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Although researchers expect the valuation of ecosystems and their services to be used in various decision-making processes, some studies have insisted that the valuation results cannot be fully used in the real world. The so-called “information gap” was highlighted, and some reasons for the gap were raised by researchers. One of them is the lack of local-specific and demand-side information, such as who receives the benefits and to what extent. This study proposes a valuation that includes demand-side information for it to be practically useful for policy decision making, especially for local policymakers. We focus on the headwater conservation service of the forest ecosystem by referring to the case of constructing solar power plants in the Satetsu-gawa river basin in Ichinoseki, Japan. We estimate the size of the area and the number of households affected by deforestation caused by the construction of the plants. Furthermore, the lost value of ecosystem services is assessed in monetary terms to reflect information on the demand side. Based on the results, we present multiple indicators for assessing the impact of constructing the plants and discuss how the valuation can be used by local policymakers as well as how it can close the information gap.

A Practice in Valuation of Ecosystem Services for Local Policymakers: Inclusion of Local-Specific and Demand-Side Factors