Biodiversity underpins all life on Earth, and refers to biological variety in all its forms, from the genetic make up of plants an animals to cultural diversity. It represents the economic value derived from the role of resources and system in supporting or protecting activities whose outputs have direct value in production on consumption (UNEP, 1995). Cause of Aral Sea Decline Water project development Canal system Qaraqum Canal, Turkmenistan largest irrigation and water supply canal in the world 1,375km in length 13km3 water carried annually navigable over much of its length Economic value is subjective and difficult or … Tweet. Biodiversity increases the overall productivity of a plot of land, and maximises its resistance to disturbances—e.g., drought. A model of ecological and socio-economic reality that allows Indirect economic values include intrinsic, or emotional value of the species. Economic valuation of biodiversity is based on an instrumental perspective on the value of biodiversity (Section 3.1). Total Economic Value In order to determine the value of the environment, the unpaid prices of the environment must first be revealed. Reduction in biodiversity can affect decomposition rates, vegetation biomass production and, in the marine environment, affect fish stocks . Economists value biodiversity because valuation allows for a direct comparison with economic values of alternative options, a corner stone for any cost-benefit analysis exercise. aspects of biodiversity that provide economic benefits to people but are not harvested during their use Nonconsumptive use values include ecosystem productivity, protection of soil and water resources, positive interactions of wild species with commercial crops, and regulation of climate. The aim of the authors is to give a definition of biodiversity that can fit, in a useful way and in a broader context than in the past, the close ties that link biodiversity to the institutional and socio-economic structures and procedures. Yet the wider economic, cultural and ecological value of biodiversity is rarely acknowledged in development plans, project documents, or aid proposals, even though the products and benefits provided by it, in the case of coastal vegetation alone, would be extremely expensive or impossible to replace with imported substitutes. In 1992 the Convention on Biological Diversity recognized that biodiversity is a “common concern of humankind” and has economic value. This framework demonstrates that biodiversity’s economic value mainly results from uncertainty about the future, regarding both supply of and demand for ecosystem services, and interconnections between ecosystems. a forest which … The functional relationship between biodiversity ( b ) and economic value ( V ) is, however, insufficiently understood, despite the premise of a positive-concave bV relationship that dominates scientific and political arenas. However, management of the wetland often does not remain priority and recognized as the unproductive waste land mainly due to poor realization of the economic value of the wetlands. The word biodiversity is derived from bios meaning life and diversity meaning variety. oil, corn etc. economic arguments have gained credence. It is defined as benefits arising from an ecosystem function. Add your answer and earn points. Market price method – can be applied to commodities traded on the market, e.g. alexolveradegennaro alexolveradegennaro Answer: C. Explanation: both clothing and food have direct economic value. economic terms economically there are main two types of values of biodiversity. ; Hedonic price method – can be used for ecosystem services that affect the economic value of other commodities, e.g. An independent global review on the Economics of Biodiversity, led by Professor Sir Partha Dasgupta, is to assess the economic value of biodiversity and to identify actions that will simultaneously enhance biodiversity and deliver economic prosperity.. My earlier comments are provided below. Which represents an indirect economic value of biodiversity? Biodiversity: Biodiversity is the number of different species present in an ecosystem. damaging to the well-being of humans and other organisms and steps are being taken to eradicate ; Productivity method – can be used for ecosystem services that contribute to the production of commodities, e.g. In this article, we first review the multiple meanings of biodiversity, moving from species richness and simple abundance-weighted species counts to more complex measures that take account of taxonomic distance and functionality. Some aspects of biodiversity are valued directly; while others are valued for their contributions to ecosystem support and, hence, to sustainable production of things that are valued directly. The Economic Value of Biodiversity and Ecosystems - Economics of Ex-Situ Conservation. The concept of total economic value (TEV) of ecosystems and biodiversity is used thoughout this chapter. Biodiversity offsets are conservation actions intended to compensate for the residual, unavoidable impact on biodiversity caused by development projects, to ensure at least no net loss of biodiversity and, where possible, a net gain. These values include the harvest (or market place) value of resources, the value provided by un-harvested resources in their natural habitat, and the future value of resources.