Modeling of the Economic Value of Ecosystem Services for Sustainable Resource Management in Northern Ethiopian Highlands

Abstract

Abstract Nature offers meaningful solutions to the climate crisis as we look to a world of greater risk and uncertainty with climate change. But while we know that nature is vital, we also know that we are losing nature at a rate unprecedented in human history. Global forest area is projected to decline gradually, which may affect existing ecosystem services (ESs) and the ecological and economic benefits of these services. We analyzed the ESs provision value of the Hugumburda State Forest (HSF) and the Southern Tigray-northern Ethiopian highlands, which was based on optical remote sensing, the Ecosystem Services Provision Index (ESPI), and the revised ESs valuation coefficients under different scenarios and the ecosystem services value function (ESVf). The forest coverage of HSF is anticipated to increase by 19.1 Km2 (3.8%) until 2030 from its earlier coverage of 88.6 km2 in the year 2020. As a result, ecosystem services value (ESV) provisions are expected to increase, sustain, and improve the local community's well–being by 1.88 million US$ ha–1 year–1. We also found a significant relationship between the ESV of forestland, shrubland, arable land, grassland, and water body and their area expansion (p < 0.01). The ESPI showed a higher value in the forest & grassland areas (0.38), whereas it was lower in water bodies (–0.51). HSF provides higher-level regulating services than provisioning, supporting, and cultural services. The combined use of optical remote sensing and ESPI is essential for developing a cost-effective ESs provision management framework regarding environmental and social benefits.