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Analysis of the Internal Relationship between Ecological Value and Economic Value Based on the Forest Resources in China

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  • Jianxin Geng

    (School of Business, Renmin University of China, Beijing 100000, China)

  • Chengzhi Liang

    (School of Business, Renmin University of China, Beijing 100000, China)

Abstract

In this study, we applied gross ecosystem product (GEP) theory in a case study to analyze and explain the natural resource asset value and ecosystem service value of forest resources in Jiaokou County, Shanxi Province, Northern China, in 2018. GEP refers to the total value of various final material products and services provided by ecosystems. In this paper, six service functions of a forest system, including water conservation, soil conservation, carbon fixation and oxygen release, forest nutrients, purification of atmospheric environment, and biodiversity, are valued by three calculation methods: the alternative cost method, market value method, and control cost method. The study revealed the following: (1) There is a parallel relationship between the value of natural resource assets and the value of ecosystem services. GEP includes the market value of natural resource assets, but it is mostly the value of ecosystem services. (2) The measurement of the physical quantity of forest ecosystem services depends on parameter data, and the monetary calculation often has no mature pricing basis, which leads to the large scale and uncertainty surrounding the evaluation results of ecosystem services. (3) The ecosystem service value and natural resource asset value have different practical significance, as well as alternate theoretical bases. The value of natural resource assets can be used as the asset valuation basis of economic transactions, which plays a role in macroeconomic management. The value of ecosystem services can be used as the basis of ecological compensation, providing information for the preparation of the balance sheet of natural resources.

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  • Jianxin Geng & Chengzhi Liang, 2021. "Analysis of the Internal Relationship between Ecological Value and Economic Value Based on the Forest Resources in China," Sustainability, MDPI, vol. 13(12), pages 1-17, June.
    • Handle: RePEc:gam:jsusta:v:13:y:2021:i:12:p:6795-:d:575774
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    2. Pan, Xianyou & Song, Malin & Wang, Yuqing & Shen, Zhiyang & Song, Jinbo & Xie, Pinjie & Pan, Xiongfeng, 2022. "Liability accounting of natural resource assets from the perspective of input Slack—An analysis based on the energy resource in 282 prefecture-level cities in China," Resources Policy, Elsevier, vol. 78(C).
    3. Juan Wu & Fangmiao Hou & Wenjing Yu, 2021. "The Effect of Carbon Sink Plantation Projects on Local Economic Growth: An Empirical Analysis of County-Level Panel Data from Guangdong Province," Sustainability, MDPI, vol. 13(24), pages 1-19, December.
    4. Chenxi Li & Zhihong Zong & Haichao Qie & Yingying Fang & Qiao Liu, 2023. "CiteSpace and Bibliometric Analysis of Published Research on Forest Ecosystem Services for the Period 2018–2022," Land, MDPI, vol. 12(4), pages 1-16, April.
    5. Jingyu Wang & Wei Liu & Fanbing Kong, 2023. "Research on Forest Ecological Product Value Evaluation and Conversion Efficiency: Case Study from Pearl River Delta, China," Land, MDPI, vol. 12(9), pages 1-16, September.
    6. Hualin Xie & Zhe Li & Yu Xu, 2022. "Study on the Coupling and Coordination Relationship between Gross Ecosystem Product (GEP) and Regional Economic System: A Case Study of Jiangxi Province," Land, MDPI, vol. 11(9), pages 1-20, September.

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