Valuing ecosystem services for improved national accounting: A pilot study from Madagascar

The present paper proposes a micro-econometric methodology for the economic valuation of the impact ofecosystem services in selected economic sectors. In the context of natural capital and ecosystem accounting, webuilt a four steps valuation protocol. The methodology is applied to the valuation of freshwater in theAnkeniheny-Zahamena Forestry Corridor (CAZ), Madagascar –a country partner with the Wealth Accountingand the Valuation of Ecosystem Services (WAVES). Our results corroborate the intuition that understanding thevalue of water in its alternative uses is a key to fostering informed debate on water management and allocationin the CAZ area. More generally, this study provides a solid contribution towards a more effective way to elicitand record nature's ecosystem services contribution to the economy