Urban Expansion and Its Effects on Peri-Urban Ecosystem Services and Livelihoods: Evidence from Bishoftu, Ethiopia.

Urban expansion severely threatens ecosystem services and the livelihoods of peri-urban farmers, especially in fast-growing cities in developing countries. This study examines the effects of urban growth on ecosystem services and farmers' livelihoods in the peri-urban areas of Bishoftu City. Land Use/Land Cover (LULC) changes over a 32-year period (1991–2023) were analyzed using GIS and remote sensing techniques, based on satellite imagery from 1991, 2002, 2013, and 2023. Ecosystem service value losses resulting from these LULC changes were assessed using the value transfer method, with global coefficient values adapted to the Ethiopian context. In addition, focus group discussions and key informant interviews with farmers and experts were conducted to provide contextual insights. The findings show Bishoftu City expanded by 35.4 km² over 32 years. This growth replaced valuable ecosystems: 9.9 km² of grasslands, 2.8 km² of forest, 6.34 km² of bare land, 1.9 km² of wetlands, and 14.4 km² of farmland. Urban expansion caused annual ecosystem service losses of $781,250, totaling approximately $25 million over 32 years. Peri-urban farmers suffered farmland loss, displacement, a shift to non-farm work, and increased economic hardship. The study recommends that urban planners and policymakers promote sustainable growth, balanced development, and ecosystem protection to safeguard both nature and farmers' livelihoods.