In this study, the outcome serves to establish a measurement model to calculate the value of ecosystem services in Lhasa River Basin, China. Following the principle of resource scarcity, a study paradigm is established according to the influence of natural and socio-economic location differences on the value of ecosystem services. Results show that the total value of ecosystem services in Lhasa River Basin is 104.503 billion yuan. The unit ecosystem service value of natural grassland in the lower reaches is 5.6 times and 1.07 times larger than that in the upper and middle reaches, respectively. The value of ecosystem services is clearly affected by the scarcity of ecosystem services and the dependence of economic and social development on the ecosystem. The value of ecosystem services in the upper, middle, and lower reaches were 4.17%, 21.48%, and 74.35%, respectively. It is found that the value of ecosystem services in this particular region differs significantly in the upper, middle, and lower reaches of the basin. The scarcity of ecological resources has increased the value of ecosystem services, which is reflected in the highest value of ecosystem services in the middle of Lhasa River Valley and both sides of the river where population, economy, and ecological demand are relatively concentrated. According to the estimated results, this study proposes a variety of methods to improve the ecosystem service value and analysis of the ecological compensation mechanism, derived from the contribution made by ecological services.
