The researchers suggest that governments apply new methods to calculate the benefits of conserving biodiversity and nature for future generations.
This method can be used by governments for cost-benefit analysis of public infrastructure projects. This analysis accounts for the loss of plant and animal species and “ecosystem services” such as air and water filtration, crop pollination, and the recreational value of spaces. Converts to current monetary value. This process aims to make biodiversity loss and the benefits of conservation more visible in political decision-making.
But an international team of researchers believes current methods of calculating the value of ecosystem services are „inadequate“ and have proposed a new approach that could be easily introduced into the Treasury's analysis, which will form the basis of future budget proposals. He says he invented it.
adjustment
Their approach published in the journal sciencetakes into account that the monetary value of nature will increase over time as human incomes increase, and that biodiversity is likely to deteriorate and become a scarce resource. This is in contrast to current methods, which do not take into account how the value of ecosystem services changes over time.
“Our study provides governments with a formula for estimating the future value of scarce ecosystem services that can be used in decision-making processes,” says Professor of Sustainability Economics at the University of Hamburg and lead author of the study. said author Moritz Drup.
Two factors play an important role in adjusting this value. One is that incomes will rise and, with it, the world's population will prosper. Adjusted for inflation, it increases by an estimated 2% per year. As income increases, people will pay more for conservation.
“On the other hand, the rarer the services provided by an ecosystem, the more valuable they become,” Professor Drapp said. “The fact that scarce goods become more expensive is a fundamental principle of economics, and that applies here as well. And given the current situation, we must unfortunately expect biodiversity loss to continue. not.“
bump
Therefore, according to the researchers, today's cost-benefit analysis would require the present value of ecosystem services to be set much higher, at more than 130 percent if only income increases were included.
Taking into account the impact on endangered species in the Red List Index, the adjustment would be more than 180 percent. Considering these effects increases the likelihood that projects that protect ecosystem services will pass the cost-effectiveness test.
The research team includes three UK-based authors: Professor Mark Freeman (University of York), Dr Frank Benmans (LSE) and Professor Ben Groom (University of Exeter).
“The environmental monetary values that policymakers currently use to evaluate public investments and regulatory changes mean that the value of nature declines relative to other goods and services over time. Professor Groom said.