characterised by simple theoretical or conceptual models that aggregate, caricature and exaggerate; (2)precision, characterised by statistical, short-term, partial, static or linear models with one elementexamined in much detail; and (3) realism, characterised by causal, non-linear, dynamic-evolutionary,and complex models. These three criteria are usually conflicting so that a trade-<strong>of</strong>f between them isinevitable. A very general and almost non-theoretical (‘no assumptions’) framework is theDriver-Pressure-State-Impact-Response (DPSIR) framework, a variation on the framework proposedfor environmental data classification by Turner et al. (1999) and Rotmans and de Vries (1997) forintegrated analysis and modelling. The components have the following interpretation:- ‘Driver’ = economic and social activities and processes.- ‘Pressure’ = pressures on the human (health) and environmental system (resources andecosystems).- ‘State’ = the physical, chemical and biological changes in the biosphere, humanpopulation, resources and artefacts (buildings, infrastructure, machines).- ‘Impact’ = the social, economic and ecological impacts <strong>of</strong> natural or human-inducedchanges in the biosphere.- ‘Responses’ = human interventions on the level <strong>of</strong> drivers (prevention, changingbehaviour), pressures (mitigation), states (relocation) or impacts (restoration, healthcare).According to Rotmans and de Vries (1997) integration can include various types. Verticalintegration means that the causal chain in the DPSIR framework is completely described in a model.Horizontal integration (<strong>of</strong> subsystems) in this context is defined as the coupling <strong>of</strong> various globalbiogeochemical cycles and earth system compartments (atmosphere, terrestrial biosphere,hydrosphere, lithosphere and cryosphere). An alternative and relevant distinction is between analyticaland heuristic integration. Analytical integration means combining all aspects studied in a single model(and therefore model type). Heuristic integration can proceed by using the output <strong>of</strong> one model asinput to another, and vice versa, as well as extending this by an (finite) iterative interaction. In thiscase different model types can be combined, such as optimisation models and descriptive models. Ifone desires to attain a great deal <strong>of</strong> analytical power, the analytical integration seems attractive,whereas striving for realism would imply the use <strong>of</strong> a heuristically linked set <strong>of</strong> models from differentdisciplines. Full or total economic-environmental integration requires a combination, leading to thecomplex linking <strong>of</strong> various drivers, pressures, states, impacts and responses, thus allowing for varioussynergies and feedback. The literature shows various examples <strong>of</strong> such integratedeconomic-environmental frameworks. Surveys are <strong>of</strong>fered by Barbier (1990), van den Bergh andNijkamp (1991), van den Bergh (1996), Costanza et al. (1997), Ayres et al. (1999) and Turner et al.(1999).Integrating modelling and monetary valuationProgress on improving methods for providing such economic information (particularlypredictive information) will require a strong and dynamic interdisciplinary dialogue. At thismultidisciplinary level, integrating modelling and monetary valuation can present importantadvantages for policy guidance, presenting important interactions.First, values estimated in a valuation study can be used as a parameter value in a modelstudy. <strong>Benefits</strong> or value transfer (e.g. meta-analysis exercise) can be used to translate value estimates173
to other contexts, conditions, locations or temporal settings that do not allow for direct valuation in‘primary studies’ (due to technical or financial constraints).Second, models can be used to generate values under particular scenarios. In particular,dynamic models can be used to generate a flow <strong>of</strong> benefits over time and to compute the net presentvalue, which can serve as a value relating to a particular scenario <strong>of</strong> ecosystem change ormanagement.Third, models can be used to generate detailed scenarios that enter valuation experiments.An input scenario can describe a general environmental change, regional development or ecosystemmanagement. This can be fed into a model calculation, which in turn provides an output scenario withmore detailed spatial or temporal information. The latter can then serve, for example, as a hypotheticalscenario for valuation, which is presented to respondents in a certain format (graphs, tables, story,diagrams, pictures) so as to inform them about potential consequences <strong>of</strong> the general policy orexogenous change. Computer s<strong>of</strong>tware can be used in such a process. Finally, the output <strong>of</strong> model andvaluation studies can be compared. For instance, when studying a scenario for wetland transformationone can model the consequences in multiple dimensions (physical, ecological and costs/benefits), andaggregate these via a multi-criteria evaluation procedure, with weights being set by a decision-makeror a representative panel <strong>of</strong> stakeholders. Alternatively, one can ask respondents to provide valueestimates, such as a willingness to pay for not experiencing the change. If such information isavailable for multiple management scenarios, then rankings based on either approach can becompared. So far no empirical study has accomplished this.Conclusions and recommendationsHow can we use the ideas presented in Sections 2, 3 and 4 to formulate an integrated,effective framework for the economic valuation <strong>of</strong> biodiversity? And what do we learn from theempirical valuation studies focused on biodiversity? A crucial, and initial step, is to carefully describethe object <strong>of</strong> analysis and valuation. Therefore, researchers face two important decisions when valuingbiodiversity: (1) at which level should biodiversity be examined; and, (2) what biodiversity valuetypes should be measured?Clearly, it is necessary to attain information about the nature, type, and persistence <strong>of</strong> stressor shocks experienced by ecosystems, their functions and stability, and respective impacts on humanwelfare. A comprehensive assessment <strong>of</strong> ecosystem biodiversity characteristics, structure andfunctioning requires the analyst to undertake various important actions. First, the causes <strong>of</strong>biodiversity loss should be determined, in order to improve understanding <strong>of</strong> socio-economic impactson biodiversity processes and attributes. Second, the range and degree <strong>of</strong> biodiversity functioningshould be assessed, especially in terms <strong>of</strong> ecosystem-functional relationships. Third, the sustainability<strong>of</strong> biodiversity uses should be assessed and the consequences <strong>of</strong> biodiversity loss should bedetermined. Finally, alternative biodiversity management strategies should be assessed and spatial andtemporal systems analysis <strong>of</strong> alternative biodiversity conservation scenarios should be carried out.Ecologists contribute to identification <strong>of</strong> the range <strong>of</strong> policy decisions with respect to thebiodiversity strategies, by exploring the use <strong>of</strong> ecological valuation methods such as red data specieslists and biological value indexes. More recently, computer models have <strong>of</strong>ten been used by ecologiststo aid conservation evaluation decisions, namely in the domain <strong>of</strong> species population. Several generalmodels have been developed for this task and applied, for example, to calculate the dimension <strong>of</strong> ageographic area <strong>of</strong> suitable habitat required to support the minimum viable population (e.g., the giantpanda). Finally, computer models have also been used for habitat evaluation with the objective <strong>of</strong>simulating the impact <strong>of</strong> different development scenarios and predicting the respective ecological174
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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
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(1) Cost and time constraintsThe co
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activity day, there is greater vari
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added independent variable C s= cha
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error in valuing respiratory sympto
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ReferencesArrow, K.J., R. Solow, E.
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OECD (1995). The Economic Appraisal
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CHAPTER 5:by José Manuel LIMA E SA
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linkages usually lead to diverse co
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A discrete choice approach to quest
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Table 5.2 Model-based point estimat
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is potentially very large for multi
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P3 is already in the mix is 2.51, s
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PART 391
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measures of value. An appendix to t
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features (such as parks, beaches or
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included in cost-benefit analysis o
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A Discussion of Past Efforts to Dev
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Satellite AccountsIn addition to th
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which many people argue are associa
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approach to competing uses of water
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Figure 6.2 Trade-Off AnalysisEnviro
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However, the farmers need not bear
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Appendix 1: Theory and Application
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iwhere C is the income adjustment n
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complete. If there are more than on
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Horowitz, Joel. L. and Jordan. J. L
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- Page 167 and 168: ReferencesAkcakaya, H.R. (1994).
- Page 169 and 170: de Groot, R.S. (1994). “Environme
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- Page 173 and 174: Turner, R.K., Perrings, C. and Folk
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