Economic valuation of ecosystem services

What we do

 Lake Parz, Dilijan National Park, Tavush region

Similar to other post-Soviet countries, environmental degradation in Armenia threatens prospects for economic growth and poverty reduction, despite the general trend of improved environmental legislation. In order to become more resilient to external and internal shocks, there is a necessity for integration of new approaches and policy instruments, while formulating the country’s development agenda.

The overall objective of the project is to equip decision makers and other stakeholders with tools and evidence demonstrating how to incorporate an Ecosystem Services (ES) approach into existing decision-making processes, plans and budgets linking poverty reduction and environmental sustainability. The project builds on the Millennium Ecosystem Assessment approach that expands the focus beyond how development affects ecosystems to include how development depends on ecosystems.

UNDP supports the national authorities through:

  • Establishing an Expert Group and building its capacities through provision of ES concepts and valuation methodologies, policy options that will most effectively sustain the capacity of ecosystem services to meet the needs of poor and in doing so strengthen the Sustainable Development Strategy of Armenia;
  • Conducting a case study by the Expert Group in a selected area in the south Armenia. Mining sector study in the spot surrounding protected area is targeted.       

Some results so far

Report of national practices on Ecosystem Services and their influence on socio-economic development and human well-being was prepared.  

Socio-economic study report on selected region has been developed and detailed community study designed.

Report with gap analysis of RA legislation on environmental protection with focus on Impact of Economic activity has been drafted.

Who Finances it?


Donor name

Amount contributed per year


$ 200,000.00

Delivery in previous fiscal year

December 2012

$ 45,000.00

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