One Ecosystem :
Research Article
|
Corresponding author: Maria Nijnik (maria.nijnik@hutton.ac.uk)
Academic editor: Stoyan Nedkov
Received: 30 Jun 2017 | Accepted: 15 Sep 2017 | Published: 09 Oct 2017
© 2017 Maria Nijnik, David Miller
This is an open access article distributed under the terms of the Creative Commons Attribution License (CC BY 4.0), which permits unrestricted use, distribution, and reproduction in any medium, provided the original author and source are credited.
Citation:
Nijnik M, Miller D (2017) Valuation of ecosystem services: paradox or Pandora’s box for decision-makers? One Ecosystem 2: e14808. https://doi.org/10.3897/oneeco.2.e14808
|
The valuation of ecosystem services (ES) employs a range of methods. Based on a literature review and selected empirical examples, we consider major opportunities and challenges in ecosystem services valuation. We analyse when different valuation methods are appropriate and most useful. We demonstrate that mechanisms to capture benefits and costs are needed; and that the use of valuation should be incorporated more widely in decision-making. However, we argue that ecosystems are complex systems: neither the ecosystems or the services that they provide are a sum, but are an interrelated system of components. If a component vanishes the whole system may collapse. Therefore, critical natural capital management, in particular, cannot rely on monetary values; whilst the maintanance of the whole system should be considered. Monetary valuation of biodiversity and landscapes is also problematic because of their uniqueness and distinctiveness, a shortage of robust primary valuations, and numerous complexities and uncertainties. We conclude that mixed method and deliberative discourse techniques, as well as proper integration of research tools, should be more widely applied to help decision-makers and the public to understand and assess changes in ES. The approaches developed and tested by us, as presented in this paper, can provide more complete, comprehensive and impartial insights into a range of benefits that humans derive from ecosystems.
Natural assets; public goods; forest; sustainability; non-monetary valuation; mixed methods; Scotland
Ecosystem services (ES) contribute to the generation of income and wellbeing, and to the prevention of damages that inflict costs on society. The latter is characteristic of certain ES that provide insurance, regulation and resilience functions. The understanding of mechanisms to capture the values of services provided by nature, and the costs of their possible depletion and degradation (potential losses), is growing (
Recently published reports have highlighted the growing costs of ecosystem degradation (
The report on the "...valuation of the economic and social contribution of forestry for people in Scotland" (
Defra’s Guide (
Overall, value concepts can be divided into ecological, socio-cultural and economic values (
The concept of total economic value, TEV, has become popular. TEV is equal to market value plus the consumer surplus, CS, i.e. the difference between what an individual is willing to pay for a good or service and what they actually pay. If a good has no market price, the consumer surplus represents the TEV. It is the total gain in well-being from a policy, which comprises use and non-use values of ES (
Key components of the Total Economic Value concept. Figure adapted from
As of the
[1] Direct use value is where individuals make actual or planned use of an ES.
[2] Indirect use value is where individuals benefit from ES supported by a resource, rather than by using it directly.
[3] Option value is the value that people place on having the option to use a resource in the future.
[4] Non-use value is the value that is derived from the knowledge that the natural environment is maintained. This comprises bequest value, altruistic value and existence value.
[5] Existence is the value individuals derive from the knowledge that an ecosystem resource exists, even though they have no current or planned use for it;
[6] Bequest value (an example of non-use value) is the value individuals attach to the fact that the resource will be available for use by future generations.
[7] Intrinsic value is the worth of a good or service for its own sake.
Despite recent advances in conceptualising ES valuation, and its importance in informing decision-making, the TEV concept has been criticised for using figures which are perceived as too abstract and indicative; while in reality, values are complex and dynamic (
Economic trade prices concern relative values in exchange, set by marginal units sold (
Overall, the complexity of ES and their ‘arrangements’ (ecosystem condition, size, or connectivity) pose problems for ES valuation (
Monetary values could be assessed using avoided-cost or replacement cost methods. However, effects of site-specific conditions and local scarcity means the value of ES generated at one locality can vary significantly from that at a different location. The value of services is also contingent on proximity to demand. An accessible landscape, for example, is worth more than the same landscape in a remote location with respect to use values. There is also an inherent variability in values across space, as a provided ES is spatially variable (e.g. the habitat of a rare species, or the potential for sequestering carbon). Also, ecosystem management could induce more ‘public bads’ (i.e. dis-benefits) in some areas compared to others. These arise e.g. from the visual intrusiveness of blocks of exotic conifers (
It is particularly difficult to place values on ES when dealing with jointly produced services, delivered and utilised as bundles, as pricing individual components can be difficult. ES are inter-related and affect each other, and some types of services contribute to others, leading to potential double counting; supporting services may contribute to regulating services, or regulating services could contribute to cultural ES (
Therefore, it is important to recognize the differences between valuation methods, including their strengths and limitations, and the range of their applicability at and across scales, to select the most appropriate approaches. In this paper, inspired by the UN SD Goals 2030 Agenda (
We firstly present an overview of conventional methods of ES valuation, paying attention to challenges of their application. Then, we introduce innovative, non-market evaluation techniques (in a convential type of research article, this section would be entitled 'Methods') and provide results from research on the use of the suggested techniques, at various scales of analysis. We conclude this article by discussing the applicability of valuation (vs. evaluation), and suggest ways forward for scientific research in the field and its practical 'on the ground' implementation.
There is a considerable variety of methods for valuing ES, with selected examples shown in Table
Examples of ES/goods |
Valuation method |
Value |
Provisioning services |
||
Food, fibre, timber, woody biomass for energy |
Market valuation |
Market prices |
Regulating services |
||
Carbon sequestration Climate regulation |
Cost-effectiveness Market valuation |
MAC (costs per tCO2) Market prices (if CO2 is traded) |
Erosion alleviation Shelter belts |
Replacement, relocation and avoided cost methods |
Avoided losses in yields or cost of increased yields |
Air quality |
Avoided cost methods |
Avoided losses |
Flood regulation |
Benefit transfer Relocation and avoided cost methods |
BT estimates Avoided losses |
Cultural services |
||
Recreation |
SP, e.g. CVM RP, i.e. travel cost method Indirect market valuation |
WTP values Travel cost estimates Market pricing |
Landscape beauty, aesthetics |
RP, hedonic pricing method SP, e.g. choice experiments |
HP values WTP values |
Health |
Indirect market valuation |
Changes-in-productivity Cost-of-illness estimates |
Supporting services |
||
Oxygen |
Replacement cost methods |
Cost of oxygen |
Soil formation and protection |
Avoided cost method |
Cost of purchasing top-soil from elsewhere |
Species diversity |
Indirect market valuation |
Donations for conservation |
Approaches using market values, but going beyond actual pricing, could be based on market prices of close substitutes, or shadow pricing. They could also be based on ‘changes-in-productivity’ or cost-of-illness considerations (a form of dose-response market analysis) (
Many ES enhance incomes: for instance, stand productivity improvements increase commercial timber produce, and therefore the profitability of the industry. Such ES can be valued using an indirect market valuation technique called the ‘factor income method’. Natural assets can be treated as inputs to the production of other goods, based on resource linkages and market analysis (i.e. the ‘production functions’ technique), or through ‘public pricing’ (i.e. public investment, such as land purchase or monetary incentives, as a surrogate for market transactions) (
Monetary (cost-assessing) approaches (for example, those used for comparing scenarios or management practices) are usually based on values of actual or potential expenditure, such as expenses in support of more sustained provision of ES. These approaches include cost-effectiveness; preventive expenditures (i.e. avoided cost method, AC*
Where regulatory standards are set externally, the challenge may be the estimation of the least cost solution to meet regulatory needs (
The overall CE of delivery mechanisms of ecosystem management depends upon identifying which parts of the programme contribute most to effectiveness (i.e. outcome delivery), then assessing which programme components have the lowest cost (
However, there is usually no optimal solution to the problems raised by the complexity of ES (
A key issue with several ES is that they are non-excludable: recipients receive the service regardless of whether they pay for it, and non-payment does not lead to exclusion. Many ES are also non-rival: any number of people can use a resource without leaving less for others. Provisioning ES (e.g. food, timber and other commodities) are usually highly excludable. Complex property rights and market supply-chains have evolved to connect producers and/or managers of such ES to their end consumers. Similarly, via market intermediaries, access to clean water is typically excludable. Prospective users who would not pay for an ES could be excluded from using some recreational and cultural services, such as club goods (e.g. using fences and controlled access points). However, this is not practical for other ES (e.g. biodiversity, clean air). Consequently, it is difficult to charge recipients of such services. Direct market exchange between providers and recipients fails (
Revealed preferences (RP) approaches are effective when dealing with ‘use values’ of ES (e.g. recreation), which are commonly assessed using travel cost (TC)*
Stated preference (SP) methods (
However, RP and SP methods are essentially an extension of market valuation, which aims to assign monetary measures to the components of TEV. The biases of SP have been extensively discussed in the literature (
Nevertheless, RP and SP can provide useful information to decision-makers. This is particularly true for SP and when a market is absent, for example where there are free public goods with zero prices (
Recently, benefit transfer (BT)*
Results of BT application provide some insights into the values of ES. However, BT values are largely abstract and indicative, and often rely on the availability of data and classifications developed for other purposes and not necessarily at an appropriate scale. For example, conservation decisions are often carried out at a detailed level, such as a land management unit, with limited reference to occurrences at landscape or higher levels (
Consideration of levels/scale (spatial and temporal, and the context of a valuation study) is important while valuing ES (
For example, an assessment of the climate regulation service provided by a new woodland in Scotland is carried out at a catchment scale. Maximization of ES of new woodlands is determined by prioritising their creation and design in areas and ways that strengthen habitat networks, whilst avoiding prime agricultural land and thus not compromising food production. However, services of significant values at a local level (e.g. of soil erosion prevention) can be overlooked at larger levels of valuation (
At regional to global scales, some ES can be approximated by simple links between ecosystem types and services, underpinned by general assumptions developed from information in the literature (
Furthermore, because many ES arise from complex processes, it is often difficult to determine which actions affect their provision and the identities of providers and beneficiaries (
Also, there could be trade-offs in the valuation of ES, for example in favouring direct benefits such as employment, versus supporting or regulating services. At a national level, the financial benefits of logging were greater than those of conservation (
For example, the approximate value of timber and non-timber forest products is €125 ha-1yr-1; whereas the value of carbon, water and soil protection ES of forest exceeds €170 ha-1yr-1 (
Furthermore, temporal scale is an important consideration (
The overview of relevant literature sources, provided in this section, shows the importance of advancing research methods, and making them more relevant (e.g. case- and context-specific), accessible and effective in offering meaningful information to different audiences, such as through guiding public understanding of the consequences of ES changes, and aiding decision-making. Decision support systems for participatory planning and knowledge transfer in ways that are understandable to different types of end-users need to be co-constructed involving relevant stakeholders. Innovative social science approaches are needed to help realise the potential of policy analysis and sustainable ecosystem management.
Recent literature provides strong arguments that values for the social states of public goods can, and should, be determined through non-market-oriented stated preferences, or preferences that are revealed through mechanisms other than the market (
Each valuation method is useful if appropriately used; however, each method has weaknesses and/or application challenges (
Therefore, we considered the integration of analytical and participatory techniques for evaluation of ES that involved active participation of stakeholders. The inclusion of multiple actors with multiple objectives in the process improved its potential to become more inclusive and comprehensive (
Participatory approaches, based on mixed methods or the integration of methods, have been applied to achieve multiple objectives at different geographic or temporal scales. In addition, the use of one technique was validated by using a different technique for the same purpose, as explained in
Examples from other studies include approaches based on the market stall method (
If ES were not complex systems, and if all values were expressed in the same units (e.g. monetary) they could be aggregated. However, because of the complexity, and attempts to provide representative assessments of complex values (e.g. through group evaluation and deliberation), the individual values placed on ES can be presented side-by-side and compared (
In our research, the participation and visualisation tools (
The results obtained from using the combination of these techniques were compared to elicit public preferences, with the aim of providing advice for decision-making. The approach combined aspects of participatory methods with economic valuation. It added the knowledge of the study context, provided insights into the evaluation process, and in cases of a reasonable agreement between the obtained CVM and MAEI estimates, offered evidence in support of the validity of valuation.
An innovative integration of analytical approaches with participatory techniques to value ES has been the use of visualisation tools (
Stakeholders were consulted to obtain their subjective values. We were interested in the perspectives of those who interacted directly with land-use systems, at a strategic or operational level, whether living or working remotely or locally. The ‘people included’ principle that identifies a creative management between the integrity of ecosystems and the livelihoods of people, living and working in the environment, was employed in this research. Details of the development and testing of the tools applied to a range of case studies at various scales of analysis are available in
To quantitatively identify and analyse stakeholder attitudes and perspectives, a Q-method that originated from psychology was used. This method is explained in more detail in earlier studies (
The output data from the Q-surveys was assessed using the sequential application of correlation and factor analysis. It was followed by a discourse analysis to explain the results obtained. The final steps were the interpretation of the social discourses uncovered by the quantitative enquiry, contrasting the value outputs with the socio-economic background of respondents, and verification and communication of the results with/to respondents (
Furthermore, the decision-making process concerning ES and their sustainable management relies on technical factors which include the incorporation of technological features in research tools and their effective use, and the incorporation of appropriate levels of information in the tools to communicate knowledge to those involved in the process (
The use of innovative tools in a socially-innovative, participatory environment (e.g. which the Horizon 2020 project “Social Innovation in Marginalised Rural Areas, SIMRA www.simra-h2020.eu is addressing) has enabled wider incorporation of inputs from relevant stakeholders into ES valuation, with added value of geographical data on factors which support the interpretation of ES context (e.g. the proximity of woodland to water), and changes through time (e.g. aerial imagery of an area at different dates through a life cycle of a woodland (
The integration of analytical approaches, and participatory visualization techniques, in stakeholder evaluation for assisting in the sustainable use of natural assets was carried out at different spatial scales of analysis. Results, presented in this section, concern examples of application of the proposed in previous section innovative methods tested in our previous studies (
Internationally, we considered ES associated with the socio-economic, ecological and visual aspects of land use and landscape changes in the Amazon region, along with the provision of ES in European landscape contexts (six countries, including Scotland). Each example involved stakeholders in ES evaluation and finding solutions of problems relating to the management and use of natural assets. The outcomes (
At a national level, in Scotland, the Q method application (
Findings indicate that biodiversity was valued by all attitudinal groups, except group 3. All groups, excluding group 4, considered cultural and social services as valuable. Provisioning services were valued by all, except the radical conservationists (group 1), while only the productivists (groups 3, 5) considered the importance of maintaining forest for timber above all else.
The results indicate that an increasing intensity of conservation measures may affect provisioning services of forest, and vice versa. At one end of a spectrum, ecological approaches emphasise environmental protection, and at the other end, climate change considerations promote carbon forestry. Despite the heterogeneity of public attitudes all groups identified support for the necessity of multiplying the wealth of local communities, concurrently putting the emphasis on ecosystems’ resilience.
An exploratory study at a local scale was carried out in the Clashindarroch Forest in north-east Scotland. The design plan for Clashindarroch was due for review, thus providing a real case for testing how our deliberative-support techniques might contribute to the participatory decision-making process based on stakeholder evaluation of ES. Drawing on the attitudinal analysis, the designs for future management of the land were developed with respect to layout and distribution of woodland species.
This information was then used to develop representations of scenarios of proposed changes, specifically in relation to the introduction of native woodlands in areas of pasture and moorland. Visualisation tools were used to test public preferences for different scenarios of change. The scenarios developed for the Clashindarroch area were: (i) maximising the proportion of native woodland species (i.e. biodiversity and supporting ES), (ii) maximising timber woodland (i.e. provisioning ES), and (iii) diverse land cover of moorland, forestry and agriculture (i.e. multiple ES).
These scenarios were presented in the mobile Virtual Landscape Theatre (VLT). This was followed by a phase of knowledge transfer and raising public awareness of the issues associated with ES for each scenario. Scenarios of change were presented to several audience groups in the VLT, each group following the ‘drive-through’ of the area. To illustrate alternative land management scenarios, the content of landscapes were ‘switched’ between, and selected features (e.g. woodlands, recreation facilities) were introduced or re-located as directed by the audience. These functions supported tests of audience values for ES under the scenarios of landscape change. Fig.
The first ‘impartial’ scenario is, broadly, an equal distribution of peoples’ preconceptions of financial investment (+3); environmental pillar (+3); social pillar (+2) and economic pillar: farming (+4), and industrial/urban development (+2) in Clashindarroch. The second ‘environmental’ scenario reveals a strong environmental preference: with the environmental pillar (+5); social pillar (+2) and greater financial investment (+3). This scenario of change rejects the economic pillar, with (–4) for farming activity/rural development and (–3) for industrial/urban development. The third ‘economic’ scenario promotes the development of farming activity (+5) in combination with industrial/urban development (+4) in this landscape to meet the requirements of the social pillar (+4), whereas the importance of biodiversity conservation (–3) and financial investments (–3) is underestimated. The fourth ‘fair’ economic scenario is similar to the third one but with less pronounced carelessness to nature conservation and financial investment.
A second study area was a sub-catchment, the Tarland Basin in the River Dee catchment within north-east Scotland. This is an area with a current land use mix of agriculture (70%), woodland (21%), moorland (8%) and built (1%). Agricultural employment is 3%, 26% in tourism, 30% in the public sector, and 15% in financial services. Therefore, few local people have employment linked to provisioning ES of land/forest, but gain indirect benefits through landscapes managed for recreation, and residential quality of life. Objective scenarios of land use for 2050 were created using spatial modelling tools (
Stakeholder groups included policy-makers, land managers, foresters and farmers, the public, and young people under 20 years of age. Semi-structured group discussions were run with stakeholders voting on ES under each scenario, recording their values for different land use changes: woodlands, renewable energy, transport, housing, access, recreational facilities, and protection or enhancement of habitats, water quality and landscapes.
Findings from the Tarland Basin study indicated positive values for landscapes with a visible mix of land uses, sound stewardship, elements of perceived naturalness and visual diversity (consistent with the findings of
The local audiences were positive towards small-scale wind turbines associated with farming or communities. However, there were significant differences between stakeholder values with respect to medium-sized windfarms on hills north of the village. Those unfamiliar with the area (in Birmingham and Edinburgh engagement events) argued that renewable energy was a priority, highlighting open hilltops as opportunities for maximizing energy return. Those familiar with the area (in Ballater, Aboyne and Aberdeen engagement events) were conscious of the local significance of prominent hills and previous rejections of windfarm proposals.
Local preferences were more favourable towards amenity and broadleaf woodland and were unfavourable to coniferous woodland (associated with provisioning ES), compared to remote stakeholders. Participant groups from all areas favoured increases in mixed woodland (associated with the diversity of ES and landscape multi-functionality). When invited to identify benefits associated with land uses, participants local to the area recorded the negative and positive impacts of changes in individual woodlands due to felling and replanting. This reflected experience of actual uses of the woodland, loss of access, and long term regeneration, expressed in relation to changes in use through their lifetimes. For example, children in one family reported that they would not have access to a woodland, adjacent to their home, which had been used by two generations of the same family. The new felling plan covers the period for the remainder of their time at school. So the nature of the use of the woodland for their recreation would change through time as it is replanted and regrows. This was already changing the associations that different generations of the same family had with the woodland, and potentially between those of the current generations and those of the future.
We have found that subjective values vary between individuals and within cultural groups of people. This is in line with
The findings from the landscape study in the Tarland basin showed differences between those remote and local to the study area. This result points to the question of the relative importance of the values associated with different types of stakeholder, in terms of the governance and administration of an area, and the beneficiaries of its ES. Importantly, elected representatives, planners and the public reported positive views about using a combination of tools that we proposed during the workshops in planning adaptation to climate change (e.g. flood alleviation), public policy (e.g. increasing woodland, and managing existing woodlands), and testing public preferences for wooded landscape changes.
Ecosystem valuation is generally considered to be useful in decision making, and when a good/service of ecosystems is excludable and rival, it is logical to value it economically. Society can make non-excludable and rival resources excludable, e.g. by setting aside some ES (
However, the creation of artificial markets and use of off-setting (e.g. replacement) schemes are highly problematic (
Economic valuation is especially difficult in the field of biodiversity or landscapes, both as a result of their uniqueness and distinctiveness, and because of a shortage of robust primary valuations (
However, natural assets also have non-use values Fig.
In some cases, economic values can be approximated and used to determine the level of taxes/fees to change behaviours that undermine conservation goals, or use of subsidies for activities that promote nature conservation (
Moreover, when there is an issue of critical natural capital, such as when ecosystems (or their components) are nearing critical thresholds (and ‘tipping points’), valuing and managing ES cannot be driven by, and/or rely on economic variables. We agree with
Thus, because of the considerable complexity surrounding ES, and when it is unclear whether economic values represent a large share or a small fraction of the true TEV of unique and endangered ecosystems (
The development of methods and tools to value ES for decision support has spurred scientists globally into interdisciplinary working, with concepts arising from areas of environmental assessments to improve public policy in addressing UN Agenda 2030 SD Goals (e.g.
The decision-making process relies upon human and social factors, including: attitudes towards participatory decision making of those who design and facilitate the process; adequate resourcing of the process and capacity building to meet participatory objectives; the perception of the role of tools as participatory; and acceptability that participation will inform decisions. Technical factors include: the incorporation of relevant features in the visualization and valuation of ES at each stage and context of its use in the decision-making process; and the inclusion of appropriate levels of information content in the tools used to accurately communicate the information intended to those involved (
Technological advances continue to provide new approaches to representing landscapes of the past, present or future. However, existing approaches do not necessarily provide all the information required for ES valuation; interpretation of the consequences of environmental change, or how it should be tailored to different types of audiences. The rapid change in technology also means that gaps emerge in assessments of their effectiveness. This provides a challenge to further improvement of mixed methods to ensure that they are relevant, accessible and offer meaningful information for the ES valuation to aid the decision making processes.
Public policy, internationally, increasingly recognises and advocates more participatory, inter- transdisciplinary and holistic approaches for valuing ES (
The types of disciplines in such trans-disciplinary working typically are drawn from social and natural sciences, with prospective end-users (e.g. land and/or forest policy and management, and planning) from project outset and throughout the evaluation process. The geographic, cultural, institutional or demographic and other contexts might impair the application of certain approaches, or present challenges to achieving the objectives of the participation. So, questions arise as to how the methodologies used support and facilitate stakeholders to freely and effectively contribute to the advance of valuation methods for putting the use of ES on a more sustainable path (
In the examples presented, stakeholder values, objectives and preferences have been incorporated into an analysis of options for the future of ES provision and use. The process of research, scientific networking and communications with local and remote stakeholders and end users has led to the identification of design features, and criteria for the development and use of mixed methods and tools.
Further research is required on how, and to what extent, stakeholder evaluation and the use of mixed methods can affect decision making on the ground. Amongst the issues to be addressed are the best approaches to incorporating stakeholder perspectives into new strategies and programmes addressing SD, and whether the increased social capital created through participation in research and consultation translates into more effective implementation of policies.
Ecosystem services’ valuation seeks to provide estimates of how ES contribute to the generation of income and wellbeing. It assists in identifying beneficiaries and providing evidence on the scale of benefits. Valuation helps to inform policy and land management decisions regarding resource allocation, management practices and use. It helps with informing appropriate levels of PES and determining whether a PES scheme is worth implementation. When used in combination with cost estimates, and linked to demand for ES, valuation can help resolve potentially conflicting decisions and guide the prevention of damages that inflict costs on society. Is it then paradox or Pandora's box for decision-makers?
When markets are explicit, the direct economic valuation (based on prices) is largely applicable. Market instruments often provide effective tools, but they do not work everywhere. Ecosystems are complex systems, intimately linked to the services they provide. Insufficient understanding of processes, complexities and inter-connections within ecosystems and human-environment relationships could result in neglecting to recognize that the value of a system does not equate to the sum of the value of its components, and that a system may collapse (and its services may be lost) if a seemingly minor building block of the system is overlooked. The following conclusions can be derived from this research and preceding literature survey:
We are grateful to the Scottish Government who supported this research through their Rural Affairs and the Environment Strategic Research Programme. We wish to thank participants in the research events and colleagues for helpful comments on an earlier draft and referencing/ proofreading support, as well as to the paper reviewers.
Grant Agreement No. 677622 Social Innovation in Marginalised Rural Areas (SIMRA). Innovative, Sustainable and Inclusive Bioeconomy, Topic ISIB-03-2015. Unlocking the growth potential of rural areas through enhanced governance and social innovation, European Union Framework Programme Horizon 2020, Brussels, http://cordis.europa.eu/project/rcn/200385_en.html.
The James Hutton Institute, Craigiebuckler, Aberdeen, AB158QH, United Kingdom.
In this research, the authors combined the use of participation and visualisation tools with the economic evaluation techniques, including the Q-methodology. Prof. Maria Nijnik, an ecological and natural resource economist, developed all sections of the paper, except its visualization and stakeholder engagement components, which were prepared by Prof. David Miller.
There are no conflicting interests pertaining to this paper, and if required, its authors are ready to assign to the publisher the copyright to this contribution.
Other types of services can be valued by market valuation techniques. Supporting services (e.g. habitat functions) can also be valued through direct market pricing (e.g. donations for conservation).
The AC method considers the costs that would have been incurred in the absence of services. Examples are flood control by maintenance of wooded areas, reducing risks to property damage, or loss of agricultural production.
The replacement cost method considers the costs of service replacement (or off-setting) with an alternative (e.g. human-made). An example is natural flood protection which can be (partly) replaced with artificial systems.
Relocation costs are the expenses necessary to displace or off-set, for example the relocation of a cultural monument or recreation site from land at risk of flooding or contamination, or replacing trees that have been lost to house building.
Non-excludability (or low excludability) typically comes with ill-defined property rights. Rivalness is a property of the ES in question, unrelated to institutions: for example, climate stability or flood control (
TC considers travel costs as a reflection of implied value of the service.
The HP method (i.e. property and other land-value approaches) implies that ES demand is reflected in prices which people pay for associated goods. For instance, house prices near green spaces usually exceed prices of identical homes near less attractive sites.
SP is based on the idea of creating hypothetical markets and examining implicit preferences (
TEV of forest ES in Britain amounts to £1,023m, with recreation of £393m; biodiversity: £386m; landscape: £150m; and carbon sequestration: £94m (
Environmental Valuation Reference Inventory (EVRI) coordinated by Environment Canada is a comprehensive value (benefits) transfer database of over 2,100 valuation studies, which is available at www.evri.ca. More information about EVRI is at the Defra website http://statistics.defra.gov.uk/esg/evri/evri/default.htm.
BT uses estimates in one location to infer benefits elsewhere or over a wider area.
Guidelines recommend a discount rate of 3.5% and the use of different declining discount rates over the longer term (
A group-based deliberative method combining the features of citizens’ juries (
A combined RP–SP method.
This study (
More information on scenario development is available at: www.hutton.ac.uk/research/themes/realising-lands-potential/scenarios-and-land-use-futures.
For more of our considerations concerning the valuation of the ES delivered by nature conservation are seen in at: http://jncc.defra.gov.uk/page-6580 and concerning PES with re to forestry in the URS Scott Wilson Report (
For more information on shared, plural and cultural values and integrated valuation see special issues (2016) of Ecosystem Services.