Ecosystem valuation: some principles and a partial application

Authors

  • Sian Morse-Jones,

    Corresponding author
    1. The Centre for Social and Economic Research on the Global Environment (CSERGE), University of East Anglia, Norwich NR4 7TJ, UK
    • CSERGE, School of Environmental Sciences, University of East Anglia, ZICER Building, Norwich NR4 7TJ, U.K.
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  • Tiziana Luisetti,

    1. The Centre for Social and Economic Research on the Global Environment (CSERGE), University of East Anglia, Norwich NR4 7TJ, UK
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  • R. Kerry Turner,

    1. The Centre for Social and Economic Research on the Global Environment (CSERGE), University of East Anglia, Norwich NR4 7TJ, UK
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  • Brendan Fisher

    1. The Centre for Social and Economic Research on the Global Environment (CSERGE), University of East Anglia, Norwich NR4 7TJ, UK
    2. Program in Science, Technology and Environmental Policy, Woodrow Wilson School of Public and International Affairs, Princeton University, Princeton, NJ 08544, USA
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  • This article is published in Environmetrics as a special issue on Ecosystem Services, edited by M. Scott and R. Smith.

Abstract

Understanding the economic value of nature and the services it provides to humanity has become increasingly important for local, national and global policy, and decision-making. However, problems arise in that it is difficult to obtain meaningful values for goods and services that ecosystems provide which have no formal market, or are characteristically intangible. Additional problems occur when economic methods are applied inappropriately and when the importance of ecosystem maintenance for human welfare is underestimated. In this article, we provide clarification to practitioners on important considerations in ecosystem services valuation. We first review and adapt definitions of ecosystem services in order to make an operational link to valuation methods. We make a distinction between intermediate and final ecosystem services and also identify non-monetary ways to incorporate regulatory and support services into decision-making. We then discuss the spatially explicit nature of ecosystem service provision and benefits capture, and highlight the issues surrounding the valuing of marginal changes, nonlinearities in service benefits, and the significance of non-convexities (threshold effects). Finally, we argue for a sequential decision support system that can lead to a more integrated and rigorous approach to ecosystem valuation and illustrate some of its features in a coastal ecosystem management context. Copyright © 2011 John Wiley & Sons, Ltd.

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