IDEAS home Printed from https://ideas.repec.org/a/eee/ecoser/v26y2017ipap127-136.html
   My bibliography  Save this article

The economic value of ecosystem goods and services: The case of Mogale’s Gate Biodiversity Centre, South Africa

Author

Listed:
  • Mudavanhu, Shepherd
  • Blignaut, James
  • Stegmann, Nerine
  • Barnes, Garth
  • Prinsloo, Willem
  • Tuckett, Alistair

Abstract

Natural capital provides various ecosystem goods and services essential to the survival of mankind. In most cases, however, the markets for natural capital are incomplete. As a result, ecosystem goods and services are being enjoyed “freely†. Here we assess the economic value of the ecosystem goods and services of Mogale’s Gate Biodiversity Centre (MGBC) in South Africa using direct market values. We estimate the economic value of the natural capital stocks for game and carbon at approximately ZAR42 million (US$3 million) for 2015. As for the flows of ecosystem goods and services, the economic value was estimated to be approximately ZAR23 million (US$1,65 million) for 2015. Discounting these flow values into perpetuity and subtracting the discounted management cost yields the true economic value of the MGBC, which ranges between at least US$15,5 and US$41 million, depending on the discount rate used. This is between 25 and 67 times greater than the resource’s published capital value. It is this gross underrepresentation of the true value of natural capital that often leads to its destruction. It is strongly recommended that MGBC be represented by its true value in the integrated report of its owner and that it be managed accordingly.

Suggested Citation

  • Mudavanhu, Shepherd & Blignaut, James & Stegmann, Nerine & Barnes, Garth & Prinsloo, Willem & Tuckett, Alistair, 2017. "The economic value of ecosystem goods and services: The case of Mogale’s Gate Biodiversity Centre, South Africa," Ecosystem Services, Elsevier, vol. 26(PA), pages 127-136.
    • Handle: RePEc:eee:ecoser:v:26:y:2017:i:pa:p:127-136
    DOI: 10.1016/j.ecoser.2017.06.005
    as

    Download full text from publisher

    File URL: http://www.sciencedirect.com/science/article/pii/S2212041617301328
    Download Restriction: Full text for ScienceDirect subscribers only
    File URL: https://libkey.io/10.1016/j.ecoser.2017.06.005?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    As the access to this document is restricted, you may want to search for a different version of it.

    References listed on IDEAS

    as
    1. Chaikumbung, Mayula & Doucouliagos, Hristos & Scarborough, Helen, 2016. "The economic value of wetlands in developing countries: A meta-regression analysis," Ecological Economics, Elsevier, vol. 124(C), pages 164-174.
    2. Turner, R. Kerry & Paavola, Jouni & Cooper, Philip & Farber, Stephen & Jessamy, Valma & Georgiou, Stavros, 2003. "Valuing nature: lessons learned and future research directions," Ecological Economics, Elsevier, vol. 46(3), pages 493-510, October.
    3. Guy Garrod & Kenneth G. Willis, 1999. "Economic Valuation of the Environment," Books, Edward Elgar Publishing, number 1368.
    4. Ko, Jae-Young & Day, John W. & Lane, Robert R. & Day, Jason N., 2004. "A comparative evaluation of money-based and energy-based cost-benefit analyses of tertiary municipal wastewater treatment using forested wetlands vs. sand filtration in Louisiana," Ecological Economics, Elsevier, vol. 49(3), pages 331-347, July.
    Full references (including those not matched with items on IDEAS)

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Arantza Murillas‐Maza & Jorge Virto & María Carmen Gallastegui & Pilar González & Javier Fernández‐Macho, 2011. "The value of open ocean ecosystems: A case study for the Spanish exclusive economic zone," Natural Resources Forum, Blackwell Publishing, vol. 35(2), pages 122-133, May.
    2. Chaikumbung, Mayula & Doucouliagos, Hristos & Scarborough, Helen, 2019. "Institutions, Culture, and Wetland Values," Ecological Economics, Elsevier, vol. 157(C), pages 195-204.
    3. Robert Costanza & Shuang Liu, 2014. "Ecosystem Services and Environmental Governance: Comparing China and the U.S," Asia and the Pacific Policy Studies, Wiley Blackwell, vol. 1(1), pages 160-170, January.
    4. Verbic, Miroslav & Slabe-Erker, Renata, 2009. "An econometric analysis of willingness-to-pay for sustainable development: A case study of the Volcji Potok landscape area," Ecological Economics, Elsevier, vol. 68(5), pages 1316-1328, March.
    5. Chaikaew, Pasicha & Hodges, Alan W. & Grunwald, Sabine, 2017. "Estimating the value of ecosystem services in a mixed-use watershed: A choice experiment approach," Ecosystem Services, Elsevier, vol. 23(C), pages 228-237.
    6. Duan, N. & Liu, X.D. & Dai, J. & Lin, C. & Xia, X.H. & Gao, R.Y. & Wang, Y. & Chen, S.Q. & Yang, J. & Qi, J., 2011. "Evaluating the environmental impacts of an urban wetland park based on emergy accounting and life cycle assessment: A case study in Beijing," Ecological Modelling, Elsevier, vol. 222(2), pages 351-359.
    7. Naz Abdulkareem Arif, 2020. "Estimate Household’s Willingness to Pay for Improved Tap Water Quality in Duhok Province," International Journal of Science and Business, IJSAB International, vol. 4(11), pages 152-159.
    8. Hougner, Cajsa & Colding, Johan & Soderqvist, Tore, 2006. "Economic valuation of a seed dispersal service in the Stockholm National Urban Park, Sweden," Ecological Economics, Elsevier, vol. 59(3), pages 364-374, September.
    9. Hooper, Tara & Cooper, Philip & Hunt, Alistair & Austen, Melanie, 2014. "A methodology for the assessment of local-scale changes in marine environmental benefits and its application," Ecosystem Services, Elsevier, vol. 8(C), pages 65-74.
    10. Ali DOUAI, 2007. "Wealth, Well-being and Value(s): A Proposition of Structuring Concepts for a (real) Transdisciplinary Dialogue within Ecological Economics," Cahiers du GREThA (2007-2019) 2007-18, Groupe de Recherche en Economie Théorique et Appliquée (GREThA).
    11. Mannino, Ilda & Franco, Daniel & Piccioni, Enrico & Favero, Laura & Mattiuzzo, Erika & Zanetto, Gabriele, 2006. "A cost-effectiveness analysis of seminatural wetlands and activated sludge wastewater-treatment systems," MPRA Paper 52359, University Library of Munich, Germany, revised 19 May 2007.
    12. Benjamin Leard, 2011. "Joan Martinez-Alier and Ingo Ropke (eds.): Recent developments in ecological economics (2 vols.)," Journal of Bioeconomics, Springer, vol. 13(2), pages 161-178, July.
    13. Lienhoop, Nele & Ansmann, Till, 2011. "Valuing water level changes in reservoirs using two stated preference approaches: An exploration of validity," Ecological Economics, Elsevier, vol. 70(7), pages 1250-1258, May.
    14. Hermine Vedogbeton & Robert J. Johnston, 2020. "Commodity Consistent Meta-Analysis of Wetland Values: An Illustration for Coastal Marsh Habitat," Environmental & Resource Economics, Springer;European Association of Environmental and Resource Economists, vol. 75(4), pages 835-865, April.
    15. GEVAERT, Anouk & KUPERS, Stefan Jonathan & HEIJMAN, Wim, 2014. "Participatory Landscape Planning: The Case Of The “Westvaardersplassen” In The Netherlands," Review of Agricultural and Applied Economics (RAAE), Faculty of Economics and Management, Slovak Agricultural University in Nitra, vol. 17(2), pages 1-11, November.
    16. Stella Tsani & Phoebe Koundouri & Ebun Akinsete, 2020. "Resource management and sustainable development: A review of the European water policies in accordance with the United Nations' Sustainable Development Goals," DEOS Working Papers 2036, Athens University of Economics and Business.
    17. Gurluk, Serkan, 2006. "The estimation of ecosystem services' value in the region of Misi Rural Development Project: Results from a contingent valuation survey," Forest Policy and Economics, Elsevier, vol. 9(3), pages 209-218, December.
    18. Bart Neuts & Peter Nijkamp & Eveline Van Leeuwen, 2012. "Crowding Externalities from Tourist Use of Urban Space," Tourism Economics, , vol. 18(3), pages 649-670, June.
    19. Dominic Moran & Esmond Tresidder & Alistair McVittie, 2006. "Estimating the Recreational Value of Mountain Biking Sites in Scotland Using Count Data Models," Tourism Economics, , vol. 12(1), pages 123-135, March.
    20. Schäffler, Alexis & Swilling, Mark, 2013. "Valuing green infrastructure in an urban environment under pressure — The Johannesburg case," Ecological Economics, Elsevier, vol. 86(C), pages 246-257.

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:eee:ecoser:v:26:y:2017:i:pa:p:127-136. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Catherine Liu (email available below). General contact details of provider: https://www.journals.elsevier.com/ecosystem-services .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.