Valuation Methods in Ecosystem Services: A Meta-analysis

Abstract

Ecosystem services are the benefits people obtain from ecosystems, including provisioning, regulating, supporting, and cultural services. The Meta-analysis of this seminar was reviewed to identify, describe, and choose an appropriate ecosystem valuation method. Four major and nine sub-ecosystem services valuation methods were reviewed from scientific literature sources. Direct market-valuation methods are used to estimate ecosystem services via the use of direct market prices and production functions, indirect market valuation methods are used to estimate when direct markets for many ecosystem goods and services do not exist, direct market prices are missing, and stated preference valuation methods are used when no market prices are available, indirect market valuation methods are not possible, and the change in ecosystem services is hypothetical. The indirect market valuation methods can be used to estimate economic values for all types of ecosystem services. Ecosystem service modeling is used in integrating all the spatial and temporal dynamics of ecosystem services. The strength and limitations of each ecosystem services valuations method are summarized to know and choose appropriate valuation methods. The analysis shows different valuation methods exist and have been applied to estimate the values of different ecosystem services, but their appropriateness under specific conditions or limitations is not uniform. Thus, further study on the pros and cons of valuation methods will be needed to choose appropriate ecosystem valuation methods.