Trade-offs, synergies and economic relationships among ecosystem services

All land uses provide ecosystem services (ES), which have been depleted due to the lack of soil conservation practices along with the intensive use of land for meeting the water-energy-food nexus demand. The economic incentive is a first step towards attracting farmers’ interest in protecting and conserving ES. Farmers, stakeholders, and decision-makers need to understand the value and importance of watershed services through a straightforward cost-effective analysis of conserving and/or protecting them. Economic feasibility affects the volunteer enrolment in payment for ecosystem services (PES) programmes for adopting soil conservation practices in rural areas; nonetheless, it is still poorly understood regarding investments in ES restoration and preservation. There is very little information on the restoration of water provisioning in rural basins that participated in PES programmes. Additionally, most studies focus on programmes for one specific type of landowner, putting aside the plurality of landowners in the basin. It undermines PES programmes implementation when assessing individual preferences and willingness to pay. Thus, we aim to compare costs and benefits from incentivising soil conservation practices and forest restoration in a rural basin through a cost-benefit analysis and quantitative improvements of water provision and soil erosion control; moreover, we will use hydrological and economic-decision models to asses the uncertainties from the relationship between soil conservation practices and watershed services under climate change. The Guariroba River Basin (36,200 ha), located on the rural side of Campo Grande city ‒ Brazil, currently provides 34% of the drinking water demand in the urban area — once provided about 50% — since converting native Cerrado vegetation of the basin for cattle farming has led to a decrease in water provisioning due to soil degradation and, consequently, reservoir siltation. In 2009, the city hall launched a PES Programme called ‘Manancial Vivo’ (MVP). In this context, it is fundamental to understand how uncertainties in the input data, economic models structure, and parameters estimation are consistently integrated into hydro-economic models. By this, we will assess different hydro-economic scenarios of water availability to understand uncertainties and hydrological trade-offs. We expect to respond to some questions: whether the Brazilian PES programme model is environmentally and economically adequate; how water-food-energy insecurity nexus affects PES policies; and what role PES plays in building resilience to water supply systems and helping people to adapt to climate change effects.