The Carbon Capture Report Valuation of Ecosystem Services Essentials, Section 2Valuation of Ecosystem Services This section defines and explains some important concepts related to how economists approach ecosystem valuation. Ecosystem valuation can be a difficult and controversial task, and economists have often been criticized for trying to put a “pricetag” on nature. In order to understand how economists approach ecosystem valuation, it is useful to review some important definitions and concepts. Ecosystem Functions and ServicesEcosystem functions are the physical, chemical, and biological processes or attributes that contribute to the self-maintenance of an ecosystem; in other words, what the ecosystem does. Ecosystem services are the beneficial outcomes, for the natural environment or people, that result from ecosystem functions. Some Factors that Complicate Ecosystem Management Decisions Ecosystem services are often public goods, which means that they may be enjoyed by any number of people without affecting other peoples’ enjoyment.
Environmental economics Sub-field of economics Environmental economics is a sub-field of economics concerned with environmental issues.[1] It has become a widely studied subject due to growing environmental concerns in the twenty-first century. Environmental economics "undertakes theoretical or empirical studies of the economic effects of national or local environmental policies around the world. ... Environmental economics is distinguished from ecological economics in that ecological economics emphasizes the economy as a subsystem of the ecosystem with its focus upon preserving natural capital.[3] One survey of German economists found that ecological and environmental economics are different schools of economic thought, with ecological economists emphasizing "strong" sustainability and rejecting the proposition that human-made ("physical") capital can substitute for natural capital.[4] History[edit] Topics and concepts[edit] Market failure[edit] Externality[edit] Common goods and public goods[edit] Valuation[edit]
Watershed Markets Ecuador –FONAG Water Conservation Fund in Quito - watershed protection contracts & land acquisition Summary Maturity of the initiative Active in 2011. Driver NGO, The Nature Conservancy (TNC) and government were interested in increasing the funds available for management of the Cayambe - Coca and Antisana reserves in order to safeguard the hydrological environmental services provided by the reserves, on which Quito’s water supply depends. Stakeholders Supply Public reserve inhabited by local communities (sellers). Demand Pooled demand from various users. Intermediary Intermediation is done through a trust fund made up of several stakeholders involved. Facilitators The initiative was kick-started by TNC, an international NGO and the local municipality; recently SDC has also begun supporting the initiative. Market design Service Water quality and quantity, although particular interests could vary according to the different water users. Commodity Payment mechanism Total seed capital US$21,000. Economic
Environmental News Network -- Know Your Environment Ecosystem Services and Economics UNEP’s work on Ecosystem Services Economics (ESE) aims to support its effort in building capacity of stakeholders to generate scientifically credible information required for integrating an ecosystem service approach into national economic and development frameworks. The ESE work is geared towards developing a knowledge base as well as promoting understanding on how ecosystems and services they provide relate to human well-being and development. The three main areas of focus are: Economic Valuation and Natural Wealth Equity in Ecosystem Management Disaster Risk Management UNEP’s work on ESE is in line with the global strategy for the follow-up to the Millennium Ecosystem Assessment (MA) of 2005. The MA follow-up was developed by a group of interested partner organisations to address the remaining challenges highlighted by independent evaluations of the MA. Economic Valuation and Natural Wealth World Wealth Report UNDP-Spain MDG Achievement Project (Senegal) Ecotaxation Project in Senegal
Natural capital Remarks from 1937 by FDR on "natural capital" and "balancing the budget of our resources" §History of the concept[edit] Natural capital is one approach to ecosystem valuation which revolves around the idea, in contrast to traditional economics, that non-human life produces essential resources. Thus, ecological health is essential to the sustainability of the economy. In Natural Capitalism: Creating the Next Industrial Revolution[2] the author claims that the global economy is within a larger economy of natural resources and ecosystem services that sustain us. In a traditional economic analysis of the factors of production, natural capital would usually be classified as "land" distinct from traditional "capital". The term 'natural capital' was first used by in 1973 by E.F. Within the international community, the basic principle is not controversial, but there is significant controversy over methods of valuing different aspects of ecological health and natural capital. §See also[edit]
Watershed Markets Terretv - La télé web des générations futures Ecosystem services - Detailed guidance Overview The UK National Ecosystem Assessment provided the first analysis of the UK’s natural environment in terms of the benefits it provides to society and our continuing economic prosperity. Its findings indicate that ecosystems and ecosystem services, and the ways people benefit from them, have changed markedly in the past 60 years, driven by changes in society. It also cites that the UK’s ecosystems are delivering some services well, but others are still in long-term decline. Research is underway to investigate the mix of future actions likely to secure the most benefits for nature and for people from our ecosystems. Using an ecosystems approach An ecosystems approach provides a framework for looking at whole ecosystems in decision making, and for valuing the ecosystem services they provide, to ensure that society can maintain a healthy and resilient natural environment now and for future generations. Valuing ecosystem services An introductory guide to valuing ecosystem services
Wild Wealth, a new documentary of biodiversity In a joint collaboration, National Geographic and the IDB produce a film on five regions Share the video - Sign up to watch the sneak preview on June 20 Follow us in #BioBID Wild Wealth, a documentary that depicts the wealth of biodiversity in Latin America and the Caribbean in images not previously seen, will be previewed at the Rio+20 United Nations Conference on Sustainable Development on June 20, in Rio de Janeiro, Brazil. Financed by the Inter-American Development Bank (IDB), the documentary was produced by National Geographic film crews who traveled from the Andes to the Amazon to tell five stories that illustrate the need to protect the region’s natural resources. With striking images, the film shows why Latin America and the Caribbean is considered a biodiversity superpower. Six of the world’s 10 most biodiverse countries are in the region, which is home to 33 percent of the world’s mammals, 35 percent of reptiles, and half of tropical forests.
An ecosystem services framework to support both practical conservation and economic development Author Affiliations Edited by Gretchen C. Daily, Stanford University, Stanford, CA, and approved February 8, 2008 (received for review October 5, 2007) A correction has been published Abstract The core idea of the Millennium Ecosystem Assessment is that the human condition is tightly linked to environmental condition. Poverty and environmental problems are both children of the same mother, and that mother is ignorance. The Millennium Ecosystem Assessment (MA) contains a compelling argument that human well-being depends on the services provided by nature, and that these services have recently become so imperiled that we can expect negative feedbacks to people (1). Although the MA was a bold contribution that exposed huge gaps in the science of ecosystem services, the reality is that both the conservation and economic development communities have embraced ecosystem services for at least a decade, without explicitly labeling them as such. Fig. 1. Fig. 2. Fig. 3. Table 1. The Quito Water Fund.
Environmental Research Future Scenarios in Ecosystem Services | Blog Last week, I officially became an urban beekeeper. Hovering over my hive, I think a lot about pollination and how many more melons and nectarines I might get this year because of my bees. Pollination, fertile topsoil, a predictable climate—free services provided by the natural infrastructure all around us—are collectively known as “ecosystem services.” Today, I’m not the only one tracking this concept. BSR’s newest report chronicles the exploration of ecosystem services within government, business, and financial services, and takes a closer look at how businesses are engaging with the topic. Rather than go into the details of the report, I thought it would be more interesting to look forward in time to think about what could happen if ecosystem services becomes ingrained into the way we think about the environment. The financial services community gets serious about ecosystem services. Ecosystem goods and services “end states” go viral. Occupy Wall Street meets Earth First!