What’s the problem, who pays – and what about the rest of the natural world?
What’s the problem?
‘Ecosystem services’ and ‘Payment for Ecosystem Services’ have gained in prominence in recent years. The UN ‘The Economics of Ecosystems and Biodiversity’ (TEEB) and the UK National Ecosystem Assessment (UK NEA) reports have highlighted the importance of the natural environment to the economy.
Ecosystem services are the goods and services which arise from the natural environment. Whilst the value of some ecosystem services can be seen through market transactions, such as for timber or wood for fuel, many are non-market ‘common pool resources’ or ‘public goods’ – such as regulation of the climate, maintaining water quality, mitigating flooding and biodiversity.