IDEAS home Printed from https://ideas.repec.org/a/kap/enreec/v64y2016i1d10.1007_s10640-015-9921-1.html
   My bibliography  Save this article

National Accounting and the Valuation of Ecosystem Assets and Their Services

Author

Listed:
  • Carl Obst

    () (University of Melbourne)

  • Lars Hein

    (Wageningen University)

  • Bram Edens

    (Statistics Netherlands)

Abstract

Abstract There has long been interest in integrating the value of environmental stocks and flows into standard measures of economic activity and wealth, in particular through the development of adjusted measures of GDP and extended measures of national wealth. This paper examines how the valuation of ecosystem services and ecosystem assets can be undertaken in an integrated national accounting setting. We clarify the relevant valuation principles, most significantly the need to apply the concept of exchange values, and explain why the integration of ecosystem services necessitates an extension of the standard production boundary used in economic measurement. The main implications of an accounting approach are discussed including the need to distinguish benefits from services, the need for valuation methods that exclude consumer surplus, and the importance of aligning measures of income and degradation. Remaining challenges include the treatment of low or negative rents, accounting for ecosystem disservices, and the derivation of values for ecosystem assets. Meeting these challenges and advancing work in this area should be the joint focus of economists, ecologists and accountants.

Suggested Citation

  • Carl Obst & Lars Hein & Bram Edens, 2016. "National Accounting and the Valuation of Ecosystem Assets and Their Services," Environmental & Resource Economics, Springer;European Association of Environmental and Resource Economists, vol. 64(1), pages 1-23, May.
  • Handle: RePEc:kap:enreec:v:64:y:2016:i:1:d:10.1007_s10640-015-9921-1
    DOI: 10.1007/s10640-015-9921-1
    as

    Download full text from publisher

    File URL: http://link.springer.com/10.1007/s10640-015-9921-1
    File Function: Abstract
    Download Restriction: Access to the full text of the articles in this series is restricted.

    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. Kosoy, Nicolás & Corbera, Esteve, 2010. "Payments for ecosystem services as commodity fetishism," Ecological Economics, Elsevier, vol. 69(6), pages 1228-1236, April.
    2. Kenneth Arrow & Partha Dasgupta & Karl-Göran Mäler, 2003. "Evaluating Projects and Assessing Sustainable Development in Imperfect Economies," Environmental & Resource Economics, Springer;European Association of Environmental and Resource Economists, vol. 26(4), pages 647-685, December.
    3. Barbier, Edward B., 2013. "Wealth accounting, ecological capital and ecosystem services," Environment and Development Economics, Cambridge University Press, vol. 18(02), pages 133-161, April.
    4. William D. Nordhaus & James Tobin, 1973. "Is Growth Obsolete?," NBER Chapters,in: The Measurement of Economic and Social Performance, pages 509-564 National Bureau of Economic Research, Inc.
      • William D. Nordhaus & James Tobin, 1972. "Is Growth Obsolete?," NBER Chapters,in: Economic Research: Retrospect and Prospect, Volume 5, Economic Growth, pages 1-80 National Bureau of Economic Research, Inc.
    5. H. Spencer Banzhaf & James Boyd, 2012. "The Architecture and Measurement of an Ecosystem Services Index," Sustainability, MDPI, Open Access Journal, vol. 4(4), pages 1-32, March.
    6. Robert J. Hill & T. Peter Hill, 2003. "Expectations, Capital Gains, and Income," Economic Inquiry, Western Economic Association International, vol. 41(4), pages 607-619, October.
    7. Arrow, Kenneth J. & Dasgupta, Partha & Goulder, Lawrence H. & Mumford, Kevin J. & Oleson, Kirsten, 2012. "Sustainability and the measurement of wealth," Environment and Development Economics, Cambridge University Press, vol. 17(03), pages 317-353, June.
    8. Hicks, John R, 1975. "The Scope and Status of Welfare Economics," Oxford Economic Papers, Oxford University Press, vol. 27(3), pages 307-326, November.
    9. Brian Walker & Leonie Pearson & Michael Harris & Karl-Göran Maler & Chuan-Zhong Li & Reinette Biggs & Tim Baynes, 2010. "Incorporating Resilience in the Assessment of Inclusive Wealth: An Example from South East Australia," Environmental & Resource Economics, Springer;European Association of Environmental and Resource Economists, vol. 45(2), pages 183-202, February.
    10. Martin L. Weitzman, 1976. "On the Welfare Significance of National Product in a Dynamic Economy," The Quarterly Journal of Economics, Oxford University Press, vol. 90(1), pages 156-162.
    11. John Hartwick, 1977. "Intergenerational Equity and the Investment of Rents from Exhaustible Resources in a Two Sector Model," Working Papers 281, Queen's University, Department of Economics.
    12. Pezzey, John C.V. & Toman, Michael, 2002. "The Economics of Sustainability: A Review of Journal Articles," Discussion Papers 10683, Resources for the Future.
    13. Hartwick, John M, 1977. "Intergenerational Equity and the Investing of Rents from Exhaustible Resources," American Economic Review, American Economic Association, vol. 67(5), pages 972-974, December.
    14. repec:eee:ecoser:v:10:y:2014:i:c:p:6-18 is not listed on IDEAS
    15. Ayres, Robert U & Kneese, Allen V, 1969. "Production , Consumption, and Externalities," American Economic Review, American Economic Association, vol. 59(3), pages 282-297, June.
    16. Vanoli, Andre, 1995. "Reflections on Environmental Accounting Issues," Review of Income and Wealth, International Association for Research in Income and Wealth, vol. 41(2), pages 113-137, June.
    17. Partha Dasgupta, 2009. "The Welfare Economic Theory of Green National Accounts," Environmental & Resource Economics, Springer;European Association of Environmental and Resource Economists, vol. 42(1), pages 3-38, January.
    18. Katrine Soma, 2006. "Natura economica in Environmental Valuation," Environmental Values, White Horse Press, vol. 15(1), pages 31-50, February.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. repec:eee:ecoser:v:29:y:2018:i:pc:p:481-498 is not listed on IDEAS
    2. Meya, Jasper N. & Drupp, Moritz A. & Hanley, Nick, 2018. "Income inequality and the international transfer of environmental values," Economics Working Papers 2017-03, Christian-Albrechts-University of Kiel, Department of Economics.
    3. Oviedo, José L. & Caparrós, Alejandro & Ruiz-Gauna, Itziar & Campos, Pablo, 2016. "Testing convergent validity in choice experiments: Application to public recreation in Spanish stone pine and cork oak forests," Journal of Forest Economics, Elsevier, vol. 25(C), pages 130-148.
    4. repec:eee:ecolec:v:139:y:2017:i:c:p:140-149 is not listed on IDEAS
    5. Pablo Campos & Alejandro Caparrós & José L. Oviedo & Paola Ovando & Begoña Álvarez-Farizo & Luis Díaz-Balteiro & Juan Carranza & Santiago Beguería & Mario Díaz & A. Casimiro Herruzo & Fernando Martíne, 2017. "Bridging the gap between national and ecosystem accounting," Working Papers 1704, Instituto de Políticas y Bienes Públicos (IPP), CSIC.
    6. Lars Hein & Pete Roberts & Lucia Gonzalez, 2016. "Valuing a Statistical Life Year in Relation to Clean Air," Journal of Environmental Assessment Policy and Management (JEAPM), World Scientific Publishing Co. Pte. Ltd., vol. 18(04), pages 1-24, December.
    7. repec:eee:ecomod:v:377:y:2018:i:c:p:51-65 is not listed on IDEAS
    8. repec:eee:ecoser:v:29:y:2018:i:pc:p:552-565 is not listed on IDEAS
    9. Ovando, Paola & Campos, Pablo & Oviedo, José L. & Caparrós, Alejandro, 2016. "Ecosystem accounting for measuring total income in private and public agroforestry farms," Forest Policy and Economics, Elsevier, vol. 71(C), pages 43-51.

    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:kap:enreec:v:64:y:2016:i:1:d:10.1007_s10640-015-9921-1. See general information about how to correct material in RePEc.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Sonal Shukla) or (Rebekah McClure). General contact details of provider: http://www.springer.com .

    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 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.

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

    IDEAS is a RePEc service hosted by the Research Division of the Federal Reserve Bank of St. Louis . RePEc uses bibliographic data supplied by the respective publishers.