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Abstract

Although there are many studies on evaluating ecosystem services in recent years, most of the studies focus on the externality of ecosystem services. Fundamentally, it is important to understand market internalized value of ecosystem services, but studies on this point of view are rare as far as the author knows. This study evaluates the impacts on the local economy, as an internalized value of ecosystem services, caused by shifting from conventional to bio-friendly rice farming, using a case study of stork-friendly rice farming (to help conserve white storks) in Toyooka, Japan. After applying an input-output analysis, we consider whether stork-friendly rice farming created a net positive economic impact on the local economy. The results shows that changing from conventional to stork-friendly rice faming had a high induced effect and that shifting to stork-friendly rice faming creates a net positive economic impact on the local economy.

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