A Handbook for Understanding Natural Capital - Earth Economics

Are Values of
Ecosystem Services
the Same for Different
Locations
Natural capital can be appraised in a similar fashion
to business or house appraisals. Instead of looking
for comparative sales to determine value, we look for
comparative economic assessment studies that were
developed using the eight methods previously described.
This natural capital appraisal approach , called “Benefit
Transfer Methodology,” has gained popularity in the last
several decades as decision-makers have sought timely and
cost-effective ways to value ecosystem services.
Benefit-Transfer Methodology involves estimating
the natural capital value of a specific region or site by
comparing previous ecosystem service valuation studies
for similar geographies, socio-economic sites and
ecosystems. The value derived from the original study site
is “transferred” to the new site, like “comps” are used when
appraising real estate.
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