Insurance Value of Ecosystems: An Introduction

Primmer, Eeva; Paavola, Jouni

doi:10.1016/j.ecolecon.2021.107001

Cited by 12 publications

(4 citation statements)

References 35 publications

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“…One way to see the critical role of biodiversity to the economy is by noting its role in reducing uncertainty as regards the material contributions nature offers to people and on which economies largely depend upon, such stability for food security 6,31 . The variability of species and the genetic variation within those species enables ecosystems to respond to change, acting as a form of natural insurance 32 or as a diverse portfolio that spreads risk, especially in the context of increased risks due to climate change 33 .…”

Section: Learning From Other Sectorsmentioning

confidence: 99%

Towards a multidimensional biodiversity index for national application

et al. 2021

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The lack of urgent action and progress to reverse biodiversity loss is partly due to the complex nature of biodiversity as a feature of our planet, and subsequently the often-confusing variety of narratives that policy makers receive on why biodiversity matters. This complexity makes it difficult to derive a clear link between biodiversity loss and associated risks to our societies in their attainment of the SDGs. Addressing this challenge calls for a more pluralistic and multidimensional perspective on biodiversity to reassess what we value, facilitate mainstreaming and support decision making. We propose a Multidimensional Biodiversity Index as a 'biodiversity lens' for multifaceted policy decisions on sustainability, where biodiversity is valued for its own sake and in relation to human wellbeing.Biodiversity and human development are intrinsically linked (Box 1) [1][2][3][4][5][6] ; people rely on biodiversity and its derived contributions to wellbeing in different ways, while development often negatively impacts biodiversity directly, and indirectly via the promotion of a narrow set of values in society towards living nature 7 . Effective policy interventions for biodiversity conservation and management ought to be inextricably linked to any socio-economic development agenda, so that biodiversity-related risks are no longer undervalued in policy-and decision-making. Without such a coupled approach, different types of biodiversity knowledge cannot meaningfully inform decisions aiming to achieve dual goals on enhancing ecological integrity and improving human wellbeing.In a world where damaged ecosystems already negatively impact 3.2 billion people 8 , one million animal and plant species are threatened with extinction 1 , and where the global human population is already exposed to global disease outbreaks 9 and is currently in a pandemic era 10 , we need ways to

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Section: Learning From Other Sectorsmentioning

confidence: 99%

Towards a multidimensional biodiversity index for national application

et al. 2021

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“…Similar to the framework in Saha et al (1997), we model the farmer's optimal decision. This allows us to explore the effect of risk preferences through utility specification and to consider the insurance value of the NBS, defined as the value given to NBSs to capture their risk-mitigation function (Primmer & Paavola, 2021). The farmer's decision module assumes the maximization of the expected utility (Gollier, 2004):…”

Section: Theoretical Modelmentioning

confidence: 99%

Evaluating the efficient use of ecosystem processes for agricultural production: an empirical analysis of the implementation of a nature-based solution in intensive crop systems

Faure,

Gaba,

Perrot

et al. 2024

Preprint

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Nature-based solutions (NBSs) can ensure food production while providing environmental benefits, but there is little scientific knowledge about their economically efficient use. This study fills this gap by investigating NBSs in an agricultural production model calibrated on empirical data. We propose an original framework based on the framework in Saha et al. (1997), to which we add an explicit model of ecological dynamics. We then apply this amended framework to a case study in France and combine unique ecological, agronomic, psychological, and economic data to estimate and simulate NBS efficiency. We study a form of NBS – the preservation and restoration of semi-natural habitats (SNHs) – and show that the optimal landscape coverage is 17.5%, twice the extent of the current coverage at the study site. Our study supports the rate recommended in existing ecology-based studies and goes further by introducing new productivity-based arguments. We also show that SNH efficiency conditions are shaped by risk preferences and the number of ecosystem services under consideration. The total value of SNHs is twice lower when risk preferences are not considered and four times higher when multiple ecosystem services are modeled. The study opens new avenues to include NBSs in the traditional agricultural economics frameworks and warns about the importance of choices in the modeling process.

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“…In terms of the valuation of ecosystem services, apart from the use values related to the provisioning, regulating, and cultural services, the maintenance of microbiota also has an option value by keeping open the possibility of a future benefit from microbial communities [253,254], be it in the form of provisioning, regulating, or cultural services. Furthermore, microbiota in vineyards also offer an insurance value in terms of an increase in ecosystem resilience, which serves as a safety net against global change, protecting humans and ecosystems from potential welfare losses [255][256][257][258]. This insurance value reduces the likelihood of future declines in the supply of ecosystem services resulting from changes in microbial communities [255,259].…”

Section: Towards Smart Farming: Microbiota As a Nature-based Solution...mentioning

confidence: 99%

Microbiota Ecosystem Services in Vineyards and Wine: A Review

García-Izquierdo,

Colino-Rabanal,

Tamame

et al. 2024

Agronomy

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The domestication of vines started in Asia 11,000 years ago, although it was not until the 19th century that oenology was established as a scientific discipline thanks to the research of Louis Pasteur on the role of microorganisms in wine fermentation. At the present time, the progression in next-generation sequencing (NGS) technologies is helping to facilitate the identification of microbial dynamics during winemaking. These advancements have aided winemakers in gaining a more comprehensive understanding of the role of microbiota in the fermentation process, which, in turn, is ultimately responsible for the delivery of provisioning (wine features and its production), regulating (such as carbon storage by vineyards, regulation of soil quality, and biocontrol of pests and diseases) or cultural (such as aesthetic values of vineyard landscapes, scholarly enjoyment of wine, and a sense of belonging in wine-growing regions) ecosystem services. To our knowledge, this is the first review of the state of knowledge on the role of microbiota in the delivery of ecosystem services in the wine sector, as well as the possibility of valuing them in monetary terms by operating logic chains, such as those suggested by the SEEA-EA framework. This paper concludes with a review of management practices that may enhance the value of microbiota ecosystem services and the role of smart farming in this task.

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Insurance Value of Ecosystems: An Introduction

Cited by 12 publications

References 35 publications

Towards a multidimensional biodiversity index for national application

Towards a multidimensional biodiversity index for national application

Evaluating the efficient use of ecosystem processes for agricultural production: an empirical analysis of the implementation of a nature-based solution in intensive crop systems

Microbiota Ecosystem Services in Vineyards and Wine: A Review

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