An Introduction to Ecosystem Services and Their Economic Valuation: Part 1 – Definitions

Generally speaking, the term ‘ecosystem services’ refers to the contributions that the structure and function of ecosystems make to the health and well-being of human beings (Reyes-Arroyo et al., 2021, 86).

These include:

  • Provisioning services, such as food, clean water, raw material, genetic resources, and medicine.

  • Regulating services, such as carbon sequestration/climate regulation, erosion prevention, pollination, air quality regulation, flood protection, and waste decomposition and detoxification.

  • Cultural services, such as the aesthetic, spiritual, educational, recreational, and cultural experiences that people derive from nature.

  • Supporting services, such as soil formation, nutrient cycling, and primary production.

The Millennium Ecosystem Assessment (MA, 2005, p. 91-92) identified a comprehensive list of twenty-four ecosystem services and recommended accounting for the full range of these services in order to make informed policy, planning, and management decisions. The full report of MA (2005) can be found here:

https://www.millenniumassessment.org/documents/document.356.aspx.pdf (Accessed on 12/30/2022)

One of the most significant long-term threats facing humanity is the heightened stress placed on ecosystems due to the increased human activities associated with societal development. A great number of ecosystems are declining in their capacity to supply various services. According to MA (2005), fifteen out of twenty-four ecosystem services are currently being degraded or utilized in an unsustainable manner, including overexploitation of fish stocks and excessive consumption of freshwater.

Numerous scholars contend that the undervaluation of ecosystem services is a significant contributing factor to their overexploitation and unsustainable utilization, especially for regulating and supporting services whose worth is challenging to quantify in monetary terms (MA, 2005). By undervaluing these services, we risk taking them for granted and failing to appreciate the vital role they play in maintaining the health and resilience of our ecosystems.

The second part of this article will delve into the economic valuation of ecosystem services.

Link to Part 2

References:

Millennium Ecosystem Assessment (MA), 2005. Millennium Ecosystem Assessment: Ecosystems and Human Wellbeing a Framework for Assessment. World Resources Institute, Washington, D.C. vi (Island Press).

Reyes-Arroyo, N., Camacho-Valdez, V., Saenz-Arroyo, A., & Infante-Mata, D. (2021). Socio-cultural analysis of ecosystem services provided by mangroves in La Encrucijada Biosphere Reserve, southeastern Mexico. Local Environment, 26(1), 86–109.

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