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Social goals and the valuation of natural capital
Authors:Costanza Robert
Institution:(1) Gund Institute for Ecological Economics, The University of Vermont, Burlington, Vermont, U.S.A.
Abstract:Valuation ultimately refers to the contribution of an item to meeting a specific goal or objective. Conventional economic valuation is based on the goal of allocative efficiency. But other social goals may be equally, if not more, important. For example, the goals of social fairness and ecological sustainability have been identified as being at least of the samelevel of importance as allocative efficiency. This paper looks atthe role of social goals in determining the basis for valuation ofnatural capital and ecosystem services, and sketches the characteristics of a system of valuation that would give equal weight to all three of the major social goals mentioned above. It also places these goals within a more comprehensive conceptualmodel of the economy and its relationship to the ecological lifesupport system in which it is embedded.
Keywords:ecosystem services  natural capital  social goals  sustainability  uncertainty  valuation
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