Physical and monetary ecosystem service accounts for Europe: A case study for in-stream nitrogen retention

Alessandra La Notte,Joachim Maes,Silvana Dalmazzone,Neville D Crossman,Bruna Grizzetti,Giovanni Bidoglio

doi:10.1016/j.ecoser.2016.11.002

Alessandra La Notte, Joachim Maes + Show 4 more

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https://doi.org/10.1016/j.ecoser.2016.11.002

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Abstract

In this paper we present a case study of integrated ecosystem and economic accounting based on the System of Environmental Economic Accounting — Experimental Ecosystem Accounts (SEEA-EEA). We develop accounts, in physical and monetary terms, for the water purification ecosystem service in Europe over a 20-year time period (1985–2005). The estimation of nitrogen retention is based on the GREEN biophysical model, within which we impose a sustainability threshold to obtain the physical indicators of capacity – the ability of an ecosystem to sustainably supply ecosystem services. Key messages of our paper pertain the notion of capacity, operationalized in accounting terms with reference to individual ecosystem services rather than to the ecosystem as a whole, and intended as the stock that provides the sustainable flow of the service. The study clarifies the difference between sustainable flow and actual flow of the service, which should be calculated jointly so as to enable an assessment of the sustainability of current use of ecosystem services. Finally, by distinguishing the notion of ‘process’ (referred to the ecosystem) from that of ‘capacity’ (pertaining specific services) and proposing a methodology to calculate capacity and flow, we suggest an implementable way to operationalize the SEEA-EEA accounts.

Highlights

Integrated assessments of economic, social and environmental impacts are key to supporting public and private sector decisions related to land and water resources
Key messages of our paper pertain the notion of capacity, operationalized in accounting terms with reference to individual ecosystem services rather than to the ecosystem as a whole, and intended as the stock that provides the sustainable flow of the service
We present the accounts at two spatial scales: i) at the European scale, to show how service capacity and service flow can be quantified through the accounting tables proposed by the System for Integrated Environmental and Economic Accounting (SEEA)-EEA, and; ii) at the country scale, to put sustainable and actual flow and valuation estimates into context

Summary

Introduction

Integrated assessments of economic, social and environmental impacts are key to supporting public and private sector decisions related to land and water resources. A number of policy initiatives have incorporated ecosystem service quantification and valuation. The Europe 2020 strategy has the manifest intention of mainstreaming environmental issues into other policy areas (European Commission, 2011a, 2011b) by preserving the resource base (defined as the capacity of ecosystems to provide services that, in turn, provide benefits to human beings) required to allow the economy and society to function (European Commission, 2011a). In particular Action 5 of the Strategy requires that ecosystem service assessment and valuation be integrated into accounting and reporting systems, so as to relate environmental assets to other statistics and data on environmental, economic and social characteristics already used by analysts and policy makers. A fully integrated economic and environmental analysis is increasingly recognised as crucial for policy design and implementation

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