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Ecological Indicators 23 (2012) 431446

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Ecological Indicators
journal homepage: www.elsevier.com/locate/ecolind

Review

Review of valuation methods for mangrove ecosystem services


Quoc Tuan Vo a, , C. Kuenzer b , Quang Minh Vo c , F. Moder d , N. Oppelt e
a
German Remote Sensing Data Centre, DFD, of the German Aerospace Centre, DLR, Oberpfaffenhofen, D-82234 Wessling, Germany
b
German Remote Sensing Data Centre, DFD, of the German Aerospace Centre, DLR, Muenchner Str. 20, Oberpfaffenhofen, 82234 Wessling, Germany
c
Department of Land Resource, College of Environment and Natural Resource Can Tho University, Viet Nam
d
Ministry of Science and Technology, Southern Representative Ofce, Ho Chi Minh City, Viet Nam
e
Kiel University, Department for Geography, Ludewig-Meyn-Str 14, 24098 Kiel, Germany

a r t i c l e i n f o a b s t r a c t

Article history: The goods and services provided by natural ecosystems contribute to human well being, both directly and
Received 6 September 2011 indirectly. The ability to calculate the economic value of the ecosystem goods and services is increasingly
Received in revised form 13 April 2012 recognized as a necessary condition for integrated environmental decision-making, sustainable business
Accepted 21 April 2012
practice, and land-use planning at multiple geographic scales and socio-political levels. We present a
comprehensive overview and summary of studies undertaken to investigate the ecosystem services of
Keywords:
mangrove forests. We address the variety of different methods applied for different ecosystem services
Ecosystem services
evaluation of mangrove forests, as well as the methods and techniques employed for data analyses, and
Mangrove forest
Coastal
further to discuss their potential and limitations.
Economic evaluation 2012 Elsevier Ltd. All rights reserved.

Contents

1. Introduction . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 431
1.1. Denition of ecosystem services . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 432
1.2. Ecosystem services versus ecosystem functions . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 433
2. Ecosystem services in the context of coastal environmental protection . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 435
2.1. Ecosystem services and coastal biodiversity . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 435
2.2. Evaluation of ecosystem services regarding to coastal environment protection . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 435
2.3. Ecosystem services provided by mangrove in the context of climate change mitigation . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 436
3. Review of studies in ecosystem service assessment in the mangrove wetlands . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 437
3.1. Valuation methods of mangrove ecosystem services . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 437
3.2. Economic valuation of ecosystem services in literature . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 438
4. Discussion . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 442
4.1. Need for site-specic economic valuation of an ecosystem . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 443
4.2. Need for standardized denition of ecosystem services and its valuations method for a specic landscape . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 443
4.3. Need for strengthen the link between economic evaluation of ecosystem and policy makers . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 443
5. Conclusion . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 444
References . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 444

1. Introduction medicines, regulation of microclimate, disease prevention, pro-


vision of productive soils and clean water resources, as well as
The term ecosystem service (ES) comprises all goods and ser- landscape opportunities for recreational and spiritual benets
vices provided by natural and modied ecosystems that benet, (Daily, 1997; Costanza and Folke, 1997; Millennium Ecosystem
sustain and support human well-being. This includes benets of Assessment-MA, 2005; Banzhaf, 2007; Wallace, 2007). Such ser-
the ecosystem based on the food production, building materials, vices are provided by ecosystems which consist of a combination of
soil, animals, plants, water,air and other services such as the service
that maintaining biodiversity or contribute to climate stability. If
Corresponding author. Tel.: +49 08153 28 1747. these elements are depleted, the ability or capacity of ecosystems to
E-mail address: tuan.voquoc@dlr.de (Q.T. Vo). provide services is diminished. ES support our well-being, including

1470-160X/$ see front matter 2012 Elsevier Ltd. All rights reserved.
http://dx.doi.org/10.1016/j.ecolind.2012.04.022
432 Q.T. Vo et al. / Ecological Indicators 23 (2012) 431446

the production of most of our living needs, and thus are of signi- Eisfelder et al., 2011; Busch et al., 2011), and intangible aesthetic
cant value. However, the services from the ecosystems are greatly and cultural benets (Bengtsson, 1997; King et al., 2000; De Groot
undervalued by society. Most of them are not traded in the formal et al., 2002). According to the MA (2005a), ES are indispensable
market, and its value is not easy to be estimated (Daily et al., 1997). for both the natural environment and human beings. Four major
ES are often neglected or even ignored by the economy, industry, categories of ES were identied by the MA, which are (i) provision-
and local habitants; even though most of them strongly depend on ing services, (ii) regulating services, (iii) cultural services, and (iv)
the ow of ES. supporting services (MA, 2005a) (Fig. 1).
Knowing the economic value of an ecosystem and its services In ecological literature, the term ecosystem services has been
is an important asset, because a major demand is the support subject to various and sometimes contradictory interpretations.
of human well being, sustainablility, and distributional fairness Some authors use the term to describe the internal function such
(Costanza and Farber, 2002). From the human perspective, natu- as nutrient cycling or energy maintenance (Daily, 1997; Wallace,
ral ecosystems not only provide life supporting services, but also 2007; Fisher et al., 2009); others relate ES to the benet for humans,
services beyond basic life support (e.g. recreational and aesthetic which can be derived from the processes of the ecosystem (e.g. food
enjoyment) (Daily, 1997; Costanza and Farber, 2002). Over the production, recreation) (De Groot et al., 2002; Brown et al., 2007;
past two decades, humans changed ecosystems more rapidly and Luck et al., 2009). According to Jewitt (2002), ecosystem services
comprehensively than in any comparable period before. This was are generated by a complex interplay of natural cycles, powered by
mainly due to the rapidly growing demands for food, fresh water, solar energy, and operating across a wide range of space and time
timber, ber, and fuel. This transformation of the planet has con- scales, incorporating both biotic and abiotic components.
tributed to substantial net gains in human well-being and economic Banzhaf (2007) integrated economic principles in their def-
development (MA, 2005). inition Ecosystem services are components of nature, directly
This review paper gives a comprehensive overview of studies on enjoyed, consumed, or used to yield human well-being. The
the concept of ecosystem functions and services, and synthesizes important aspect of their work is that they distinguished between
the methodologies for assessing the value of mangrove ecosystem end-products and intermediate products to account welfare.
services. ES concepts and valuations itself, which have been devel- End products are consumed directly by a household such as clean
oped so far, are introduced briey. The paper highlights key issues drinking water, but clean drinking water is depending on ecologi-
and trends in the application of economic valuation techniques on cal processes, which are described as intermediate products. They
natural ecosystems. It reviews different valuation techniques and argue that if intermediate and nal goods are not distinguished, the
illustrates applications with examples drawn from empirical lit- value of intermediate goods are double counted because the value
erature studies. The paper also includes a brief discussion of how of intermediate goods is embodied in the value of nal goods (e.g.
results of previous valuation studies might be used for future eval- the value of steel used in for the production of cars is already part
uation methods of natural ecosystem services. of the cars total value) (Banzhaf, 2007).
The paper summarizes and discusses studies on ES and func- In general, denitions of ES are as diverse as the number of
tions in the context of environmental protection as well as climate studies published in this context. All studies, however, acknowl-
change mitigation, published over the last two decades. The focus edge the strong relation between ecosystem function and human
is set on ES in coastal areas, where mangrove wetlands are pre- well-being. In other words, ecosystem services consist of ows
vailing, which are an important asset for coastal protection, and of materials, energy, and information from natural capital stocks,
provide numerous additional services for the coastal communities. which can be combined with manufactured and human capital ser-
The next section describes the importance of ES research and vices to produce human welfare.
the increasing focus on ecosystem studies. In Section 2, the gen- The publication of the MA reports and their denition of ES
eral concept of ecosystem functions and services in the context of also lead to intense discussions criticising the concept and several
coastal environmental protection is discussed. modied classication approaches were published (De Groot et al.,
Section 3 reviews research papers on the valuation of mangrove 2002; Wallace, 2007; TEEB, 2008; Haines-Young and Poschkin,
ecosystem services based on different approaches. In Section 4, the 2010). The main critics regarding the MEA denition of ES complain
different approaches to assess ecosystem functions and ecosystem the simplied an very generic framework as well as an imprecise
evaluations are discussed. This section also discusses the difculties differentiation between services themselves, ecosystem processes
of ES assessment especially concerning the denitions of economic and benets (Wallace, 2007; Banzhaf, 2007; Fisher et al., 2008).
values of ecosystem services. Banzhaf (2007) tried to solve the mixing problem with an eco-
nomical principle that should also standardize the concept of ES.
1.1. Denition of ecosystem services Wallace (2007) also favours a standardized framework that only
counts endpoints (nal services) as ES and ts to all applications
The concept of ES and their valuation was rst introduced in to facilitate the concept for landscape planners. However, each
the 1960s by King (1966) and Helliwell (1969) who refered the of them considers the need of multiple and context-based clas-
natures functions in serving human societies. Afterwards, ecosys- sication systems to t the complexity of the human-ecosystem
tem services has been the focus of many publications (e.g. Pearce, interface and nd valuable benets. Most authors suggest frame-
1993; Pearce and Moran, 1994; Daily, 1997; Costanza and Folke, works that separate the MA supporting services (e.g. nutrient or
1997; De Groot et al., 2002; MA, 2005; Banzhaf, 2007; Wallace, water cycling) in ecosystem functions and processes. Recently,
2007). The widely accepted denition of ES is: Ecosystem ser- multinational gatherings, including the Convention on Biological
vices are the benets provided by ecosystems to humans, which Diversity, the Ramsar Convention on Wetlands and Migratory
contribute to making human life both possible and worth living. Species, and the Convention to Combat Desertication, have
(Daz et al., 2006; MA, 2005a, b; Layke et al., 2012; van Oudenhoven incorporated the ES concept into their discussion and conven-
et al., 2012). This includes goods such as food-crops, seafood, for- ing. Also major Non-Governmental Organizations (NGO) including
age, timber, biomass fuels, natural ber, pharmaceuticals, geologic The Nature Conservancy, the World Wildlife Fund (WWF), the
resources, and industrial products, services such as the mainte- International Union for the conservation of Nature (IUCN), and
nance of biodiversity and life-support functions, including waste the World Resource Institute (WRI) have begun to pilote ES pro-
assimilation, cleansing, recycling and renewal (Table 1) (Costanza grams, as have major intergovernmental agencies including the
and Folke, 1997; Costanza et al., 1998; Daily, 1997; Norberg, 1999, United Nations Development Program (UNDP), and the World Bank
Q.T. Vo et al. / Ecological Indicators 23 (2012) 431446 433

Table 1
Ecosystem services and functions as presented in Costanza and Folke (1997) and Rnnbck (2007).

Ecosystem service Ecosystem function Example

Gas regulation Regulation of atmospheric chemical composition CO2 /O2 balance,O3 for UVB protection, and SOx levels
Climate regulation Regulation of global temperature, precipitation, and other Greenhouse gas regulation, dimethyl sulde (DMS) production
biologically mediated climatic processes at global or local affecting cloud formation
levels
Disturbance Capacitance, damping and integrity of ecosystem response Storm protection, ood control, drought recovery, and other aspects of
regulation to environmental uctuations habitat response to environmental variability mainly controlled by
vegetation structure
Water regulation Regulation of hydrological ows Provisioning of water for agricultural (such as irrigation) or industrial
(such as milling) processes or transportation
Water supply Storage and retention of water Provisioning of water by watersheds, reservoirs and aquifers
Erosion control and Retention of soil within an ecosystem Prevention of loss of soil by wind, runoff, or other removal processes,
sediment storage of silt in lakes and wetlands
retention
Soil formation Soil formation processes Weathering of rock and the accumulation of organic material
Nutrient cycling Storage, internal cycling, processing, and acquisition of Nitrogen xation, N, P, and other elemental or nutrient cycles
nutrients
Waste treatment Recovery of mobile nutrients and removal or breakdown of Waste treatment, pollution control, detoxication
excess or xenic nutrients, and compounds
Pollination Movement of oral gametes Provisioning of pollinators for the reproduction of plant populations
Biological control Trophic-dynamic regulations of populations Keystone predator control of prey species, reduction of herbivores by
top predators
Refugia Habitat for resident and transient populations Nurseries, habitats for migratory species, regional habitats for locally
harvested species, or overwintering grounds
Food production That portion of gross primary production extractable as Production of sh, game, crops, nuts, fruits by hunting, gathering,
food subsistence farming or shing
Raw materials That portion of gross primary production extractable as The production of lumber, fuel, or fodder
raw materials
Genetic resources Sources of unique biological materials, and products Medicine, products for materials science, genes for resistance to plant
pathogens and crop pests, ornamental species (pets and horticultural
varieties of plants)
Recreation Providing opportunities for recreational activities Eco-tourism, sport shing, and other outdoor recreational activities
Cultural Providing opportunities for non-commercial uses Aesthetic, artistic, educational, spiritual, and/or scientic values of
ecosystems

(Tallis et al., 2008). Their projects have variously been catego- natural ecosystem, and methods of assessing the values of natural
rized as integrated conservationdevelopment projects, focusing ES (e.g. De Groot, 1992, 1994; Pearce, 1993; Bingham et al., 1995;
on community-based natural resource management. Many lessons Daily, 1997; Costanza and Folke, 1997; Pimentel and Wilson, 1997;
have been learned based on these projects already conducted Limburg and Folke, 1999; Wilson and Carpenter, 1999; Daily et al.,
by conservation NGOs, in which efforts have been made to both 2000; Guo et al., 2001; Lal, 2003; MA, 2005; TEEB, 2008; Kumar,
improve human well-being and the state of the ecosystem (Tallis 2010; Burkhard et al., 2010, 2011).
et al., 2008).
Over the last two decades, ES and the natural capital from which 1.2. Ecosystem services versus ecosystem functions
these services originate have increasingly caught the interest of
environmental researchers, policy makers, as well as economists. The term ecosystem function (EF) is interpreted differently
More recently, there has been an almost exponential growth in pub- by different authors. Sometimes the concepts are used to describe
lications on the ecosystem functions and services, value of natural the internal functioning of the ecosystem (e.g. nutrient cycling
ecosystems, how people benet from the services provided by the and maintaining energy uxes, nutrient recycling, foodweb

Fig. 1. Ecosystem services (adapted from MA, 2005a,b), modied.


434 Q.T. Vo et al. / Ecological Indicators 23 (2012) 431446

interactions) (Pearce, 1993; De Groot, 1992, 1994; Bingham et al., Table 2d


Information functions of an ecosystem (according to De Groot, 1992).
1995; Daily, 1997; Costanza and Folke, 1997; Daily et al., 2000;
Nedkov and Burkhard, 2011), and sometimes it refers to the inter- Information functions Examples
nal functioning of the ecosystem (Costanza and Folke, 1997; Daily Aesthetic information Provide scenery and landscape for human
et al., 2000; De Groot, 1992; De Groot et al., 2002). De Groot (1992) enjoyment; can inuence real estate prices
dened an EF as the capacity of natural processes and components Recreation Provide venue for recreation such as camping,
to provide goods and services that satisfy human needs directly hiking and other eco tourism activities
Cultural and artistic Nature often as basis for cultural traditions;
or indirectly. They attempted to provide a comprehensive and
information provides inspiration for artistic pieces
consistent overview of all functions, goods and services provided Spiritual and historic Provide sense of continuity and place and can be
by natural and semi-natural ecosystems, and grouped ecosystem information important part of religion
functions into four primary categories, which are listed in Table 2a, Science and education Provide sense of continuity and place and can be
important part of religion
Table 2b, Table 2c and Table 2d.

- Regulation functions: This group of functions relates to the capac-


ity of natural and semi-natural ecosystems to regulate essential - Habitat functions: Natural ecosystems provide refuge and repro-
ecological processes and life support systems through bio- duction habitat to wild plants and animals and thereby contribute
geochemical cycles and other biosphere processes. to the conservation of biological and genetic diversity and evolu-
- Production functions: These functions provide many ecosystem tionary processes.
goods and services for human consumption such as food, raw - Information functions: Natural ecosystems provide an essen-
materials, energy resources and genetic material. tial reference function, and contribute to the maintenance of
human health by providing opportunities for reection, spiri-
tual enrichment, cognitive development, recreation and aesthetic
Table 2a
experience (Costanza and Folke, 1997; Daily, 1997; De Groot et al.,
Regulation functions of ecosystems (De Groot, 1992).
2002).
Regulation functions Example

Gas regulation Maintenance of chemical composition of air and The EF that are apparently valuable to society are called ES.
ocean, and provision of clean air, prevention of However, given the early stages of human knowledge regarding
diseases such as skin cancer, and general
habitability of the earth
ecosystems, it would be both untimely and imprudent to exclude
Climate regulation Provision of favorable climate, which enables us to any EF from this category. ES clearly provide life support services
maintain health, produce crops, have recreation for both humans and other species. ES go beyond the direct eco-
Disturbance prevention Provision of buffer to natural hazards such as nomic benets derived from exploitation of very specic EF such
storms, oods, and droughts
as timber from forests. It is ecosystems ongoing capacities to pro-
Water regulation Provision of irrigation, drainage, river discharge,
channel ow, and transportation medium vide a stream of life supporting and life enhancing services that are
Water supply Provision of water for human vital to human well being. Many of these services are non-market
Soil formation Provision of a medium for production of crops services by virtue of their inherent characteristics (e.g. both the
Nutrient regulation Provision of nutrients such as N, P, K, sulfur, atmospheric ozone layer, and the climate stability provided by the
calcium, magnesium and chlorine through
recycling
global carbon cycle, cannot be owned by anyone who can control
Waste treatment Assimilation, dilution, and chemically their use by others; both ownership and control are conditions for
decomposition of organic and wastes a good or service to be traded in a market).
Pollination Provision of services to enable plants to reproduce Within the study by Banzhaf (2007) on What are ecosystem ser-
Biological control Interaction and feedback mechanisms, which
vices? The need for a standardized environmental accounting unit,
stabilize population of various species, thereby
preventing outbreaks of pests and diseases the authors concluded: Ecosystem components include resources
such as surface water, oceans, vegetation types, and species. Ecosys-
tem processes and functions are the biological, chemical, and
Table 2b physical interactions between ecosystem components. The rea-
Production function of an ecosystem (according to De Groot, 1992).
son is that functions and processes are not services, they are not
Production functions Examples end-products; functions and processes are intermediate to the pro-
Food Food sources that allow a diverse number of plants duction of nal services. Many components and functions of an
and animals to thrive and evolve ecosystem are intermediate products; they are necessary to the
Raw materials Include wood and bers, chemicals and production of services but are not services themselves (Banzhaf,
compounds (e.g. latex, gums), energy sources, and
2007).
animal fodder
Genetic resources Provide source of genes to improve characteristics
Bengtsson (1997) published a paper on What are the relation-
(taste, pest resistance) of cultivated crops ships between ecosystem functions and biodiversity. The author
Medicinal resources Provide chemicals that are used as drugs, or as used different aspects of diversity and ecosystem complexity, such
models for synthetic drugs as species richness, variety of diversity indices, or the number
Ornamental resources Provide materials for fashion, crafts, cultural
of functional groups to explore the relationship between EF and
objects, decoration, etc.
biodiversity. The author concluded that diversity and EF has no
direct relationship to each other, but both are functions of the
Table 2c presence and activities of species, functional groups, and their
Habitat functions of an ecosystem (according to De Groot, 1992). interactions. It has already been pointed out that it is difcult to
Habitat functions Examples predict, which species will be important for EF as environmental
Refugium function Provides living space, cover, and food sources that
conditions change, even in fairly well studied types of ecosystems
allow a diverse number of plants and animals to (Bengtsson, 1997; Schneiders et al., 2011).
thrive and evolve EFs and ES can overlap, leading to the possibility of economic
Nursery function Provision of breeding and nursery grounds for double counting in calculating the value of an ecosystem. De
species that are harvested elsewhere as adults
Groot et al. (2002) revealed that EF and ES do not always show
Q.T. Vo et al. / Ecological Indicators 23 (2012) 431446 435

Fig. 2. Schematic representation of the ecosystem functions and services (UNEP, 2009), modied.

a one-to-one correspondence, sometimes a single ES is the product ecological processes was stated by Balvanera et al. (2006) and Daz
of many functions, whereas in other cases a single function con- et al. (2006).
tributes to more than one service (Fig. 2) (e.g. gas regulation is based Naeem (1997); Naeem et al. (1994, 1997) carried out experi-
on biogeochemical processes which maintain a certain air qual- mental studies to manipulate species richness using a synthesized
ity as well as inuence the greenhouse effect and thereby climate model ecosystem in both terrestrial and aquatic environments,
regulating processes). comparing the species richness and mean value of biomass. Both
approaches suggest that a large pool of species is required to sustain
the assembly and functioning of ecosystems in landscapes subject
2. Ecosystem services in the context of coastal
to increasingly intensive use. It is not yet clear, whether this depen-
environmental protection
dence on diversity arises from the need for recruitment of a few key
species from within the regional species pool or due to the need
2.1. Ecosystem services and coastal biodiversity
for a rich assortment of complementary species within particular
ecosystems.
The concept of ES encompasses not only delivery, provision, and
production but also includes the protection and maintenance of
a set of goods and services that people perceive to be important 2.2. Evaluation of ecosystem services regarding to coastal
(Chee, 2004). In the context of environmental protection, man- environment protection
grove ES play a crucial role in the maintenance of biodiversity,
waste assimilation, cleansing, recycling and renewal as well as In some areas, natural resource management involves conicts
in protecting coastal areas from disturbace events (Daily, 1997; between environmental protection and economic development. In
Norberg, 1999; Sathirathai, 2001; Dahdouh-Guebas et al., 2005; order to choose between alternative uses of land, it is important
Alongi, 2008; Hussain and Badola, 2010). In addition, mangrove to know the direct and indirect economic value of natural ecosys-
habitats have a diversity promoting function (Moreno et al., 2004; tems. It is assumed that the use of economic values as additional
Li and Lin, 2005; Hogarth, 2007) information would strengthen arguments to elucidate the intrinsic
According to Article 2 of the Convention on Biodiversity (CBD, value of an ecosystem to key decision-makers and stakeholder.
2001), biodiversity is dened as the variability among living organ- Coastal management and policy decision making for instance
isms from sources including terrestrial, marine, and other aquatic require information that ranges between land-use impacts on nat-
ecosystems and the ecological complexes of which they are part; ural resources and economic implications of changes to aquatic
this includes diversity within species, and between species and ecosystems. Examples are the storm protection functions of a
ecosystems (CBD, 2001). mangrove forest or the biological diversity within a seagrass com-
Preservation of biodiversity is partially based on the belief that munity. Since environmental goods and services are often available
loss of biodiversity would result in the loss of EF and many ES they free of charge, they do not have markets, and therefore cannot be
provide to society (Costanza and Folke, 1997). Based on a marine rated as easily as marketed goods. However, environmental goods
sea grass ecosystem, Duarte (2000) pointed out that an indirect and services typically have a positive value and many people are
relationship exists between species richness and EF. The study con- willing to pay to insure these services (Pearce et al., 1989; Seppelt
cluded a link between EF and ES and species richness has remained et al., 2011; Verd et al., 2011).
elusive when tested for specic communities, except for a few Sathirathai (2004) illustrates the importance of valuing ES to
clear demonstrations such as outlined for sea grass communities policy choices in Thailand. These services are non-marketed,
(Duarte, 2000). The arguments presented provide, however, strong therefore their benets are not considered in commercial develop-
reasons to expect this link to be a general rule in marine ecosystems. ment decisions. For example, the excessive mangrove deforestation
Moreover, they call for increasing conservation efforts to ensure is clearly related to the failure to measure the values of habitat
the maintenance of marine biodiversity as a means of maintain- and storm protection services of mangroves. Consequently, these
ing the functions of marine ecosystems and, thereby, the services benets have been largely ignored in national land-use policy deci-
they deliver to human welfare. A positive relationship between the sions. Sathirathai (2004) call to improve protection of remaining
number of species in an ecosystem and the level and stability of mangrove forests as well as enlist the support of local coastal
436 Q.T. Vo et al. / Ecological Indicators 23 (2012) 431446

Fig. 3. Total economic value of mangrove ecosystem, (adapted from Barbier, 1991), modied.

communities through legal recognition of their real property rights climate change. Main services provided by the gas regulation func-
over mangroves. Unless the value of the ES provided by protected tion are the maintenance of clean, breathable air and prevention
mangroves is estimated, it is difcult to convince policymakers in of diseases (De Groot et al., 2002; Ren et al., 2009). For example,
Thailand and other countries to consider alternative land-use poli- mangrove ecosystems are valuable in terms of direct and indi-
cies. Mangrove loss results in a decrease of marine sh stock and rect use values (Fig. 3). Direct use values are products and uses
increases the vulnerability of many coastal areas to natural dis- directly derived from the mangrove (e.g. rewood, food, construc-
asters. The Thailand case study reveals that the challenge of ES tion materials, building land). Indirect use values support economic
valuation is also a challenge for policy makers. To manage coastal activities.
areas sustainably the decision-makers have to realize the impor- Mangroves act as a natural barrier, stabilize ne sediment and
tance of ES. Thus, economic valuation is becoming more widely thereby prevent coastal erosion. Moreover, they reduce effects of
used to demonstrate the multiple benets provided by ecosystems. storms and ooding, maintain water quality and support a wide
range of wildlife. Mangroves may have a indirect value through
2.3. Ecosystem services provided by mangrove in the context of the protection of coastal property and economic activities such as
climate change mitigation shery. A summary of functions of mangrove ecosystem goods and
services is shown in Table 3.
Natural mangrove ecosystems play an essential role in gas regu- Mangroves are known to remove CO2 from the atmo-
lation and climate regulation, which both are EF directly related to sphere through photosynthesis. This has a small but nonetheless

Table 3
Ecosystem functions and services provided by mangrove ecosystems (Gilbert and Janssen, 1998).

Ecosystem functions Goods and services User

Watershed protection Provision of protection Aquaculture farmers and industry adjacent to


mangrove forests
Production of food and nutritious drink Offshore sh and shellsh, on-site crabs Artisanal sheries
Production of other biotic resources Medicinal resources (e.g. Skin disorders and sores, . . .) Local communities
(Horst, 1998)
Production of raw material for construction Wood, leaves, tannins, nypa palm Local communities
and industry
Production of fuel and energy Wood, charcoal Local communities
Production of juveniles for cultivation Mangrove propagules Government (afforestation and re-afforestation
programs)
Regulation of environmental quality Improving air quality Aquaculture adjacent to mangrove forests
Prevention of soil erosion Shoreline protection Local communities, aquaculture adjacent to mangrove
forests
Flood mitigation Reduce oods and recharge aquifers, reducing storm Local communities, aquaculture adjacent to mangrove
risks forests
Maintenance of biodiversity Crops pollination, pests control Global population
Scientic and educational information Knowledge Scientic and educational community
Q.T. Vo et al. / Ecological Indicators 23 (2012) 431446 437

Fig. 4. Framework of total economic value (adapted from Sorg, 1987), modied.

noticeable impact on the counterbalancing of green house gas of other land-use practices. The range of value may vary according
emissions leading to global warming. Furthermore, mangroves are to specicity approach used, but it can help in land-use decision-
capable to accumulate and store large quantities of carbon in the making.
soil. For example, a 20-year old plantation of Rhizophora man- One of the difculties at environmental valuation is that there
groves stores 11.6 kg m2 of carbon with a C burial rate of 580 g m2 is no market to capture or express the values of ecosystems, espe-
year1 (Fujimoto, 2000). Duarte et al. (2005) recently estimated the cially their indirect use values (Curtis, 2004). Thus, all ES fall outside
average global rate of carbon accumulation in mangrove systems the sphere of markets and tend to be invisible in economic anal-
at 10.8 mol m2 yr1 . yses (Alongi, 2002; Chee, 2004). Costanza et al.s (1997) seminar
Most mangroves x carbon in excess of ecosystem require- paper on the value of the worlds ES and natural capital, asserted
ments, with the excess carbon representing 40% of net primary that because the ecosystem services are not fully captured in
production (Duarte and Cebrian, 1996). Herbivores consume 9% commercial markets or adequately quantied in terms of compa-
of the carbon stored, 30% is exported, 10% is stored in sediments, rability with economic services and manufactured capital, they are
and 40% is decomposed and recycled within the system (Duarte often given too little weight in policy decisions.
and Cebrian, 1996). Measurements of mangrove photosynthesis The total economic value (TEV) of a natural resource is the sum
(Clough et al., 1997, 1998) imply that either more carbon is stored in of its direct, indirect, option, bequest, and existence values (Sorg,
the wood and eventually decomposed within the system, or more 1987). In this paper, TEV is divided into two main components: use
carbon is stored in sediments, and exported to the adjacent coastal and non-use values (Fig. 4).
zone, than estimated by Duarte and Cebrian (1996). Hence, the TEV of mangrove habitat has been estimated by many stud-
plantation of mangroves provides a great benet to control regional ies, the global value was estimated as US$181 billion (Alongi,
climate change by stabilizing atmospheric carbon. However, not 2002), or US$10,000 ha1 , and between US$475 and US$1675 ha1
only the carbon storage and potential decrease of GHG emissions (Rnnbck, 1999).
show the mangrove ecosystems contribution to mitigate climate Another recent study by Tong et al. (2007), investigated wet-
change. Mangroves protect the coastline and therefore are a direct land restoration, using both structural indices and valuation of the
protection against climate change induced sea level rise. wetlands ES, thereby linking science to human welfare. The study
A few studies in the past decades have tried to estimate the val- investigated both potential and current values of the main ES in
ues of a coastal or mangrove ES. Pearce and Moran (1994) discussed Sanyang wetland, China. The authors concluded that in Sanyang
methods of economic valuation of different biological resources wetland there are six main services (e.g. production output, water
and their interpretations. They listed the values of tropical wet- supply, disturbance regulation, environment purication, gas reg-
lands, marine systems, rangelands and forests worldwide. Costanza ulation, and biodiversity support), and revealed that the potential
and Folke (1997) assessed the value of the worlds ES based on a services value is about 8000 US$ ha1 yr1 . The potential environ-
synthesis of published studies and a few original calculations. mental purication service was quite high, accounting for 43.0%
of the total value. Due to its location, the potential value of the
3. Review of studies in ecosystem service assessment in the habitat service of the ecosystem was relatively low at 6.3% of the
mangrove wetlands total value. However, the services that currently exist at Sanyang
wetland, as based on the current state of the ecosystem, added up
3.1. Valuation methods of mangrove ecosystem services
to only 850 US$ ha1 y1 . This current value is only 10.5% of the
Economic valuation is an effort to allocate quantitative values to potential value. The current values of all of the services were much
the goods and services provided by natural ecosystems. (Costanza lower than what they potentially could be if restored, except for the
and Folke, 1997; Daily et al., 1997). Economic valuation of man- current production output value. In particular, the environmental
grove ecosystem can be useful in indicating the opportunity cost purication service was negative and owed 1000 US$ ha1 yr1 due
438 Q.T. Vo et al. / Ecological Indicators 23 (2012) 431446

to the water pollution and lack of vascular wetland plants. Addition- (49). For example, in 2010, more than 200 papers were published
ally, the gas regulation value was only 5.5% of the potential value. on ES valuation (Fig. 5).
In terms of future work that was recommended about 90% of the Using ecosystem services as key words, a search in the ISI Web
wetlands ES need to be restored. of Knowledge shows the total number of papers published and the
A widely accepted and often used framework for decision- number of disciplinary categories in which they occur over time
making is the cost benet analysis (CBA).This method is (Fig. 6).
increasingly being used to evaluate the benets of alternative uses The valuation approaches and key assumptions for different
of ecosystem in order to guide the selection of projects (Pearce, mangrove studies are summarized in Table 4.
1998; Carpenter et al., 2009; Daily et al., 2009). Many authors Mangroves are estimated to extend over 15 million hectares
applied CBA in terms of ecosystem services for coastal habitat world-wide (Lacerda and Diop, 1993); there are about 6.9 million
assessment. Duvivier (1997) gave an example of the practical appli- ha in the Indo-Pacic region, 3.5 million ha in Africa and some
cation of CBA as a means of project appraisal and its use assessing 4.1 million ha in the Americas including the Caribbean (Fig. 7).
coastal defense options for the sand dunes of Tramore, Ireland. For ecosystem and environmental protection, mangroves serve as
An assessment of economic benets and costs of different coastal link between the marine and terrestrial ecosystem. They play an
defense options for a deteriorating sand dune system revealed dune important role in stabilizing shorelines in coastal areas and estuar-
rehabilitation to be the best solution from both, the environmen- ies, protecting them against sea level rise, hurricanes, and coastal
tal and economic point of view. Comparing discounted scheme erosion (Aksornkoae and Tokrisna, 2004). However, mangroves
costs (66,000 US$) to discounted scheme benets (380,000 US$) are depicted the most rapid loss rates of ecosystems world-wide
produced a benet to cost ratio of almost six (Duvivier, 1997). (Valiela et al., 2001), and in 2001 approximately 50% of all coastal
TEEB (2008) also carried out CBA of ES decline caused by the loss wetlands have been lost (Upadhyay et al., 2002) and Rosen (2000)
of biodiversity. Howver, this method has some limitations due to stated that about 50% of global mangrove cover has been destroyed
the complexity of natural ecosystems and the distributional biases in 2000. It is very important to evaluate the value of wetland ecosys-
markets (Wegner and Pascual, 2011). tems like mangroves, which are affected by sea level rise induced
The contingent valuation method (CVM) is used to estimate the by climate change and environmental change due to the negative
economic values of ES including both use and non-use values. This consequences of rapid industrialization and urbanization as well as
method is the most widely used method for calculating the non-use marina development, aquaculture (Rnnbck, 1999; Binelli et al.,
values. The purpose of CVM is to obtain individuals preferences 2007).
(willing to pay for such a service) in monetary terms, for changes Mangrove forests provide timber materials to well-established
in the quantity or quality of nonmarket environmental resources markets, but the associated habitat values of forests are also given
(Birol et al., 2006). With regard to ecosystem services applications, by un-marketed recreational activities (Lal, 1990; Naylor and Drew,
CVM is useful for examining direct use values such as forest pro- 1998; Sathirathai, 1998). The chain of effects from ES to human
duction, shery, and indirect use values such as water ltration or welfare can range from extremely simple to exceeding complex.
climate cycling. Despite the strengths of CVM regarding its ability Mangrove forests provide timber, but also hold soils and moisture,
to estimate non-use values and evaluate irreversible changes, this and create microclimates, all of which contribute to human welfare
method has been criticized for its lack of validity and reliability in complex, and generally non-marketed ways (Costanza and Folke,
(Kahneman and Knetsch, 1992; Diamond and Hausman, 1994). 1997; Alongi, 2002; Hogarth, 2007).
A large number of CVM studies focus on the use and non-use val- Economists have argued that a mangrove ecosystem as a whole
ues of wetlands. The reasons for this are the substantial local and and many of mangrove associated goods and services do not have
global indirect and non-use values inherent in this resource (see market values. One reason why mangrove values are not fully
Crowards and Turner, 1996; Brouwer et al., 2003 for a review). Pate considered in the appraisal process is that many of these val-
and Loomis (1997) found that willing to pay for a wetlands (San ues are not sold at the conventional market, so they do not
Joaquin Valley and San Joaquin River) improvement program in Cal- have a market price (e.g. storm protection function of mangroves)
ifornia, USA, was about 183 US$ household1 . This value decreases (Lal, 1990; Bann, 1997). The values of goods and services sup-
as the distance from the site increases. The average willingness ported by mangrove ecosystems have been studied since the 1990s,
to pay per household was estimated to be 13 US$ month1 , or including direct and indirect values. The measurements of these
156 US$ yr1 . When multiplied by the number of households in goods and services were based on the production method (Lal,
California, the total benets exceeded the 26 million US$ cost of 1990; Ruitenbeek, 1992; Ruitenbeck, 1994; Barbier, 1994; Gilbert
replacing the water supply by a factor of 50. Finally, Brouwer et al. and Janssen, 1998; Sathirathai, 1998; Rnnbck, 1999), contingent
(2003) used 30 wetland CV studies to conduct a meta analysis of method (Naylor and Drew, 1998), or replacement techniques (Lal,
wetland valuation studies, where a meta analysis is the statistical 1990; Sathirathai, 1998). However, the valuation of some intangi-
analysis of the summary ndings of empirical studies (Champ et al., ble services such as ecological process value or cultural function
2002). They found that use values (such as ood control, water gen- values has not been widely conducted. The production method
eration and water quality attributes) have a stronger inuence on is commonly used to determine the economic value of extrac-
the willingness to pay than non-use elements such as the biodiver- tive uses, such as for forestry and sheries (Lal, 1990; Gilbert and
sity function of wetlands. Janssen, 1998; Rnnbck, 1999; Rubec, 1999). For indirect uses such
as storm buffer or water ltering services, the replacement cost
method is commonly used (Lal, 1990; Sathirathai, 1998). Naylor and
3.2. Economic valuation of ecosystem services in literature Drew (1998) also applied the contingent valuation method to deter-
mine the value locals placed on the protection and use of mangrove
The trend in ES valuation has been rapidly increasing over ecosystems as a whole in Kosrae, Micronesia.
time. The key words valuing ecosystem services in Science Direct There are many further approaches, which have been used
search, yielded 1793 articles published in the past 20 years (April, to determine the economic impact of changes in wetland areas,
2011). Most of them are journal papers (1666), and the rest are ref- the goods and services produced by underlying ecological pro-
erence works and books. The journal Ecological Economics has cesses and the environmental functions. For example, Barbier and
the highest publication record (483), followed by the Journal of Strand (1997), Lal (1990) and Nickerson (1999) assumed a pro-
Environmental Management (66), and Forest Policy and Economics portionate linear relationship between the area of mangroves
Q.T. Vo et al. / Ecological Indicators 23 (2012) 431446 439

Table 4
Valuation techniques and key assumptions for different mangrove ecosystem assessments including theirs economic values.

Authors Valuation techniques Key assumptions Direct use value Indirect use value and
non use value

Christensen (1982) - Market price: both - Discount rate & time - Local uses: fruits, cigarette - Off-site sheries:
commercial and horizon: future wrappers and nipa thatch for Mangrove related
subsistence forest, sheries developments are ignored. roong. US$230/ha/year. shrimp (80 kg/ha), and
and agricultural products sh species such as
are valued at market prices mullet, snapper,
(costs to maintain and raise whiting.
the plants or animals are US$100/ha/year.
practically ignored).
- Environmental linkage: - On-site sheries: commercial
removal of mangroves harvest by small, medium and
results in total large scale shermen of sh,
disappearance of trash sh, prawns and shrimp,
mangrove-dependent sh based on a weighted market
species. price of US$.0.35/kg.
US$30/ha/year.
- Forestry: charcoal production
is 1 m3 /ha/year (potential of
12 m3 /ha/year). US$30/ha/year.
- Aquaculture: the current yield
from shrimp farming is
184 kg/ha/year at a price
US$.1.1/kg (US$206/ha/year).
The potential yield is
541 kg/ha/year of better
species (US$3.9/kg) leading to
a yield of US$.2106/ha/year.
- Agriculture: annual rice yield
of 1700 kg but fails every
fourth year. US$165/ha/year.
Lal (1990) - Market price: the value of - Discount rate: 5% which is - On-site sheries: total - Off-site sheries: these
commercial forest and the average real interest production of commercial values are Included in
sheries products is based rate for 1983 to 1986. (147 kg) and subsistence the category onsite
on market prices (184 kg) harvest in sheries.
mangrove-ecosystem is
331 kg/ha/year based on a
weighted average market price
by species of US$2.61/kg;
US$60US$240/ha/year with
average of US$100/ha/year.
- Shadow price: for - Time horizon: 50 years. - Forestry: net benets are - Nutrient (waste)
subsistence sheries retrieved for commercial ltering service: derived
products a shadow price is forestry from market prices from conventional
derived from the average and for subsistence treatment plant
price paid by commercial consumption from next best (alternative cost
shermen when they buy alternative approach (buying approach).
surplus sh from villagers. from saw mill plus transport). US$5820/ha/year.
US$6/ha/year.
- Surrogate or substitute - Environmental linkages: - Agriculture & aquaculture:
price: The value of the linkage scenarios varying opportunity costs development
mangrove soils ltering from 20% to 100% decline into sugarcane production and
capacity is based on the in sh harvest if mangroves aquaculture were estimated to
costs of the treatment of are destroyed. In main the be negative. US$52/ha/year.
comparable sewerage valuation it is assumed that
volume costs by a 1 ha of mangrove produces
conventional treatment 331 kg of sh per annum.
plant.
- Economic assumptions:
marginal values of labour
and capital in shing and
forestry industries are zero.
- Other assumptions: 40
year forestry rotation cycle.
Bennet & - Market price: commercial - Discount rate & time - On-site sheries: commercial - Tourist industry: the
forestry and sheries are horizon: future harvest of prawns and sh revenues in and around
valued at market prices. developments mentioned, based on 95% of total catch in the Mangrove Forest
but ignored in the actual Sarawak. Reserve is assumed to
valuation exercise. disappear.

Reynolds (1993) - Environmental linkage: - Forestry: commercial harvest - Off-site sheries:


removal of mangroves of building poles, charcoal, deep-sea and coral reef
results in total semi-charcoal and cordwood shing is incidental.
disappearance of of the whole West of Sarawak.
mangrove-dependent sh
species which is 95% of the
total catch.
440 Q.T. Vo et al. / Ecological Indicators 23 (2012) 431446

Table 4 (Continued)

Authors Valuation techniques Key assumptions Direct use value Indirect use value and
non use value

Ruitenbeek (1992) - Market price: local - Discount rate: 7.5% - Local uses: traditional - Erosion control: based
farming products are not reects the opportunity household production from on agricultural output
corrected for cost of risk-free hunting, shing, gathering, and from local production.
transportation costs investment. manufacturing are based on US$3/ha/year.
because these are not shadow prices. This
traded outside the region. conversion into shadow prices
is based on transportation cost
of Rp500/kg. US$33/ha/year.
- Shadow price: livestock, - Time horizon: costs and - On-site sheries: sustainable - Off-site sheries:
sh and fuel wood are benets are extended over shrimp harvest based on real imputed (potential)
corrected for a 90 year period to allow average export prices value of Rp300/kg for
transportation costs at US$ three full rotations in US$6.25/kg. Costs are based on by catch which is 90%
0.25 per kg. forestry evaluations, and to investment and operation by weight of total
accommodate potential costs. Taxes, royalties and shrimp catch
delays in environmental compensation payments are (assumption of future
linkage effects. excluded. US$94/ha/year. commercial use). Costs
are based on
investment and
operation costs.
US$23/ha/year.
- Other prices: biodiversity - Environmental linkages: - Forestry: cutting for export of - Biodiversity: ascribed
benet of mangrove scenarios depend upon woodchips based on real as the capturable
ecosystems is based on impact intensity and average export prices US$40 biodiversity benet.
international transfers for impact delay parameters. per cubic metre. Sago Maximum for
rainforests (50% of Various ecosystems (i.e. production is valued at ecosystems (rainforest)
US$.3000 per kilometre); mangrove and sheries) constant local market prices reaches US$3000/km2 .
erosion is valued through are linked. Rp300/kg. Costs are based on For Bintuni Bay
valuing the benets of local investment and operation US$1500/km2 .
agricultural production. costs. US$67/ha/year. US$15/ha/year.
- Other assumptions: 30
year forestry rotation cycle.
Gammage (1994) - Market price: timber is - Discount rate: various - Local uses: The seeds of - Off-site sheries: a
valued at local market rates were applied. 19.08% mangrove trees are used as pseudo production
prices net of input costs which is the foregone fodder for the local cattle, yet function including
and extraction costs; the return on other investment this was not included. Also mangrove coverage
same is applied for salt, projects, 8% which the honey and fruits were used but and effort was used to
shrimp and sh. Fuel wood costs of external not valued. estimate artesenal and
is valued at market prices borrowing, and 4.64% commercial shery.
for the traded wood, and at reecting the social rate of Subsistence shing is
gathering costs of the time preference. negligible.
non-traded wood.
Opportunity costs of
allocating labour time for
fuel wood collection are
zero.
- Other prices: for - Time horizon: 56 years - On-site sheries: the annual
comparison, the least going till 2050. sustainable shrimp harvest
alternative cost of based on local market prices
substitutes were reported are approximately 5.5 kg/ha
but not applied to the priced at US$14/kg. Related
actual C/B analysis. costs were not mentioned.
- Environmental linkages: a - Forestry: local rewood
linear relationship consumption is valued through
between mangrove area shadow wage and input cost
and artisanal sh methodology at approximately
production was estimated US$100 per m2. Local timber
implying a decrease of consumption is valued at local
14 kg in annual sheries market prices. Total annual
yield for each hectare of sustainable wood consumption
mangrove cut. is determined at
approximately 6 m2 per ha.
- Economic assumptions:
shery benets are gross of
costs.
Gilbert AJ and - Market price: commercial - Forestry: 251 US$/ha/year NA
Janssen (1998) forestry and sheries are
valued at market prices.
- Fisheries: 60 US$/ha/year

Sathirathai (1998) Cost and benet analysis - Economic assumptions: - Forestry: - Erosion control:
shery benets are gross of 1401059 US$/ha/year 2990 US$/ha/year
costs.
- Fisheries: 863 US$/ha/year - Carbon sequestration:
86 US$/ha/year
Q.T. Vo et al. / Ecological Indicators 23 (2012) 431446 441

Table 4 (Continued)

Authors Valuation techniques Key assumptions Direct use value Indirect use value and
non use value

Naylor and Drew, - Market price: commercial NA - Forestry: 178 US$/ha/year NA


1998 forestry and sheries are
valued at market prices
method
- Fisheries: 461 US$/ha/year

Sathirathai and -Market price: NA -88 US$/ha/year NA


Barbier (2001)
Ruchi Badola and -Damage-cost avoided Household based 153.74 US$/household
S.A. Hussain
(2005)
Hussain and Badola -Market price Household based 107 US$/household/year NA
(2010)

and the mangrove dependent species harvested. Others, such as sheries in the southern United States (Lynne et al., 1981; Ellis and
Sathirathai (1998) used a static optimization Cobb-Douglas model Fisher, 1987; Farber and Costanza, 1987; Bell, 1997, 1989; Freeman,
and an assumption of direct non-linear proportionate relationship 1991), mangroves areas in relation to coastal and marine sheries
between the quantity of shellsh and sh harvested and the level in Thailand (Sathirathai, 1998) and Mexico (Barbier and Strand.,
of shing effort, keeping the area of mangroves constant. Barbier 1998). These approaches are consistent with other related stud-
and Strand (1997) adopted a dynamic approach production func- ies attempting to analyze habitat-shery problems more generally;
tion analysis to value the mangrove dependent shrimp shery of examples are analysis of the competition between mangroves and
Campeche, Mexico. The summary of these studies including eco- shrimp aquaculture in Ecuador (Parks and Boniface, 1994), the
nomic values and approaches applied are listed in Table 4. determination of the value of a multiple-use mangrove system
Some papers applied general methodologies such as TEV, or the under different management options in Bintuni Bay, Irian Jaya,
cost and benet analysis for evaluating mangrove-shery linkages Indonesia (Ruitenbeek, 1992) or the examination of general coastal
which can be used for a variety of mangrove and coastal wet- system trade-offs, such as the effects of development and pollution
land systems found around the world. These approaches have been on habitat-shery linkages (Kahn and Kemp, 1985; Knowler et al.,
used to assess the economic value of coastal wetland habitats to 1997; Strand and Bockstael, 1990; Swallow, 1990; Swallow, 1994).
support marine sheries and other ecological functions, such as It has been estimated that the economic value of mangrove ES are
determining the value of marshlands. Examples are the Gulf Coast nearly 10,000 US$ ha1 . Sathirathai and Barbier (2001), however,

Fig. 5. Number of ecosystem services valuation publications in Science Direct over time (accessed April, 2011).

Fig. 6. Number of Ecosystem services publication over time (accessed April, 2011).
442 Q.T. Vo et al. / Ecological Indicators 23 (2012) 431446

Fig. 7. Generalized global distribution of mangroves and diversity of mangrove species per 15 of longitude.
Source: Adapted from Kuenzer et al. (2011).

showed that the economic value for mangroves of a local commu- 4. Discussion
nity in Thailand is much higher, ranging between 27,264 US$ and
35,921 US$ ha1 . This differences are due to differences between Numerous studies on ESA were published during the last two
geographical and temporal specicity; the same type of ecosystem decades. ESA is a relatively new and emerging science. As method-
could have varying values in different geographical areas caused by ologies continue to develop and evolve it is important that those
differences in economic activities, and cultures of local people. undertaking such valuations should share their results and experi-
Corps (2007) focused on the valuation of mangrove and shrimp ences.
farming cultivation. The studys main hypothesis was that the The literature review points to a growing recognition of the
direct use value and indirect use values are not considered when numerous products and services provided by natural ecosystems in
converting mangroves to shrimp farms. With the traditional way general and by mangrove ecosystems in particular. Yet most studies
of valuation, it is revealed that the total revenue from mangrove still limit valuation to use values because the availability of market
use was approximately 160 US$ ha1 . In contrast, shrimp farmers prices indicates their easy valuation.
have a net income of approximately 2000 US$ ha1 , exceeding the It is difcult to state the monetary value of all goods and ser-
revenues receivable from owning the land as a mangrove swamp vices provided by a natural ecosystem. However, some researches
(Corps, 2007). However, looking at what mangrove swamps pro- make an effort to put value on non-market goods and services
vide additionally such as coastal protection or reduced pollution in the developed and developing countries (Shrestha et al., 2002;
the total value of mangroves is much higher. The study concluded Costanza and Folke, 1997; Daily, 1997; De Groot et al., 2002; MA,
that the mangrove swamp is nancially superior to the taxpayer 2003). In order to provide robust valuation methods, we rst need
since its coastal protection value is substantial and combined to know how to categorize ecosystem services for valuation. The
with revenues from the mangroves it results a total value of about ecosystems should be divided into a few comprehensible cate-
4000 US$ ha1 (Corps, 2007). gories. For example, MA (2005) classied supporting services
Where ES have been diminished as a result of ecosystem degra- as an underpinning to other service categories. Final services and
dation, there may also be the potential to restore ows of ES intermediate services should also clearly be delineated, e.g. hydro-
by rehabilitating coastal ecosystems. This has most widely been electric power requires water provision and regulation from the
attempted with mangrove replanting in Asia, although only a frac- ecosystems, but also damns and transmission infrastructure.
tion of deforested mangroves have been replaced (Rnnbck, 2007). Many ecosystem services are not complementary; the provision
Rnnbck et al. (2003) argue that rehabilitation of coastal ecosys- of one is precluded by others. Adding up estimates from separate
tems is inevitably more expensive than preservation of existing studies on the value of various individual ES might result in some
habitats. Rnnbck (2007) found that coastal dwellers in Kenya double counting of benets (El Serafy, 1998) or confusion between
derived signicantly more ES from natural mangroves than from EF and ES, which might also create double counting, such as valu-
replanted mangroves. This suggests that efforts to maintain exist- ing the same wetland for efuent treatment and storage (Turner
ing ecosystem services present a more efcient way to benet et al., 2003). Fox example, economic values of mangroves depend
the well-being of the poor than rehabilitating ecosystems after not only on the interaction between social, economic and institu-
degradation. In cases, however, where extensive a part of natural tional forces and their variations between countries, but also on
habitat has been lost, research on affordable restoration techniques the local use of products, whether the shery is open-access or
is needed that rehabilitate the ow of ES. managed (Lal, 2003) (Table 5).
Q.T. Vo et al. / Ecological Indicators 23 (2012) 431446 443

Table 5
Categories of ecosystem services and economic methods for valuation (Farber et al. 2006).

Ecosystem service Amenability to economic valuation Most appropriate method for valuation Transferability across sites

Gas regulation Medium CV, AC, RC High


Climate regulation Low CV High
Disturbance regulation High AC Medium
Biological regulation Medium AC, P High
Water regulation High M, AC, RC, H, P, CV Medium
Soil retention Medium AC, RC, H Medium
Waste regulation High RC, AC, CV Medium to high
Nutrient regulation Medium AC, CV Medium
Water supply High AC, RC, M, TC Medium
Food High M, P High
Raw materials High M, P High
Genetic resources Low M, AC Low
Medicinal resources High AC, RC, P High
Ornamental resources High AC, RC, H Medium
Recreation High TC, CV, ranking Low
Aesthetics High H, CV, TC, ranking Low
Science and education Low Ranking High
Spiritual and historic Low CV ranking Low

AC: avoided cost; CV: contingent valuation; H: hedonic pricing; M: market pricing; P: production approach; RC: replacement cost; TC: travel cost.

The table above illustrates some valuation tools that are appro- services rather than a problem to be dened away (Costanza, 2008;
priate ESA. For example, Travel Cost (TC) is primarily used for Mller et al., 2008).
calculating recreation values while Hedonic Pricing (HP) is associ- In literature, the economic values of ES valuation are bias for a
ated with the aesthetic qualities of natural ecosystems. Contingent number of reasons, including social fairness and ecological sustain-
Valuation (CV) and Conjoint Analysis (CA) are methods to measure ability. In other words, asking people in the developed countries
non-use values, such as the existence value of wildlife. Finally, non- (under ecologically sustainable and socially fair conditions with
monetary methods do not require valuation results expressed in a knowledge of their connection to ES), then the total economic val-
single monetary unit (EPA, US, 2009). For instance, group valuation ues of an ecosystem (both direct use values and indirect use values)
(GV), a type of civic valuation, is a more recent addition to the val- would probably yield very different results than in the developing
uation literature and addresses the need to measure social values countries.
directly in a group context (Wilson and Howarth, 2002; Howarth
and Wilson, 2006). 4.3. Need for strengthen the link between economic evaluation of
ecosystem and policy makers
4.1. Need for site-specic economic valuation of an ecosystem
Even if these services are useful, some argue that they do not
provide enough information to decision-makers. Aggregating indi-
The ability to transfer values from an ecosystem to others is
vidual willing to pay values is not enough when decisions involve
service-specic. Values of local scale services such as ood control
large scale consequences to society and future generations. There
and storm protection may have limited transferability (Liu et al.,
is also a question if policy and decision-makers will actually use
1994). Moreover, due to differences in economic activities, cultures,
these values from economic evaluation. However, Power (2001);
and lifestyles of the local people, the same type of ecosystem might
Stavins (2003) pointed out that even politicians and other decision-
have different values in different locations and time (Burhard et al.,
makers are usually not based on quantied values, but on cost
2011). Extrapolation of ES values from one place to another is con-
and benets analyses. A tool for accessing economic values of a
taining error (Costanza and Folke, 1997; Lautenbach et al., 2011),
certain ecosystem (like coastal areas in developing countries) is
and those errors depend on the ES type and its spatial heterogene-
required to enhance a more balanced decision-making regarding
ity. Values also depend on current market prices and preferences,
the sustainable use and conservation of natural ecosystems as well
both of which can change over time. Future generations may value a
as their many goods and services. Therefore, it is important for
particular service differently than the current one. The geographical
decision-makers to consider values of an ecosystem in comparison
and temporal specicity of any service valuation limits extrapola-
with others ecosystem management regimes. Furthermore, quan-
tion of current, local values beyond local or bioregional scales and
tifying ES might encourage politicians and nancers to recognize
for all times (Daily, 1997; Turner et al., 2003).
the importance and values of services as well as their conservation.
Society is governed by money and numbers, and if we do not put a
4.2. Need for standardized denition of ecosystem services and its value on ecosystem services, they might be ignored in favor of the
valuations method for a specic landscape quantiable. In addition, ES valuation can be an important tool for
ecosystem policy and management, although valuation becomes
As we mentioned in the denition of ES and EF, they interact more difcult and uncertain because ES become more complex.
with each other. Classications of ES are useful, but in reality these Land-use changes may signicantly affect the ecosystem pro-
services are inter-dependent. Sometimes a single ES is a product of cesses and services that they provide, evaluating the impacts of
more processes (De Groot et al., 2002). Because of multiple goals, land-use changes is not easy (Kreuter et al., 2001; Zhao et al.,
valuation must be performed from multiple perspective using mul- 2004; Mller et al., 2006, 2008; Petrosillo et al., 2009; Petrosillo
tiple methods. Recognizing the existence of multiple values and et al., 2010). Monitoring changes at the regional scale is difcult
encouraging open and pluralistic discussion of values will lead to because of the large amount of data and the effort for inter-
new solutions for conservation practice (Norton, 1998). Therefore, pretation. Furthermore, lack of information on land-use change
we need a multiple classication systems for different purposes, (such as conversion of mangrove area to shrimp farming) will
and this is an opportunity to enrich our thinking about ecosystem signicantly affect the value of ES. Additionally, comprehensive
444 Q.T. Vo et al. / Ecological Indicators 23 (2012) 431446

decision-making based on comparisons of the impact of land-use associated ecosystems specically prodive a wide range of services
changes on ecosystems requires more explicit measures than sim- which across these groups: coastal protection, the maintenance of
ple indices for the value of affected ES. The actual services provided global biogeochemical cycles are source of income and employ-
by ecosystems and the values of these services depend on site spe- ment, destination for tourism, environments for recreation, source
cic conditions and the valuation of the local community; therefore, of building material, provision of human living space, as well as are
it is preferable to determine the nature and value of ES at a small the contribution to cultural and spiritual value. The MA (2005) and
spatial scale. other publications (Jackson et al., 2001; Donner and Potere, 2007;
The use of Earth observation data and Geographic Information Adger et al., 2005) have demonstrated how these systems and the
Systems (GIS) enable the calculation of the values of ES at larger services they support are under increasing pressure from a range
scales to classify land into representative ecosystems for which of drivers. They are being seriously degraded and if trends persist,
benchmark service values have been determined (Kuenzer et al., they will be unable to support future human well-being. Pressures
2008, 2011; Dekker et al., 2009, Gstaiger et al., in press). High res- due to climate change, population increase in coastal areas, pol-
olution spatial data area needed for conducting context-based ES lution, aquaculture development, greater human mobility and the
valuation and mapping of different ecosystem goods and services spread of invasive species are likely to further exacerbate these
under different social and ecological characteristics. Using such an trends (Brown et al., 2008).
approach, it is important to realize that accurate coefcients are Ecosystems provide numerous services that contribute to
often less critical for land-use change analyses than time specic human well-being and quality of life. Through many services over-
analyses of ES values because coefcients tend to affect estimates of lap and are interdependent, their classication is a useful attempt
directional change less than estimates of the magnitude of ecosys- (MA, 2005; De Groot et al., 2002). These services can be applied to
tem values at a specic point in time. local ecosystems, such as coastal ecosystems. Humans value each
service in different ways, including direct and indirect use as well
as non-use values. The services and values in turn can be quantied
5. Conclusion using economic methods, such as direct market pricing, travel cost
evaluations, or contingent valuation approaches. Each approach
This review paper provides a comprehensive overview of has advantages and disadvantages, and should be carefully chosen
ecosystem services evaluation studies undertaken during the last based on the specic goals and subject to the study.
decades, focusing on studies on mangrove forests in different
regions and emphasizing different valuation methods.
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