Land Use Land Cover Change and its Impact on Wetland Habitats and Associated Ecosystem Services in the Central Highland of Ethiopia

Land Use and Land Cover (LULC) changes significantly influence both socioeconomic conditions and environmental systems at local, regional, and global levels. Despite this, limited research has been conducted on how such changes affect wetland ecosystems and the services they provide in Ethiopia's Central Highlands. This study aims to examine the dynamics of LULC changes and their impact on wetlands and related ecosystem services, using the Central Ethiopian Highlands as a case study. The analysis employs geospatial tools and ecosystem service valuation (ESV) coefficients as primary data sources. LULC changes were assessed using Geographic Information System (GIS) techniques, while ESVs were estimated through the benefit transfer method, based on previously established global coefficients. Between 2003 and 2023, the study found that built-up areas, forest land, and agricultural land expanded by 85.1%, 15.1%, and 4.9%, respectively. In contrast, there were significant reductions in wetlands (87.5%), bare land (65.7%), and water bodies (49.3%). Over the same period, the total loss in ecosystem service value across the landscape amounted to approximately USD 1,449.2 million per hectare per year, reflecting a 10.5% decline. The most substantial losses in ecosystem services were observed in wetlands (USD 2,078.4 million per hectare per year, a decline of 87.5%) and water bodies (USD 364.9 million per hectare per year, a decline of 49.3%). Furthermore, all categories of ecosystem services—including provisioning, regulating, habitat, and cultural services—experienced a general decline. In conclusion, the Central Highlands of Ethiopia have undergone significant LULC transformations over the past two decades, leading to notable degradation in essential ecosystem services. This underscores the urgent need for sustainable land management strategies that curb unregulated urbanization and agricultural expansion, promote alternative livelihoods, raise public awareness, and establish buffer zones to protect remaining wetland habitats.