Economic Analysis for Ecosystem Service Assessments

Abstract

The paper seeks to contribute to the expanding literature on ecosystem service assessment by considering its integration with economic analyses of such services. Focussing upon analyses for future orientated policy and decision making, we initially consider a single period during which ecological stocks are maintained at sustainable levels. The flow of ecosystems services and their contribution to welfare bearing goods is considered and methods for valuing resultant benefits are reviewed and illustrated via a case study of land use change. We then broaden our time horizon to discuss the treatment of future costs and benefits. Finally we relax our sustainability assumption and consider economic approaches to the incorporation of depleting ecological assets with a particular focus upon stocks which exhibit thresholds below which restoration is compromised.

Elasticity in ecosystem services: exploring the variable relationship between ecosystems and human well-being

“…We acknowledge that a plethora of ecosystem service conceptual frameworks (e.g., Costanza et al 2007, Bateman et al 2011, Fisher et al 2013, Reyers et al 2013, Díaz et al 2015 have been developed to facilitate thinking about the complex reality of ecosystem services. However, most frameworks generally have focused on specification of the ecological generation of ecosystem services to the detriment of understanding how they actually contribute to well-being (Fisher et al 2013).…”

“…However, as emphasized in more social-ecological conceptualizations of ecosystem services (e.g., Reyers et al 2013), causal influences in the other direction ("feedbacks" in Fig. 2), are important for the development of ecosystem quality and human well-being over Ecosystem Stocks (a) represent natural capital or ecological assets (Bateman et al 2011), affected by a wide range of impacts that may be external to this particular chain, such as climate changedriven disturbance or infrastructure development, or that represent feedback from within the chain, such as extraction of Goods. Stocks could be represented by a single indicator of ecosystem quality, e.g., live coral cover, but it may be more appropriate to include a range of processes and interactions within Stocks.…”

“…Goods (c) are the things or experiences from ecosystems that are valued by people (Bateman et al 2011). Goods are not solely Ecology and Society 21(2): 11 http://www.ecologyandsociety.org/vol21/iss2/art11/ biophysical, but are coproduced from Flows by Human Inputs (ii) (Lele et al 2013) such as labor, capital, or the presence of people to appreciate or benefit from them.…”

“…Value is determined by societal process of Valorization (iii), such as the structure of markets, or cultural norms (Bateman et al 2011). As such, Valorization represents the demand side of ecosystem services at an aggregate level and the contextual conditions that lead Goods to be of more or less interest and/or use to society in general.…”

“…Ecological Stocks, Flows, Goods, and Value (a-d) generally reflect the cascade model used for ecosystem service valuation (de Groot et al 2010, Bateman et al 2011 and are aggregate quantities. In contrast to the cascade model, Value (an aggregate quality) is not the final outcome, but is further mediated by Share and Well-being Contribution that focus on who accesses Value and how it contributes to their well-being (Coulthard et al 2011, Daw et al 2011.…”