The Economic Value of Land-based Ecosystem Services in Portugal: A Spatially Explicit Approach

Abstract

This study estimates the economic value of seven land based ecosystem services for mainland Portugal in 2018. The estimated services are Climate Regulation, Drought Regulation, Erosion Prevention, using the market price methodology, and Food Supply, Pollination, Recreation and Water Purification using a meta-analytic benefit transfer function. By estimating a unique meta-analytic benefit transfer function for each service, the commodity consistency condition is addressed. Different welfare measures were not pooled together and methodological variables are not included in the vector of explanatory variables. The results are spatially explicit at the hectare level providing the benchmark to which the consequences of land-use changes to the value of ecosystem services and, therefore, to the welfare of local populations can be adequately assessed.

Keywords: Ecosystem Services, Meta-analysis, Benefit Transfer, Economic Valuation, Portugal