Title
A method for valuing global ecosystem services
Keywords
Ecosystem services; Excess rents; Maximum surplus; Monopolist; Weak complementarity
Abstract
The goal of this paper is to provide an investigation of several approaches to valuing ecosystem services and to contribute additional techniques which may be used in evaluating 'green' GDP accounts. Our estimates focus on the ecosystem as a productive economic input, not a stock which is depreciated or depleted over time; as such, it differs with other concepts more frequently employed in green GDP accounting. Most of our results are derived from the analytical fiction that a single owner of the biosphere establishes a market for all ecological resources. This monopolist then appropriates all rents from the human population. The maximum amount the monopolist charges is first assumed to be world gross product less the global human subsistence level. In addition, we examine the excess rents available in factor markets using the assumption of weak complementarity between factor inputs and ecosystem services. We also provide more conservative estimates of the value of ecosystem services by investigating the sustainable price the monopolist could charge the global population and by exploring the effects of compensating wage differentials and a non-monopolist owner of the ecosystem.
Publication Date
11-1-1998
Publication Title
Ecological Economics
Volume
27
Issue
2
Number of Pages
161-170
Document Type
Article
Personal Identifier
scopus
DOI Link
https://doi.org/10.1016/S0921-8009(97)00173-0
Copyright Status
Unknown
Socpus ID
0032430676 (Scopus)
Source API URL
https://api.elsevier.com/content/abstract/scopus_id/0032430676
STARS Citation
Alexander, Anne M.; List, John A.; and Margolis, Michael, "A method for valuing global ecosystem services" (1998). Scopus Export 1990s. 3601.
https://stars.library.ucf.edu/scopus1990/3601