Approaches to cost-effectiveness of payments for tree planting and forest management for water quality services

Gregory Valatin (), Paola Ovando (), Jens Abildtrup, Cristian Accastello (), Maria Beatrice Andreucci (), Alexandre Chikalanov (), Abdelmohssin El Mokaddem, Serge Garcia, Maria Gonzalez-Sanchis, Fernando Gordillo (), Bekir Kayacan (), D. Little, Mariyana Lyubenova, Tom Nisbet (), Alessandro Paletto (), Claudio Petucco (), Mette Termansen (), Klyus Vasylyshyn (), Suzanne Elizabeth Vedel and Rasoul Yousefpour ()
Additional contact information
Gregory Valatin: Alice Holt Lodge - Forest Research [Great Britain]
Paola Ovando: The James Hutton Institute, IPP - Institute of Public Goods and Policies - CSIC - Consejo Superior de Investigaciones Cientificas [España] = Spanish National Research Council [Spain]
Cristian Accastello: UNITO - Università degli studi di Torino = University of Turin
Maria Beatrice Andreucci: UNIROMA - Università degli Studi di Roma "La Sapienza" = Sapienza University [Rome]
Alexandre Chikalanov: University for Library Studies & Information Technology
Maria Gonzalez-Sanchis: UPV - Universitat Politècnica de València = Universitad Politecnica de Valencia = Polytechnic University of Valencia
Fernando Gordillo: Thunen Institute of Forest Ecosystems - Johann Heinrich von Thünen-Institut = Thünen Institute
Bekir Kayacan: Istanbul University
D. Little: Coillte Nat, Coillte Teo
Mariyana Lyubenova: TU-Sofia - Technical University of Sofia [Bulgaria]
Tom Nisbet: Alice Holt Lodge - Forest Research [Great Britain]
Alessandro Paletto: CREA MPF, Trento, UNITN - Università degli Studi di Trento = University of Trento
Claudio Petucco: LIST - Luxembourg Institute of Science and Technology
Mette Termansen: ITU - IT University of Copenhagen
Klyus Vasylyshyn: UNFU - Ukrainian National Forestry University
Suzanne Elizabeth Vedel: ITU - IT University of Copenhagen
Rasoul Yousefpour: University of Toronto, Albert-Ludwigs-Universität Freiburg = University of Freiburg

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Abstract: The evaluation of the cost-effectiveness of Payments for ecosystem services (PES) in fostering positive environmental outcomes has been central to the scientific debate on their implementation. PES cost-effectiveness can be affected by a myriad of environmental, institutional and socio-economic factors operating at different spatial and temporal scales. Moreover, it can be affected by synergies and trade-offs in the provision of ecosystem services (ES). Planting trees is increasingly considered an effective measure to provide water-related ES. It can enhance watershed services such as nutrient retention, erosion control, stream flow regulation, protection against extreme events (e.g., floods and landslides), and lead to a permanent change in land use, replacing agricultural activities that give rise to diffuse pollution. Very few studies currently exist on the cost-effectiveness of tree planting for water quality benefits PES schemes in Europe. Including both review and research elements, this paper highlights challenges in undertaking such assessments. It develops a conceptual framework to help underpin future studies, with its application to three case studies in Denmark explored. Particular attention is given to the estimation of environmental effectiveness in the provision of water quality services and the importance of co-benefits. In the case where we exclude co-benefits from the analysis, the financial costeffectiveness is always above zero, with central estimates (without discounting environmental improvements) of euro 10/Kg N, and euro 0.36 to euro 0.50/mg pesticide. Once co-benefits are accounted for, however, the social costeffectiveness is negative (except for under the low estimates) as the value of the co-benefits exceeds the costs, with central estimates of - euro 28/Kg N, and - euro 0.34 to - euro 0.23/mg pesticide. The paper discusses the implications and lessons for PES cost-effectiveness analysis, and identifies research gaps. Increased knowledge of forest water benefits and the cost-effectiveness of woodlands for water schemes would help underpin future incentives to enhance the provision of these ES.

Keywords: Diffuse pollution; Payment for ecosystem services; Woodlands; Nature -based solutions; Conceptual framework; Cost-effectiveness metrics (search for similar items in EconPapers)
Date: 2022-02
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Citations: View citations in EconPapers (2)

Published in Ecosystem Services, 2022, 53, pp.101373. ⟨10.1016/j.ecoser.2021.101373⟩

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Persistent link: https://EconPapers.repec.org/RePEc:hal:journl:hal-03702377

DOI: 10.1016/j.ecoser.2021.101373

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