Valuation of Ecological Resources and Functions

Abstract

/ Ecological resources are natural resources that provide certain necessary but overlooked system maintenance functions within ecosystems. Environmental economics is in search of an appropriate analysis framework to determine economic values of such resources. This paper presents a framework that estimates and compiles the components of value for a natural ecosystem. The framework begins with the ecological processes involved, which provide functions within the ecosystem and services valued by humans. We discuss the additive or competive nature of these values, and estimate these values through conventional and unconventional techniques. We apply the framework to ecological resources in a shrub-steppe dryland habitat being displaced by development. We first determine which functions and services are mutually exclusive (e.g., farming vs soil stabilization) and which are complementary or products of joint production (e.g., soil stabilization and maintenance of species). We then apply benefit transfer principles with contingent valuation methodology (CVM), travel cost methodology (TCM), and hedonic damage pricing (HDP). Finally, we derive upper-limit values for more difficult-to-value functions through the use of human analogs, which we argue are the most appropriate method of valuation under some circumstances. The highest values of natural shrub-steppe habitat appear to be derived from soil stabilization.KEY WORDS: Natural resource economics; Ecological economics; Ecological resources; Shrub-steppe; Environmental valuation; Cost; Benefit; Value

Identifying and prioritising services in European terrestrial and freshwater ecosystems

“…Mudelsee et al 2003). Well managed grassland and heathland/shrubland ecosystems were ranked as providing some contribution to erosion (Boeken and Orenstein 2001;Rodriguez et al 2006) and natural hazard regulation (Scott et al 1998) under particular conditions like steep slopes (Quétier et al 2007). …”

Natural resource valuation: A primer on concepts and techniques

“…Example 2: Appraisal Method Scott et al (1997) estimated the "fair market value" associated with shrub-steppe conversions based on sample data from Benton-Franklin Counties of eastern Washington State. The data were obtained from the Benton County Assessor's Office and represent sales transactions in Benton County involving 7700 acres during the 1993-1994 calendar year.…”

Eco-compensation and harmonious regional development in China

“…In China, harmonious regional development has been problematic for researchers, government officials, and the public (Lu and Liu, 2002;Lu and Fan, 2012), as it is not confined to harmonious development between regions, but also refers to harmonious relationships between economic development and the sustainable exploitation of ecological resources (Scott et al, 1998;Mäler, 2000;Yang, 2004;Straton, 2006;Fan, 2007;Sun, 2007). Especially in the 21st century, we face the challenge of dramatically transforming the way we view and interact with our eco-resource systems.…”