How to value ecosystem goods and services

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How to value ecosystem goods and services in
agriculture at increasing land use pressure ?
Katarina Hedlund Lund university, Sweden
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Land use projections

• Production of goods is increasing
• Food, biofuels, timber, water use
• Natural habitats are declining
• Mitigating climate change
• Increased pressure on land for production of
  biomass

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Agricultural land use

• EU biofuel strategy
• 1 (produced in EU)
• 6 10 of total area
• 2020 10 43 of total area

Nowicki 2006
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• Current land use in Europe

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Land use demands
Biofuel production
Agriculture
Natural grasslands
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How do we conserve ecosystem services and
biodiversity ?
Agri-environmental schemes
Heterogeneity in landscapes
Extensification Protected areas
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EU common agricultural policy CAP

• Implemented nationally as rural development plans
  with additional national funding
• CAP (12 000 million /yr), 47 of EU budget
• Farming is 5 of European economy
• CAP subsidies
• Area based income support
• Rural development actions
• Agri-environmental schemes

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Ecosystem services threatened byintensive
agriculture

• Natural enemies
• Pollination
• Resistance to pests invasive species
• Nutrient cycling
• Water retention
• Carbon retention

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Intensification and above ground services

• Increased heterogeneity may give higher diversity
• Effect is scale dependent
• Not true for all species

Tscharnkte et al. 2007
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Soil ecosystem services

• Nutrient cycling
• N, P retention and availability to plants
• Water retention
• Aggregate structure, organic matter
• Carbon retention
• Fuels microbial activity, mitigates climate change

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Soil ecosystem services-the workers
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Soil services
Reduced under intensive management
Hedlund 2002
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SOILSERVICEConflicting demands of land use
Soil biodiversity and the sustainable delivery of
ecosystem goods and services in Europe

• value soil ecosystem services.
• predict sustainability of ecosystem
  services, by field and modelling studies.
• Build scenarios to identify economical and
  social drivers of land use

http//www.kem.ekol.lu.se/soilservice/index.html
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Land use demands
Biofuel production
Agriculture
Natural grasslands
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Valuation of ecological services
Market values of ecological services prevention
of pests - natural enemies pollination water
retention nutrient retention Non market
values recreation landscapes Markanday et
al 2008
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Economic valuationa dynamic approach

• Ecosystem services in agriculture
• - Dynamic network of interacting organisms
• Responding to changes in land use
• Depending on spatial and temporal scales

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SOILSERVICE

• Economic model
• simulated landscapes
• predicts regional land use (20 yrs)
• Ecological model
• farmers scale
• predicts output of
• ecosystem services

Values of services for farmer and
society Predictions on sustainability Feed back
to policymakers
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Agricultural Policy Simulator (Happe 2004, Brady
et al 2007) Institute of Agricultural
Development in Central and Eastern Europe (IAMO),
Halle, Germany
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Drivers in relation to AgriPoliS

• Exogenous
• Prices of inputs/outputs
• Wage and interest rates
• Agricultural policy
• Climate
• Technology

• Endogenous
• Land market
• Regional markets
• Input output levels
• Land use
• Landscape impacts
• ES production

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Output from AgriPoliS

• Farm structure
• Average farm size
• Number of farms
• Distribution of farm type
• Land use
• Composition of crops
• Distribution of field size
• Landscape mosaic

• Econ. Performance
• Land rents by soil type
• Farm income
• Farm profit
• Investment activity
• Returns to labour
• Livestock
• Numbers of livestock
• Animal density

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SOILSERVICE field sites

Regions for valuation of services
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SOILSERVICE partners

• Lund University, Sweden, Dr Katarina Hedlund
• Swedish Institute for Food and Agricultural
  Economics, Sweden
• Dr. Mark Brady,
• University of Copenhagen, Denmark Prof. Søren
  Christensen,
• University of Helsinki, Finland Prof. Heikki
  Setälä,
• Netherlands Institute of Ecology, NL, Prof. Wim
  H. Van der Putten,
• Wageningen University, NL, Prof. Peter C. de
  Ruiter,
• Justus-Liebig-University of Giessen, Germany,
  Prof. Volkmar Wolters,
• Biology Centre of the Academy of Sciences, Czech
  Republic Dr. Jan Frouz,
• Aristotle University of Thessaloniki, Greece, Dr.
  Stefanos Sgardelis
• Lancaster University, United Kingdom, Prof.
  Richard D. Bardgett
• University of Reading, United Kingdom, Dr. Simon
  Mortimer

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Landscape impacts Land use field size
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Land use data (GIS based)Southern Sweden
Cereal production
Grasslands