Valuing Ecosystem Services in the Ecuadorian Amazon: Strategic Applications of ESVD-Based Benefit Transfer for Conservation Finance

Abstract

This paper demonstrates how ecosystem service valuation can inform conservation finance strategies using the Benefit Transfer Method (BTM) and internationally recognized valuation databases. We apply the Ecosystem Services Valuation Database (ESVD) to estimate the economic value of services provided by a 60-hectare property in the Ecuadorian Amazon. Using BTM, we compare Net Present Value outcomes across three scenarios: Carbon Sequestration Only, Extractive Use, and Full Ecosystem Services. Results show that the full valuation scenario—i.e. the “True Economic Value” (TEV)—far exceeds the outcomes in both the carbon-only and extractive-use cases. By year 100, this value is 4.8 times greater than extractive use and 3.1 times greater than carbon-only, underscoring the long-term importance of intact ecosystems. We then examine financing pathways, including payments for ecosystem services (PES), biodiversity credits, conservation easements, and REDD+, and propose investment structuring options informed by ESVD-derived valuation. Drawing on recent developments, we argue for diversified, multi-service approaches that more fully capture the ecological and economic value of tropical forests.