A Handbook for Understanding Natural Capital - Earth Economics

WHAT DO WE
PAY FOR THESE
SERVICES
These services
are provided free
of charge.
We pay nothing for ecosystem services, but when nature
disappears, the services disappear, too. When ecosystems
are destroyed and the services they provide eliminated,
those services must be replaced by manmade systems
(built capital). Replacing natural capital with built capital is
an expensive solution that very rarely works as well— or as
inexpensively— as the natural system that is being replaced.
Consider the Catskills watershed (natural capital), which
provides high quality drinking water storage and filtration
for New York City. NYC’s decision to invest 1.5 billion in its
Catskills watershed has saved $ 6 billion compared to the cost
of a filtration plant plus operating costs.
Compare New York City’s water source with an example
from neighboring New Jersey. In addition to the costs of
construction and routine upkeep, the water treatment facility
(built capital) in Haworth, New Jersey was damaged during
Hurricane Sandy. New Jersey is spending an estimated $2.6
billion dollars making repairs post-storm.
RESILIENCY is the ability of a system to
withstand and recover from disturbances
such as pollution or natural disasters.
Ecosystems (forests or wetlands) are selfmaintaining
and remarkably resilient
compared with built capital (cars or levees.)
Regulating services, such as water quality
and climate regulation, create ecosystem
resiliency by allowing it to continue in a
sustainable manner.
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