Methods for monetary valuation of ecosystem services: A scoping review

Abstract

Adequate assessment of ecosystem services is important for the development of policies and management plans related to forestry activities and the environment. Carefully identified ecosystem values can determine which options policy makers should prioritize to provide the greatest benefit. There are numerous methods used by researchers to evaluate ecosystem services. The most widely applied methods are monetary valuation methods, they are often deemed to be the most pragmatic language when it comes to communication with political and business institutions. The main goal of this review is to analyse available literature using the methodology particular to the scoping review approach in order to identify and describe valuation methods that can be applied for monetary assessment of ecosystem services. As a result of the scoping review, over 20 monetary valuation techniques (including several less common methods such as willingness to sell and Delphi method) were derived from 16 literature sources. In the process of compiling the range of different methods, a few flaws and gaps in the communication of methods were observed such as lack of consistency in the names of different methods and mixing up concepts. In addition, a few areas for future research are suggested.

Understanding the payment for ecosystem services and associated challenges: Global practices and recommendation for Nepal

“…It is widely believed that ecosystem services (ES) play a significant role in human well-being (Chopra et al 2022). Careful identification of ecosystem values can help policymakers determine what options should be prioritized to maximize benefits (Selivanov and Hlaváčková 2021). A study in China (Zhang et al 2010) revealed that ecosystems have great economic value, which humans have often overlooked.…”

Valuation Methods in Ecosystem Services: A Meta-analysis

“…Moreover, people have cognitive biases that are not anomalies but common to human reasoning and judgmental processes. Because of these ndings, the method in the current form seems not to be a good indicator of well-being (Leimona et al, 2015;Selivanov & Hlaváčková, 2021). The two and probably most commonly used revealed-preference methods of ecosystem valuation are the travel-cost and hedonic pricing methods.…”

“…The method allows estimating values related to the quality of the environment and tourist attractions (admiring the views, trekking, recreation, etc.) (Selivanov & Hlaváčková, 2021;Nandagiri, 2015). The method is the more conventional empirical technique used by economists to estimate economic values based on market prices and it is based on the actual behavior of what people do rather than a stated willingness to pay what people say.…”

“…It can be used to estimate economic bene ts or costs associated with environmental quality, including air pollution, water pollution, or noise and environmental amenities, such as aesthetic views or proximity to recreational sites. It is mostly used to value environmental amenities that affect the price of residential properties (Selivanov & Hlaváčková, 2021;Liang et al, 2015). The hedonic pricing method uses the valuation of a property, depending on its location in the natural environment.…”

Spatiotemporal Changes in Land Use and Ecosystem Service Values Under the Influence of Glacier Retreat in a High-Andean Environment

“…Knowing the value of ESS is recognized as an essential pathway to sustainability (Abson et al, 2014). Per se, a suitable assessment is needed to improve policy and decision-making linked to management of the territory (Ling et al, 2018;Dang et al, 2021;Selivanov and Hlaváčková, 2021). Thus, such assessments can provide evidence about the costs and benefits of promoting conservation and human well-being at the same time (de Groot et al, 2010).…”