The Socio-Economics of the West, Central and Southern African Coastal Communities

1.3 Reasons for EconomicValuations and theValuation Process

People’sWell-being and Ecosystem Service Trade-off Decisions

Economic valuations of LME ecosystem services are integral to the TDA process and the socioeconomic indicator of the five-module approach. While scientists must determine the magnitude and priority of issues such as water quality, biodiversity, fisheries and habitat degradation, 42 ecological data alone is not enough. Governments and stakeholders must also be aware of the many socioeconomic benefits derived from marine ecosystems in order to address the competing interests that can lead to the exploitation of fisheries and other marine resources. 43 Policymakers must acquire data about the people who depend on these ecosystems. Where do these people live and what goods and services do they derive from marine and coastal ecosystems? What proportion of their well-being depends on these ecosystems? 44 Economic valuations help to delineate the relationship between human well-being and ecosystem services. They canaid inquantifyingtrade-offsbetweenecosystemservices (one service could limit or damage another), between costly conservation efforts, or between competing interests of LME countries. Ecosystem service values can be weighed against the worthiness of extraction of non-renewable resources such as crude oil, sand, gravel or other mineral resources. Although these inert substances are not true “ecosystem services” as they do not derive value from the existence of an ecosystem and its living components, they do have value and share the same origin area as ecosystem services. Knowing ecosystem service values helps to assess outcomes when faced with abrupt or non-linear changes in ecosystems or when completing the probabilistic analysis of various future environmental scenarios. 45 Economic valuations consist of a two-step process. Firstly, the ecosystem services for review must be identified. The Millennium Ecosystem Assessment (MA) provides a scientific consensus regarding the four categories of ecosystem services: “provisioning services” such as food, water, timber, and fibre; “regulating services” that affect climate, floods, disease, waste, and water quality; “cultural services” that provide recreational, aesthetic, educational and spiritual benefits; and “supporting services” 46 such as photosynthesis, soil formation or primary production, e.g. fish nurseries. 47 Second, the value of the ecosystem is appraised, if possible, in monetary terms. 48 From a utilitarian perspective, ecosystem services may have “use” and/or “non-use” values. Use values can be “direct use” values such as fish or firewood; “indirect use” values such as improved water quality or nutrient cycling; The EcosystemValuation Process

or “option” values, which are values preserved for possible future use either by an individual (“option”value) or by others or heirs (“bequest” value). 49 Non-use values are divided into

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