Effects of land use change on biodiversity and ecosystem services in tropical montane cloud forests of Mexico M. Luisa Martı ´nez a, *, Octavio Pe ´ rez-Maqueo b , Gabriela Va ´ zquez a , Gonzalo Castillo-Campos c , Jose ´ Garcı ´a-Franco a , Klaus Mehltreter a , Miguel Equihua b , Rosario Landgrave a a Departamento de Ecologı´a Funcional, Instituto de Ecologı´a, A.C., km 2.5 antigua carretera a Coatepec no. 351, Congregacio ´n El Haya, Xalapa, Veracruz, 91070, Mexico b Departamento de Ecologı´a Aplicada, Instituto de Ecologı´a, A.C., km 2.5 antigua carretera a Coatepec no. 351, Congregacio ´n El Haya, Xalapa, Veracruz, 91070, Mexico c Departamento de Biodiversidad y Sistema ´tica Vegetal, Instituto de Ecologı´a, A.C., km 2.5 antigua carretera a Coatepec no. 351, Congregacio ´n El Haya, Xalapa, Veracruz, 91070, Mexico 1. Introduction Land use has been changing ever since humans first began to manage their environment. However, the changes that have taken place over the last 50 years have been especially important and intense (Metzger et al., 2006), as society is becoming increasingly urbanized, while natural ecosystems become deteriorated. Land use changes may eliminate species locally and decline natural habitats and ecosystem functioning, affecting thus, biodiversity and provision of ecosystem services (Priess et al., 2007; Turner et al., 2007a; Ricketts et al., 2004, 2008; Steffan-Dewenter and Westphal, 2008; Lavorel et al., 2007; Turner et al., 2007b). Evidence of loss of ecosystem services owing to land use changes is gradually accumulating, especially in the case of pollination services (Priess et al., 2007; Ricketts et al., 2008; Steffan-Dewenter and Westphal, 2008); carbon storage (Huston and Marland, 2003; Kirby and Potvin, 2007); hydrology (Strange et al., 1999); and climate change (Schroter et al., 2005), among others. These changes are likely to have implications on human well-being (Balmford and Bond, 2005; MEA, 2005; Butler and Oluoch-Kosura, 2006; Pattanayak and Wendland, 2007). Tropical montane cloud forests (‘‘cloud forests’’ from now on) offer important ecosystem services, such as water supply and quality (Bruijnzeel, 2004; Bonnell and Bruijnzeel, 2005). The high- elevation of these forests usually increases local water supply by Forest Ecology and Management 258 (2009) 1856–1863 ARTICLE INFO Article history: Received 23 August 2008 Received in revised form 17 February 2009 Accepted 23 February 2009 Keywords: Tropical cloud forest Coffee plantations Grasslands Land use change Ecosystem services Biodiversity Mexico ABSTRACT Tropical montane cloud forests deliver important goods and services to society, such as timber, the supply and purification of fresh water, and carbon sequestration. In spite of their relevance, current deforestation rates are very high, at the expense of affecting the provision of ecosystem services. We explore the impact of land use change in terms of provision of ecosystem services by following two approaches, one very detailed (focused on hydrological services – water quality) and another one with a broader perspective (at a large scale and considering the ecosystem service value (ESV) of several ecosystems and their ecosystem services at the same time). In the highlands of the State of Veracruz, previously forested lands were converted into coffee plantations and cattle ranches. To evaluate the role of species composition and community structure on water quality, we studied nine small watersheds (<15 ha) covered by pristine cloud forest, coffee plantations and cultivated grassland (three each). Species richness of the three land use types was similar, although species composition was as different as 90%. Overall species diversity as well as that of woody species, and growth form diversities decreased in the transformed land uses. Water quality of streams flowing through these watersheds declined: nutrients (nitrate), conductivity, cations, chloride and suspended solids were lowest in the forest streams and highest in streams from coffee watersheds, whereas grasslands were intermediate. We also calculated ecosystem service values (using the transfer value method) and estimated economic market– non-market gains and losses owing to land transformation. Loss of natural ecosystems may imply a significant economic loss to society in terms of ecosystem services, although market gains may still lead land owners to land conversion because revenues are higher. Adequate Payment for Ecosystem Services may be a good option to prevent deforestation, but the compensation should be at least equal to the opportunity cost of the promoted land use. Our estimates are indicative of the urgent need to go beyond water quantity as the most relevant ecosystem service considered in PES schemes. ß 2009 Elsevier B.V. All rights reserved. * Corresponding author. Tel.: +52 228 842 1800x4215; fax: +52 228 842 1800x4222. E-mail address: marisa.martinez@inecol.edu.mx (M.L. Martı ´nez). Contents lists available at ScienceDirect Forest Ecology and Management journal homepage: www.elsevier.com/locate/foreco 0378-1127/$ – see front matter ß 2009 Elsevier B.V. All rights reserved. doi:10.1016/j.foreco.2009.02.023