The Inclusion of Ecosystem Service Valuations in Bioenergy Cost Analysis: A Case Study of Constructed Wetlands in the Neotropics

From an ecosystem services perspective, wetlands are among the most valuable ecosystems per unit area on earth. Here, we investigate the ability of a constructed wetland to provide two ecosystem services - biomass for bioenergy and wastewater treatment - using Costa Rica as a case study for a Neotropical developing world context. In the absence of wastewater treatment ecosystem services, biomass production costs are expected to range from 243 to 1287 $ dry Mg-1 depending on model assumptions. When ecosystem services are valued based on a contingent valuation method and given optimistic capital cost assumptions, the costs of biomass production range from 38 to -290 $ dry Mg-1. Negative costs indicate income and suggest that under certain assumptions, the value of water treatment services is large enough to pay for wetland operations, and that biomass can be provisioned for free while still maintaining system profitability. The analysis suggests that the valuation of multiple ecosystem services may alter the economic sustainability of some biomass for bioenergy production systems.