Analysis of the Internal Relationship between Ecological Value and Economic Value Based on the Forest Resources in China

Jianxin Geng and Chengzhi Liang
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Jianxin Geng: School of Business, Renmin University of China, Beijing 100000, China
Chengzhi Liang: School of Business, Renmin University of China, Beijing 100000, China

Sustainability, 2021, vol. 13, issue 12, 1-17

Abstract: In this study, we applied gross ecosystem product (GEP) theory in a case study to analyze and explain the natural resource asset value and ecosystem service value of forest resources in Jiaokou County, Shanxi Province, Northern China, in 2018. GEP refers to the total value of various final material products and services provided by ecosystems. In this paper, six service functions of a forest system, including water conservation, soil conservation, carbon fixation and oxygen release, forest nutrients, purification of atmospheric environment, and biodiversity, are valued by three calculation methods: the alternative cost method, market value method, and control cost method. The study revealed the following: (1) There is a parallel relationship between the value of natural resource assets and the value of ecosystem services. GEP includes the market value of natural resource assets, but it is mostly the value of ecosystem services. (2) The measurement of the physical quantity of forest ecosystem services depends on parameter data, and the monetary calculation often has no mature pricing basis, which leads to the large scale and uncertainty surrounding the evaluation results of ecosystem services. (3) The ecosystem service value and natural resource asset value have different practical significance, as well as alternate theoretical bases. The value of natural resource assets can be used as the asset valuation basis of economic transactions, which plays a role in macroeconomic management. The value of ecosystem services can be used as the basis of ecological compensation, providing information for the preparation of the balance sheet of natural resources.

Keywords: forest ecosystem value; balance sheet of natural resources; environmental and economic accounting (search for similar items in EconPapers)
JEL-codes: O13 Q Q0 Q2 Q3 Q5 Q56 (search for similar items in EconPapers)
Date: 2021
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (5)

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