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Measuring quantity in ecosystem markets and ecosystem accounts

Author

Listed:
  • Gary Stoneham
  • Craig Beverly

Abstract

The quantity of ecosystem services produced from land cannot be readily measured at the site level needed for participation in ecosystem markets, or at a regional level needed to create ecosystem accounts. This paper applies biological scaling principles to develop a quantity metric in which areas of ecosystem (extent) scale allometrically to ecosystem services (a capacity measure) according to a scaling exponent defined by the fractal dimension of ecosystem vegetation. A key conclusion of this paper is that the quantity of ecosystem services arising from ecosystem degradation and conservation activities cannot be estimated unless information about the space‐filling properties of vegetation is observed and included in the quantity measurement methodology. The paper demonstrates how remote sensing techniques can be applied to systematically measure ecosystem extent and fractal dimension. It illustrates the economic efficiency and environmental outcome implications of such a quantity metric through comparison with current quantity estimation methods that assume isometric scaling. The quantity metric proposed has potential applications to ecosystem accounting. It enables information currently reported in land accounts to be combined with information reported in ecosystem condition accounts to create ecosystem stock accounts measured in physical units.

Suggested Citation

  • Gary Stoneham & Craig Beverly, 2024. "Measuring quantity in ecosystem markets and ecosystem accounts," Australian Journal of Agricultural and Resource Economics, Australian Agricultural and Resource Economics Society, vol. 68(4), pages 769-783, October.
  • Handle: RePEc:bla:ajarec:v:68:y:2024:i:4:p:769-783
    DOI: 10.1111/1467-8489.12590
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    References listed on IDEAS

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    1. Stoneham, Gary & Chaudhri, Vivek & Ha, Arthur & Strappazzon, Loris, 2002. "Auctions for conservation contracts: an empirical Examination of Victoria’s Bush Tender Trial," 2002 Conference (46th), February 13-15, 2002, Canberra, Australia 174043, Australian Agricultural and Resource Economics Society.
    2. Alvin E. Roth, 2002. "The Economist as Engineer: Game Theory, Experimentation, and Computation as Tools for Design Economics," Econometrica, Econometric Society, vol. 70(4), pages 1341-1378, July.
    3. Geoffrey B. West & James H. Brown & Brian J. Enquist, 1997. "A General Model for the Origin of Allometric Scaling Laws in Biology," Working Papers 97-03-019, Santa Fe Institute.
    4. Richard F. Voss, 1988. "Fractals in nature: From characterization to simulation," Springer Books, in: Heinz-Otto Peitgen & Dietmar Saupe (ed.), The Science of Fractal Images, chapter 0, pages 21-70, Springer.
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