Economic Valuation of Forest Ecosystems Service’s Role in Maintaining and Improving Water Quality
Volume 4, Issue 5, October 2015, Pages: 71-80
Received: Jul. 9, 2015; Accepted: Aug. 15, 2015; Published: Aug. 26, 2015
Views 4726      Downloads 179
Bamlaku Ayenew, Hawassa University Wondo Genet College of Forestry and Natural Resources, School of Natural Resource and Environmental studies, Hawassa, Ethiopia
Yemiryu Tesfay, Hawassa University Wondo Genet College of Forestry and Natural Resources, School of Forestry, Hawassa, Ethiopia
Article Tools
Follow on us
The objective of this paper was to review the economic value of forest ecosystem services especially in maintaining and improving water quality and also to highlight the commonly applied techniques that are applied in the valuation of these economic values. The importance of natural forest ecosystems to human well-being cannot be overstated. What this review makes clear that forest ecosystem service provides important portion of the total contribution to economic development and social welfare in the maintaining and improving water quality. Water in adequate quantity and quality to meet human needs is essential, and forests have direct and indirect roles in providing such water. However, in order for conservation of forest areas to be economically feasible, such forest areas need to secure a financial return in excess of alternative uses. It is increasingly recognized that both the availability and the quality of water are strongly influenced by forests and that water resources in many regions are under growing threat from overuse, misuse and pollution. The relationship between forests and water is therefore a critical issue that must be accorded high priority. A key challenge for land, forest and water managers is maximizing the wide range of forest benefits without detriment to water resources and ecosystem function. To address this challenge, there is urgent need for better understanding of the interactions between forests/trees and water (particularly in watersheds), for awareness raising and capacity building in forest hydrology, and for embedding this knowledge and research findings in policies. There is also need to develop institutional mechanisms to enhance synergies in forests and water issues, and to implement and enforce national and regional action programmes.
Ecosystem Services of Forests, Economic Valuation, Runoff, Water Quality
To cite this article
Bamlaku Ayenew, Yemiryu Tesfay, Economic Valuation of Forest Ecosystems Service’s Role in Maintaining and Improving Water Quality, Economics. Vol. 4, No. 5, 2015, pp. 71-80. doi: 10.11648/
Agudelo, J.I., (2001). The Economic Valuation of Water Principles and Methods. Value ofWater Research Report Series No. 5.
Alberini, A. and Cooper, J., (2000). Application of Contingent Valuation Method in DevelopingCountries. Economic and Social Development Paper. FAO, No. 146, Rome.
Anderson, J., Gomez W., C., McCarney, G., Adamowicz, W., Chalifour, N., Weber, M.,Elgie,S., and Howlett, M. (2010). Ecosystem service valuation, market-base instruments andsustainable forest management: a primer. State of Knowledge primer. Sustainable ForestManagement Network, Edmonton, Alberta. 25 pp.
Band,L., (2010). Forest Ecosystem Processes at the Watershed Scale: Ecosystem services
Barbier, E.B., Burgess, J.C., Bishop, J. and Aylward, B. (1994). The Economics of theTropicalTimber Trade. Earthscan. London.
Bishop J.T. (ed.) (1999).Valuing Forests: A Review of Methods and Applications inDevelopingCountries. International Institute for Environment and Development (IIED), 3Endsleigh Street, London WC1H ODD, UK
Bruijnzeel,l.A. (1990).Hydrology of moist tropical forests and effects of conversion: a state ofknowledgereview. Paris, France, United Nations Educational, Scientific and CulturalOrganization(UNESCO) International Hydrological Humid Tropics Programme.
Cappeilla, K., T. Schueler, and T. Wright. (2005). Effect of land cover on runoff and nutrientloads in a watershed. Urban Watershed Forestry Manual, Part 1: Methods for IncreasingForest Cover in a Watershed. NA-TP-04-05. 94. Ellicott City, MD: USDA Forest Service
Cavatassi R., (2004).Valuation Methods for Environmental Benefits in Forestry and WatershedInvestment Projects. ESA Working Paper No. 04-01.
Chaudhury, P., (2006).Valuing recreational benefits of urban forestry – a case study ofChandigarh city, Ph D thesis, Forest Research Institute (Deemed University), Dehradun,.
Cole, D. (1996). Wilderness recreation use trends, 1965 through 1994. USDA Forest Service,Rocky Mountain Research Station-Ogden. Research paper INT –RP- 488.
Costanza, R, d'Arge, R, de Groot, R, Farber, S, Grasso, M, Hannon, B, Limburg, K,Naeem, S,O'Neill, R V, Paruelo, J, Raskin, R G, Sutton, P and M van den Belt. (1997b). The Valueof the World's Ecosystem Services and Natural Capital. Nature 387: 253-60.
Daily, G.C. (Ed), (1997). Nature's Services: Societal Dependence on Natural Ecosystems. IslandPress, Washington, D.C
De Groot, R.S., M.A. Wilson, R.M.J. Boumans, (2002). A typology for the classificationdescription and valuation of ecosystem functions, goods and Services. EcologicalEconomics 41: 395 – 408.
Dogru M., (2001). Planning and Management of Forest Resources in Turkey (Draft), Assistancefor the Preparation of a National Programme for Turkey. Earthscan. London.
Dudley, N. and Stolton, S. (2003). Running Pure: The importance of forest protected areas todrinking water. A research report for the World Bank / WWF Alliance for ForestConservation and Sustainable Use, United Kingdom.
Economics for the Environment Consultancy (EFTEC), (2005). The Economic, Social andEcological Value ofEcosystem Services: A Literature Review, 16 Percy St, London W1T1DT.
Ernst, C. (2004). protecting the source: Land conservation and the future of America’s drinkingwater. Water protection series. San Francisco,CA: the trust of Public Landand Americanwater worker Association online at: thesource_04.
FAO, (2008). Forests and water; A thematic study prepared in the framework of the global forest assessment. feedback and evolution in developing mountainous catchments. EGU General Assembly Vol. 12, EGU2010-7150, United states
Feller, M.C. (2005). Effects of clearcutting and slash burning on stream temperature insouthwesternBritish Columbia. Water Resour. Bull. 17(5):863–867.
Flynn, K. (1999) Forest Practices And Water Quality: Guidelines For Landowners Alabama A &M and Auburn University.
Font X., and John Tribe (eds), (2000). Forest tourism and recreation. Case studies inenvironmental management. Faculty of leisure and tourism, Buckinghamshire chilterns University College, High Wycombe, UK.
Food and Agricultural Organization (FAO), (2006).Valuation ofPollinationServices:Review ofMethods Pollination, University Of Bonnmethods.
Freeman III.A.M., (1993). The Measurement of Environmental and Resources Values: Theoryand Methods, Resources for the Future, Washington, D.C.
Ghani A.N.A. (2006). Economic valuation of forest ecosystem service in Malaysia University Putra, Malaysia (
Hanemann, M., Loomis, J. and Kaninen, B. (1991). Statistical Efficiency of DoubleBoundedDichotomous Choice Contingent Valuation. American Journal of AgriculturalEconomics, 73(4), 1255-63.
Hanson, C., L. Yonavjak, C. Clark, S. Minnemeyer, A. Leach, and L. Boisrobert. (2011).Southern forests for the future. Washington, DC: World Resources Institute.
Harr, R.D. and R.L. Fredriksen. (1988). Water quality after logging small watersheds within theRun watershed, Oregon. Water Resour. Bull. 24(5):1103–1111.
Hawkins, K., (2003).Economic Valuation of Ecosystem Services. University of Minnesota.
Knowler,.D., (2008).Master’s thesis project title: Valuing the Water Supply Service ofTemperate Coastal Rainforests inSouthwestern British Columbia
Kramer, R., R. Healy, and R. Mendelsohn. (1997). Forest Valuation. Chapter 10. In ManagingtheWorld’s Forests, Narendra Sharma (ed.). World Bank Natural ResourcesDevelopmentSeries, Arlington, VA.
Krieger, D.J., (2001).The economic values of forest ecosystem services: a review. Thewilderness society, 1615 M Street, NW, Washington, D.C. 20036.
Lancaster K., (1966). A new Approach to Consumer Theory. J Polit Econ; 84:132–57.
Lette, H., Boo, de H. (2002). Economic Valuation of forests and Nature, A support tool foreffective decision-making. Theme studies series 6, IAC Wageningen, theNetherlands.
Mitchell, R.C., Carson, R.T. (1989). Using Surveys to Value Public Goods: The ContingentValuation Method. Resources for the Future, Washington, 463 p
Mugambi D., D., Mugendi, A., Wambugu and J., Mburu (2006). Estimating RecreationalBenefits of Kakamega Forest in Kenya Using the Travel Cost Method
Newson MD, Calder IR (1989). Forests and water resources: problems of prediction on a regional scale.
Pak M., M.F., Türker and A., Öztürk (2010). Total economic value of forest resources in Turkey.African Journal of Agricultural Research Vol. 5(15), pp. 1908-1916, 4August, 2010.
Pearce, D., (2002). Economic Valuation with Stated Preference Techniques: Queen’s Printer andController of Her Majesty’s Stationery Office.
Pearce, D.W., Markandya, A. and Barbier, E.B. (1989). Blueprint for a Green Economy.
Perman, R., ( 2003). Natural Resource and Environment Economics.3rd edition, PearsonEducation Limited.
Postel. S., L, and Thompson. B., Jr, (2005). Watershed protection: Capturing the benefits ofnature’s water supply services. Natural Resources Forum 29 (2005) 98–108 Published byUnited Nations.
Quintero, J.D., (2004). Lead environmental specialist for Latin America and the CaribbeanRegion, Environmentally and Socially Sustainable Development Department, The WorldBank. Personal communicationto S. Postel, Washington, D.C., 27 May.
Ralph S. Hosmer, (2010). Water Quality & Quantity: In Hawaii, the most valuable product of theforest is water, rather than wood."
Reid, W.V. (2001). Capturing the value of ecosystem services to protect biodiversity. In G.Chichilenisky, G.C. Daily, P. Ehrlich, G. Heal & J.S. Miller,eds. Managing human-dominated ecosystems, pp. 197–225. Monographs in Systematic Botany Vol. 84. StLouis, USA, Missouri Botanical Garden Press.
Reusing, M. (2002). Extent and dynamics of deforestation in Ethiopia. A paper presented at theNational Conference on Forest Resources of Ethiopia: Status, Challenges andOpportunities held at Addis Ababa, 27-29 November 2002.
Roper, J., (1999). Deforestration: Tropical forest in decline. Forestry issues. Online available at: (reviewed April 2006).
Seager, R., A. Tzanova, and J. Nakamura. (2009). Drought in the south-eastern United States:Causes, variability over the last millennium, and the potential for future hydro climatechange. Journal of Climate 24(19): 5021–5045.
Sharma, N.P. (ed.) (1992). Managing the World’s Forests: Looking for Balance betweenConservation and Development. Kendall/Hunt Publishing Company.
Smail, R.A., and D.J. Lewis. (2009). Forest land conversion, ecosystem services, and economicissues for policy: A review. PNWGTR-797. Portland, OR: U.S. Department ofAgriculture, Forest Service, Pacific Northwest Research Station.
Stednick, J.D. (2010). Wild land water quality sampling and analysis. Academic Press, SanDiego,Calif.
Tietenberg T., (2003). Environmental and Natural Resource Economics. 6th edition, PearsonEducation, Inc, U.S.A.
Tsegaye Tadesse (2008). The Values of Some Forest Ecosystem Services in Ethiopia: Discussionpaper presented at the workshop on Ethiopian Forestry at Crossroads: Proposal on NewDirection for Sustainable Development.
Turner, K., S. Georgiou, R. Clark, R. Brouwer, and J. Burke, (2004). EconomicValuation ofWater Resources in Agriculture: From the sectoral to a functional Perspective of natural resource Management, FAO, Rome, Italy.
USDA (2008). Forest Service Northeastern Area Best Management Practices
Verma M., (2009).Valuation of Forest Ecosystem Services in Uttarakhand Himalayas for setting Mechanisms for Compensation and Rewards for Ecosystem Services for communities conserving Forests of Uttarakhand State1. Buenos Aires, Argentina,
Whittington D., (1998). Administering Contingent Valuation Surveys in Developing Countries.World Development. Vol.26, No.1, 21-30.
Whittington, D., J. Briscoe, X. Mu and W. Barron. (1990).Estimating the Willingness to Pay forwater Services in Developing Countries: A Case Study of the Use of ContingentValuation Surveys in Southern Haiti. Economic Development and CulturalChange, 38(2): 293–311
Wikipedia, (2010). World free encyclopedia. Accessed date 10 Sep., 2010
Wu S., Y. Hou and G. Yuan (2010). Valuation of forest ecosystem goods and services and forestnatural capital of the Beijing municipality, China. Unasylva 234/235, Vol.61.
Science Publishing Group
1 Rockefeller Plaza,
10th and 11th Floors,
New York, NY 10020
Tel: (001)347-983-5186