Impact of land use land cover changes on ecosystem service values in the Dire and Legedadi watersheds, central highlands of Ethiopia: Implication for landscape management decision making.

Land use land cover change in a landscape is the main driver of degradation in ecosystem goods and services. This study was aimed at analysing the dynamics of the LULC change in the catchments of the water supply reservoirs as well as the impact on the Ecosystem Service Values (ESVs) between 1985 and 2022. The benefit transfer method was used to evaluate ecosystem service value (ESV) changes in response to LULC. The watersheds experienced substantial LULC changes. As a result, the natural vegetation, grasslands, and eucalyptus plantations declined dramatically, while settlements and cultivated lands considerably increased. The global and local ESV estimates show a dramatic decline in ESVs between 1985 and 2022. According to global and local ESV estimates, total ESV in the Legedadi watershed has decreased from approximately US$ 65.8 million in 1985 to approximately US$ 11.9 million in 2022 and from approximately US$ 42.7 million in 1985 to approximately US$ 9.66 million in 2022. According to global and local ESV estimates, total ESV in the Dire watershed decreased from approximately US$ 437 thousand in 1985 to approximately US$ 59 thousand in 2022 and from approximately US$ 225 thousand in 1985 to approximately US$ 36 thousand in 2022. The overall decline in ESV demonstrates that the natural environment is deteriorating as a result of replacement of the natural land cover by other economic land uses. Hence, it is highly recommended that implementing sustainable watershed management practices to halt the dramatic loss of natural ecosystems must be a high priority.