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Are diverse ecosystems more valuable? Economic value of biodiversity as result of uncertainty and spatial interactions in ecosystem service provision

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  • Bartkowski, Bartosz

Abstract

Economic valuation mostly focuses on specific ecosystems, species or the services they provide. The diversity within ecosystems is viewed as a valuation object less frequently. In this paper, it is argued that the economic value of biodiversity highlights the relevance of the temporal and spatial dimensions in ecosystem service provision. A framework is presented in which the economic value of biodiversity is the result of uncertainty about the future, regarding both supply of and demand for ecosystem services, and of spatial interactions between ecosystems. Three sources of biodiversity’s economic value are distinguished in this context: insurance value, option value and spill-over value. Furthermore, the paper introduces biodiversity-specific methodological challenges (importance of non-market ecosystem goods; uncertainty and subjectivity; complexity and abstractness) which can be used to identify suitable methods for the economic valuation of biodiversity.

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  • Bartkowski, Bartosz, 2017. "Are diverse ecosystems more valuable? Economic value of biodiversity as result of uncertainty and spatial interactions in ecosystem service provision," Ecosystem Services, Elsevier, vol. 24(C), pages 50-57.
    • Handle: RePEc:eee:ecoser:v:24:y:2017:i:c:p:50-57
    DOI: 10.1016/j.ecoser.2017.02.023
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    7. Mark V. Brady & Jordan Hristov & Fredrik Wilhelmsson & Katarina Hedlund, 2019. "Roadmap for Valuing Soil Ecosystem Services to Inform Multi-Level Decision-Making in Agriculture," Sustainability, MDPI, vol. 11(19), pages 1-20, September.
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    9. Elena A. Mikhailova & Hamdi A. Zurqani & Christopher J. Post & Mark A. Schlautman & Gregory C. Post, 2021. "Soil Diversity (Pedodiversity) and Ecosystem Services," Land, MDPI, vol. 10(3), pages 1-34, March.
    10. Daniels, Silvie & Bellmore, J. Ryan & Benjamin, Joseph R. & Witters, Nele & Vangronsveld, Jaco & Van Passel, Steven, 2018. "Quantification of the Indirect Use Value of Functional Group Diversity Based on the Ecological Role of Species in the Ecosystem," Ecological Economics, Elsevier, vol. 153(C), pages 181-194.
    11. Paavola, Jouni & Primmer, Eeva, 2019. "Governing the Provision of Insurance Value From Ecosystems," Ecological Economics, Elsevier, vol. 164(C), pages 1-1.
    12. Elżbieta Pliś, 2020. "Diversity and Innovation in Economic Evolution," Central European Journal of Economic Modelling and Econometrics, Central European Journal of Economic Modelling and Econometrics, vol. 12(4), pages 347-367, December.
    13. Bartkowski, Bartosz & Massenberg, Julian Richard & Lienhoop, Nele, 2022. "Between complexity and unfamiliarity: Preferences for soil-based ecosystem services," UFZ Discussion Papers 3/2022, Helmholtz Centre for Environmental Research (UFZ), Division of Social Sciences (ÖKUS).
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    15. Henghui Xi & Wanglai Cui & Li Cai & Mengyuan Chen & Chenglei Xu, 2021. "Evaluation and Prediction of Ecosystem Service Value in the Zhoushan Islands Based on LUCC," Sustainability, MDPI, vol. 13(4), pages 1-13, February.
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