Farber_et_al.Economic and ecological concepts for valuing ecosystem services

Farber_et_al.pdf (application/pdf Object).

SPECIAL ISSUE: The Dynamics and Value of Ecosystem Services: Integrating
Economic and Ecological Perspectives
Economic and ecological concepts for valuing ecosystem
services
Stephen C. Farber a,*, Robert Costanza b,1,3, Matthew A. Wilson c,2,3
a Graduate School of Public and International Affaris, Uni
ersity of Pittsburgh, Pittsburgh, PA 15260, USA
b Center for En
ironmental Science and Department of Biology, Institute for Ecological Economics, Uni
ersity of Maryland,
Box 38, 1 Williams St., Solomons, MD 20688 -0038, USA
c Institute For Ecological Economics, Uni
ersity of Maryland, 0216 Symons Hall, College Park, MD 20742 -5585, USA
Abstract
The purpose of this special issue is to elucidate concepts of value and methods of valuation that will assist in guiding
human decisions vis-a`-vis ecosystems. The concept of ecosystem service value can be a useful guide when distinguishing
and measuring where trade-offs between society and the rest of nature are possible and where they can be made to
enhance humanwelfare in a sustainable manner. While win-win opportunities for human activities within the environment
may exist, they also appear to be increasingly scarce in a ‘full’ global ecological–economic system. This makes valuation
all the more essential for guiding future human activity. This paper provides some history, background, and context
for many of the issues addressed by the remaining papers in this special issue. Its purpose is to place both economic
and ecological meanings of value, and their respective valuation methods, in a comparative context, highlighting strengths,
weakness and addressing questions that arise from their integration. © 2002 Elsevier Science B.V. All rights reserved.
Keywords: Economic valuation; ecological valuation; ecological services; valuation
This article is also available online at:
http://www.elsevier.com/locate/ecolecon
1. Definitions
The terms ‘value system,’ ‘value’, and ‘valuation’
have a range of meanings in different disciplines.
In this paper, we provide a practical
synthesis of these concepts in order to address the
issue of valuation of ecosystem services. We want
to be clear about how we use these terms throughout
our analysis. ‘Value systems’ refer to intrapsychic
constellations of norms and precepts that
guide human judgment and action. They refer to
the normative and moral frameworks people use
to assign importance and necessity to their beliefs
and actions. Because ‘value systems’ frame how
people assign rights to things and activities, they
also imply practical objectives and actions. We
use the term ‘value’ to mean the contribution of
an action or object to user-specified goals, objectives
or conditions (Costanza, 2000). A specific
value of that action or object