4: PAGE 7

INTEGRATING ECOSYSTEM AND BIODIVERSITY VALUES INTO POLICY ASSESSMENT Figure 4.3: Application of a Total Economic Value framework to ecosystem services Although TEv in theory covers all benefits, in practice several benefits are still understood only in a partial way and some values have yet to be understood. In such cases, we can more usefully refer to Total System Value (TSV) that combines all benefits, whether monetised, quantified or simply understood qualitatively. TEEB for NATIoNAL AND INTErNATIoNAL PoLIcy MAKErs - chAPTEr 4: PAGE 8 Source: Kettunen et al. 2009

INTEGRATING ECOSYSTEM AND BIODIVERSITY VALUES INTO POLICY ASSESSMENT<br />

Figure 4.3: Application of a Total Economic Value framework to ecosystem services<br />

Although TEv in theory covers all benefits, in practice<br />

several benefits are still understood only in a partial way<br />

and some values have yet to be understood. In such<br />

cases, we can more usefully refer to Total System<br />

Value (TSV) that combines all benefits, whether<br />

monetised, quantified or simply understood<br />

qualitatively.<br />

<strong>TEEB</strong> for NATIoNAL AND INTErNATIoNAL PoLIcy MAKErs - chAPTEr 4: PAGE 8<br />

Source: Kettunen et al. 2009

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