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Accounting for the increasing benefits from scarce ecosystems

Author

Listed:
  • M. A. Drupp

    (UHH - Universität Hamburg = University of Hamburg)

  • M. C. Hänsel

    (Leipzig University / Universität Leipzig, PIK - Potsdam-Institut für Klimafolgenforschung)

  • E. P. Fenichel

    (Yale University [New Haven])

  • Mark Freeman

    (University of York [York, UK])

  • Christian Gollier

    (TSE-R - Toulouse School of Economics - UT Capitole - Université Toulouse Capitole - Comue de Toulouse - Communauté d'universités et établissements de Toulouse - EHESS - École des hautes études en sciences sociales - CNRS - Centre National de la Recherche Scientifique - INRAE - Institut National de Recherche pour l’Agriculture, l’Alimentation et l’Environnement)

  • Ben Groom

    (University of Exeter, University of London [London])

  • G. M. Heal

    (Columbia University [New York])

  • P. H. Howard

    (NYU - New York University [New York] - NYU - NYU System)

  • Antony Millner

    (UC Santa Barbara - University of California [Santa Barbara] - UC - University of California)

  • F. C. Moore

    (UC Davis - University of California [Davis] - UC - University of California)

  • F. Nesje

    (ITU - IT University of Copenhagen)

  • M. F. Quaas

    (Leipzig University / Universität Leipzig)

  • Sjak Smulders

    (Tilburg University [Tilburg] - Netspar)

  • Thomas Sterner

    (University of Gothenburg)

  • Christian Traeger

    (UiO - University of Oslo)

  • F. Venmans

    (University of London [London])

Abstract

Governments are catching up with economic theory and practice by increasingly integrating ecosystem service values into national planning processes, including benefitcost analyses of public policies. Such analyses require information not only about today's benefits from ecosystem services but also on how benefits change over time. We address a key limitation of existing policy guidance, which assumes that benefits from ecosystem services remain unchanged. We provide a practical rule that is grounded in economic theory and evidence-based as a guideline for how benefits change over time: They rise as societies get richer and even more so when ecosystem services are declining. Our proposal will correct a substantial downward bias in currently used estimates of future ecosystem service values. This will help governments to reflect the importance of ecosystems more accurately in benefit-cost analyses and policy decisions they inform.

Suggested Citation

  • M. A. Drupp & M. C. Hänsel & E. P. Fenichel & Mark Freeman & Christian Gollier & Ben Groom & G. M. Heal & P. H. Howard & Antony Millner & F. C. Moore & F. Nesje & M. F. Quaas & Sjak Smulders & Thomas , 2024. "Accounting for the increasing benefits from scarce ecosystems," Post-Print hal-04940784, HAL.
    • Handle: RePEc:hal:journl:hal-04940784
    DOI: 10.1126/science.adk2086
    Note: View the original document on HAL open archive server: https://hal.science/hal-04940784v1
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    Citations

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    Cited by:

    1. Moritz A. Drupp & Zachary M. Turk & Ben Groom & Jonas Heckenhahn, 2023. "Global evidence on the income elasticity of willingness to pay, relative price changes and public natural capital values," Papers 2308.04400, arXiv.org, revised Nov 2024.
    2. William K Jaeger, 2025. "Accounting for Income and Population Dynamics in Benefit-Cost Analysis: An Application to Dam Removal," Environmental & Resource Economics, Springer;European Association of Environmental and Resource Economists, vol. 88(9), pages 2403-2428, September.
    3. Metta, Julie & Bachus, Kris & Rousseau, Sandra, 2025. "Socio-economic and volume effects of a circular value chain for clothing," Ecological Economics, Elsevier, vol. 235(C).
    4. Elia Moretti & Michael Benzaquen, 2024. "Mitigating Farmland Biodiversity Loss: A Bio-Economic Model of Land Consolidation and Pesticide Use," Papers 2407.19749, arXiv.org, revised Jan 2025.
    5. Xiao, Yue & Shimada, Koji & Shao, Songdong & Liu, Liqin & Pan, Shen & Xiao, Wenhai, 2025. "The diminishing incentive of ecological fiscal transfer on local government environmental expenditure — Evidence from National Key Ecological Function Zone in China," Ecological Economics, Elsevier, vol. 235(C).
    6. Papenfus, Michael & Weber, Matt A., 2025. "Valuing wild salmon and steelhead recovery in Oregon’s most urbanized watershed," Ecological Economics, Elsevier, vol. 236(C).
    7. Jeffrey S. Jenkins & Terence G. Young & Alexander M. Petersen & Felber J. Arroyave & Maria E. Medina-Chavarría, 2025. "Climate Influences on Day and Overnight Use at California State Beaches and Coastal Parks," Land, MDPI, vol. 14(2), pages 1-19, February.
    8. Simon Disque & Björn Bos & Moritz A. Drupp, 2025. "Public Preferences for Index Aggregation Imply Lower Ocean Sustainability," CESifo Working Paper Series 12318, CESifo.
    9. Parkatti, Vesa-Pekka & Suominen, Antti & Tahvonen, Olli & Malo, Pekka, 2024. "Assessing economic benefits and costs of carbon sinks in boreal rotation forestry," Forest Policy and Economics, Elsevier, vol. 166(C).
    10. Knoke, Thomas & Elsasser, Peter & Kindu, Mengistie, 2024. "Considering the land-cover elasticity of ecosystem service value coefficients improves assessments of large land-use changes," Ecosystem Services, Elsevier, vol. 68(C).

    More about this item

    JEL classification:

    • Q50 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Environmental Economics - - - General

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