Assessment of the linkages between ecosystem service provision and land use/land cover change in Fincha watershed, North-Western Ethiopia

Fincha watershed is characterized by the presence of large scale government development projects, such as hydroelectric dam and sugarcane plantation. Within this watershed, land use/land cover (LULC) changes and its linkages with ecosystem services were analyzed for a period of more than three decades (1987–2019). The study first assessed LULC dynamics using ArcGIS software with a standard method. After data on LULC change was obtained, the study used a globally developed values coefficients to estimate the Ecosystem Service Values (ESVs) of the study watershed. The findings revealed that; cultivated land, water body, settlement and sugar cane plantation increased at a rate of 579.8 ha/yr, 199.7 ha/yr, 141.2 ha/yr and 137.1 ha/yr, respectively, whereas wetland, forest land and bare land reduced by 600 ha/y, 328.7 ha/yr and 60.3 ha/yr, respectively, for the study period (1987–2019) considered in the watershed. The increase in water body and sugar cane plantation is mainly attributed to large scale government development projects, while the increase in settlement and cultivated land is the result of small scale farming in the area. Both subsistence farming practices and large scale government projects compete on forest land and wetland. This has resulted in the decrease of the total NCV (Natural Capital Value) by 13.2%. The total ecosystem service values were dominated by cultivated land, which contributed 42.9% of the values in 2019. Elasticity of ESV change in relation to LULC showed the dominance of cultivated land in the overall values of the natural capital. To optimize the values of natural capital at the watershed, making synergies and tradeoffs between land uses is vital by all concerned stakeholders involved in modification of the land uses.