Asian Development Bank
Environmental services are “the benefits people obtain from ecosystems.”1 These benefits may be categorized as provisioning services, regulating services, and cultural services (Table 1). The primary use by herders of grasslands is grazing by livestock, and the production of livestock products makes major contributions to herders’ livelihoods. These products include food products and a range of other products, many of which are both consumed locally and traded internationally. Non-livestock rangeland products may also be important components of herders’ incomes as well as provide food and support human health.2 In addition to these provisioning services, grasslands provide ecosystemregulating services, such as conservation of biodiversity in grassland habitats, regulation of soil erosion and sandstorms, and regulation of the climate through carbon sink and source functions.3 Cultural services also have a variety of values to different stakeholders in grasslands and other grazing lands. The provision of regulating services is particularly influenced by the activities of herds and herders, often in unintended ways. These services are therefore “externalities” of livestock husbandry that affect other stakeholders both on- and off-site.4 These environmental services are valued in different ways by different stakeholders, but, unlike traded livestock products, they are mostly not remunerated, often resulting in undersupply of positively valued environmental services.