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Estimation of the economic value of the ecosystem services provided by the Blue Nile Basin in Ethiopia

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  • Tesfaye, Abonesh
  • Wolanios, Nitsuhe
  • Brouwer, Roy

Abstract

This paper aims to quantify and economically value the main ecosystem services provided by the Blue Nile basin in Ethiopia. It is the first study in its kind to do so in a consistent and comprehensive manner using the same valuation approach. Water flows are linked to corresponding economic market values using the residual value method. Values for provisioning and regulating services related to the hydro-morphological and hydro-ecological functioning of the Blue Nile's water resources are derived based on four main water-dependent activities in the basin: irrigated agriculture, hydropower production, commercial navigation and fisheries. Data are collected from existing official and other secondary sources and are supplemented with information obtained from stakeholders and experts. The estimated annual contribution of the provisioning and regulating services of the freshwater ecosystem to the national economy was ETB 883 million (US$ 52 million) in 2011. This is very low compared to current GDP (<1%), partly due to the malfunctioning and underdevelopment of the current infrastructure to fully exploit the potential of the Blue Nile water resources. An integrated water resources management policy and improved institutional-economic setup aimed at maximization of continued provision of these services is expected to generate substantially higher economic values.

Suggested Citation

  • Tesfaye, Abonesh & Wolanios, Nitsuhe & Brouwer, Roy, 2016. "Estimation of the economic value of the ecosystem services provided by the Blue Nile Basin in Ethiopia," Ecosystem Services, Elsevier, vol. 17(C), pages 268-277.
    • Handle: RePEc:eee:ecoser:v:17:y:2016:i:c:p:268-277
    DOI: 10.1016/j.ecoser.2015.10.008
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    References listed on IDEAS

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    1. Ijaz Hussain & Maqbool H. Sail & Zakir Hussain & Waqar Akram, 2009. "Economic Value of IrrigationWater: Evidence from a Punjab Canal," Lahore Journal of Economics, Department of Economics, The Lahore School of Economics, vol. 14(1), pages 69-84, Jan-Jun.
    2. Jim Salzman, 2005. "The promise and perils of payments for ecosystem services," International Journal of Innovation and Sustainable Development, Inderscience Enterprises Ltd, vol. 1(1/2), pages 5-20.
    3. Hellegers, Petra & Davidson, Brian, 2010. "Determining the disaggregated economic value of irrigation water in the Musi sub-basin in India," Agricultural Water Management, Elsevier, vol. 97(6), pages 933-938, June.
    4. Julio Berbel & M. Mesa-Jurado & Juan Pistón, 2011. "Value of Irrigation Water in Guadalquivir Basin (Spain) by Residual Value Method," Water Resources Management: An International Journal, Published for the European Water Resources Association (EWRA), Springer;European Water Resources Association (EWRA), vol. 25(6), pages 1565-1579, April.
    5. Ian J. Bateman & Richard T. Carson & Brett Day & Michael Hanemann & Nick Hanley & Tannis Hett & Michael Jones-Lee & Graham Loomes, 2002. "Economic Valuation with Stated Preference Techniques," Books, Edward Elgar Publishing, number 2639.
    6. Awulachew, Seleshi Bekele, 2007. "Water resources and irrigation development in Ethiopia," IWMI Working Papers H040631, International Water Management Institute.
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    Cited by:

    1. Espécie, Mariana de Assis & de Carvalho, Pedro Ninô & Pinheiro, Maria Fernanda Bacile & Rosenthal, Vinicius Mesquita & da Silva, Leyla A. Ferreira & Pinheiro, Mariana Rodrigues de Carvalhaes & Espig, , 2019. "Ecosystem services and renewable power generation: A preliminary literature review," Renewable Energy, Elsevier, vol. 140(C), pages 39-51.
    2. Abera Assefa Biratu & Bobe Bedadi & Solomon Gebreyohannis Gebrehiwot & Assefa M. Melesse & Tilahun Hordofa Nebi & Wuletawu Abera & Lulseged Tamene & Anthony Egeru, 2022. "Ecosystem Service Valuation along Landscape Transformation in Central Ethiopia," Land, MDPI, vol. 11(4), pages 1-18, March.

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