Eco-System Capital

Valuing ecosystem services: theory,

practice, and the need for a transdisciplinary synthesis. (Liu et. al. 2010).
Presented by Thetis Skondra

A: Eco-System Services
Benefits people obtain from ecosystems

Examples
Provisionary services: e.g. food and water
Regulating services: regulation of floods,
draughts, diseases
Supporting services: soil formation, nutrient
cycling
Cultural services: recreation and spiritual

A: Eco-System Services
Supply Side

Demand Side

degradation in
regard to
providing
service

Increase as
population and
standard of
living increase

B: Ecosystem Services become

scarce
Reason: lack of valuation
Challenge: acknowledgement of this value

C: What is ecosystem services

evaluation?
1. Anthropogenic concept
2. The wellbeing of humanity and the wellbeing

of earth are interdependent

3. Ecosystem services have an economic value
BUT this is not the only focus for ESV
4. Nature is vital for many reasons to human
survival and wellbeing

C: What is ecosystem services

evaluation?
1. Ecosystems have intrinsic and utilitarian

value
Examples:
2. Efficient allocation

Important goals for the

management of ecosystem
services.
1. Assessing and ensuring that the scale or

magnitude of human activities are

sustainable
2. Distributing resources and property rights

fairly.
3. Efficiently allocating the resources

constrained and defined by 1 & 2 above in

order to maximize utility.

Valuation of eco system services must be

performed
From multiple perspectives
Using multiple methods
Against multiple goals

Framework for ESV

Eco-system structures and processes are

influenced by biophysical drivers

Methodology for EVS

Revealed preference approaches

1. Market methods
2. Travel cost
3. Hedonic methods
4. Production approaches
State preference approaches
1. Contingent valuation
2. Conjoint analysis
Cost-based approaches
1. Replacement cost
2. Avoidance cost

History of ESV research

1960s:
Common challenges but separate answers

1970s:
Breaking the disciplinary boundaries - Georgescu
Roger

1980s
Moving beyond multi-disciplinary ESV research
Attempt to build a common language for ecological
and economic systems

History of ESV research

1990s to present
Moving towards trans-disciplinary ESV

research
1.
2.
3.
4.

Conjoint analysis
Meta analysis
Group valuation
Multiple criterion decision analysis

ESV in Practice

ESV in natural resource damage assessments

ESV in cost-benefit analysis cost-effectiveness

analysis framework
ESV in natural capital accounting
ESV in payment for ecosystem services

Debate on the use of ESV

1. Comparisons of natural capital to physical and

human capital in regard to their contribution to

human welfare
2. Monitor the quantity and quality of natural

capital over time in regard to its contribution to

human welfare
3. Provide for evaluation of projects that enhance

or degrade natural capital