Evaluating the return in ecosystem services from investment in public land acquisitions

We evaluate the return on investment (ROI) from public land conservation in the state of Minnesota, USA. We use a spatially-explicit modeling tool, the Integrated Valuation of Ecosystem Services and Tradeoffs (InVEST), to estimate how changes in land use and land cover (LULC), including public land acquisitions for conservation, influence the joint provision and value of multiple ecosystem services. We calculate the ROI of a public conservation acquisition as the ratio of the present value of ecosystem services generated by the conservation to the cost of the conservation. For the land scenarios analyzed, carbon sequestration services generated the greatest benefits followed by water quality improvements and recreation opportunities. We found ROI values ranged from 0.21 to 5.28 depending on assumptions about future land use change, service values, and discount rate. Our study suggests conservation is a good investment as long as investments are targeted to areas with low land costs and high service values.

Linking water quality and well-being for improved assessment and valuation of ecosystem services

Despite broad recognition of the value of the goods and services provided by nature, existing tools for assessing and valuing ecosystem services often fall short of the needs and expectations of decision makers. Here we address one of the most important missing components in the current ecosystem services toolbox: a comprehensive and generalizable framework for describing and valuing water quality-related services. Water quality is often misrepresented as a final ecosystem service. We argue that it is actually an important contributor to many different services, from recreation to human health. We present a valuation approach for water quality-related services that is sensitive to different actions that affect water quality, identifies aquatic endpoints where the consequences of changing water quality on human well-being are realized, and recognizes the unique groups of beneficiaries affected by those changes. We describe the multiple biophysical and economic pathways that link actions to changes in water quality-related ecosystem goods and services and provide guidance to researchers interested in valuing these changes. Finally, we present a valuation template that integrates biophysical and economic models, links actions to changes in service provision and value estimates, and considers multiple sources of water quality-related ecosystem service values without double counting.

An index to assess the health and benefits of the global ocean

The ocean plays a critical role in supporting human well-being, from providing food, livelihoods and recreational opportunities to regulating the global climate. Sustainable management aimed at maintaining the flow of a broad range of benefits from the ocean requires a comprehensive and quantitative method to measure and monitor the health of coupled human–ocean systems. We created an index comprising ten diverse public goals for a healthy coupled human–ocean system and calculated the index for every coastal country. Globally, the overall index score was 60 out of 100 (range 36–86), with developed countries generally performing better than developing countries, but with notable exceptions. Only 5% of countries scored higher than 70, whereas 32% scored lower than 50. The index provides a powerful tool to raise public awareness, direct resource management, improve policy and prioritize scientific research.

Maximising return on conservation investment in the conterminous USA

Efficient conservation planning requires knowledge about conservation targets, threats to those targets, costs of conservation and the marginal return to additional conservation efforts. Systematic conservation planning typically only takes a small piece of this complex puzzle into account. Here, we use a return-on-investment (ROI) approach to prioritise lands for conservation at the county level in the conterminous USA. Our approach accounts for species richness, county area, the proportion of species' ranges already protected, the threat of land conversion and land costs. Areas selected by a complementarity-based greedy heuristic using our full ROI approach provided greater averted species losses per dollar spent compared with areas selected by heuristics accounting for richness alone or richness and cost, and avoided acquiring lands not threatened with conversion. In contrast to traditional prioritisation approaches, our results highlight conservation bargains, opportunities to avert the threat of development and places where conservation efforts are currently lacking.

Economic-based projections of future land use in the conterminous United States under alternative policy scenarios

Land-use change significantly contributes to biodiversity loss, invasive species spread, changes in biogeochemical cycles, and the loss of ecosystem services. Planning for a sustainable future requires a thorough understanding of expected land use at the fine spatial scales relevant for modeling many ecological processes and at dimensions appropriate for regional or national-level policy making. Our goal was to construct and parameterize an econometric model of land-use change to project future land use to the year 2051 at a fine spatial scale across the conterminous United States under several alternative land-use policy scenarios. We parameterized the econometric model of land-use change with the National Resource Inventory (NRI) 1992 and 1997 land-use data for 844 000 sample points. Land-use transitions were estimated for five land-use classes (cropland, pasture, range, forest, and urban). We predicted land-use change under four scenarios: business-as-usual, afforestation, removal of agricultural subsidies, and increased urban rents. Our results for the business-as-usual scenario showed widespread changes in land use, affecting 36% of the land area of the conterminous United States, with large increases in urban land (79%) and forest (7%), and declines in cropland (-16%) and pasture (-13%). Areas with particularly high rates of land-use change included the larger Chicago area, parts of the Pacific Northwest, and the Central Valley of California. However, while land-use change was substantial, differences in results among the four scenarios were relatively minor. The only scenario that was markedly different was the afforestation scenario, which resulted in an increase of forest area that was twice as high as the business-as-usual scenario. Land-use policies can affect trends, but only so much. The basic economic and demographic factors shaping land-use changes in the United States are powerful, and even fairly dramatic policy changes, showed only moderate deviations from the business-as-usual scenario. Given the magnitude of predicted land-use change, any attempts to identify a sustainable future or to predict the effects of climate change will have to take likely land-use changes into account. Econometric models that can simulate land-use change for broad areas with fine resolution are necessary to predict trends in ecosystem service provision and biodiversity persistence.

Reconnecting to the biosphere

Humanity has emerged as a major force in the operation of the biosphere, with a significant imprint on the Earth System, challenging social-ecological resilience. This new situation calls for a fundamental shift in perspectives, world views, and institutions. Human development and progress must be reconnected to the capacity of the biosphere and essential ecosystem services to be sustained. Governance challenges include a highly interconnected and faster world, cascading social-ecological interactions and planetary boundaries that create vulnerabilities but also opportunities for social-ecological change and transformation. Tipping points and thresholds highlight the importance of understanding and managing resilience. New modes of flexible governance are emerging. A central challenge is to reconnect these efforts to the changing preconditions for societal development as active stewards of the Earth System. We suggest that the Millennium Development Goals need to be reframed in such a planetary stewardship context combined with a call for a new social contract on global sustainability. The ongoing mind shift in human relations with Earth and its boundaries provides exciting opportunities for societal development in collaboration with the biosphere--a global sustainability agenda for humanity.

Entrepreneurs, chance, and the deterministic concentration of wealth

In many economies, wealth is strikingly concentrated. Entrepreneurs–individuals with ownership in for-profit enterprises–comprise a large portion of the wealthiest individuals, and their behavior may help explain patterns in the national distribution of wealth. Entrepreneurs are less diversified and more heavily invested in their own companies than is commonly assumed in economic models. We present an intentionally simplified individual-based model of wealth generation among entrepreneurs to assess the role of chance and determinism in the distribution of wealth. We demonstrate that chance alone, combined with the deterministic effects of compounding returns, can lead to unlimited concentration of wealth, such that the percentage of all wealth owned by a few entrepreneurs eventually approaches 100%. Specifically, concentration of wealth results when the rate of return on investment varies by entrepreneur and by time. This result is robust to inclusion of realities such as differing skill among entrepreneurs. The most likely overall growth rate of the economy decreases as businesses become less diverse, suggesting that high concentrations of wealth may adversely affect a country's economic growth. We show that a tax on large inherited fortunes, applied to a small portion of the most fortunate in the population, can efficiently arrest the concentration of wealth at intermediate levels.

Valuing ecological systems and services

Making trade-offs between ecological services and other contributors to human well-being is a difficult but critical process that requires valuation. This allows both better recognition of the ecological, social, and economic trade-offs and also allows us to bill those who use up or destroy ecological services and reward those that produce or enhance them. It also aids improved ecosystems policy. In this paper we clarify some of the controversies in defining the contributions to human well-being from functioning ecosystems, many of which people are not even aware of. We go on to describe the applicability of the various valuation methods that can be used in estimating the benefits of ecosystem services. Finally, we describe some recent case studies and lay out the research agenda for ecosystem services analysis, modeling, and valuation going forward.

Responses to alternative rainfall regimes and antipoaching in a migratory system

Migratory ungulates may be particularly vulnerable to the challenges imposed by growing human populations and climate change. These species depend on vast areas to sustain their migratory behavior, and in many cases come into frequent contact with human populations outside protected areas. They may also act as spatial coupling agents allowing feedbacks between ecological systems and local economies, particularly in the agropastoral subsistence economies found in the African savanna biome. We used HUMENTS, a spatially realistic socioecological model of the Greater Serengeti Ecosystem in East Africa, to explore the potential impacts of changing climate and poaching on the migratory wildebeest (Connochaetes taurinus) population, the fire regime, and habitat structure in the ecosystem, as well as changes in the size and economic activities of the human population outside the protected area. Unlike earlier models, the HUMENTS model predicted only moderate declines in the wildebeest population associated with an increasing human population over the next century, with a gradual expansion of agriculture, more poaching, and increases in fire frequency and reduced tree density. Changes in rainfall were predicted to have strong asymmetric effects on the size and economic activity of the human population and on livestock, and more moderate effects on wildlife and other ecological indicators. Conversely, antipoaching had a stronger effect on the ecological portion of the system because of its effect on wildebeest (and therefore on fire and habitat structure), and a weaker effect on the socioeconomic component, except in areas directly adjacent to the protected-area boundary, which were affected by crop-raiding and the availability of wildlife as a source of income. The results highlight the strong direct and indirect effects of rainfall on the various components of socioecological systems in semiarid environments, and the key role of mobile wildlife populations as agents of spatial coupling between the human-dominated and natural portions of ecosystems. They also underscore the fundamental importance of considering the spatial configuration of hunting refuges across the landscape in relation to human populations.

Ecosystem services as a common language for coastal ecosystem-based management

Ecosystem-based management is logistically and politically challenging because ecosystems are inherently complex and management decisions affect a multitude of groups. Coastal ecosystems, which lie at the interface between marine and terrestrial ecosystems and provide an array of ecosystem services to different groups, aptly illustrate these challenges. Successful ecosystem-based management of coastal ecosystems requires incorporating scientific information and the knowledge and views of interested parties into the decision-making process. Estimating the provision of ecosystem services under alternative management schemes offers a systematic way to incorporate biogeophysical and socioeconomic information and the views of individuals and groups in the policy and management process. Employing ecosystem services as a common language to improve the process of ecosystem-based management presents both benefits and difficulties. Benefits include a transparent method for assessing trade-offs associated with management alternatives, a common set of facts and common currency on which to base negotiations, and improved communication among groups with competing interests or differing worldviews. Yet challenges to this approach remain, including predicting how human interventions will affect ecosystems, how such changes will affect the provision of ecosystem services, and how changes in service provision will affect the welfare of different groups in society. In a case study from Puget Sound, Washington, we illustrate the potential of applying ecosystem services as a common language for ecosystem-based management.

Mapping and valuing ecosystem services as an approach for conservation and natural-resource management

Current approaches to conservation and natural-resource management often focus on single objectives, resulting in many unintended consequences. These outcomes often affect society through unaccounted-for ecosystem services. A major challenge in moving to a more ecosystem-based approach to management that would avoid such societal damages is the creation of practical tools that bring a scientifically sound, production function-based approach to natural-resource decision making. A new set of computer-based models is presented, the Integrated Valuation of Ecosystem Services and Tradeoffs tool (InVEST) that has been designed to inform such decisions. Several of the key features of these models are discussed, including the ability to visualize relationships among multiple ecosystem services and biodiversity, the ability to focus on ecosystem services rather than biophysical processes, the ability to project service levels and values in space, sensitivity to manager-designed scenarios, and flexibility to deal with data and knowledge limitations. Sample outputs of InVEST are shown for two case applications; the Willamette Basin in Oregon and the Amazon Basin. Future challenges relating to the incorporation of social data, the projection of social distributional effects, and the design of effective policy mechanisms are discussed.

Land clearing and the biofuel carbon debt

Increasing energy use, climate change, and carbon dioxide (CO2) emissions from fossil fuels make switching to low-carbon fuels a high priority. Biofuels are a potential low-carbon energy source, but whether biofuels offer carbon savings depends on how they are produced. Converting rainforests, peatlands, savannas, or grasslands to produce food crop-based biofuels in Brazil, Southeast Asia, and the United States creates a "biofuel carbon debt" by releasing 17 to 420 times more CO2 than the annual greenhouse gas (GHG) reductions that these biofuels would provide by displacing fossil fuels. In contrast, biofuels made from waste biomass or from biomass grown on degraded and abandoned agricultural lands planted with perennials incur little or no carbon debt and can offer immediate and sustained GHG advantages.

Coastal ecosystem-based management with nonlinear ecological functions and values

A common assumption is that ecosystem services respond linearly to changes in habitat size. This assumption leads frequently to an "all or none" choice of either preserving coastal habitats or converting them to human use. However, our survey of wave attenuation data from field studies of mangroves, salt marshes, seagrass beds, nearshore coral reefs, and sand dunes reveals that these relationships are rarely linear. By incorporating nonlinear wave attenuation in estimating coastal protection values of mangroves in Thailand, we show that the optimal land use option may instead be the integration of development and conservation consistent with ecosystem-based management goals. This result suggests that reconciling competing demands on coastal habitats should not always result in stark preservation-versus-conversion choices.

Integrating economic costs into conservation planning

Recent studies that incorporate the spatial distributions of biological benefits and economic costs in conservation planning have shown that limited budgets can achieve substantially larger biological gains than when planning ignores costs. Despite concern from donors about the effectiveness of conservation interventions, these increases in efficiency from incorporating costs into planning have not yet been widely recognized. Here, we focus on what these costs are, why they are important to consider, how they can be quantified and the benefits of their inclusion in priority setting. The most recent work in the field has examined the degree to which dynamics and threat affect the outcomes of conservation planning. We assess how costs fit into this new framework and consider prospects for integrating them into conservation planning.