The Economics of Ecosystems and Biodiversity 2010_ Chapter 5_The economics of valuing ecosystem services and biodiversity
In the Total Economic Value (TEV) framework, ecosystems may generate output values (the values generated in the current state of the ecosystem, e.g., food production, climate regulation and recreational value) as well as insurance values. The latter, closely related to “option value”, is the value of ensuring that there is no regime shift in the ecosystem with irreversible negative consequences for human wellbeing. Even if an ecosystem or some component of it currently generates no output value, its option value may still be significant.
22 Nov 2017