Integrating Ecology and Economics in the Study of Ecosystem Services: Some Lessons Learned

This paper discusses both the opportunities for and the challenges associated with integrating economics and ecology in the study of ecosystem services. We distinguish between integration in positive versus normative analysis. There is rapid growth in positive research that combines the two disciplines to provide insight and better understanding of the bidirectional linkage between economic and ecological systems. This research is a crucial part of addressing growing large-scale environmental challenges. This integration is equally important, but potentially much more difficult, in normative analysis, especially when interdisciplinary groups include individuals with different views regarding appropriate normative criteria. In such cases, reaching consensus can be difficult and slow, even when the practical implications of the different perspectives (i.e., the general policy prescriptions they imply) are the same. We suggest an approach for increasing the scope for collaboration among economists and ecologists in normative analysis.

[1]  R. O'Neill,et al.  On the Scarcity Value of Ecosystem Services , 2003 .

[2]  T. Iwamura,et al.  Global-scale mapping of economic benefits from agricultural lands: Implications for conservation priorities , 2007 .

[3]  P. Slovic,et al.  The Construction of Preference: Index , 2006 .

[4]  H. Rolston Environmental ethics : values in and duties to the natural world , 1990 .

[5]  Robert U. Ayres,et al.  Sustainability economics: Where do we stand? , 2008 .

[6]  K. Train Discrete Choice Methods with Simulation , 2003 .

[7]  G. Daily Nature's services: societal dependence on natural ecosystems. , 1998 .

[8]  R. Costanza Social Goals and the Valuation of Ecosystem Services , 2000, Ecosystems.

[9]  E. Barbier,et al.  Do Open Access Conditions Affect the Valuation of an Externality? Estimating the Welfare Effects of Mangrove-Fishery Linkages in Thailand , 2002 .

[10]  J. Wilen,et al.  Bioeconomics of Spatial Exploitation in a Patchy Environment , 1999 .

[11]  B. English Ecological Economics: The Science and Management of Sustainability , 1991 .

[12]  Jason F. Shogren,et al.  Spatial incentives to coordinate contiguous habitat , 2007 .

[13]  K. Arrow,et al.  Is there a role for benefit-cost analysis in environmental, health, and safety regulation? , 1996, Science.

[14]  Clive L. Spash,et al.  Ethics and environmental attitudes with implications for economic valuation , 1997 .

[15]  Partha Dasgupta,et al.  Are We Consuming Too Much? , 2004 .

[16]  Kenneth E. Train,et al.  Discrete Choice Methods with Simulation , 2016 .

[17]  David Zilberman,et al.  Payments for ecosystem services and poverty reduction: concepts, issues, and empirical perspectives , 2008, Environment and Development Economics.

[18]  P Ekins,et al.  Evidence to Treasury Select Committee ‘Inquiry into Climate change and the Stern review: the implications for HM Treasury policy on tax and the environment’ , 2007 .

[19]  Michael A. Toman,et al.  Progress and Problems in the Economics of Sustainability , 2002 .

[20]  Ralph Winkler,et al.  Valuation of Ecosystem Goods and Services Part 1: An Integrated Dynamic Approach , 2006 .

[21]  Robin Gregory,et al.  Valuing environmental resources: A constructive approach , 1993 .

[22]  Gayatri Acharya,et al.  SPECIAL ISSUE THE VALUES OF WETLANDS: LANDSCAPE AND INSTITUTIONAL PERSPECTIVES Approaches to valuing the hidden hydrological services of wetland ecosystems , 2000 .

[23]  R. Adams,et al.  Cumulative Effects and Optimal Targeting of Conservation Efforts: Steelhead Trout Habitat Enhancement in Oregon , 2000 .

[24]  K. Arrow,et al.  Environmental Preservation, Uncertainty, and Irreversibility , 1974 .

[25]  S. Farber,et al.  Using natural coastal Wetlands systems for wastewater treatment: an economic benefit analysis , 1995 .

[26]  M. Toman SPECIAL SECTION: FORUM ON VALUATION OF ECOSYSTEM SERVICES - Why not to calculate the value of the world s ecosystem services and natural capital , 1998 .

[27]  Edward B. Barbier,et al.  Valuing the environment as input: review of applications to mangrove-fishery linkages , 2000 .

[28]  D. Andow,et al.  Multifunctional Agriculture in the United States , 2005 .

[29]  Stephen Polasky,et al.  Economic and environmental implications of alternative landscape designs in the Walnut Creek Watershed of Iowa , 2001 .

[30]  James K. Hammitt,et al.  Contingent valuation of a Taiwanese wetland , 2001, Environment and Development Economics.

[31]  Cheryl R. Doss,et al.  The Influence of Wetland Type and Wetland Proximity on Residential Property Values , 1996 .

[32]  Bruno Jullien,et al.  Scientific progress and irreversibility: an economic interpretation of the ‘Precautionary Principle’ , 2000 .

[33]  William F. Laurance,et al.  Total aboveground biomass in central Amazonian rainforests: a landscape-scale study , 2002 .

[34]  Amy W. Ando,et al.  Species distributions, land values, and efficient conservation , 1998, Science.

[35]  E. Irwin,et al.  Interacting agents, spatial externalities and the evolution of residential land use patterns , 2002 .

[36]  C. Kling,et al.  Environmental Conservation in Agriculture: Land Retirement versus Changing Practices on Working Land , 2004 .

[37]  Carrie V. Kappel,et al.  Coastal Ecosystem-Based Management with Nonlinear Ecological Functions and Values , 2008, Science.

[38]  C. S. Holling,et al.  Panarchy Understanding Transformations in Human and Natural Systems , 2002 .

[39]  S. Polasky,et al.  Valuing urban wetlands: A review of non-market valuation studies , 2004, Wetlands.

[40]  H. Fineberg,et al.  Understanding Risk: Informing Decisions in a Democratic Society , 1996 .

[41]  Charles Perrings,et al.  Ecological Resilience in the Sustainability of Economic Development , 1994, Économie appliquée.

[42]  Edward B. Barbier,et al.  Valuing the Environment as Input: Applications to Mangrove-Fishery Linkages , 2000 .

[43]  K. McConnell,et al.  Benefits from commercial fisheries when demand and supply depend on water quality , 1989 .

[44]  Stephen R. Carpenter,et al.  Management of eutrophication for lakes subject to potentially irreversible change , 1999 .

[45]  James C. Anderson Species Equality and the Foundations of Moral Theory , 1993 .

[46]  S. Polasky,et al.  CONSERVING SPECIES IN A WORKING LANDSCAPE: LAND USE WITH BIOLOGICAL AND ECONOMIC OBJECTIVES , 2005 .

[47]  Wallace E. Oates,et al.  The theory of environmental policy , 1976 .

[48]  R. Turner The Place of Economic Values in Environmental Valuation , 2001 .

[49]  David Pearce,et al.  Auditing the Earth: The Value of the World's Ecosystem Services and Natural Capital , 1998 .

[50]  David J. Lewis,et al.  Policies for Habitat Fragmentation: Combining Econometrics with GIS-Based Landscape Simulations , 2007, Land Economics.

[51]  A. Freeman,et al.  Valuing environmental resources under alternative management regimes , 1991 .

[52]  S. Carpenter,et al.  Millennium Ecosystem Assessment: Research Needs , 2006, Science.

[53]  E. Irwin,et al.  Land use externalities, open space preservation, and urban sprawl , 2004 .

[54]  B. Jong,et al.  TROPICAL MEXICO'S RECENT LAND-USE CHANGE: A REGION'S CONTRIBUTION TO THE GLOBAL CARBON CYCLE , 2000 .

[55]  Bruce A. McCarl,et al.  Trading Water for Carbon with Biological Carbon Sequestration , 2005, Science.

[56]  Wiktor L Adamowicz,et al.  Modeling Opportunity Costs of Conservation in Transitional Landscapes , 2006, Conservation biology : the journal of the Society for Conservation Biology.

[57]  H. Gordon,et al.  The economic theory of a common-property resource: The fishery , 1954, Journal of Political Economy.

[58]  G. Daily,et al.  Valuing ecosystem services: philosophical bases and empirical methods. , 1997 .

[59]  M. B. Schaefer,et al.  Some Considerations of Population Dynamics and Economics in Relation to the Management of the Commercial Marine Fisheries , 1957 .

[60]  Claire A. Montgomery,et al.  The Marginal Cost of Species Preservation: The Northern Spotted Owl , 1994 .

[61]  S. Polasky,et al.  Diversity, productivity and temporal stability in the economies of humans and nature , 2005 .

[62]  A. Freeman,et al.  The measurement of environmental and resource values , 1992 .

[63]  Claire A. Montgomery,et al.  Where to put things? Spatial land management to sustain biodiversity and economic returns , 2008 .

[64]  Richard S.J. Tol,et al.  The marginal damage costs of carbon-dioxide emissions’ , 2005 .

[65]  Dietrich Earnhart,et al.  Combining Revealed and Stated Preference Methods to Value Environmental Amenities at Residential Locations , 2001, Land Economics.

[66]  Anthony Scott,et al.  The Fishery: The Objectives of Sole Ownership , 1955, Journal of Political Economy.

[67]  Carrie V. Kappel,et al.  Non‐linearity in ecosystem services: temporal and spatial variability in coastal protection , 2009 .

[68]  Robert Costanza,et al.  The Value of Coastal Wetlands for Hurricane Protection , 2008, Ambio.

[69]  William D. Nordhaus,et al.  Warming the World: Economic Models of Global Warming , 2000 .

[70]  Robert Costanza,et al.  Value Theory and Energy , 2004 .

[71]  F. Prochaska,et al.  Economic valuation of marsh areas for marine production processes , 1981 .

[72]  James N. Sanchirico,et al.  Optimal spatial management of renewable resources: matching policy scope to ecosystem scale , 2005 .

[73]  David Pearce,et al.  Auditing the Earth , 1998 .

[74]  Edward B. Barbier,et al.  Valuing Mangrove-Fishery Linkages – A Case Study of Campeche, Mexico , 1998 .

[75]  S. Polasky,et al.  The efficiency of voluntary incentive policies for preventing biodiversity loss , 2009 .

[76]  J. Shogren,et al.  Risk-indexed herbicide taxes to reduce ground and surface water pollution: an integrated ecological economics evaluation , 2001 .

[77]  G. Daily,et al.  Modeling multiple ecosystem services, biodiversity conservation, commodity production, and tradeoffs at landscape scales , 2009 .

[78]  D. Rapport,et al.  Economic models in ecology. , 1977, Science.

[79]  R. Costanza,et al.  Global Conservation of Biodiversity and Ecosystem Services , 2007 .

[80]  Frank Lupi,et al.  The Economic Equivalency of Drained and Restored Wetlands in Michigan , 2002 .

[81]  Gretchen C. Daily,et al.  The New Economy of Nature: The Quest to Make Conservation , 2002 .

[82]  E. Barbier Valuing Environmental Functions: Tropical Wetlands , 1994 .

[83]  T. Ricketts,et al.  Mapping the Economic Costs and Benefits of Conservation , 2006, PLoS biology.

[84]  Brent L. Mahan,et al.  Valuing Urban Wetlands: A Property Price Approach , 1996 .

[85]  Edward B. Barbier,et al.  VALUING MANGROVE CONSERVATION IN SOUTHERN THAILAND , 2001 .

[86]  S. Polasky,et al.  Evidence on the Amenity Value of Wetlands in a Rural Setting , 2005, Journal of Agricultural and Applied Economics.

[87]  Kevin J. Boyle,et al.  Valuing ecosystem services: toward better environmental decision-making , 2005 .

[88]  Geerat J. Vermeij,et al.  Nature: An Economic History , 2004 .

[89]  S. Foster,et al.  The value of ecosystem services provided by the U.S. National Wildlife Refuge System in the contiguous U.S. , 2008 .

[90]  E. Barbier HABITAT–FISHERY LINKAGES AND MANGROVE LOSS IN THAILAND , 2003 .

[91]  J. Tschirhart,et al.  Efficient ecosystem services and naturalness in an ecological/economic model , 2007 .

[92]  W. Brock,et al.  Valuing Biodiversity from an Economic Perspective: A Unified Economic, Ecological and Genetic Approach , 2001 .

[93]  W. Kemp,et al.  Economic losses associated with the degradation of an ecosystem: The case of submerged aquatic vegetation in Chesapeake Bay , 1985 .

[94]  J. Stoorvogel,et al.  Incorporating systems dynamics and spatial heterogeneity in integrated assessment of agricultural production systems , 2006, Environment and Development Economics.

[95]  N. Hanley,et al.  Environmental Economics: In Theory and Practice , 1996 .

[96]  Claire A. Montgomery,et al.  Modeling joint production of wildlife and timber , 2004 .

[97]  Yong-Suhk Wui,et al.  The economic value of wetland services: a meta-analysis , 2001 .

[98]  Stephen Polasky,et al.  Optimal harvesting of stochastic spatial resources , 2008 .

[99]  D. Noonan,et al.  Ecology and Valuation: Big Changes Needed , 2007 .

[100]  C. Spash Non-Economic Motivation for Contingent Values: Rights and Attitudinal Beliefs in the Willingness To Pay for Environmental Improvements , 2006, Land Economics.

[101]  J. Canadell,et al.  Managing Forests for Climate Change Mitigation , 2008, Science.

[102]  J. Krautkraemer Resource amenities and the preservation of natural environments , 1985 .

[103]  Andrew R. Solow,et al.  On the Value of a Collection of Species , 1995 .

[104]  J. Piliavin,et al.  Values: Reviving a Dormant Concept , 2004 .

[105]  K. Arrow,et al.  The Value of Nature and the Nature of Value , 2000, Science.

[106]  R. O'Neill,et al.  The value of the world's ecosystem services and natural capital , 1997, Nature.

[107]  R. Adams,et al.  PACIFIC SALMON RESTORATION: TRADE-OFFS BETWEEN ECONOMIC EFFICIENCY AND POLITICAL ACCEPTANCE , 2003 .

[108]  J. Shogren,et al.  Does Integrating Economic and Biological Systems Matter for Public Policy? The Case of Yellowstone Lake , 2006 .

[109]  A. Alchian Uncertainty, Evolution, and Economic Theory , 1950, Journal of Political Economy.

[110]  Anthony C. Fisher,et al.  Valuing the Environment As Input , 1986 .

[111]  E. Barbier,et al.  Valuing groundwater recharge through agricultural production in the Hadejia-Nguru wetlands in northern Nigeria. , 2000 .

[112]  Roger A. Sedjo,et al.  Valuing Biodiversity for Use in Pharmaceutical Research , 1996, Journal of Political Economy.

[113]  K. Gaston,et al.  Integrating Costs of Conservation into InternationalPriority Setting , 2000 .

[114]  Nicolas Treich,et al.  Decision-Making Under Scientific Uncertainty: The Economics of the Precautionary Principle , 2003 .

[115]  R. Hart Dynamic pollution control—time lags and optimal restoration of marine ecosystems , 2003 .

[116]  Geoffrey Heal,et al.  Value or Incentive? Getting Society to Pay for Conservation@@@Nature and the Marketplace: Capturing the Value of Ecosystem Services , 2000 .

[117]  Stephen K. Swallow,et al.  Renewable and Nonrenewable Resource Theory Applied to Coastal Agriculture, Forest, Wetland, and Fishery Linkages , 1994, Marine Resource Economics.

[118]  Michael Margolis,et al.  Safe Minimum Standards in Dynamic Resource Problems: Conditions for Living on the Edge of Risk , 2008 .

[119]  William J. Baumol,et al.  The theory of environmental policy: Contents , 1988 .

[120]  S. Polasky,et al.  Integrating economic costs into conservation planning. , 2006, Trends in ecology & evolution.

[121]  A. Troy,et al.  Mapping ecosystem services: Practical challenges and opportunities in linking GIS and value transfer , 2006 .

[122]  Andrew Schmitz,et al.  The Welfare Economics of Public Policy: A Practical Approach to Project and Policy Evaluation , 2005 .

[123]  P. E. Schroeder,et al.  SPATIAL PATTERNS OF ABOVEGROUND PRODUCTION AND MORTALITY OF WOODY BIOMASS FOR EASTERN U.S. FORESTS , 1999 .

[124]  B. Norton Why Preserve Natural Variety? , 2014 .

[125]  Stefano Pagiola,et al.  Payments for Environmental Services in Costa Rica , 2008 .

[126]  F. W. Bell The economic valuation of saltwater marsh supporting marine recreational fishing in the southeastern United States , 1997 .

[127]  Jeffrey Bennett,et al.  Valuing improved wetland quality using choice modeling , 1999 .

[128]  W. Baumol,et al.  The theory of environmental policy: On the theory of externalities , 1988 .

[129]  Raymond J. Kopp,et al.  On measuring economic values for nature , 2000 .

[130]  Rüdiger Pethig,et al.  Efficient nonanthropocentric nature protection , 2004, Soc. Choice Welf..

[131]  W. Nordhaus The "Stern Review" on the Economics of Climate Change , 2006 .

[132]  Yoh Iwasa,et al.  Nonlinear behavior of the socio-economic dynamics for lake eutrophication control , 2007 .

[133]  Andrea Cattaneo,et al.  Cost-effective design of agri-environmental payment programs: U.S. experience in theory and practice , 2008 .

[134]  J. Wilen,et al.  A Bioeconomic Model of Marine Reserve Creation , 2001 .

[135]  J. B. Callicott In defense of the land ethic: essays in environmental philosophy , 1989 .

[136]  Eduardo S. Schwartz,et al.  Investment Under Uncertainty. , 1994 .

[137]  Katharine R. E. Sims,et al.  Designing payments for ecosystem services: Lessons from previous experience with incentive-based mechanisms , 2008, Proceedings of the National Academy of Sciences.

[138]  S. Polasky,et al.  Efficiency of incentives to jointly increase carbon sequestration and species conservation on a landscape , 2008, Proceedings of the National Academy of Sciences.

[139]  E. Barbier Using Domestic Water Analysis to Value Groundwater Recharge in the Hadejia'Jama'Are Floodplain, Northern Nigeria , 2002 .

[140]  J. R. Wilson,et al.  Economic Values Attributable to Virginia's Coastal Wetlands as Inputs in Oyster Production , 1978, Journal of Agricultural and Applied Economics.

[141]  Jason F. Shogren,et al.  Agglomeration bonus: an incentive mechanism to reunite fragmented habitat for biodiversity conservation , 2002 .