Valuation of ecological resources and functions

Journal Article · Thu Jan 01 04:00:00 EST 1998 · Environmental Management

DOI:https://doi.org/10.1007/s002679900083· OSTI ID:585128

Scott, M J; Bilyard, G R; Link, S O ^[1]

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1. Pacific Northwest National Lab., Richland, WA (United States); and others

Ecological resources are natural resources that provide certain necessary but overlooked system maintenance functions within ecosystems. Environmental economics is in search of an appropriate analysis framework to determine economic values of such resources, This paper presents a framework that estimates and compiles the components of value for a natural ecosystem. The framework begins with the ecological processes involved, which provide functions within the ecosystem and services valued by humans. We discuss the additive or competive nature of these values, and estimate these values through conventional and unconventional techniques. We apply the framework to ecological resources in a shrub-steppe dryland habitat being displaced by development. We first determine which functions and services are mutually exclusive (e.g., farming vs soil stabilization) and which are complementary or products of joint production (e.g., soil stabilization and maintenance of species). We then apply benefit transfer principles with contingent valuation methodology (CVM), travel cost methodology (TCM), and hedonic damage pricing (HDP). Finally, we derive upper-limit values for more difficult-to-value functions through the use of human analogs, which we argue are the most appropriate method of valuation under some circumstances. The highest values of natural shrub-steppe habitat appear to be derived from soil stabilization. 59 refs., 6 figs., 5 tabs.

• OSTI ID: 585128
• Journal Information: Environmental Management, Journal Name: Environmental Management Journal Issue: 1 Vol. 22; ISSN EMNGDC; ISSN 0364-152X
• Country of Publication: United States
• Language: English

Related Subjects

29 ENERGY PLANNING, POLICY, AND ECONOMY
ECONOMIC ANALYSIS
ECOSYSTEMS
RESOURCE MANAGEMENT
RISK ASSESSMENT