Mainstreaming biodiversity into policy–Do the numbers add-up?

Abstract

In this paper, we review the literature on economic approaches to providing value estimates of biodiversity. In most cases, the value estimates represent a lower estimate for a multitude of reasons, emanating from the complexity of definition and conceptualization of biodiversity as a capital stock and/or an ensuing flow of various ecosystem services. However, this exercise is important for accounting for these values in national income accounts, policy reforms, and raising funds for biodiversity financing. We discuss some of the theoretical and empirical challenges towards this valuation exercise along with providing estimates of biodiversity values.

Keywords

• Biodiversity
• Economic valuation
• Stated preference
• Revealed preference
• Kaldor-Hicks' condition
• Green accounting