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.
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We are grateful for comments from two anonymous referees, Sir Partha Dasgupta (Cambridge) and Karl-Göran Mäler (Beijer Institute) of the UK NEA Economics Advisory Board, Brett Day (UEA), Ed Barbier (Wyoming), Grischa Perino (UEA), Kirk Hamilton (World Bank), Jules Pretty (Essex) and all members of the wider UK NEA economics team, especially Nicola Beaumont (Plymouth); Katherine Bolt (RSPB); Brendan Fisher (Princeton); Nick Hanley (Stirling); Andreas Kontoleon (Cambridge); Pushpam Kumar (Liverpool); David Maddison (Birmingham); Dominic Moran (SAC); Joe Morris (Cranfield); Susana Mourato (LSE); Unai Pascual (Cambridge); Steve Polasky (Minnesota); Daan van Soest (Tilburg & VU Amsterdam); Gregory Valatin (Forestry Research, Scotland) and Bhaskar Vira (Cambridge). Opinions and remaining errors are the sole responsibility of the authors. The UK NEA is co-chaired by Defra’s Chief Scientific Adviser, Professor Robert Watson (previous Chair of the Millennium Ecosystem Assessment), and by Professor Steve Albon of the Macaulay Institute. UNEP-WCMC are the UK NEA secretariat from which we are grateful to Claire Brown for comments and Lucy Simpson and Megan Tierney for support.
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Bateman, I.J., Mace, G.M., Fezzi, C. et al. Economic Analysis for Ecosystem Service Assessments. Environ Resource Econ 48, 177–218 (2011). https://doi.org/10.1007/s10640-010-9418-x
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DOI: https://doi.org/10.1007/s10640-010-9418-x
Keywords
- Ecosystem services
- Economic valuation
- Stocks and flows
- Wellbeing
- Spatial and temporal issues
- Sustainability
- Irreversibility
- UK National Ecosystem Assessment (UK NEA)