Natural Capital Accounting on Forested Lands in the United States: An Application to the Colorado River Basin

Abstract

This chapter applies natural capital accounting frameworks to forested lands in the Colorado River Basin, demonstrating how forest ecosystem services can be measured and integrated into national economic accounts. The analysis covers timber, water regulation, carbon sequestration, and recreation values across the basin’s forested watersheds.

Why It Matters

Natural capital accounting in the Colorado River Basin is significant because:

• The basin supplies water to 40 million people across seven states
• Forest health directly affects water supply quantity and quality
• Climate change and drought are intensifying pressures on basin resources
• Economic accounts that exclude natural capital understate the value of conservation

Key Findings

1. Forested lands in the Colorado River Basin provide substantial ecosystem service values beyond timber
2. Water regulation services from forests are particularly valuable in the arid West
3. The natural capital accounting framework successfully integrates environmental values with economic accounts
4. Results demonstrate the approach’s applicability for other major US watersheds

Citation

Warziniack, T., Bagstad, K., Knowles, M., Mihiar, C., Nehra, A., & Rhodes, C. (2024). Natural capital accounting on forested lands in the United States: An application to the Colorado River Basin. In: Measuring and Accounting for Environmental Public Goods: A National Accounts Approach.