The <strong>TEEB</strong> <strong>Manual</strong> <strong>for</strong> <strong>Cities</strong>: Ecosystem Services in Urban ManagementCity of Cape Town Ecosystem Services Valuation Exercise (continued)City of Cape TownIn order to make a business case <strong>for</strong> the City of Cape Town’s ecosystem services, the economic values of biodiversityneeded to be determined.Consultants started with a literaturereview on ecosystem services (ES)and best practices to evaluate ES,and consulted individual valuationstudies that had already beendone in the city. The purposeand required outcomes weredetermined at the outset of thestudy, i.e. that the economic valuesof Cape Town’s ecosystem serviceswere needed to make a businesscase <strong>for</strong> biodiversity within the citymanagement and throughout therelevant line functions. the valueof ecosystem services from ananthropogenic perspective werestudied, and values that werepurely ecological or that wereindependent of humans, which arealso clearly important, were notconsidered in this specific study.Source: De Wit and van Zyl 2011;De Wit et al. 2009.Urban Managers are faced with reconciling competing needs <strong>for</strong> land by a growing population - as here in Addis Ababa, Ethiopia.Augustin Berghöfer21
The <strong>TEEB</strong> <strong>Manual</strong> <strong>for</strong> <strong>Cities</strong>: Ecosystem Services in Urban ManagementTable 5: A comparison of monetary valuation methods (<strong>TEEB</strong> 2010)MethodsSummaryStatisticalanalysisWhich services valued?1. Direct market prices Market prices Observe market prices. Simple Provisioning services.2. Market alternative i. Replacement costs Finding a man-made solution as analternative to the ecosystem service.SimplePollination, water purification.ii. Damage cost avoidedHow much spending was avoidedbecause of the ecosystem serviceprovided?SimpleDamage mitigation, carbonsequestration.iii. Production functionHow much is the value-added by theecosystem service based on its input toproduction processes?ComplexWater purification, freshwateravailability, provisioning services.3. Surrogate markets i. Hedonic Price Method The extra amount paid <strong>for</strong> higherenvironmental quality.Very complexUse values only, recreation andleisure, air quality.ii. Travel Cost MethodCost of visiting a site: travel costs(fares, car use, etc.) and also value ofleisure time expended.ComplexUse values only, recreation andleisure.4. Stated preference i. Contingent valuationmethodHow much is the survey respondentwilling-to-pay to have more of aparticular ecosystem service?ComplexAll services.ii. Choice experimentsGiven a ‘menu’ of options with differinglevels of ecosystem services anddiffering costs, which is preferred?Very complexAll services.5. Participatory Participatory environmentalvaluationAsking members of a community todetermine the importance of a nonmarketedecosystem service relative togoods or services that are marketed.SimpleAll services.6. Benefits transfer Benefits transfer (meanvalue, adjusted meanvalue, benefit function)‘Borrowing’ or transferring a value froman existing study to provide a ballparkestimate <strong>for</strong> current decision.Can be simple,can be complexWhatever services were valued in theoriginal study.Opportunities to quantify the value of supporting ecosystem servicesIn the City of Abu Dhabi,United Arab Emirates (UAE),the wholesale value of fishlandings in 2008 was estimated at 1 millionAED (US$272,294) <strong>for</strong> the Inner IslandsLagoon and 104.8 million AED (US$28.5million) <strong>for</strong> the UAE as a whole (Hartmannet al. 2009). Mangroves provide animportant supporting service, the valueof which is easily determined through thevalue of the fishing landings, as nurserygrounds <strong>for</strong> several of these commerciallyimportant fish species, as well as <strong>for</strong> otherspecies which contribute to ecosystemfunctioning. By restoring and protectingmangroves, many other benefits are alsoaf<strong>for</strong>ded to the city, including protectionfrom storms and the control of soil erosion.Through the direct intervention in thelate 1970s of the <strong>for</strong>mer President of theUAE, Sheikh Zayed, mangrove replantingschemes were implemented adjacent tothe city, and currently the adverse effectsof recent development around the city havealso prompted the EAD and the UPC tomitigate the loss of mangroves by requiringdevelopers to replant lost mangroves. As aresult, in the Emirates as a whole, the areaof mangroves has actually increased.Source: Abu Dhabi City DraftBiodiversity Report 2011.The value of Abu Dhabi’s fishing industryhas long been known, and mangrovesprovide essential supporting and regulatingecosystem services <strong>for</strong> this industry.City of Abu Dhabi22