Valuation of Biodiversity Benefits (OECD)

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Moffat, I. and M.D. Wilson (1994). “Index of Sustainable Economic Welfare for Scotland”, 1980-91,International Journal of Sustainable Development and World Ecology, 1:264-291.Neill, Helen R., Ronald Cummings, Phillip Ganderton, Glenn Harrison, and Thomas McGuckin(1994). “Hypothetical surveys and real economic commitments”, Land Economics, 70:145-54.Peskin, Henry M. (1976). A national accounting framework for environmental assets, Journal ofEnvironmental Economics and Management, 2: 255-262.Portney, P.R. (1994). “The contingent valuation debate: why should economists care?”, Journal ofEconomic Perspectives, 8:1-18.Prince, Raymond and Pratice L. Gordon (1994). Greening the national accounts, CBO Papers,Congressional Budget Office, Washington, DC.O’Neill R.V. , et al (1996). “Economic Growth and Sustainability: A New Challenge”, EcologicalApplications, (vol 26, pp 23-24).Repetto, Robert et al. (1989). Wasting Assets: Natural Resources in the National Income and ProductAccounts, World Resources Institute, Washington D.C.Roe, Brian, Kevin J. Boyle and Mario F. Teisl (1996). “Using Conjoint Analysis to Derive Estimatesof Compensating Variation.” Journal of Environmental Economics and Management31(2):145-159.Rubin, Jonathon, Gloria Helfand and John Loomis (1991). A Benefit-Cost Analysis of the NorthernSpotted Owl, Journal of Forestry Bjornstad, David and James R. Kahn (eds.) (1996). TheContingent Valuation of Environmental Resources: Methodological Issues and Research Needs,London, Edward Elgar Publishing.Schimmel, Steven C. et al. (1994). Statistical Summary: EMAP - Estuaries, Virginia Province-1991,USEPA, EPA/620/R-94/005, March.Stevens, Thomas H., Christopher Barret, and Cleve Willis. (1997). “Conjoint Analysis of GroundwaterProtection Programs.” Agriculture and Resource Economics Review October 229-236.119
CHAPTER 7:by Dennis M. KING and Lisa A. WAINGER 29ASSESSING THE ECONOMIC VALUE OF BIODIVERSITY USING INDICATORS OF SITECONDITIONS AND LANDSCAPE CONTEXTIntroductionBiodiversity and Ecosystem ServicesOf the millions of bacteria, insect, plant, and animal species, a few individual speciescontribute in direct and measurable ways to economic welfare (e.g., timber, crops, and edible fish); afew more contribute to the quality of life in less measurable but noticeable ways (e.g., dolphins,songbirds, and wildflowers). 30 However, most of the millions of species that exist in nature contributein obscure and roundabout ways to human welfare (e.g., pollinators and decomposers on land; benthicorganisms, plankton, coral, and forage fish at sea). Their lives and functions are so intertwined witheach other and with surrounding ecological landscapes that their individual contributions to humanwelfare, as a practical matter, cannot be isolated.The term “biodiversity” refers generally to the number and variety of life forms that inhabitan area and was popularised in a 1988 book Biodiversity, by the well-known Harvard ecologistE.O. Wilson. It is a vague term that is useful for some purposes, but not useful as a focus for valuationexercises or as a goal of environmental policy. What aspects of “biodiversity” are important? Howmuch can we afford? How much do we need and where? Answering these questions requires researchthat goes beyond measuring biodiversity or changes in biodiversity. We may never have a clearunderstanding of our dependence on biodiversity, but there are advantages to knowing which aspectsof biodiversity contribute to specific measures of human welfare.In the introduction of the book, Biodiversity, Wilson states that the book “offers an overallview of biological diversity and carries the urgent warning that we are rapidly altering and destroyingthe environments that have fostered the diversity of life forms for more than a billion years.” This2930Sponsored by the OECD. Prepared under Cooperative Agreement: 65-7482-8-335 between the USEnvironmental Protection Agency, Office of Policy Analysis, US Department of Agriculture, NaturalResource and Conservation Service and University of Maryland Center for Environmental Science,Chesapeake Biological Laboratory.Estimates of the number of species are less precise than estimates of the number of species that havebecome extinct. Wilson (1988) estimates that there are 1.3 million species of plants and animals,excluding insects, and that if insects are included the number of species ranges from 5 million to30 million.121
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«ENVIRONMENTValuation ofBiodiversi
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ORGANISATION FOR ECONOMIC CO-OPERAT
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TABLE OF CONTENTSPART 1 ...........
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PART 4 ............................
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Why value biodiversity?There are th
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Figure 1.1 Total economic value: us
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from biodiversity at the local leve
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in the database and also for undert
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in the policy context. This is high
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Table 1.3 Policy Options for the Cl
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Box 1.2 Value of Turkey’s Forests
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of the most important implications
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Additionally, valuation does not ju
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value is the habitat, many differen
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are very modest. More recently, new
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Table 2.2 Estimates of the Medicina
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The importance of indirect use valu
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pharmaceutical use, although the li
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McAllister, D., (1991). Estimating
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Simpson, D and Craft, A.. (1996).
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practice, the overlap between these
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aimed at giving more precise quanti
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structural values. There are a numb
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Reid (forthcoming) discusses the po
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Ecotourism as a Way to Generate Loc
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endangered Indian rhino and other t
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ReferencesBann, C., and M. Clemens
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PART 261
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many European countries, CBA has a
Page 61 and 62: (1) Cost and time constraintsThe co
Page 63 and 64: activity day, there is greater vari
Page 65 and 66: added independent variable C s= cha
Page 67 and 68: error in valuing respiratory sympto
Page 69 and 70: ReferencesArrow, K.J., R. Solow, E.
Page 71 and 72: OECD (1995). The Economic Appraisal
Page 73 and 74: CHAPTER 5:by José Manuel LIMA E SA
Page 75 and 76: linkages usually lead to diverse co
Page 77 and 78: A discrete choice approach to quest
Page 79 and 80: Table 5.2 Model-based point estimat
Page 81 and 82: is potentially very large for multi
Page 83 and 84: P3 is already in the mix is 2.51, s
Page 85 and 86: PART 391
Page 87 and 88: measures of value. An appendix to t
Page 89 and 90: features (such as parks, beaches or
Page 91 and 92: included in cost-benefit analysis o
Page 93 and 94: A Discussion of Past Efforts to Dev
Page 95 and 96: Satellite AccountsIn addition to th
Page 97 and 98: which many people argue are associa
Page 99 and 100: approach to competing uses of water
Page 101 and 102: Figure 6.2 Trade-Off AnalysisEnviro
Page 103 and 104: However, the farmers need not bear
Page 105 and 106: Appendix 1: Theory and Application
Page 107 and 108: iwhere C is the income adjustment n
Page 109 and 110: complete. If there are more than on
Page 111: Horowitz, Joel. L. and Jordan. J. L
Page 115 and 116: Box 7.1 Definition of terms related
Page 117 and 118: Box 7.2 Categories of Ecosystem Ser
Page 119 and 120: Box 7.4 Dollar-based ecosystem valu
Page 121 and 122: Non-monetary indicators of ecosyste
Page 123 and 124: Figure 7.1 Effects of Wetland Locat
Page 125 and 126: description, and that the usefulnes
Page 127 and 128: 2) Service capacity sub-indexIndica
Page 129 and 130: wetlands, for example, results in F
Page 131 and 132: (1) Functional CapacityIndexFigure
Page 133 and 134: constituents of runoff can be predi
Page 135 and 136: Service(on or off site)Recreational
Page 137 and 138: Table 7.3 Service Risk Sub-index De
Page 139 and 140: Measuring Service Preference Weight
Page 141 and 142: Table 7.4 Illustration of Paired Co
Page 143 and 144: PART 4151
Page 145 and 146: Ecological foundations for biodiver
Page 147 and 148: Phenotic diversity is a measure bas
Page 149 and 150: Operationalisation of the biotic-ri
Page 151 and 152: ten attributes that could score a m
Page 153 and 154: The choice of the scale relates to
Page 155 and 156: Nature measurement methodIn 1995, t
Page 157 and 158: Table 8.4 Value orientations and en
Page 159 and 160: Table 8.5 Identification of monetar
Page 161 and 162: Table 8.6 Valuation studiesSingle s
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in waterway systems for nine impact
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to other contexts, conditions, loca
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ReferencesAkcakaya, H.R. (1994).
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de Groot, R.S. (1994). “Environme
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Mace, G. M. & S. N. Stuart. (1994).
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Turner, R.K., Perrings, C. and Folk
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John A. DixonJohn A. Dixon is Lead
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Robert O’NeillDr. O’Neill recei
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Steven StewartSteven Stewart is Ass
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OECD PUBLICATIONS, 2, rue André-Pa
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