Classifying Ecosystem Services for Economic Valuation: the case of Forest Water Services

The paper examines the conceptual conflicts in classifying ecosystem services for economic valuation, specifically comparing the Millennium Ecosystem Assessment (MEA) framework with an output-based approach. Through an analysis of 25 valuation studies of tropical forest water services in Central and South America, the authors find that the MEA framework can lead to double counting and underestimation of values. They argue that valuation should focus on final outputs (benefits to humans) rather than ecological processes to ensure accuracy.

• The Millennium Ecosystem Assessment (MEA) framework is criticized for its potential to cause double counting in economic valuations because it may lead researchers to value a service at multiple stages of the same process.
• Double counting occurs when a process and its resulting output are both valued; for example, valuing both the forest's capacity for water flow regulation and the resulting hydropower generation.
• The MEA framework can lead to the underestimation of total ecosystem values when multiple distinct outputs are grouped under a single MEA category and assigned a single value.
• An output-based classification, which defines services by their final benefits to humans, is proposed as a more accurate alternative to the MEA framework for economic valuation.
• The authors identify four primary areas of disagreement in the literature regarding ecosystem service (ES) valuation: the definition of ES, which services should be valued, the types of economic values considered, and the nature of the services.
• There is a significant lack of reported non-use values in the reviewed primary valuation studies of tropical forest water services.
• The study's practical examination of 25 valuation studies from 1985 to 2009 in Central and South America demonstrates that while some provisioning services (like extractive water supply) align across frameworks, regulating and supporting services are more prone to classification errors.

APA

Ojea, E., Martin-Ortega, J., & Chiabai, A. (2010). Classifying Ecosystem Services for Economic Valuation: the case of Forest Water Services. Basque Centre for Climate Change. https://www.bc3research.org/h6T8Uy8Nm4gFs0O/201011031015331499407909.pdf

Chicago

Ojea, Elena, Julia Martin-Ortega, and Aline Chiabai. Classifying Ecosystem Services for Economic Valuation: the case of Forest Water Services. Basque Centre for Climate Change, 2010. https://www.bc3research.org/h6T8Uy8Nm4gFs0O/201011031015331499407909.pdf.

Wikipedia

{{cite report |last1=Ojea |first1=Elena |last2=Martin-Ortega |first2=Julia |last3=Chiabai |first3=Aline |title=Classifying Ecosystem Services for Economic Valuation: the case of Forest Water Services |publisher=Basque Centre for Climate Change |date=August 2010 |url=https://www.bc3research.org/h6T8Uy8Nm4gFs0O/201011031015331499407909.pdf |access-date=23 October 2026 |via=Climate Insights Directory}}

BibTeX

@techreport{ojea2010classifying, author = {Ojea, Elena and Martin-Ortega, Julia and Chiabai, Aline}, title = {{Classifying Ecosystem Services for Economic Valuation: the case of Forest Water Services}}, institution = {Basque Centre for Climate Change}, year = {2010}, month = aug, url = {https://www.bc3research.org/h6T8Uy8Nm4gFs0O/201011031015331499407909.pdf}, urldate = {2026-10-23}, note = {Indexed by Climate Insights Directory} }