Forests, wetlands and grasslands all provide “watershed services” by enhancing water quality and supply, biodiversity and carbon storage. They have economic value but unfortunately their market price is $0, says the executive director of the Water Institute.
Roy Brouwer, also a University of Waterloo economics professor, is researching how to attach the right price to the essential services that watersheds provide. He says, when used properly, these payment schemes could significantly help preserve water ecoystems around the world.
“An important question is how to convince beneficiaries to pay for the water services they enjoy” says Brouwer. For example, a city downstream of a watershed that benefits from storm water retention upstream by wetlands managed and maintained on farmland.
Read more and watch a video of Brouwer on this topic in the original story.