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Loading...Valuing Green in Greenbacks: Should We Put a Price on Services Rendered by Nature?
According to the United Nations Environment Programme report “Mainstreaming the Economics of Nature,” failing to value the Earth’s natural services, such as bees pollinating the world’s food supply or forests filtering clean drinking water, is a problem. Their solution: put a dollar figure on it.
The report authors, led by Pavan Sukhdev of Deutsche Bank, calculated that the world is losing $2 to $4.5 trillion worth of natural capital each year due to pollution, deforestation, farming, industry and climate change. That’s a big number.
Importantly for policies affecting the developing world, the authors argue that the poor are disproportionately affected by loss of natural services. “Ecosystems such as fresh water, coral reefs and forests account for between 47 percent and 89 percent of what the U.N. calls “the GDP of the poor,” meaning the source of livelihoods for the rural and forest-dwelling poor, according to the study,” writes Juliet Eilperin of the Washington Post.
The report seems to stop short of putting a dollar figure on all of nature, which is probably impossible, but it uses case studies to make its point:
Euros 153 billion
Insect pollinators are nature’s multi-billion dollar providers. For 2005 the total economic value of insect pollination was estimated at Euros 153 billion. This represents 9.5% of world agricultural output for human food in 2005. (Gallai et al. 2009)
US$30 billion US$172 billion
The annual value of human welfare benefits provided by coral reefs. Although just covering 1.2% of the world’s continent shelves, coral reefs are home to an estimated 1-3 million species including more than a quarter of all marine fish species. (Allsopp et al. 2009). Some 30 million people in coastal and island communities are totally reliant on reef-based resources as their primary means of food production, income and livelihood. (Gomez et al. 1994, Wilkinson 2004) Estimates of the value of human welfare benefits provided by coral reefs range from US$30 billion (Cesar et al. 2003) to US$172 billion annually (Martinez et al. 2007)
US$20 – US$67 million (over four years)
The benefits of tree planting in the city of Canberra. Local authorities in Canberra, Australia, have planted 400,000 trees to regulate microclimate, reduce pollution and thereby improve urban air quality, reduce energy costs for air conditioning as well as store and sequester carbon. These benefits are expected to amount to some US$20-US$67 million over the period 2008-2012, in terms of the value generated or savings realized for the city. (Brack 2002)
US$6.5 billion
The amount saved by New York, by investing in payments to maintain natural water purification services in the Catskills watershed. (US$1-US$1.5 billion) rather than opt for the man-made solution of a filtration plant (US$ 6-8 billion plus US$300-500 million/year operating costs). (Perrot-Maitre and Davis 2001).
Further examples available at www.teebweb.org
I always have mixed feelings about analyses like this. I worry that opponents to environmental protection will simply pick apart the nuances when the point is: Nature – We need it. We need it a lot. On my concern, Bryan Walsh of Time Magazine writes: “…after all, there’s no stock market for coral reefs, no quarterly earnings report for insect pollinators—the real value in the exercise is in making visible the “invisible” value of the natural world.”
That is, in fact, report’s primary conclusion: “The invisibility of many of nature’s services to the economy results in widespread neglect of natural capital, leading to decisions that degrade ecosystem services and biodiversity. The destruction of nature has now reached levels where serious social and economic costs are being felt and will be felt at an accelerating pace if we continue with ‘business as usual.’”
Bottom line, I’m glad someone is doing this kind of analysis and keeps bringing up the value of ecosystem services (as human-centric as that is). But for the average person, the examples must be much more tangible and closer to home to change public perception of the costs of environmental protection.
What do you think?
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Read more: biodiversity, ecosystem services, environment & wildlife, pollution, un environment programme, value of nature
Flickr photo by bensonkua (cc 2.0)
Disclaimer: The views expressed above are solely those of the author and may
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Recent Comments from Causes
thanks for sharing :)
AHHHH the American Taliban hard at work.
Good for you Jessica. Always stay steadfast and strong in what you believe in.
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+ add your ownI was just saying the same thing, if we could just tax all seed bearing plants given to the world by God herself then all war would be totally doable without going into debt.
Love your article. Thanks!
Could maybe the one making this article defy 'billion' and 'trillion'?
The word is used differently in different countries. For example a trillion is either a number with 12 zeroes after it or it has 18 zeroes after. That is a big difference! I am guessing that the version with 12 zeroes is the one that is being used, but would still make things more clear. Thansk for a good article!
Noted. Thanks.
The idea of put market prices on nature ,seems to be able to help understand its worth.
Then there is the sight of a sun rise, or sun set. Pollution changes them.
To look at a river or creek or stream and see into it to the world that is there is one I don't know how to put a money value on.
Dew drops on a plant, or a spider web.
The sound of birds living their lives.
Seeing plants as they grow through time to their full glory.
These things and more can't have a price. They are some of the ways to touch your heart.
It is the 'little' things in life the help you go through the tough times.
:)
I think this fits right in with the Care 2 redemption program--use points to plant a tree/have clean water. It makes us humans more aware of our demands on the environment. We are all in this together--will we survive?
I'm worried about govts.--they need to be on board--for the people and earth--not their own profit. They can twist things around.....
I think we all lost our minds, how can we pay for something that was there much earlier then anything else? We are the only one resposable for what is happening around with nature, and lets try not to harm it anymore, because then we all would be dead!!!
SOME THINGS AND PLACES ARE PRICELESS. SOME THINGS AND PLACES ARE SACRED TO SOME PEOPLE.
On an economic level it is an interesting concept. Will it do more good than harm?
If we had a value attached to the "services" of nature, we would be able to tel BP and other polluters exactly what they owed a country for their destruction of it! Then we would have more time to fight the peoples problems i.e. loss of income from oil disasters,their health, etc.)
We need to put a price on things for those who don't understand the meaning of value. Tell the CEO of some huge agricorp how many millions insect pollinators are worth...result!
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