How Should We Value Nature?

Abstract

Nature is in crisis and urgently needs better protection. Our own well-being depends upon thriving nature. Economists say that nature will be better protected if we can assess it in monetary terms. This seems appealing—nature has been undervalued for too long. But there are risks and flaws in the Natural Capital approach—the way we experience nature or the simple right of nature to exist cannot be measured in this way. And putting a monetary value on nature’s services is risky—would we accept the loss of most bee species as long as the species that do most crop pollination are saved? Natural Capital accounting may be a useful tool in some limited circumstances but it is no substitute for strong regulation and policy reform.