Ecosystem Service Valuation for National Accounting: A Reply to Obst, Hein and Edens (2016)

Nils Droste and Bartosz Bartkowski

Environmental & Resource Economics, 2018, vol. 71, issue 1, No 9, 205-215

Abstract: Abstract While recent experimental frameworks for national ecosystem service accounting have shown substantial progress, in our view some crucial methodological issues remain that deserve further consideration before setting final standards. In response to the landmark work of Obst et al. (Environ Resour Econ 64:1–23, 2016. doi: 10.1007/s10640-015-9921-1 ), we provide arguments with regard to the suitability of particular valuation approaches. Generally, we agree that respective valuation methods need to produce values that are consistent with national accounting standards such as representing exchange values. However, we disagree with their conclusions regarding specific valuation techniques. Firstly, the circumstance that methods used for estimating shadow prices can also be used to derive consumer surplus does not justify the general exclusion of all shadow pricing methods for valuation of ecosystem services for national accounts, especially for public ecosystem services. Secondly, that preference-based methods can also be used to assess welfare changes does not imply that cost-based methods are generally better suited for ecosystem accounting. To the contrary, we see an essential need for preference information in accounting contexts. Thirdly, that accounting standards use a written-down replacement cost approach, does not mean ecosystem accounting requires to employ a replacement cost approach. To the contrary, we argue that assessing ecosystem degradation through restoration costs would be in line with writing down depreciation, but we also point to its limits.

Keywords: Accounting standards; Ecosystem services; Economic valuation; Natural capital (search for similar items in EconPapers)
JEL-codes: E01 Q01 Q51 Q56 Q57 (search for similar items in EconPapers)
Date: 2018
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (4)

Downloads: (external link)
http://link.springer.com/10.1007/s10640-017-0146-3 Abstract (text/html)
Access to the full text of the articles in this series is restricted.

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:kap:enreec:v:71:y:2018:i:1:d:10.1007_s10640-017-0146-3

Ordering information: This journal article can be ordered from
http://www.springer. ... al/journal/10640/PS2

DOI: 10.1007/s10640-017-0146-3

Access Statistics for this article

Environmental & Resource Economics is currently edited by Ian J. Bateman

More articles in Environmental & Resource Economics from Springer, European Association of Environmental and Resource Economists Contact information at EDIRC.
Bibliographic data for series maintained by Sonal Shukla () and Springer Nature Abstracting and Indexing ().