Environmental Economics: Valuation of Ecosystem Services in Equatorial Andean Basins

Abstract

Valuing ecosystem services is critical to human well-being, particularly in watershed management. Agriculture and livestock farming contribute to ecosystem degradation and jeopardize these services. In this context, Analyzing the provision of ecosystem services is crucial to formulating effective conservation measures. This study aimed to estimate the economic value of ecosystem services in the subbasins of the Aguilán and Tabacay rivers. A discrete choice experiment was used, which consists of presenting the study population with several conservation options with different levels of ecosystem services (habitat, biodiversity and carbon sequestration) and costs, to measure their preferences and willingness to pay. The results show the participants’ preference for the ecosystem service of habitat, i.e., the physical space for developing animal and plant species. Additionally, the willingness to pay for habitat protection averages 41 cents, indicating substantial public support for conservation financing mechanisms. Furthermore, it highlights the importance of environmental education in raising awareness of ecosystem services and their benefits and suggests that habitat protection should be at the heart of policy formulation. This study provides knowledge about ecosystem services that could help decision-makers formulate conservation and sustainable management measures in Equatorial Andean basins.