The value of the world's ecosystem services and natural capital
TL;DR: In this paper, the authors have estimated the current economic value of 17 ecosystem services for 16 biomes, based on published studies and a few original calculations, for the entire biosphere, the value (most of which is outside the market) is estimated to be in the range of US$16-54 trillion (10^(12)) per year, with an average of US $33 trillion per year.
Abstract: The services of ecological systems and the natural capital stocks that produce them are critical to the functioning of the Earth's life-support system. They contribute to human welfare, both directly and indirectly, and therefore represent part of the total economic value of the planet. We have estimated the current economic value of 17 ecosystem services for 16 biomes, based on published studies and a few original calculations. For the entire biosphere, the value (most of which is outside the market) is estimated to be in the range of US$16-54 trillion (10^(12)) per year, with an average of US$33 trillion per year. Because of the nature of the uncertainties, this must be considered a minimum estimate. Global gross national product total is around US$18 trillion per year.
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TL;DR: In this article, sustainable business models (SBM) incorporate a triple bottom line approach and consider a wide range of stakeholder interests, including environment and society, to drive and implement corporate innovation for sustainability, can help embed sustainability into business purpose and processes, and serve as a key driver of competitive advantage.
2,360 citations
TL;DR: Michael W. Beck, Kenneth L. Heck, Jr., Kenneth W. Heck's son, and Peter F. Sheridan are among the authors of this book, which aims to provide a history of web exceptionalism from 1989 to 2002.
Abstract: Michael W. Beck, Kenneth L. Heck, Jr., Kenneth W. Able, Daniel L. Childers, David B. Eggleston, Bronwyn M. Gillanders, Benjamin Halpern, Cynthia G. Hays, Kaho Hoshino, Thomas J. Minello, Robert J. Orth, Peter F. Sheridan and Michael P. Weinstein
2,356 citations
TL;DR: In this paper, the authors identify key areas of uncertainty and specific actions needed to address them and identify the value of mangrove forests, seagrass beds, and salt marshes in sequestering carbon dioxide.
Abstract: Recent research has highlighted the valuable role that coastal and marine ecosystems play in sequestering carbon dioxide (CO(2)). The carbon (C) sequestered in vegetated coastal ecosystems, specifically mangrove forests, seagrass beds, and salt marshes, has been termed blue carbon. Although their global area is one to two orders of magnitude smaller than that of terrestrial forests, the contribution of vegetated coastal habitats per unit area to long-term C sequestration is much greater, in part because of their efficiency in trapping suspended matter and associated organic C during tidal inundation. Despite the value of mangrove forests, seagrass beds, and salt marshes in sequestering C, and the other goods and services they provide, these systems are being lost at critical rates and action is urgently needed to prevent further degradation and loss. Recognition of the C sequestration value of vegetated coastal ecosystems provides a strong argument for their protection and restoration; however, it is necessary to improve scientific understanding of the underlying mechanisms that control C sequestration in these ecosystems. Here, we identify key areas of uncertainty and specific actions needed to address them.
2,313 citations
Cites background from "The value of the world's ecosystem ..."
...7–7% of their area annually (Costanza et al. 1997; Valiela et al. 2001; Alongi 2002; Duarte et al. 2005a; Bridgham et al. 2006; FAO 2007; Duarte et al. 2008; Waycott et al. 2009; Spalding et al. 2010)....
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...…(since 1980s) ~0.7–3% Valiela et al. (2001); 30–50% Alongi (2002); FAO (2007); (since 1940s) Spalding et al. (2010) Seagrasses 50% (since 1990s) ~7% Costanza et al. (1997); Duarte et al. (2005a); Waycott et al. (2009) Salt marshes 25% (since 1800s) 1–2% Bridgham et al. (2006); Duarte et al.…...
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TL;DR: In this paper, the authors assessed the economic consequences of pollinator decline by measuring the contribution of insect pollination to the world agricultural output economic value, and the vulnerability of world agriculture in the face of the decline of pollinators.
2,270 citations
TL;DR: The relationship between temperature and individual performance is reasonably well understood, and much climate-related research has focused on potential shifts in distribution and abundance driven directly by temperature as discussed by the authors, however, recent work has revealed that both abiotic changes and biological responses in the ocean will be substantially more complex.
Abstract: Anthropogenically induced global climate change has profound implications for marine ecosystems and the economic and social systems that depend upon them. The relationship between temperature and individual performance is reasonably well understood, and much climate-related research has focused on potential shifts in distribution and abundance driven directly by temperature. However, recent work has revealed that both abiotic changes and biological responses in the ocean will be substantially more complex. For example, changes in ocean chemistry may be more important than changes in temperature for the performance and survival of many organisms. Ocean circulation, which drives larval transport, will also change, with important consequences for population dynamics. Furthermore, climatic impacts on one or a few 'leverage species' may result in sweeping community-level changes. Finally, synergistic effects between climate and other anthropogenic variables, particularly fishing pressure, will likely exacerbate climate-induced changes. Efforts to manage and conserve living marine systems in the face of climate change will require improvements to the existing predictive framework. Key directions for future research include identifying key demographic transitions that influence population dynamics, predicting changes in the community-level impacts of ecologically dominant species, incorporating populations' ability to evolve (adapt), and understanding the scales over which climate will change and living systems will respond.
2,137 citations
References
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Book•
01 Mar 1989
TL;DR: Mitchell and Carson as discussed by the authors argue that at this time the contingent valuation (CV) method offers the most promising approach for determining public willingness to pay for many public goods, an approach likely to succeed, if used carefully, where other methods may fail.
Abstract: Economists and others have long believed that by balancing the costs of such public goods as air quality and wilderness areas against their benefits, informed policy choices can be made. But the problem of putting a dollar value on cleaner air or water and other goods not sold in the marketplace has been a major stumbling block. Mitchell and Carson, for reasons presented in this book, argue that at this time the contingent valuation (CV) method offers the most promising approach for determining public willingness to pay for many public goods---an approach likely to succeed, if used carefully, where other methods may fail. The result of ten years of research by the authors aimed at assessing how surveys might best be used to value public goods validly and reliably, this book makes a major contribution to what constitutes best practice in CV surveys.
Mitchell and Carson begin by introducing the contingent valuation method, describing how it works and the nature of the benefits it can be used to measure, comparing it to other methods for measuring benefits, and examining the data-gathering technique on which it is based---survey research. Placing contingent valuation in the larger context of welfare theory, the authors examine how the CV method impels a deeper understanding of willingness-to-pay versus willingness-to-accept compensation measures, the possibility of existence values for public goods, the role of uncertainty in benefit valuation, and the question of whether a consumer goods market or a political goods market (referenda) should be emulated. In developing a CV methodology, the authors deal with issues of broader significance to survey research. Their model of respondent error is relevant to current efforts to frame a theory of response behavior and bias typology will interest those considering the cognitive aspects of answering survey questions.
Mitchell and Carson conclude that the contingent valuation method can obtain valid valuation information on public goods, but only if the method is applied in a way that addresses the potential sources of error and bias. They end their book by providing guidelines for CV practitioners, a list of questions that should be asked by any decision maker who wishes to use the findings of a CV study, and suggestions for new applications of contingent valuation. Additional features include a comprehensive bibliography of the CV literature and an appendix summarizing more than 100 CV studies.
5,546 citations
"The value of the world's ecosystem ..." refers background in this paper
...(9) We have not incorporated the ‘infrastructure’ value of ecosystems, as noted above, leading to an underestimation of the total value....
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TL;DR: Nature's Services brings together world-renowned scientists from a variety of disciplines to examine the character and value of ecosystem services, the damage that has been done to them, and the consequent implications for human society.
Abstract: Life itself as well as the entire human economy depends on goods and services provided by earth's natural systems. The processes of cleansing, recycling, and renewal, along with goods such as seafood, forage, and timber, are worth many trillions of dollars annually, and nothing could live without them. Yet growing human impacts on the environment are profoundly disrupting the functioning of natural systems and imperiling the delivery of these services.Nature's Services brings together world-renowned scientists from a variety of disciplines to examine the character and value of ecosystem services, the damage that has been done to them, and the consequent implications for human society. Contributors including Paul R. Ehrlich, Donald Kennedy, Pamela A. Matson, Robert Costanza, Gary Paul Nabhan, Jane Lubchenco, Sandra Postel, and Norman Myers present a detailed synthesis of our current understanding of a suite of ecosystem services and a preliminary assessment of their economic value. Chapters consider: major services including climate regulation, soil fertility, pollination, and pest control philosophical and economic issues of valuation case studies of specific ecosystems and services implication of recent findings and steps that must be taken to address the most pressing concerns Nature's Services represents one of the first efforts by scientists to provide an overview of the many benefits and services that nature offers to people and the extent to which we are all vitally dependent on those services. The book enhances our understanding of the value of the natural systems that surround us and can play an essential role in encouraging greater efforts to protect the earth's basic life-support systems before it is too late. -- publisher's description
3,601 citations
Book•
01 Jan 1989
TL;DR: In this article, the authors argue that the scale of human activity in the biosphere has grown too large and that change is needed in the approach to economic activity: "correction and expansion a more empirical and historical attitude less pretense on being science and willingness to subordinate the market to purposes that it is not geared to determine."
Abstract: The scale of human activity in the biosphere has grown too large. The perspective is that change is needed in the approach to economic activity: "correction and expansion a more empirical and historical attitude less pretense on being science and willingness to subordinate the market to purposes that it is not geared to determine." The economic proposal is concerned with the extent to which the economy supports healthy communities; it is related to the 19th-century Roman Catholic economic theory of Pesch. It is critical of contemporary economics and reflects the concerns of an economist and a theologian. The 4 parts to the books differentiate between the present state of economics as a deductive science and the consequences for the market measures of success homoeconomicus and the land in Part I and an alternative approach in Part II. The alternative is not to shape economics to science but to the realities of the world with the idea that better abstractions will evolve. Part III addresses policies in the US and their implications. Part IV pertains to the attainment of the objectives in an alternative economy. The vision is participatory and sustainable. The appendix provides an index of sustainable welfare between 1950-86 annually which includes net capital growth foreign versus domestic capital and environmental damage; there are 24 separate measures to show how to improve welfare. The caveats and limitations are also discussed. Also included for 1950-86 annually is an index of income inequality the value of services and highways public expenditures on health and education counted as personal consumption defensive private expenditures on health and education the cost of commuting the cost of urbanization the cost of air pollution the loss of agricultural land energy consumption as a measure of longterm environmental damage and net capital growth. The results show that the true health of the economy is discouraging. The generalized income measure/capita increased .84%/year between 1951-60 increased 2.01% between 1960-70 or .50% slower than the gross national product growth for the same period declined .14% between 1970-80 and declined 1.26% during the 1980s. This pattern is stable even with the exclusion of resource depletion and environmental damage.
1,715 citations
TL;DR: In this paper, the mean of reported annual world fisheries catches for 1988-1991 (94.3 million t) was split into 39 species groups, to which fractional trophic levels, ranging from 1.0 (edible algae) to 4.2 (tunas), were assigned, based on 48 published Trophic models, providing a global coverage of six major aquatic ecosystem types.
Abstract: THE mean of reported annual world fisheries catches for 1988-1991 (94.3 million t) was split into 39 species groups, to which fractional trophic levels, ranging from 1.0 (edible algae) to 4.2 (tunas), were assigned, based on 48 published trophic models, providing a global coverage of six major aquatic ecosystem types. The primary production required to sustain each group of species was then computed based on a mean energy transfer efficiency between trophic levels of 10%, a value that was reestimated rather than assumed. The primary production required to sustain the reported catches, plus 27 million t of discarded bycatch, amounted to 8.0% of global aquatic primary production, nearly four times the previous estimate. By ecosystem type, the requirements were only 2% for open ocean systems, but ranged from 24 to 35% in fresh water, upwelling and shelf systems, justifying current concerns for sustainability and biodiversity.
1,590 citations
TL;DR: In this paper, a minimum necessary condition for sustainability is the maintenance of the total natural capital stock at or above the current level, to be relaxed only when solid evidence can be offered that it is safe to do so.
Abstract: A minimum necessary condition for sustainability is the maintenance of the total natural capital stock at or above the current level. While a lower stock of natural capital may be sustainable, society can allow no further decline in natural capital given the large uncertainty and the dire consequences of guessing wrong. This “constancy of total natural capital” rule can thus be seen as a prudent minimum condition for assuring sustainability, to be relaxed only when solid evidence can be offered that it is safe to do so.
We discuss methodological issues concerning the degree of substitutability of manufactured for natural capital, quantifying ecosystem services and natural capital, and the role of the discount rate in valuing natural capital. We differentiate the concepts of growth (material increase in size) and development (improvement in organization without size change). Given these definitions, growth cannot the sustainable indefinitely on a finite planet. Development may be sustainable, but even this aspect of change may have some limits. One problem is that current measures of economic well-being at the macro level (i.e., the Gross National Product) measure mainly growth, or at best conflate growth and development. This urgently requires revision.
Finally, we suggest some principles of sustainable development and describe why maintaining natural capital stocks is a prudent and achievable policy for insuring sustainable development. There is disagreement between technological optimists (who see technical progress as eliminating all resource constraints to growth and development) and technological skeptics (who do not see as much scope for this approach and fear irreversible use of resources and damage to natural capital). By maintaining natural capital stocks (preferably by using a natural capital depletion tax), we can satisfy both the skeptics (since resources will be conserved for future generations) and the optimists (since this will raise the price of natural capital depletion and more rapidly induce the technical change they predict).
1,510 citations
Additional excerpts
...(7) To avoid double counting, a general equilibrium framework that could directly incorporate the interdependence between ecosystem functions and services would be preferred to the partial equilibrium framework used in this study (see below)....
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