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A guiding framework for ecosystem services monetization in ecological-economic modeling

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  • Mateo Cordier
  • José Pérez Agúndez
  • Walter Hecq
  • Bertrand Hamaide

Abstract

Monetary valuation techniques are often used for evaluating the effect of a change in ecosystem services on components of human wellbeing, even though they face several problems such as poor scientific knowledge on ecological-economic interactions, difficulty for monetary valuation techniques to consider the effect of intermediate ecosystem services on final ones, cognitive limitations of individuals, right-based responses made by individuals instead of consequentialism-based ones,… Considering those limits, this paper proposes an alternative approach for reconciling monetary valuation techniques with methods that address ecosystem-economy interactions. To achieve this goal, we develop a guiding framework that limits the use of monetary valuation to real market simulations. Simulations of scenarios of environmental measures are carried out with a hybrid ecological-economic input-output model. The guiding framework ensures that monetary valuation techniques contribute to the understanding of the impact of economic activities on changes in ecosystems services and the feedback impact of these changes on economic activities. The framework operates according to a double dichotomy: intermediate/final ecosystem services and direct/indirect monetary valuation techniques. One advantage of our guiding framework is to consider the importance of intermediate ecosystem services even if they cannot be monetized. This seems very relevant since intermediate services condition the existence of all other ecosystem services that ensure benefits to human life and economic activities. Our guiding framework may give natural scientists a better understanding of how to take advantage of economics in analyzing the impacts of interactions between the economy and the ecosystem.

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  • Mateo Cordier & José Pérez Agúndez & Walter Hecq & Bertrand Hamaide, 2013. "A guiding framework for ecosystem services monetization in ecological-economic modeling," Working Papers CEB 13-018, ULB -- Universite Libre de Bruxelles.
  • Handle: RePEc:sol:wpaper:2013/143345
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    6. Dani Broitman, 2020. "The Game of Developers and Planners: Ecosystem Services as a (Hidden) Regulation through Planning Delay Times," Sustainability, MDPI, vol. 12(15), pages 1-14, July.
    7. Yiting Chen & Zhanbin Li & Peng Li & Zipei Zhang & Yixin Zhang, 2021. "Identification of Coupling and Influencing Factors between Urbanization and Ecosystem Services in Guanzhong, China," Sustainability, MDPI, vol. 13(19), pages 1-21, September.
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    10. Stebbings, Emily & Hooper, Tara & Austen, Melanie C. & Papathanasopoulou, Eleni & Yan, Xiaoyu, 2021. "Accounting for benefits from natural capital: Applying a novel composite indicator framework to the marine environment," Ecosystem Services, Elsevier, vol. 50(C).
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    12. Mateo Cordier & Walter Hecq & Rima Hawi & José Pérez Agúndez, 2014. "How to Make Environmental Targets Affordable in Estuarine Waters: Extending the Polluter Pays Principle?," Working Papers CEB 14-001, ULB -- Universite Libre de Bruxelles.
    13. Chaigneau, Tomas & Brown, Katrina & Coulthard, Sarah & Daw, Tim M. & Szaboova, Lucy, 2019. "Money, use and experience: Identifying the mechanisms through which ecosystem services contribute to wellbeing in coastal Kenya and Mozambique," Ecosystem Services, Elsevier, vol. 38(C), pages 1-1.
    14. Nathalie Dumax & Anne Rozan & Bénédicte Rulleau, 2020. "“Adapted” Habitat Evaluation Procedure and Choice Experiment: Substitutes or Complements?," Water Economics and Policy (WEP), World Scientific Publishing Co. Pte. Ltd., vol. 6(02), pages 1-30, April.
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    16. Olosutean Horea, 2015. "Methods for Modeling Ecosystem Services: A Review," Management of Sustainable Development, Sciendo, vol. 7(1), pages 5-12, June.

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    Keywords

    ecosystem services; input-output model; monetary valuation; ecological-economic interactions; limits of monetary values;
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