The Role of Prices in Conserving Critical Natural Capital

Abstract: Until recent decades, economic decision makers have largely ignored the nonmarket benefits provided by nature, resulting in unprecedented threats to ecological life‐support functions. The economic challenge today is to decide how much ecosystem structure can be converted to economic production and how much must be conserved to provide essential ecosystem services. Many economists and a growing number of life scientists hope to address this challenge by estimating the marginal value of environmental benefits and then using this information to make economic decisions. I assessed this approach first by examining the role and effectiveness of the price mechanism in a well‐functioning market economy, second by identifying the issues that prevent markets from pricing many ecological benefits, and third by focusing on problems inherent to valuing services generated by complex and poorly understood ecosystems subject to irreversible change. I then focus on critical natural capital (CNC), which generates benefits that are essential to human welfare and have few if any substitutes. When imminent ecological thresholds threaten CNC, conservation is essential and marginal valuation becomes inappropriate. Once conservation needs have been met, remaining ecosystem structure is potentially available for economic production. Demand for this available supply will determine prices. In other words, conservation needs should be price determining, not price determined. Conservation science must help identify CNC and the quantity and quality of ecosystem structure required to ensure its sustained provision.     

Quantification and valuation of ecosystem services in diverse production systems for informed decision-making

The empirical evidence of decline in ecosystem services (ES) over the last century has reinforced the call for ES quantification, monitoring and valuation. Usually, only provisioning ES are marketable and accounted for, whereas regulating, supporting and cultural ES are typically non-marketable and overlooked in connection with land-use or management decisions. The objective of this study was to quantify and value total ES (marketable and non-marketable) of diverse production systems and management intensities in Denmark to provide a basis for decisions based on economic values. The production systems were conventional wheat (Cwheat), a combined food and energy (CFE) production system and beech forest. Marketable (provisioning ES) and non-marketable ES (supporting, regulating and cultural) ES were quantified by dedicated on-site field measurements supplemented by literature data. The value of total ES was highest in CFE (US$ 3142 ha⁻¹ yr⁻¹) followed by Cwheat (US$ 2767 ha⁻¹ yr⁻¹) and beech forest (US$ 2328 ha⁻¹ yr⁻¹). As the production system shifted from Cwheat - CFE–beech, the marketable ES share decreased from 88% to 75% in CFE and 55% in beech whereas the non-marketable ES share increased to 12%, 25% and 45% of total ES in Cwheat, CFE and beech respectively, demonstrating production system and management effects on ES values. Total ES valuation, disintegrated into marketable and non-marketable share is a potential way forward to value ES and ‘tune’ our production systems for enhanced ES provision. Such monetary valuation can be used by policy makers and land managers as a tool to assess ES value and monitor the sustained flow of ES. The application of ES-based valuation for land management can enhance ES provision for maintaining the productive capacity of the land without depending on the external fossil-based fertilizer and chemical input.     

Planning rural water services in Nicaragua: A systems-based analysis of impact factors using graphical modeling

The success or failure of rural water services in the developing world is a result of numerous factors that interact in a complex set of connections that are difficult to separate and identify. This research effort presented a novel means to empirically reveal the systemic interactions of factors that influence rural water service sustainability in the municipalities of Darío and Terrabona, Nicaragua. To accomplish this, the study employed graphical modeling to build and analyze factor networks. Influential factors were first identified by qualitatively and quantitatively analyzing transcribed interviews from community water committee members. Factor influences were then inferred by graphical modeling to create factor network diagrams that revealed the direct and indirect interaction of factors. Finally, network analysis measures were used to identify “impact factors” based on their relative influence within each factor network. Findings from this study elucidated the systematic nature of such factor interactions in both Darío and Terrabona, and highlighted key areas for programmatic impact on water service sustainability for both municipalities. Specifically, in Darío, the impact areas related to the current importance of water service management by community water committees, while in Terrabona, the impact areas related to the current importance of finances, viable water sources, and community capacity building by external support. Overall, this study presents a rigorous and useful means to identify impact factors as a way to facilitate the thoughtful planning and evaluation of sustainable rural water services in Nicaragua and beyond.     

Evaluating the impacts of sea level rise on coastal wetlands in Languedoc-Roussillon,France

Sea-level rise due to climate change creates new risks of submersion in coastal areas that must be taken into account. Although these are long-term risks for 2100, it is important to anticipate possible consequences in order to identify the most vulnerable areas or issues and develop the appropriate adaptation policies. The aim of this paper is to examine the consequences of such sea-level rise for wetlands in the Languedoc-Roussillon region (France) which is particularly at risk of submersion. The analysis is based on the worst case scenario of a one meter sea level rise by 2100, with a variety of adaptive strategies: denial, laissez-faire and strategic retreat of infrastructure and buildings. This latter strategy assumes that the retreat wetlands is unconstrained. The evaluation examines the losses and transformations of ecological habitats, depending on their distance from salt water. Estimating damages and benefits requires first, to study the evolution of the services supplied by different habitats and second, to estimate the value of the economic impact. This approach demonstrates the superiority of a strategic retreat policy which would halve the damages resulting from submersion.     

案例城市环境基本公共服务与现状比较研究

日益严重的环境问题带来了越来越多的关注度,同时,以为公众提供良好的环境质量为目标的环境基本公共服务,也逐步进入人们的视野。环境基本公共服务是由政府或主要由政府提供的,保障公民最基本的环境权益的服务,包括环境基本公共硬服务和软服务两大方面,其内涵主要由公众、政府、相关企业三方之间的相互供求关系而决定。以环境基本公共服务的具体承载单元———城市为依托进行案例研究,选取纽约、新加坡、广州三所城市进行环境基本公共服务现状对比,结合中国环境基本公共服务外延性不足和无差别受益性两大特点,为中国加强环境基本公共服务水平提供建设性意见。     

A fungal perspective on conservation biology

Hitherto fungi have rarely been considered in conservation biology, but this is changing as the field moves from addressing single species issues to an integrative ecosystem‐based approach. The current emphasis on biodiversity as a provider of ecosystem services throws the spotlight on the vast diversity of fungi, their crucial roles in terrestrial ecosystems, and the benefits of considering fungi in concert with animals and plants. We reviewed the role of fungi in ecosystems and composed an overview of the current state of conservation of fungi. There are 5 areas in which fungi can be readily integrated into conservation: as providers of habitats and processes important for other organisms; as indicators of desired or undesired trends in ecosystem functioning; as indicators of habitats of conservation value; as providers of powerful links between human societies and the natural world because of their value as food, medicine, and biotechnological tools; and as sources of novel tools and approaches for conservation of megadiverse organism groups. We hope conservation professionals will value the potential of fungi, engage mycologists in their work, and appreciate the crucial role of fungi in nature. Una Perspectiva Micótica de la Biología de la Conservación     

A General Equilibrium Model of Ecosystem Services in a River Basin

This study builds a general equilibrium model of ecosystem services, with sectors of the economy competing for use of the environment. The model recognizes that production processes in the real world require a combination of natural and human inputs, and understanding the value of these inputs and their competing uses is necessary when considering policies of resource conservation. We demonstrate the model with a numerical example of the Mississippi‐Atchafalaya river basin, in which grain production in the upper basin causes hypoxia that causes damages to the downstream fishing industry. We show that the size of damages is dependent on both environmental and economic shocks. While the potential damages to fishing are large, most of the damage occurs from economic forces rather than a more intensive use of nitrogen fertilizers. We show that these damages are exacerbated by increases in rainfall, which will likely get worse with climate change. We discuss welfare effects from a tax on nitrogen fertilizers and investments in riparian buffers. A 3% nitrogen tax would reduce the size of the hypoxic zone by 11% at a cost of 2% of Iowa's corn output. In comparison, riparian buffers are likely to be less costly and more popular politically.     

Motivations for Conserving Urban Biodiversity

Abstract: In a time of increasing urbanization, the fundamental value of conserving urban biodiversity remains controversial. How much of a fixed budget should be spent on conservation in urban versus nonurban landscapes? The answer should depend on the goals that drive our conservation actions, yet proponents of urban conservation often fail to specify the motivation for protecting urban biodiversity. This is an important shortcoming on several fronts, including a missed opportunity to make a stronger appeal to those who believe conservation biology should focus exclusively on more natural, wilder landscapes. We argue that urban areas do offer an important venue for conservation biology, but that we must become better at choosing and articulating our goals. We explored seven possible motivations for urban biodiversity conservation: preserving local biodiversity, creating stepping stones to nonurban habitat, understanding and facilitating responses to environmental change, conducting environmental education, providing ecosystem services, fulfilling ethical responsibilities, and improving human well‐being. To attain all these goals, challenges must be faced that are common to the urban environment, such as localized pollution, disruption of ecosystem structure, and limited availability of land. There are, however, also challenges specific only to particular goals, meaning that different goals will require different approaches and actions. This highlights the importance of specifying the motivations behind urban biodiversity conservation. If the goals are unknown, progress cannot be assessed.     

Is climate-smart conservation feasible in Europe? Spatial relations of protected areas,soil carbon,and land values

The expectations on protected areas to deliver not only biodiversity conservation but also to provide an array of different ecosystem services rise. Sequestration and storage of carbon are promising services that protected areas may provide. This study integrates spatially explicit data on terrestrial Natura 2000 sites, soil organic carbon, and agricultural land values to estimate the potential for climate-smart conservation planning in the European Union. The objectives of this study are to analyse spatial relations between protected areas soil carbon content, and land values on the European Union's land area as well as to locate and quantify the proportion of land with high carbon and low economic value within and outside protected areas. We apply a unique interdisciplinary framework with methods ranging from analyses based on geographical information systems, agricultural economics to statistics. Findings indicate that there is a significant overlap between Natura 2000 sites and regions with high carbon content across Europe. Statistical analyses show that carbon-rich regions have significantly lower land values than other areas. Our results suggest that biodiversity protection and mitigation of climate change through conservation of soil carbon could be simultaneously achieved in Europe's protected areas and beyond. We conclude that there is a notable potential for climate-smart conservation in Europe that needs further investigation.     

Assessing water ecosystem services for water resource management

Ecosystem service concepts can offer a valuable approach for linking human and nature, and arguments for the conservation and restoration of natural ecosystems. Despite an increasing interest in the topic, the application of these concepts for water resource management has been hampered by the lack of practical definitions and methodologies. In this study we review and analyse the current literature and propose an approach for assessing and valuing ecosystem services in the context of water management. In particular, to study the link between multiple pressures, ecological status and delivery of ecosystem services in aquatic ecosystems under different scenarios of measures or future changes. This is of interest for the development of River Basin Management Plans under the EU Water Framework Directive. We provide a list of proxies/indicators of natural capacity, actual flow and social benefit for the biophysical assessment of the ecosystem services. We advocate the use of indicators of sustainability, combining information on capacity and flow of services. We also suggest methods for economic valuation of aquatic ecosystem for each service and spatial scale of application. We argue that biophysical assessment and economic valuation should be conducted jointly to account for the different values of ecosystem services (ecologic, social and economic) and to strengthen the recognition of human dependency on nature. The proposed approach can be used for assessing the benefits of conservation and restoration of aquatic ecosystems in the implementation of the EU water policy.