Using a final ecosystem goods and services approach to support policy analysis

Abstract

Evaluating environmental policies requires estimating the impacts of policy-induced changes on ecological and human systems. Drawing connections between biophysical and economic models is complex due to the multidisciplinary nature of the task and the lack of data. Further, time and resource constraints typically limit our ability to conduct original valuation studies to fit the specific policy context. Policy analysts thus rely on methods to transfer and adapt value estimates from existing studies. To conduct end-to-end policy analysis, assumptions are needed to make the linkages between ecological and valuation models as well as to conduct benefit transfers. This paper discusses an approach that can potentially help a policy analyst to minimize assumptions and identify appropriate caveats. This approach focuses on what human beings truly value from ecosystems, or, in other words, metrics of Final Ecosystem Goods and Services (FEGS). our hypothesis is that the FEGS approach will help support policy analysis by drawing important linkages between ecological and economic models as well as by designing valuation studies that will be more conducive to benefit transfers. To examine this hypothesis, we use a selected set of existing valuation studies as case study examples, and we examine how the methods used in these studies compare with the FEGS approach. We find that the studies are not always consistent with the FEGS approach, in many cases due to data limitations. We illustrate ways in which using FEGS metrics can provide economists with a useful starting point for considering how the commodity can be defined and specified in the valuation study. Even if data limitations exist, a FEGS approach can help in determining whether the context in which the original study was conducted matches with the policy context. This can also help in determining the extent of uncertainty associated with the analysis and in providing transparent documentation that can be informative for policy makers.

Synthesis of Two Decades of US EPA’s Ecosystem Services Research to Inform Environmental, Community and Sustainability Decision Making

“…The concepts of final ES are very useful for decision support and can help support policy analysis by drawing important linkages between ecological and economic models. Final ES can also help inform the design of valuation studies that are more conducive to benefit transfers [154]. Sinha et al [154] compared a set of existing valuation studies to the final ES approach to illustrate ways in which using final ES metrics could provide economists a useful starting point for considering how the commodity could be defined and specified in a valuation study.…”

“…Final ES can also help inform the design of valuation studies that are more conducive to benefit transfers [154]. Sinha et al [154] compared a set of existing valuation studies to the final ES approach to illustrate ways in which using final ES metrics could provide economists a useful starting point for considering how the commodity could be defined and specified in a valuation study. This approach is useful for determining the extent of uncertainty associated with the analysis and provides transparent documentation that can be informative for policy makers [154].…”

La valoración económica como fundamento de políticas ambientales: una revisión sistemática

“…(Bartkowski et al, 2020). Y, utilización de información secundaria (Martínez y Sainz, 2017;Onofri y Nunes, 2020;Sinha et al, 2018) además, aplicación de un modelo conceptual (Vannevel y Goethals, 2020). Gestión digital de datos Ambarita et al (2018).…”

“…Todo ello significa, conocimiento teórico y conceptual (Tinch et al, 2019), sensibilización colectiva frente a los cambios en la disposición de recursos y servicios ambientales y, voluntad política para actuar en consecuencia. Entonces, deberá quedar plasmada colectivamente la idea de que los humanos dependen de la provisión de servicios ambientales y de los empeños por mejorar la gestión ambiental (Sinha et al, 2018). Asimismo, la cuantificación necesaria de la disponibilidad temporal (Vidal y Ruiz, 2020) y los usos de los servicios ambientales, que es el dominio de la contabilidad ambiental y estadísticas, habrá de estar presente en todos los escenarios de planificación gubernamental.…”

The 18 benefits of using ecosystem services classification systems

“…Use of ES-CS is likely to reduce error rates in benefit transfers (20-50 percent is presently considered good) (Boyle and Parmeter, 2017) and drive greater similarity of characteristics and methods related to the elements of an ES-CS (see Table 1) among reference and policy sites (Sinha et al, 2018), improve reference site valuations over time that are used for transfers (Sinha et al, 2018), and enable better data management (described below under the header "Dataset, models, and tools").…”