Bundling" ecosystem services refers to merging multiple values
from a piece of property under a single credit type. For example. if a
landowner restores an area of riparian forest, it results in improvements
to more than one ecosystem service, including reducing stream
temperature, improving wildlife habitat, sequestering carbon and
mitigating potential floods (Larocco and Deal. 2011). Bundling allows
these services to be sold under a single credit type-e.g. an ecosystem
credit-and market rules will ultimately determine whether or not a
bundled credit can be sold into a regulatory market. Bundling might
provide a way for landowners to get paid for the broader benefits
they are providing, while also giving buyers flexibility in meeting regulatory
needs or voluntary investments. However, bundling of services
under a single credit type may require buyers to purchase
services that they do not want (Chan et at.. 2006; Kroeger and
Casey, 2007) and it is important to be able to "unbundle" services
from a broader suite of services to meet regulatory requirements for
a specific service. Ideally, an integrative accounting system would
"bundle" ecosystem services at a landscape scale and accommodate
current jurisdictional limitations by separating out regulated credits
and "stacking" them alongside other parts of the bundled services.
"Stacking" is a concept closely related to bundling. Stacking allows
credits to be generated from a single hectare using multiple marketbased
strategies. Credits are sold separately into each market and
for each credit type, the applicable market rules will apply. For example,
if a landowner restores a single hectare of riparian forest. it could
produce water quality credits. carbon credits, riparian habitat credits.
and conservation banking credits that the landowner could sell into
each respective market. Whereas a bundled credit is a bunch of services
grouped together from the same area under a single credit
type, stacked credits are generated from the same area, but accounted
for and sold separately into each market structure. Bundling or stacking
of payments for ecosystem services could both increase forestland
value and encourage managers and landowners to consider their land
as natural assets that provide a suite of different ecosystem services
(Collins and Larry, 2008; Farley and Costanza. 2010; LaRocco anel
DeaL 2011).