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Economic Assessment of Selected Regulatory Ecosystem Services (RES) in the Elgeyo and Nyambene Watersheds Ecosystems in Kenya

DOI: 10.4236/ojf.2023.132013, PP. 200-224

Keywords: Ecosystem Services, Regulatory Ecosystem Services, Market Pricing, Cost-Based Technique, Per Capita, GDP

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Abstract:

Evidence of increased valuation of ecosystem services (ES) globally is significant. However, most of these studies focus on marketed subsets of ES at national and international levels. Ecosystems differ in spatial scale, biophysical and ecological structure, and functionality. This requires conducting studies at the local level to understand how, for example, the watershed ecosystem contributes to humanity locally and nationally. This study focuses on selected regulatory ecosystem services (RES) in Kenyas catchment area ecosystems (Elgeyo and Nyambene). Field-based sampling and Landsat imagery with secondary information were used to generate biophysical and ecological data. The study used market price-based, cost-based, and unit transfer methods for RES valuation. The study estimates the total value of the six selected regulatory ecosystem services (RES) at KES 41.4 billion (US$386.7 million) and KES 14.73 billion (US$137.71 million) for Elgeyo and Nyambene, respectively. This equates to KES 1.64 million (US$15,331.19) and KES 2.72 million (US$25,375) per hectare per year. Extrapolating the study estimates to the national level, the countrys regulatory ecosystem services would range from US$18.4 billion to US$30.45 billion annually. This equates to between 16.7% and 27.7% of Kenyas GDP in 2021, underscoring the importance of watersheds to the national economy.

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https://doi.org/10.1007/s11676-015-0062-8

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