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The emergence of the ecosystem services concept suggests that economic valuation studies are already fulfilling a role in raising awareness by demonstrating the loss of nature's goods and services using monetary indicators. In order to have future relevance in capturing value and giving support to policy-makers, valuation methods must specifically address resource accounting, priority setting, and instrument design. This report provides an overview of economic valuation methods of ecosystem services from watersheds in the Nordic countries. The study was commissioned by the Nordic Council of Ministers and conducted by The Norwegian Institute for Nature Research, The Norwegian Institute of Water Research and Sweco Norge during the period May – November 2011. The study indicates that economic valuation methods can be applied to watershed management in multiple ways. However, policy makers should be wary of "one size fits all" valuation estimates that appear ready to use across different watershed types and stakeholder interests.

AbstractIn a choice experiment, households in Vietnam are offered flood insurance to mitigate increasing catastrophic flood risks due to climate change. Participants are asked to choose their most preferred insurance policy given expected future flood and mortality risks, insurance cover and associated insurance premiums. Although not affordable to everyone, there exists substantial demand for flood insurance. Insurance demand is spatially differentiated, non-linear in flood probabilities and mortality risks, and subject to significant preference heterogeneity. Since respondents are unfamiliar with the concept of flood insurance and education levels are low, choice consistency tests were conducted. These show that choice consistency depends on a combination of respondent characteristics, such as gender and education level, and experimental design characteristics.

The Helgeland archipelago stretches across 200 km, extending from Trøndelag in the south to Salten in the north. This iconic part oftheNorwegian coast comprises a myriad of islands and islets (more than 12,000) and large shallow sea areas (fig. 61 and 62). All along the coast there are white beaches, sheltered coves, fjords and steep towering mountain walls rising straight from the open sea. A wealth of marine life thrives in the area, spanning from the smallest microalgae to the largest mammals. Harbor seals (Phoca vitulina), Atlantic puffins (Fratercula arctica), white-tailed eagle (Haliaeetus albicilla) and greylag goose (Anser anser) are among typical species encountered.

This chapter examines the conceptual framework boxes and fluxes on "Institutions and governance and other indirect drivers" (Ch. 1, Fig. 1). International and EU governance of relevance for ecosystem services, biodiversity and water is presented. Policy integration, policy coherence, management regimes and stakeholder involvement is reflected upon. The chapter contributes to further understanding of the current and future challenges for sustainable use and conservation of biodiversity and ecosystem services. It provides insights in options for integrating biodiversity and ecosystem services into sustainable development strategies and provides examples of current policy conflicts, along with trade-offs and innovative governance strategies for management of natural resources. Policy-makers need to find ways to handle policy conflicts, improve integration of different stakeholders' perspectives and value dimensions including ILK in policymaking, develop new data collection methods for linking biodiversity and ecosystem services, and develop governance systems that enhance transparency, sustainability and human well-being.