Nestled in the heart of Lao PDR, Luang Prabang City is not only a UNESCO World Heritage site but also a hub of ecological richness, surrounded by lush forests, fertile riverbanks, and diverse natural ecosystems. These ecosystems provide vital services — such as regulating air and water quality, controlling floods, supporting agriculture, providing recreational opportunities, and contributing to local livelihoods. However, the true economic value of these ecosystem services often goes unnoticed, leading to their degradation and underutilization in decision-making processes.

The "Valuation of Ecosystem Services in Luang Prabang City" report addresses this gap by applying state-of-the-art environmental economics tools to estimate the monetary value of these vital services. By quantifying the benefits provided by ecosystems — such as carbon sequestration, soil fertility, and flood regulation — the report underscores the significant contribution that nature makes to the city’s economy and quality of life.

This analysis encompasses a wide range of ecosystem services, from provisioning services like freshwater supply and food resources to regulating services such as climate control and disaster mitigation. Cultural and supporting services, such as tourism opportunities and biodiversity conservation, are also explored to highlight the multi-dimensional benefits of Luang Prabang’s natural resources.

The findings of this report offer critical insights for urban planners, policymakers, and environmental advocates in integrating ecosystem service valuation into urban development and climate adaptation strategies. The economic valuation of these services can help guide decision-making processes toward more sustainable growth, ensuring that ecosystem health is not sacrificed for short-term economic gain.

By highlighting the economic value of natural capital, this report aims to support the formulation of policies that prioritize environmental conservation, promote sustainable resource management, and secure the long-term resilience of both Luang Prabang City and its surrounding ecosystems. As the city continues to grow, understanding the full value of its natural resources will be essential for balancing urban development with ecological preservation.