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Please cite this article in press as: Morri, E., et al., A forest ecosystem services evaluation at the river basin scale: Supply and demandbetween coastal areas and upstream lands (Italy). Ecol. Indicat. (2013), http://dx.doi.org/10.1016/j.ecolind.2013.08.016

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Ecological Indicators

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A forest ecosystem services evaluation at the river basin scale: Supplyand demand between coastal areas and upstream lands (Italy)

Elisa Morri a , , Fabio Pruscini a , 1 , Rocco Scolozzi b , Riccardo Santolini aa Department of Earth,Life and Environment (DISTEVA), Carlo Bo University of Urbino,campus scientico Enrico Mattei, 61029 Urbino, Italyb Centre of Molecular and Environmental Biology, Minho University, Campus de Gualtar, 4710-057 Braga,Portugal

a r t i c l e i n f o

Article history:Received 18 May 2012Received in revised form 31 July 2013Accepted 20 August 2013

a b s t r a c t

Many coastal communities benet from a lively and protable economy based on tourism but, simulta-neously, cannot rely on the ecosystem services (ESs) provided locally, which have become insufcientbecause of increasing demand.

In the Apennines, a mountain range in central Italy, coastal areas are characterised by growing popula-tion and tourist demands and upstream lands mainly supply ecosystem goods and services. Mechanismsto re-distribute resources or payments for ESs would be helpful to foster the sustainability of regional sys-tems. However, currently, there is neither an appreciation for such services nor institutions responsiblefor addressing this problem.

In this paper, we analyse andrank the ecosystem services provided by the forests of two river basins toassign economic values to four ecosystem services relevant for distinguishing provision and benet areas:soil protection, water retention, drinking water supply and CO2 sequestration. A simplied methodologywas developed for contexts with poor environmental datasets. The aim was to provide ecological infor-mation to recognise ESsand encourage effective governance of ESs at a regional level. The results showedthat the indirect value of the considered ecosystem services was three times higher thanthe direct value,and a spatial mismatch emphasised a debt in coastal areas from upstream areas for selected ecosystemservices.

2013 Elsevier Ltd. All rights reserved.

1. Introduction

Ecosystem functions are recognised as services when there arehuman beneciaries ( Fisher et al., 2008 ), and their supply affectsstakeholders at all institutional levels ( Hein et al., 2006 ). Althoughthe ecological understanding of ecosystem services (ESs) remainslimited ( Kremen, 2005 ), policy makers are quickly becoming awareof their connection to well-being and local economies. Severalinternational institutions andacademics are involvedin worldwideinitiatives (e.g., IPBES) and researchprojects (e.g., TEEB,2008; MEA,2005 ). According to the EU Biodiversity Strategy to 2020 (COM2011/244), local administrations (regional and municipal) mustacknowledge the importance of ESs, and associated values shouldbe integrated into environmental accounting and report systems.Particularly at the local level, many processes threaten ecosystemfunctioning, and decision makers may be effective in impact pre-vention and ecological value maintenance.

Corresponding author. Tel.: +39 0721304303; fax: +39 0541392935.E-mail address: [email protected] (E. Morri).

1 Tel.: +390721304303.

The main obstacle is often that the ES value is not recognisedand the data do not specically support local environmental deci-sions. ESs are not equally distributed in space ( Costanza, 2008 ) anddo not ow at identical rates, which causes a common spatial andtemporal mismatchbetween ecosystemsservices and their bene-ciaries ( Ruhl et al., 2007; Fisher et al., 2008 ). The relative positionsof local populations in the landscape determines the benets fromseveral services, e.g., communities residing at the bottom of a riverbasin depend on upland areas for a water supply ( Hein et al., 2006;Brauman et al., 2007 ).

Several evaluations of ecosystem services on the river basinscale have been applied to ecosystem management and planning(Pires, 2004 ) according to thedesired set of ecosystem services andinvolving the concept of Integrated Water Resource Management(IWRM) (e.g., Borsuk et al., 2001;Jewitt, 2002; Cavatassi, 2004; VanderKeuretal.,2008;Cosmanetal.,2012 ). Indirectand direct driversof ecosystem change may impair ES provision from upstream todownstream areas. The driving forces may be demographic, eco-nomic, socio-political, technological, physical or biological ( Nelsonet al., 2006 ). The main physical driver is land conversion, but inmany cases, decision makers responsible for such changes maybe unaware of its effects on ES provisioning. Land use conver-sion always affects the mix of services provided by ecosystems;

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Table 1Forest ecosystem services, evaluation method and the variables considered.

Ecosystem services Evaluation method Indicator Variables References

Water retention Avoided cost Annual water retainedby woodland inregulating runoff

Water retentionof forest (% of runoff) Cost for unit volume of water ( D /m 3 ) Forestarea (ha)

Xue and Tisdell (2001) ,Hao et al. (2008) ,Hmann et al. (2011)

Drinkingwatersupply Directmarket price Water price Water retentionof forest (% of runoff) Cost of drinking water ( D /m 3 ) Forestarea (ha)

Hao et al. (2008)

Soil p rotection Replacement c ost Annual s oil p rotectionby erosion

Erosion difference between forestland and non-forest land (ha) Cost fortransporting and restoring a unit volume of soil ( D /m 3 ) Forestarea (ha) Soil density (g/cm 3 )

Hao et al. (2008)

CO2 sequestration Market value Annual rate of atmospheric carbonadded to existingbiomass carbon pools

Biomass average growth (m 3 /ha) Wood density of trees (t/m 3 ) Theratio of total above-ground dry biomass to dry biomass of inventoried volume (BEF) Ratio of elemental carbonfrom mass to drybiomass (CF) Root/shoot parameter (R) woodland area (ha) CO2 tradable emission permit value ( D /tCO 2 )

Goio et al. (2008) , Guoet al. (2001) , Xue andTisdell (2001)

Since the 1980s, progressive deterioration in groundwater qual-ity and increasing demand has generated a greater use of surfacewater, thus requiring physical and chemical treatments. However,in the upper regions, drinking water is obtained from groundwaterwith fewer treatments. In the Marecchia River Basin, approxi-mately 62% of the consumed water is derived from groundwaterand distributed for different uses: approximately 10Mm 3 /yr fordomesticdrinkingwater, 4 Mm 3 /yrfor agricultureand 120Mm 3 /yrfor the industrial sector (generated from the River Basin Author-ity of Marecchia). Approximately 30% of the consumed water isimported from other areas (articial basins or reservoirs), whereas8% derives from surface andspring water ( ATO, 2007 ). In the FogliaRiver Basin, surface water is the main source (56%), groundwateraccounts for approximately 23 and 21%derives from other sources(Marche Multiservizi, 2011 ).

The selected study areas have interlinked problems thatare common not only in Italy: the question of water quantityand quality and its distribution for different uses. The timingof water demands and water availabili ty critically depend onforests in the upper regions of the basins. Water demand in the

Marecchia River Basin reaches approximately 17.5million m 3

during JuneSeptember with approximately 5.7 million tourists,in addition to the approximately 200,000 residents. However, themain precipitation occurs in April and SeptemberDecember at100150 mm/month (the average for 19902001) ( ARPA, 2007 ).

In addition to these problems, a high percentage of the twobasins risk soil erosion: 33 and 28% of land use types in the Fogliaand Marecchia river basins are at a relatively high erosion risk(520 t/ha/yr, Rusco et al., 2009 ). Regarding the CO 2 balance, theFoglia and Marecchia river basin areas contribute approximately10 and 3% of the total regional emissions, respectively, and thelargest contribution of emissions is because of road transportation(Regione Marche, 2009; Regione Emilia Romagna andARPA, 2007 ).

2.2. The valuation of selected forest ecosystem services

2.2.1. Water retentionThe value of water retention services was estimated as the

volumeof water retained from runoff ( Table 1 ), and it was approxi-mated by the difference between precipitation input and potential

Fig. 1. The location of the Marecchia and Foglia river basins among similar others (the 1st and 2nd orders refer to river Strahler order). The grey patches represent forest

cover in theHigh, Medium and Low regions (right).
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evapotranspiration ( Bonan, 2008 ). The precipitation and evapo-transpiration calculation (by the Turc formula) considered 16measurement stations ( Didero et al., 1990 ) located in the studyarea.Precisely, we interpolated the precipitationdataby an inversedistance weighting (IDW) method ( Bartier and Keller, 1996 ) usingArcGIS 9.3 software. We then calculated the potential runoff foreachpixel by subtracting the relative potential evapotranspiration.

The runoff portion withheld by the forest was estimated usingefciency of water conservation coefcients for different foresttypologies derived from Hmann et al. (2011) (Table 2 ).

Forest extensions in the study area were extracted from landuse maps ( Morri, 2012; Regione Emilia Romagna, 2010 ) and forestmanagement maps ( IPLA, 2000). Such forested areas were over-lapped with the retained portion of runoff (Rc) per pixel to obtaintheamountof water retainedby forest ecosystemsin theMarecchiaand Foglia river basins ( Table 2 ).

The economic value of water retention was calculated similarlyto Haoet al.(2008) and Xue and Tisdell (2001) usingthecost ofnewarticial detention basins (currently in the planning stage in thestudy area) as the avoided cost of detentionof a unit of water. Thus,the average price of a unit of retained water was estimated at D 9.8/m 3 consideringacostofmorethan D 14.2millionfor theprojectwith a potential retention volume of approximately 1.5million m 3

(PesaroUrbino Province, pers. comm.).The above-described procedure was determined using the fol-

lowing equation:

WR = CRW j i

Rc j Runoff i,j (1)

where WR is the water retention services (expressed in D ); CRWis the cost of a unit of retained water ( D /m 3 ); Rc j is the retainingcoefcient for j-forest typology and Runoff i, j is runoff over i-pixelwith j-forest typology (m).

2.2.2. Drinking water supplySimilar to Hao et al. (2008) , the value of the drinking water

supply service (DW) to households, commerce and industry was

derived using the above-described water retention capacity pro-vided by the forests multiplied (Eq. (2) ) by the price of a unit of drinkable water (CDW, 0.4 D /m 3 ) dened by a local water servicecompany ( Marche Multiservizi, 2008 f or Foglia River Basin andHERA for Marecchia River Basin).

DW = CDW j i

Rc j Runoff i,j (2)

2.2.3. Soil protectionThe soil protection services provided by the forests emerge

as a decrease in soil erosion ( Bini et al., 2006; Mahmoudzadehet al., 2002 ) for forest land respect to croplands or other land usetypes. Thus, the economic value of soil protection was estimatedas the avoided cost of restoring soil where erosion might occur.

Because forest ecosystems are the most effective in soil protec-tion, this value was estimated by the difference in the potentialerosion between wooded and non-wooded land ( Xue and Tisdell,2001 ). In our study, non-forest (non-F) mainly consisted of agri-cultural areas, scrub and/or herbaceous vegetation associations.We distinguished potential erosion levels between forests (F) andnon-forests (non-F) in terms of slope using the following thematicmaps: soil erosion risk (20m pixel size, Rusco et al., 2009 ); landuse ( Morri, 2012; Regione Emilia Romagna, 2010 ) and slope. Theslope was calculated by DTM with 20m of resolution and dividedinto ve categories: 50%. The resultscorresponded to the average value of potential erosion for F andnon-F in the ve slope classes. The difference of soil loss, expressedas t/ha/yr, from F and non-F areas with identical slopes approxi-

mated thecontribution to erosion reductionand wasexpressedas a

benet of the forest ecosystem, as described in Hao et al. (2008) .Such a contribution was multiplied by the average cost for trans-porting and restoring a unit volume of soil and divided by theaverage soil density, as expressed in Eq. (3) :

Sp = CS i Ai

(SEnon-F ,i SEF,i )SD

(3)

where A is the forest area (m 2 ) with i-slope category; CS is thecost for transporting and locating a unit volume of soil (41 D /m 3 )(Regione Marche, 2010 ); SEnon-F, i and SE F,i are the soil erosion risk(t/ha/yr) provided by non-forest (non-F) and forests (F), respec-tively, within the i-slope category and SD is the soil density(1.4t/m 3 ) of the study area.

2.2.4. CO 2 sequestrationVegetation accumulates carbon into the biomass through the

absorption of atmospheric CO 2 . The value of a sequestered ton of carboncan be approximated by the value of tradable emission per-mits ( Stern, 2007 ), such as emission market-based policy, reectssocial costs and controls the total emissions ( Tol, 2008 ). Carbonis stored in various pools in an ecosystem, including the livingbiomass (above- and belowground biomass), dead organic matterand soil organic matter ( IPCC, 2003). The annual CO 2 sequestrationof aboveground biomass was calculated by Eq. (4) (Federici et al.,2007 ; modied) considering different forest typologies:

above CO 2 = CF 4412

iGSi BEFi WBDi Ai (4)

where GS is the volume of growing stock by a specic i-foresttypology (m 3 /ha); BEF is the biomass expansion factor for i-foresttypology, which expands growing stock volume to the volume of aboveground woody biomass; WBD is the wood basic density of i-foresttypology(t of drybiomass m 3 );A is the forestareaoccupiedby i-forest typology (ha); CF is the ratio of elemental carbon frommass to woody dry biomass (average value of 0.5; IPCC, 2007 ) and44/12 is the ratio of molecular weightof CO 2 to carbon(tCO 2 tC 1 ).

The GS values were derived from local data ( INFC, 2005 ), the

BEF and WBD coefcients were obtained from Vitullo et al. (2007)andthe forest typologies were elaborated from the vegetation map(Catorci et al., 2007 ) at a scale of 1:50,000 ( Table 3 ). Analogously,the tree belowground biomass was calculated using Eq. (5) :

below CO 2 = CF 4412

iGSi Ri WBDi Ai (5)

where R is the root/shoot ratio, which converts growing stockbiomass ( Table 3 ).

The above- and belowground biomass, i .e., the total livingbiomass as calculated by Eqs. (4) and (5) , only represented 43% of the total CO 2 sequestered (TOT CO2 ) by the forest according to theItalian Greenhouse Gas Inventory 19902007 ( Romano etal., 2009 ).Other pools included soil ( S CO2 ) anddeadorganic matter(DOM CO2 ),in which CO 2 sequestration represented 48 and 9%, respectively.Hence, CO 2 sequestration of soil and dead organic matter wasderived considering the distribution of CO 2 sequestration in dif-ferent pools in the study areas using Eqs. (6) and (7) .

S CO2 =TOTCO2

100 48 (6)

DOMCO2 =TOTCO2

100 9 (7)

As indicated by some authors ( ENCAP, 2005; Fankhauser, 1995;Goio et al., 2008 ), we used a carbon market price expressed as theemissionpermit priceof 20 D /tCO2 , which corresponds to theaver-age CO 2 price in the European Union Emissions Trading Scheme(Duong, 2009 ).

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Table 2Thewaterretained (m 3 10 6 ) by forests in the Marecchia and Fogliariver basins using retainingcoefcients of waterfor differentforest management typologies(elaboratedfrom Hmann et al., 2011 ).

Forest management Efciency of waterconservation (% of runoff)

Water retained Marecchiariver basin (m 3 10 6 )

Water retained Fogliariver basin (m 3 10 6 )

Coppiced woodland 88.4 5.93 6.47Mature woodland 83.5 0.44 0.41Young woodland 80.0 0.27 0.27Unmanged woodland 83.1 0.13 0.13

Reforestation 89.6 0.57 0.62Total 7.35 7.91

2.3. Local demands for forest ecosystem services

The local population, including private citizens, public institu-tions and productive sectors (tourism, agriculture and industry) isthe main beneciary of the valued ecosystem services. Thus, theassociated consumption of natural resources can be considered asproxy indicatorof the current ESs demand. To differentiate the dis-tribution of ES supplies and related beneciaries, we consideredthree regions ( Fig. 1) according to the relative elevation in eachbasin and collected information from local statistics. The waterretentiondemand wasestimated as the annual consumption in thecivil, industrial and agricultural sectors.

Such an amount was reduced by 30%, which corresponded towater derived from sources external to the basin (articial reser-voirs), to only consider water demand and supply provided withinthe basin. For the drinking water supply, we considered domesticuse (by citizens and tourists), not reduced by 30%, considering thatall water distributed to networks must be treated to be drinkable.ForCO2 sequestration,we considered theCO 2 emissions, expressedin t/yr (2007), from the residential, industrial and agricultural sec-tors, waste and energy production, as indicated in the national airemission inventory ( INEMAR Project, 2009 ).

The direct use value for our study area mainly consisted of theproduction of timberor rewood.Approximately 70%of theforestsin the study area were managed as coppice, which is consideredan important revenue for the administrative region. To comparethe indirect and direct use values, we considered a production of 70t/ha ( INFC, 2009) witha price of30 D /t (generated from RegioneMarche, 2010 ). This value price was net and did not consider thecost for capital and labour, which was responsible for an increaseof approximately 80% of the value on a local level.

3. Results

3.1. The value of water retention

Theamount of waterretainedwas approximately 7.35 10 6 m 3

and7.91 10 6 m 3 for theMarecchiaand Foglia riverbasins, respec-tively ( Table 2 ). The coppiced forest was the most extensivetypology and retained most of the total water in the basins.Using the price of a retained volume of water, 9.8 D /m 3 , derivedfrom the avoided cost of avoiding articial water reservoir, thewater retention values (1) were estimated at 72.2 10 6 D /yr and

77.7 10 6 D /yr for the Marecchia and Foglia river basins, respec-tively ( Table 7 ). Considering the demand/supply for the MarecchiaRiver Basin, the results were ( Fig. 2) strongly unbalanced in favourof demand in the Low region, where most of the population anda high concentration of tourist activities were located. In thisregion, the civil sector (tourism and citizens) was responsiblefor 70% of the water demand, whereas in the Medium region,industrial activities were responsible for 17% of the total waterdemand.

The identical trend also characterised the High region but withlower demand values, of which 10% of the total demand wasrequired by industrial activities.

Thesupply showeda decreasing gradient from high to lowzone,supporting only 1.2, 0.5 and 0.05% of the total demand in the High,Medium and Low regions, respectively, according to a decreasingextension of forested areas.

3.1.1. The value of the drinking water supplyThe total value for the drinking water supply was estimated

at approximately 2.9 10 6 D /yr and 3.1 10 6 D /yr for the Marec-chia and Foglia river basins, respectively ( Table 7 ). The data fromthe demand supply balance at the Marecchia River Basin ( Fig. 2)emphasised forest support, and only 2% of the total demand of thedrinkingwater supply showed an increasing downstream gradient,whereas an opposite gradient emerged in the supply trend. Onlythe water conservation of forests in the High region could supportdrinking water treatment demand.

3.1.2. The value of soil protectionThe total amount of soil loss [2] was estimated for forest (F) and

non-forest (non-F)for theve slopeclasses( Table4 ). The total valuefor soil protection services was approximately 1.79 10 6 D /yr forthe Marecchia River Basin and approximately 1.72million D /yrfor the Foglia River Basin. The data showed that the greater for-est performance (a higher difference between non-F and F) in soilprotection mainly occurred in higher slope classes (2050 and>50%). Accordingly, the main contributor (80%) to soil protectionwas provided by steeper forests, which were also the most exten-sive.

3.1.3. The value of CO 2 sequestrationThe values of CO 2 sequestration in the living biomass are

presented in Table 5 . The higher values of CO 2 sequestration in

Table 3Theforest typologies and parameters used to assessCO 2 sequestration.

Woodland typologies Woodland area (ha) GS (m 3 /ha yr) WBD BEF R

Beechwood 1081.51 4.5 0.60 1.36 0.2Oak wood 12,746.76 2.6 0.67 1.42 0.2Oak wood 2 (Turkey oaks) 5988.69 4.2 0.69 1.45 0.24Hornbeam 6692.57 3 0.53 1.47 0.24Hygrophilous wood 2426.85 7.1 0.41 1.39 0.23Other deciduous wood 10,535.16 5.3 0.53 1.47 0.24Coniferous wood 232.91 4.3 0.43 1.37 0.29

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Fig. 2. Thesupply/demand values forthe Marecchia and Foglia river basins.

Table 4Thesoil protection values in theslope classesfor theMarecchia and Foglia river basins.

River basin Slope (%) Erosion F (t/ha/yr) Erosion non-F(t/ha/yr)

Soil erosionnon-F-F (t/ha/yr)

F area (ha) Soil protectionvalue 10 6 D /yr

Marecchia 50 5.37 11.22 5.86 4976.72 0.85

Total 18,687 1.79

Foglia 50 8.01 14.24 6.23 1056.56 0.19

Total 20,542 1.72

below- and aboveground biomasses were linked to Turkey oaks,other deciduous and hygrophilous wood that corresponded to 61%of the total value of CO 2 sequestration in the living biomass. Conif-erous andbeechwoodwithlowerextensions represented less than

3% of the total value. The average belowground CO 2 sequestrationvalue (tCO 2 /ha yr) was 14% (average value) with respect to livingbiomass. In the Marecchia and Foglia river basins, forests wereresponsible for the sequestration of 277 10 3 t/yr of CO 2 .

Table 5The total CO 2 sequestration and itseconomic value forliving biomass in theMarecchia and Foglia river basins.

Forest typologies Forest area (ha) Amount of CO 2 sequestrationin aboveground biomass (tCO2 /hayr)

Amountof CO 2 sequestrationin belowground biomass (tCO2 /hayr)

Amount of CO 2sequestration in livingbiomass (t/yr)

Value of CO 2sequestration in livingbiomass ( 10 6 D /yr)

Beechwood 1081.51 6.74 0.99 8359.02 0.17Oak wood 12,746.76 4.54 0.64 66,008.36 1.32Oak wood 2 (Turkey oaks) 5988.69 7.71 1.28 53,821.13 1.08Hornbeam 6692.57 4.29 0.70 33,390.44 0.67Hygrophilous wood 2426.85 7.42 1.23 21,000.85 0.42Other deciduous wood 10,535.16 7.58 1.24 92,859.20 1.86Coniferous wood 232.91 4.65 0.98 1311.82 0.03

Total 276,750.82 5.54

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Table 6The CO2 sequestration values of different pools.

River basin Value of TOT CO2 ( 106 D /yr) Value in S CO2 ( 10

6 D /yr) Value in DOM CO2 ( 106 D /yr) Value in living biomass ( 10 6 D /yr)

Marecchia 7.32 3.50 0.66 3.16Foglia 6.60 3.56 0.66 2.38

Table 7Theeconomic values of theforest ecosystem services of the Marecchia and Foglia river basins.

Type Ecosystem services Marecchia river basin Foglia river basin

Value ( 10 6 D /yr) Value ( D /ha yr) Value ( 10 6 D /yr) Value ( D /hayr)

Direct value Firewood 27.3 2085 31.1 2379Indirect value Water retention 72.2 3866 77.7 3782

Drinking water supply 2.9 157 3.1 154Soil protection 1.8 96 1.7 84CO2 sequestration 7.3 358 6.6 342

Total indirect value 84.2 4477 89.1 4362

Table 8Theforest ecosystem services value in High, Medium and Low regions of theMarecchia and Foglia river basins.

Physiographicregions

Marecchia river basin Foglia river basin

Extent (ha) Forest (%) Forestextent (ha)

Forest indirect usevalues ( 10 6 D /yr)

Extent (ha) Forest (%) Forestextent (ha)

Forest indirect usevalues ( 10 6 D /yr)

Low 14,179 4 540 2.30 17,836.7 11 1929 8.4Medium 20,758 24 5024 22.6 41,439.6 34 13,928 60.4High 26,078 50 13,123 59.3 10,578.8 44 4685 20.3

Using a tradable permit price of 20 D /t CO2 , the total valueof CO2 sequestration for the living biomass was approximately5.54 10 6 D /yr.

According to the Italian Greenhouse Gas Inventory, regardingthe CO 2 sequestration of dead organic matter and soil (Eqs. (6)and (7) ), the total value of CO 2 sequestration was contributedby different pools ( Table 6 ) and was estimated at 7.32 10 6 and6.60 10 6 D /yr for the Marecchia and Foglia river basins, respec-tively. Soil and living biomass were the two main pools.

According to the distribution of forests and urban settlements,CO2 sequestration demand showed an increasing downstreamgradient for both river basins ( Fig. 2). Nearly 25% of the total CO 2sequestration demand of the Marecchia River Basin and over 30%in the Foglia River Basin was satised by the forest ecosystem.Regardingthe FogliaRiverBasin, supplywas greater in the Mediumregion with a larger extension compared to the High region andcontained 66% of thetotal forests. Compared to the MarecchiaRiverBasin, the demand was lower in the low zone of the Foglia RiverBasin because of less frequent road trafc, mainly in the touristseason, which is commonly responsible for higher CO 2 emissions.

3.1.4. The values of forest ecosystem servicesThe indirect values of forest ecosystem services of the Foglia

and Marecchia river basins are presented in Table 7 . The economicvalues of water retention, drinking water supply, soil protec-tion and carbon sequestration were estimated at 84.2 10 6 and89.1 10 6 D /yr for the Marecchia and Foglia river basins, respec-tively. Water retention of the forests provided the highest valuesfor both river basins with values exceeding 3700 D /hayr.

We distinguished direct and indirect use values for the ecosys-tem services presented in Table 7 .

Based on the National Forestry Inventory ( INFC, 2009) andMarche Region data (2010), the timber production value was esti-mated at 27.3 10 6 and 31.1 10 6 D /yr for the Marecchia andFoglia river basins, respectively, and were three times lower thanthe indirect values.

The forest ecosystem service values distributed in the High,

Medium and Low river basin regions are presented in Table 8 , in

which the forests (%) represented the proportions of forest andeach region. The ES values showed a gradient according to forestcoverage. In the Marecchia River Basin, the High region contained70% of the total indirect use values. In the Foglia River Basin, theMedium region provided a higher indirect use value. In all threeregions,water retentionwas the mostimportant ecosystemserviceprovided by the forest.

4. Discussion

In this study, we combined several methods to evaluate theindirect use of forests at thewatershed level,consideringtheir pro-vision of ecosystem services for comparison with current demand,approximated by consumption rates or use. Essentially, we calcu-lated the value of water retention, drinking water supply, carbonsequestration and soil protection using monetary values derivedfrom replacement costs or (surrogate) market prices. These forestESs were selected because they are among the most important andcan be easily valued with available data. This selection was alsoguided by the expected (but not quantied) differences betweenup-anddownstream(coastal)areasin ES provisioningand demand.Therefore, we distinguished ES values for the river basin sectionsaccording to elevation breaks with the purpose of emphasising the

spatial mismatch in ES provisioning and demand and investigatedthe reliance of the coastal economy on the ecosystem services sup-plied in the upstream areas.

It should be noted that water retention and drinking water sup-ply overlapped in the provisioning area but their economic valuewas distinct and did not involve double accounting. The waterretention value was estimated by considering the avoided costsof articially replacing natural function (i.e., articial water basinsinstead of forest water retention capacity). Drinking water supplywas evaluated by the actual price of drinkable water for the nalconsumersand was considered a proxy forthe linkedvalues gener-ated by water availability. For soil protection, it was notpossible tocompare supply and demand because of the intrinsic difculty indening a possible demand for services rarely considered and paid

for by lay people (e.g., stability of soil). Soil protection can only be

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perceived by specic land users (i.e., farmers) when this service isabsent. The carbon sequestration service was likely to be overes-timated as CO 2 release because mortality, cutting, and re wereneglected. Simultaneously, some underestimation may be becauseof different CO 2 sequestration by forest typologies, i.e., coppice ismore efcient than a natural mixed-age forest. The nal results,similar to many cases in the literature ( Merlo and Croitoru, 2005 ),showed thatthe indirectuse values exceededthose related to directuse. Thegreatestvalues were related to the water retentionservice,which represented approximately86% of the total indirectvalue forbothstudy areas. Within a hypotheticalscenarioin which theforestwas not present, we estimated that it would be necessary to buildat least ve articial reservoirs (similar to the one mentioned inSection 2.2) to have the identical water retention. The main contri-bution to the soil protection value was provided by forests locatedin higher slope classes.

The economic assessments relied on avoided cost and replace-ment cost methods, as suggested in previous studies ( de Grootet al., 2002; Farber et al., 2006 ), because they provided compa-rable values to real market prices, which were not dependent onthe respondents perceptions or surveys (as opposed to contin-gent valuations) and were more easily replicable in other contexts.Moreover, avoided costs were particularly notable to local admin-istrators who must use public funds to repair ecosystem damagesresultingfrom development. In this perspective,the use of replace-ment costs or market prices related to the specic regional contextbetter supported theassessmentreliability withrespect to theben-et transfer approach (as in Scolozzi et al., 2012 ).

Notwithstanding the methodological limitations and resultuncertainties linked to the needed simplication of ecological pro-cesses, this study provided useful insights suitable for fosteringinformed debate concerning the denition of regional policies.The uncertainty of value-based information could be consideredacceptable for scoping a strategic spatial plan at the river basinscale. At this stage of decision-making, mapping the ES supply anddemand and representing the spatial mismatch along the threesections of watershed helped identify providers and beneciar-ies. This study was useful for grounding the criteria for a prioritydenition in landscape planning and management. We observed adownstream positive gradient of demand and opposite upstreamgradient of supply, as expected. Surprisingly, the capacity of forestecosystems to satisfy local drinkingwaterdemandandwater reten-tion supply appeared to be low and only contributed to 4% of thetotal consumption in the Marecchia River Basin. Only in the Highregion of watershed the drinking water demand was satised bylocal supply. Concerning CO 2 sequestration, the supply exceededthe demand in the higher watershed section, whereas the oppositeoccurred in the low and medium sections.

The observed mismatch in ES supply and demand was bothspatial and chronological and involved two groups of beneciar-ies related to the public (citizens and tourists) and private sectors

(forestry, agriculture, industry). Mostbenets fromESs owedcon-tinuously over time, whereas the benets related to direct forestuse (forestry sector) ran out periodically, for example, with thecutting cycle (approximately 15 years for coppice). Hence, forestowners or managers, generally the residents of higher basin sec-tions, beneted fromnatural resourcesbut also generatedthe mostESsat thewatershed level.Currently,such a mismatchwas notcon-sidered by local institutions, although the economy of the lowerregions was increasingly dependent on ES from upstream areas. Aweak link between the up- and downstream areas was because of recreation value and nature-based tourism. The tourist ow fromthe coast reaches the upper regions of the watershed by guidedtours.

The obtained information supported theneedof ESs governance

at thewatershed levelto promote thecoordinationof moredetailed

valuations and actions. Such coordination could be a componentof adaptive and multi-level governance seeking policy denitionsfor ecological-economic sustainability (e.g., considering the peakwater demands in the dry season) and in particular, economicequity among territories in termsof benet redistribution fromESs.A multi-level perspective is required tounderstand andmanagedif-ferent scales of the different processes involved in ES provisioning,which range from forest management scattered by private smalllandownership to the regional water cycle and water use regimes.Further specic calculations may guide the denition of paymentsfor ecosystem services at the river basin scale, target manage-ment rules forexisting forests andexpressly address ES cumulativereturns (i.e., future benets from ESs). Currently, in the study area,thereare nomechanisms to payfor theselectedecosystemservices,although they are mentioned in some of the latest policies (e.g.,agriculture); some examples in Italy are described in the context of water management ( Pettenella et al., 2012 ).

5. Conclusions

- Our study described a simplied procedure for the evaluationof selected ecosystem services provided by forests using a setof replacement costs or avoided costs, market prices and envi-ronmental variables (such as land cover, slope, precipitation andtemperature). Replacement costs or market prices related to thespecic regional context are expected to support assessmentreli-ability to reward provisioningareas where ecosystemservicesaremaintained or compensate losses in ecosystem benets.

- The results showed that the indirect use values of the selectedecosystem services were three times higher than the direct usevalues (i.e., rewood production). This information also focusedon the value of ecosystemprocesses notpreviously considered innatural resources management.

- Theanalysis of supplyand demand of the selected ecosystemser-vices showed a spatial mismatch, thus emphasizing a debt incoastal areas fromupstream areas, particularlyconcerning drink-ing water supply and CO 2 sequestration, in which the upstreamregion, characterizedby extensiveforests, could partiallysupportthe total demand of ecosystem services in the river basin.

- This approach can be easily applied in similar contexts andin the planning scenarios assessment as indicators at differ-ent levels, such as urban planning (e.g., land use change, urbangreen functions) and environmental effect evaluations, whichrely on available basic data from variables sensitive to land usechange and forestmanagement (forest typologies). The producedvalue-based information can support compensation mechanismdenitions or PES schemes to promote the re-distribution of resources or different types of decision-making for conservationand resource management planning.

Acknowledgement

This research was funded by the Pesaro Urbino and RiminiProvinces.

The authors are also grateful to ASSAM (Agenzia Servizi SettoreAgroalimentare Marche) for support with local soil data knowl-edge,ISSI (IstitutoSviluppo Sostenibile Italia) for support on carbonsequestration valuation methodologies, Terre.it for his support onslope map analysis. We thank the anonymous referees for theircomments and suggestions. We are grateful for interesting sugges-tions allowing for manuscript improvement.

References

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