Environmental and Resource Economics

, Volume 16, Issue 3, pp 303–328 | Cite as

Ecological Structure and Functions of Biodiversity as Elements of Its Total Economic Value

  • Oliver Fromm
Article

Abstract

Rational economic decisions regarding theconservation of biodiversity require the considerationof all the benefits generated by this naturalresource. Recently a number of categories of values(inherent value, contributory value, indirect value,infrastructure value, primary value) have beendeveloped, especially in the literature of EcologicalEconomics, which, besides the individual andproductive benefits of biodiversity, also include theutilitarian relevance of the ecological structure andfunctions of biodiversity in the, so-called, totaleconomic value. For the question of including theecological structure and functions of biodiversity inthe total economic value it is of crucial importanceto note, that these categories of values are not onlyterminologically different, but also relate todifferent ecological levels of biodiversity and – mostimportantly – to specific complementary relationships– between species, between elements of ecologicalstructures and between ecological functions and theircontribution to human well-being. This paper analysesthese complementary relationships, discusses theirimplications for the total economic value ofbiodiversity and draws conclusions for decision makingin environmental policy.

biodiversity cost-benefit-analysis ecological structure ecological functions total economic value nonsubstitutability ignorance safe minimum standard 

Preview

Unable to display preview. Download preview PDF.

Unable to display preview. Download preview PDF.

References

  1. Aylward, B. (1992), ‘Appropriating the Value of Wildlife and Wildlands’, in T. Swanson and E. B. Barbier, eds., Economics for the Wilds. Wildlife, Wildlands, Diversity and Development. London: Earthscan Publications.Google Scholar
  2. Aylward, B. and E. B. Barbier (1992), ‘Valuing Environmental Functions in Developing Countries’, Biodiversity and Conservation 1, 34-50.Google Scholar
  3. Barbier, E. B. (1989a), Economics, Natural-Resource Scarcity and Development — Conventional and Alternative Views. London: Earthscan Publications.Google Scholar
  4. Barbier, E. B. (1989b), The Economic Value of Ecosystems. 1-Tropical Wetlands. Gatekeeper Series No LEEC 89-02. London: London Environmental Economics Centre (LEEC).Google Scholar
  5. Barbier, E. B. (1994), ‘Valuing Environmental Functions: Tropical Wetlands’, Land Economics 70, 155-173.Google Scholar
  6. Barbier, E. B. (1995), ‘Tropical Wetland Values and Environmental Functions’, in C. A. Perrings, K.-G. Mõler, C. Folke, C. S. Holling and B.-O. Jansson, eds., Biodiversity Conservation. Dordrecht/Boston/London: Kluwer.Google Scholar
  7. Barbier, E. B. and B. A. Aylward (1996), ‘Capturing the Pharmaceutical Value of Biodiversity in a Developing Country’, Environmental and Resource Economics 8, 157-181.Google Scholar
  8. Bateman, I. J. and R. K. Turner (1993), ‘Valuation of the Environment, Methods and Techniques: The Contingent Valuation Method’, in R. K. Turner, ed., Sustainable Environmental Economics and Management. Principles and Practice. London, New York: Belhaven Press.Google Scholar
  9. Beirat Umweltökonomische Gesamtrechnung (1995), ‘Umweltökonomische Gesamtrechnung — zweite Stellungnahme des Beirats “Umweltökonomische Gesamtrechnung” beim Bundesministerium für Umwelt, Naturschutz und Reaktorsicherheit zu den Umsetzungskonzepten des Statistischen Bundesamtes-’, Zeitschrift für angewandte Umweltforschung 8, 455-476.Google Scholar
  10. Bingham, G. et al. (1995), ‘Issues in Ecosystem Valuation: Improving Information for Decision Making’, Ecological Economics 14, 73-90.Google Scholar
  11. Bishop, R. C. (1978), ‘Endangered Species and Uncertainty: The Economics of a Safe Minimum Standard’, American Journal for Agricultural Economics 60, 10-18.Google Scholar
  12. Bishop, R. C. and M. P. Welsh (1992), ‘Existence Values in Benefit-Cost Analysis and Damage Assessment’, Land Economics 68, 405-417.Google Scholar
  13. Boyle, K. J. and R. C. Bishop (1987), ‘Valuing Wildlife in Benefit-Cost Analyses: A Case Study Involving Endangered Species’, Water Resources Research 23, 943-950.Google Scholar
  14. Brookshire, D. S., L. S. Eubanks and A. Randall (1983), ‘Estimating Option Prices and Existence Values for Wildlife Resources’, Land Economics 59, 1-15.Google Scholar
  15. Brown, G. M. and J. F. Shogren (1998), ‘Economics of the Endangered Species Act’, Journal of Economic Perspectives 12, 3-20.Google Scholar
  16. Ciriacy-Wantrup, S. V. (1968), Resource Conservation. Economics and Policies(3rd edn.). Berkeley: University of California, Division of Agricultural Sciences.Google Scholar
  17. Clawson, M. and J. Knetsch (1966), Economics of Outdoor Recreation. Baltimore: The Johns Hopkins University Press for Resources for the Future.Google Scholar
  18. Costanza, R., S. C. Farber and J. Maxwell (1989), ‘Valuation and Management of Wetland Ecosystems’, Ecological Economics 1, 335-361.Google Scholar
  19. Costanza, R. et al. (1997), ‘The Value of the World's Ecosystem Services and Natural Capital’, Nature 387, 253-260.Google Scholar
  20. Cropper, M. L. and W. E. Oates (1992), ‘Environmental Economics: A Survey’, Journal of Economic Literature 30, 675-740.Google Scholar
  21. Crocker, T. D. and J. Tschirhart (1992), ‘Ecosystems, Externalities, and Economics’, Environmental and Resource Economics 2, 551-567.Google Scholar
  22. Crowards, T. (1997), ‘Nonuse Values and the Environment: Economic and Ethical Motivations’, Environmental Values 6, 143-167.Google Scholar
  23. Crowards, T. (1998), ‘Safe Minimum Standards: Costs and Opportunities’, Ecological Economics 25, 303-314.Google Scholar
  24. Daily, G. C. (1997), ‘Introduction: What Are Ecosystem Services?’, in G. C. Daily, ed., Nature's Serivces. Washington, D.C., Covelo: Island Press.Google Scholar
  25. Daily, G. C., P. Matson and P. M. Vitousek (1997), ‘Ecosystem Services Supplied by Soil’, in G. C. Daily, ed., Nature's Services. Washington, D.C., Covelo: Island Press.Google Scholar
  26. Degenhardt, S. and S. Gronemann (1998), Die Zahlungsbereitschaft von Urlaubsgästen für den Naturschutz. Theorie und Empirie des Embedding-Effektes. Frankfurt et al.: Peter Lang.Google Scholar
  27. Ehrlich, P. R. and A. H. Ehrlich (1992), ‘The Value of Biodiversity’, Ambio 21, 219-226.Google Scholar
  28. Faber, M., R. Manstetten and J. Proops (1996), Ecological Economics. Concepts and Methods. Cheltenham, Brookfield: Edward Elgar.Google Scholar
  29. Farnworth, E. G., T. H. Tidrick, C. F. Jordan and W. M. Smathers (1981), ‘The Value of Ecosystems: An Economic and Ecological Framework’, Environmental Conservation 8, 275-282.Google Scholar
  30. Fränzle, O. et al. (1993), Grundlagen zur Bewertung der Belastung und Belastbarkeit von Böden als Teilen von Ökosystemen. Berichte des Umweltbundesamtes 59/93. Berlin: Umweltbundesamt.Google Scholar
  31. Freeman, A. M. (1986), ‘Estimating the Benefits of Environmental Regulations’, in J. D. Bentkover et al., eds., Benefits Assessment: The State of the Art. Dordrecht et al.: Reidel Publishing.Google Scholar
  32. Freeman, A. M. (1993a), The Measurement of Environmental and Resource Values. Theory and Methods. Washington, D.C.: Resources for the Future.Google Scholar
  33. Freeman, A. M. (1993b), ‘Nonuse Values in Natural Resource Damage Assessment’, in R. J. Kopp and V. K. Smith, eds., Valuing Natural Assets. The Economics of Natural Resource Damage Assessment. Washington, D.C.: Resources for the Future.Google Scholar
  34. Freeman, A. M. (1997), ‘On Valuing the Services and Functions of Ecosystems’, in R. D. Simpson and N. L. Christensen, eds., Ecosystem Function & Human Activities. New York et al.: Chapman & Hall.Google Scholar
  35. Fromm, O. (1997), Möglichkeiten und Grenzen einer ökonomischen Bewertung des Ökosystems Boden. Frankfurt et al.: Peter Lang.Google Scholar
  36. Gren, I.-M., C. Folke, R. K. Turner and I. Bateman (1994), ‘Primary and Secondary Values of Wetland Ecosystems’, Environmental and Resource Economics 4, 55-74.Google Scholar
  37. Grimm, V., E. Schmidt and C. Wissel (1992), ‘On the Application of Stability Concepts in Ecology’, Ecological Modelling 63, 143-161.Google Scholar
  38. Hampicke, U. (1991), Naturschutz-Ökonomie. Stuttgart: UTB Ulmer.Google Scholar
  39. Hampicke, U. (1992), Ökologische Ökonomie. Opladen: Westdeutscher Verlag.Google Scholar
  40. Hanley, N., C. L. Spash and L. Walker (1995), ‘Problems in Valuing the Benefits of Biodiversity Protection’, Environmental and Resource Economics 5, 249-272.Google Scholar
  41. Hueting, R. (1980), New Scarcity and Economic Growth. Amsterdam/New York/Oxford: North Holland Publishing Company.Google Scholar
  42. Hueting, R. et al. (1998), ‘The Concept of Environmental Functions and its Valuation’, Ecological Economics 25, 31-35.Google Scholar
  43. Kahnemann, D. and J. L. Knetsch (1992), ‘Valuing Public Goods: The Purchase of Moral Satisfaction’, Journal of Environmental Economics and Management 22, 57-70.Google Scholar
  44. Kopp, R. J. (1992), ‘Why Existence Value Should Be Used in Cost-Benefit Analysis’, Journal of Policy Analysis and Management 11, 123-130.Google Scholar
  45. Krutilla, J. V. (1967), ‘Conservation Reconsidered’, Economic Review 57, 777-786.Google Scholar
  46. Lerch, A. (1999), ‘Property Rights and Biodiversity’, European Journal of Law and Economics 6, 285-304.Google Scholar
  47. Metrick, A. and Weitzman M. L. (1998), ‘Conflicts and Choices in Biodiversity Preservation’, Journal of Economic Perspectives 12, 21-34.Google Scholar
  48. Mooney, H. A. and P. R. Ehrlich (1997), ‘Ecosystem Services: A Fragmentary History’, in G. C. Daily, ed., Nature's Services. Washington, D.C., Covelo: Island Press.Google Scholar
  49. Mooney, H. A., J. Lubchenco, R. Dirzo and O. E. Sala (1995), ‘Biodiversity and Ecosystem Functioning: Basic Principles’, in V. H. Heywood and R. T. Watson, eds., Global Biodiversity Assessment. Cambridge: Cambridge University Press.Google Scholar
  50. Myers, N. (1979), The Sinking Ark: A New Look at the Problem of Disappearing Species. Oxford et al.: Pergamon Press.Google Scholar
  51. NOAA (National Oceanic and Atmospheric Administration) (1993), ‘Report of the NOAA Panel on Contingent Valuation’, Federal Register 58, 4602-4614.Google Scholar
  52. Nordhaus, W. D. (1991), ‘To Slow or Not to Slow: The Economics of the Greenhouse Effect’, The Economic Journal 101, 920-937.Google Scholar
  53. Norgaard, R. B. (1985), ‘Environmental Economics: An Evolutionary Critique and a Plea for Pluralism’, Journal of Environmental Economics and Management 12, 382-394.Google Scholar
  54. Norton, B. G. (1986), ‘On the Inherent Danger of Undervaluing Species’, in B. G. Norton, ed., The Preservation of Species. Princeton: Princeton University Press.Google Scholar
  55. Norton, B. G. (1995), ‘Evaluating Ecosystem States: Two Competing Paradigms’, Ecological Economics 14, 113-127.Google Scholar
  56. Norton, B. G. and R. E. Ulanowicz (1992), ‘Scale and Biodiversity Policy: A Hierarchical Approach’, Ambio 21, 244-249.Google Scholar
  57. Pearce, D. W. (1991), ‘Cost-Benefit Analysis and PMPs’, in J. B. Opschoor and D. W. Pearce, eds., Persistent Pollutants: Economics and Policy. Dordrecht, Boston, London: Kluwer.Google Scholar
  58. Pearce, D. W. (1993), Economic Values and the Natural World. London: Earthscan Publications.Google Scholar
  59. Pearce, D. W., A. Markandya and E. B. Barbier (1989), Blueprint for a Green Economy. London: Earthscan Publications.Google Scholar
  60. Pearce, D. W. and D. Moran (1994), The Economic Value of Biodiversity. London: Earthscan Publications.Google Scholar
  61. Pearce, D. W., D. Moran and E. Fripp (1992), The Economic Value of Biological and Cultural Diversity. A Report to the World Conservation Union. London, Norwich: Centre for Social and Economic Research on the Global Environment.Google Scholar
  62. Perrings, C. (1995), ‘Economic Values of Biodiversity’, in V. H. Heywood and R. T. Watson, eds., Global Biodiversity Assessment. Cambridge: Cambridge University Press.Google Scholar
  63. Perrings, C. (1998), ‘Resilience in the Dynamics of Economy-Environment Systems’, Environmental and Resource Economics 11, 503-520.Google Scholar
  64. Perrings, C., C. Folke and K.-G. Mäler (1992), ‘The Ecology and Economics of Biodiversity Loss: The Research Agenda’, AMBIO 21, 201-211.Google Scholar
  65. Perrings, C., K.-G. Mäler, C. Folke, C. S. Holling and B.-O. Jansson (1995a), ‘Introduction: Framing the Problem of Biodiversity Loss’, in C. Perrings, K.-G. Mäler, C. Folke, C. S. Holling and B.-O. Jansson, eds., Biodiversity Loss. Economic and Ecological Issues. Cambridge: Cambridge University Press.Google Scholar
  66. Perrings, C., K.-G. Mäler, C. Folke, C. S. Holling and B.-O. Jansson (1995b), ‘Unanswered Questions’, in C. Perrings, K.-G. Mäler, C. Folke, C. S. Holling and B.-O. Jansson, eds., Biodiversity Loss. Economic and Ecological Issues. Cambridge: Cambridge University Press.Google Scholar
  67. Perrings, C. and B. W. Walker (1995b), ‘Biodiversity Loss and the Economics of Discontinuous Change in Semiarid Rangelands’, in C. Perrings, K.-G. Mäler, C. Folke, C. S. Holling and B.-O. Jansson, eds., Biodiversity Loss. Economic and Ecological Issues. Cambridge: Cambridge University Press.Google Scholar
  68. Prescott-Allen, C. and R. Prescott-Allen (1986), The First Resource. New Haven, London: Yale University Press.Google Scholar
  69. Principe, P. (1989), The Economic Value of Biodiversity among Medical Plants. Paris: OECD.Google Scholar
  70. Randall, A. and J. R. Stoll (1983), ‘Existence Value in a Total Valuation Framework’, in A. Randall and J. R. Stoll, eds., Managing Air Quality and Scenic Resources at National Parks and Wilderness Areas. Boulder: Westview Press.Google Scholar
  71. Rat von Sachverständigen für Umweltfragen (1987), Umweltgutachten. Stuttgart, Mainz: Kohlhammer.Google Scholar
  72. Schulze, E.-D. and H. A. Mooney (1994), ‘Ecosystem Function of Biodiverstiy: A Summary’, in E.-D. Schulze and H. A. Mooney, eds., Biodiversity and Ecosystem Function. Berlin/Heidelberg/New York: Springer.Google Scholar
  73. Sedjo, R. A. (1992), ‘Property Rights, Genetic Resources, and Biotechnological Change’, Journal of Law and Economics 35, 199-213.Google Scholar
  74. Shechter, M. and S. Freeman (1994), ‘Nonuse Value: Reflections on the Definition and Measurement’, in R. Pethig, ed., Valuing the Environment: Methodological and Measurement Issues. Dordrecht: Kluwer.Google Scholar
  75. Simpson, R. D. (1996), Valuation of Biodiversity for Use in New Product Research in a Model of Sequential Search. Discussion Paper 96-27. Washington, D.C.: Resources for the FutureGoogle Scholar
  76. Simpson, R. D., R. A. Sedjo and J. W. Reid (1996), ‘Valuing Biodiversity for Use in Pharmaceutical Research’, Journal of Political Economy 104, 163-185.Google Scholar
  77. Smith, V. K. (1993), ‘Nonmarket Valuation of Environmental Resources: An Interpretive Appraisal’, Land Economics 69, 1-26.Google Scholar
  78. Steinhoff, H. W., R. G. Walsch, T. J. Peterle and J. M. Petulla (1987), ‘Evolution of the Valuation of Wildlife’, in D. J. Decker and G. R. Goff, eds., Valuing Wildlife. Economic and Social Perspectives. Boulder, London: Westview Press.Google Scholar
  79. Strebel, O., J. Böttcher and W. H. M. Duynisveld (1993), Ermittlung von Stoffeinträgen und deren Verbleib im Grundwasserleiter eines norddeutschen Wassergewinnungsgebietes. Texte des Umweltbundesamtes 46/93. Berlin: Erich Schmidt.Google Scholar
  80. Swanson, T. M. (1996), ‘The Reliance of Northern Economies on Southern Biodiversity: Biodiversity as Information’, Ecological Economics 17, 1-8.Google Scholar
  81. Taylor, P. W. (1989), Respect for Nature. A Theory of Environmental Ethics. Princeton: Princeton University Press.Google Scholar
  82. Tilman, D. (1997), ‘Biodiversity and Ecosystem Functioning’, in G. C. Daily, ed., Nature's Services. Washington, D.C., Covelo: Island Press.Google Scholar
  83. Toman, M. A. (1994), ‘Economics and “Sustainability”: Balancing Trade-offs and Imperatives’, Land Economics 70, 399-413.Google Scholar
  84. Turner, R. K. and D. W. Pearce (1993), ‘Sustainable Economic Development: Economic and Ethical Principles’, in E. B. Barbier, ed., Economics and Ecology: New Frontiers and Sustainable Development. London: Chapman & Hall.Google Scholar
  85. Turner, R. K., W. N. Adger and R. Brouwer (1998), ‘Ecosystem Service Value, Research Needs, and Policy Relevance: a Commentary’, Ecological Economics 25, 61-65.Google Scholar
  86. Umweltbundesamt (1990), Jahresbericht. Berlin: Umweltbundesamt.Google Scholar
  87. Vatn, A. and D. W. Bromley (1994), ‘Choices without Prices without Apologies’, Journal of Environmental Economics and Management 26, 129-148.Google Scholar
  88. Wild, A. (1993), Soils and the Environment: An Introduction. Cambridge: Cambridge University Press.Google Scholar
  89. Wood, P. M. (1997), ‘Biodiversity as the Source of Biological Resources: A New Look at Biodiversity Values’, Environmental Values 6, 251-268.Google Scholar

Copyright information

© Kluwer Academic Publishers 2000

Authors and Affiliations

  • Oliver Fromm
    • 1
  1. 1.Department of Economics and Business AdministrationUniversity of KasselKasselGermany

Personalised recommendations