Placing a monetary value on nature conservation and ecosystems
Placing a monetary value on nature conservation and ecosystems Earth.com
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Rethinking biodiversity valuation
Scientists have introduced an innovative method for quantifying the value and long-term benefits of ecosystem biodiversity and nature conservation. A new study suggests that this new approach could transform how governments approach the economic assessment of public infrastructure projects.
This new approach seeks to quantify the loss of animal and plant species, along with ecosystem services– such as air and water filtration, crop pollination, and recreational value — in monetary terms. Its aim is to bring the importance of biodiversity loss and nature conservation to the forefront of political decision-making.
Valuing ecosystems over time
This approach acknowledges two pivotal factors. Firstly, global income and prosperity are anticipated to grow by an estimated 2% per year after inflation adjustments, increasing the willingness to pay for nature conservation. Secondly, as ecosystem services become rarer, their value surges — a fundamental economic principle that also applies to the conservation sector.
“On the other hand, the services provided by ecosystems will become more valuable the scarcer they become”, said Professor Drupp.
Economic principles behind the new approach
The researchers advocate for a significant upward revision of the current monetary values assigned to ecosystem services in cost-benefit analyses.
They propose an increase by more than 130% when considering income rise alone, and over 180% when also factoring in the impact on endangered species listed on the Red List Index. This recalibration could greatly increase the likelihood of conservation projects passing cost-benefit evaluations.
Implications for policy and decision-making
“The monetary values for the environment that are currently used by policy makers in the appraisal of public investments and regulatory change mean that nature becomes relatively less valuable over time compared to other goods and services,” said Professor Groom.
“Our work shows this is wrong. We propose an uplift in the values of ecosystems over time. This proposal could easily be deployed in the Treasury’s analysis that will underpin future Budget statements.”
Impact of placing a monetary value on ecosystems
Echoing the significance of this work, Professor Freeman emphasizes the need for consistent evaluation of ecosystem protection alongside other public projects.
“The government is under considerable pressure from many sides for additional public investment. Ensuring that the protection of ecosystems is appraised in a way that is consistent with other public projects, including HS2 and other infrastructure spending, is critical. This is what our work aims to achieve,” Freeman expounded.
In summary, this compelling study challenges the traditional methods of valuing biodiversity and ecosystem services and offers a solution that could revolutionize environmental policy and conservation efforts worldwide.
By introducing a formula that accounts for the rising value of nature in tandem with human income and the scarcity of ecosystem services, the researchers provide governments and policymakers with a powerful tool to make informed decisions that reflect the true worth of our natural world.
This approach underscores the importance of preserving biodiversity for future generations while offering a path towards a more sustainable and economically inclusive approach to managing our planet’s precious resources.
The full study was published in the journal Science.
SDGs, Targets, and Indicators
| SDGs | Targets | Indicators |
|---|---|---|
| SDG 15: Life on Land | Target 15.1: By 2020, ensure the conservation, restoration, and sustainable use of terrestrial and inland freshwater ecosystems and their services, in particular forests, wetlands, mountains, and drylands, in line with obligations under international agreements. | Indicator 15.1.2: Proportion of important sites for terrestrial and freshwater biodiversity that are covered by protected areas, by ecosystem type |
| SDG 15: Life on Land | Target 15.9: By 2020, integrate ecosystem and biodiversity values into national and local planning, development processes, poverty reduction strategies, and accounts. | Indicator 15.9.1: Progress towards national targets established in accordance with Aichi Biodiversity Target 2 of the Strategic Plan for Biodiversity 2011-2020 |
| SDG 15: Life on Land | Target 15.b: Mobilize significant resources from all sources and at all levels to finance sustainable forest management and provide adequate incentives to developing countries to advance such management, including for conservation and reforestation. | Indicator 15.b.1: Official development assistance and public expenditure on conservation and sustainable use of biodiversity and ecosystems |
| SDG 8: Decent Work and Economic Growth | Target 8.4: Improve progressively, through 2030, global resource efficiency in consumption and production and endeavor to decouple economic growth from environmental degradation, in accordance with the 10-year framework of programs on sustainable consumption and production, with developed countries taking the lead. | Indicator 8.4.1: Material footprint, material footprint per capita, and material footprint per GDP |
1. Which SDGs are addressed or connected to the issues highlighted in the article?
SDG 15: Life on Land
The article addresses the issue of valuing biodiversity and ecosystem services, which is directly connected to SDG 15: Life on Land. This goal aims to ensure the conservation, restoration, and sustainable use of terrestrial ecosystems and their services.
2. What specific targets under those SDGs can be identified based on the article’s content?
Target 15.1: By 2020, ensure the conservation, restoration, and sustainable use of terrestrial and inland freshwater ecosystems and their services, in particular forests, wetlands, mountains, and drylands, in line with obligations under international agreements.
The article highlights the need to quantify the loss of animal and plant species, as well as ecosystem services such as air and water filtration, crop pollination, and recreational value. By valuing these services in monetary terms, it emphasizes the importance of conserving and sustaining these ecosystems.
Target 15.9: By 2020, integrate ecosystem and biodiversity values into national and local planning, development processes, poverty reduction strategies, and accounts.
The proposed method for quantifying the value of ecosystem services aims to integrate ecosystem and biodiversity values into decision-making processes, including national and local planning, development processes, and accounts.
Target 15.b: Mobilize significant resources from all sources and at all levels to finance sustainable forest management and provide adequate incentives to developing countries to advance such management, including for conservation and reforestation.
By assigning monetary values to ecosystem services, the researchers propose an increase in the values of ecosystems over time. This recalibration could potentially increase the likelihood of conservation projects passing cost-benefit evaluations, thereby mobilizing resources for sustainable forest management and conservation efforts.
Target 8.4: Improve progressively, through 2030, global resource efficiency in consumption and production and endeavor to decouple economic growth from environmental degradation, in accordance with the 10-year framework of programs on sustainable consumption and production, with developed countries taking the lead.
While not directly related to SDG 15, the article’s focus on valuing ecosystem services and incorporating them into economic assessments aligns with the broader goal of improving resource efficiency and decoupling economic growth from environmental degradation.
3. Are there any indicators mentioned or implied in the article that can be used to measure progress towards the identified targets?
The article does not explicitly mention any indicators. However, based on the identified targets, the following indicators can be used to measure progress:
Indicator 15.1.2: Proportion of important sites for terrestrial and freshwater biodiversity that are covered by protected areas, by ecosystem type
This indicator can measure the progress in conserving and protecting important sites for biodiversity, which is essential for ensuring the sustainable use of terrestrial ecosystems and their services.
Indicator 15.9.1: Progress towards national targets established in accordance with Aichi Biodiversity Target 2 of the Strategic Plan for Biodiversity 2011-2020
This indicator can measure the progress in integrating ecosystem and biodiversity values into national and local planning, development processes, poverty reduction strategies, and accounts.
Indicator 15.b.1: Official development assistance and public expenditure on conservation and sustainable use of biodiversity and ecosystems
This indicator can measure the mobilization of resources from all sources and at all levels to finance sustainable forest management and provide incentives for conservation and reforestation.
Indicator 8.4.1: Material footprint, material footprint per capita, and material footprint per GDP
While not directly mentioned in the article, this indicator can measure progress in improving resource efficiency and decoupling economic growth from environmental degradation.
Overall, the article provides insights and proposals that align with the targets and indicators of SDG 15: Life on Land and SDG 8: Decent Work and Economic Growth, highlighting the importance of valuing biodiversity and ecosystem services in decision-making processes and sustainable development efforts.
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Source: earth.com
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