This study presents a framework for the valuation of ecosystem services related to conservation policies, both theoretically and practically, in order to make an economic case for the conservation of biodiversity. Theoretically, it is shown that the application of monetary valuation techniques is instrumental to the outcomes of models. Practically, the case study covers the valuation of water purification in the Northern Mediterranean region.
In the case study, the value of the ecosystem service water purification is analysed at a regional scale, according to The Economic of Ecosystems and Biodiversity (TEEB) classification of ecosystem services and the Common International Classification of Ecosystem Services (CICES) supported by the European Environmental Agency (EEA). The case study focuses on nitrogen loading as a water quality metric. While nitrogen fixation has societal benefits, including on crop yields, excessive amounts of nitrogen runoff into rivers and other bodies of water is a source of environmental pollution.
The case study compares the value of nitrogen retention under two scenarios—business as usual (BAU) 2020 and a MANU2020, which promotes the local production and use of nutrients as well as their management at the basin level—against a 2005 baseline. Compared to the BAU situation, the MANU2020 scenario could reduce nitrogen exports to European seas by an average of 36 to 41 percent. This has potential policy implications for both putting in place and implementing policies to control the input of nitrogen to river basins. For instance, this scenario demonstrates that there is a possible adjustment between manure deficient areas that require fertilizer inputs and areas with an excess of manure. However, this exercise does not only consider transportation of manure, but also aims to promote a rethinking of current agricultural practices, including a better balance between cropping and breeding activities at the local scale.
The report concludes with some lessons learned for improving ecosystem services assessments in the future to better support the development of conservation policies at a regional scale, including by ensuring that valuations are context-specific and that outcomes are framed in both physical and monetary terms into a system for ecosystem accounting.
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