Assessing Monetary Valuation Methodologies for Estimating the Impacts of Climate Change in the Laguna de Rocha (Uruguay)

Abstract

The motivation for this study arose from the dual observation that there are very few estimates of the local costs of climate change in developing countries and that the few studies that do exist rarely take into account the non-market value of ecosystem services. Using a case study of a coastal lagoon ecosystem in Uruguay, I explore practical reasons for why this might be the case. Informational difficulties related to identifying local climate trends and the identification of ecosystem services as well as the relevance and feasibility of monetary valuation methodologies are discussed using specific examples. Three valuation methodologies are implemented to estimate the monetary values of climate change impacts on specific ecosystem services. The results suggest that climate change is affecting the economic value of the coastal lagoon ecosystem. Implications for local management and lessons learned from the case study are discussed.