Post on 14-Jun-2015
RRalph Underhill, PIRC
Four reasons ecosystem services valuation might not be that awesome
1. It’s not actually possible
2. It undermines other arguments
3. It changes the way people feel
4. It won’t lead to better decisions for nature
1) It is not actually possible
How do we determine value?
There is no single correct view
Even the same individuals can answer differently
Economics is not a science – it is values laden
2) It undermines other arguments
The true value of nature can be shown for the very first time thanks to groundbreaking research. Its findings show that nature is worth billions of pounds to the UK economy, strengthening the arguments for protecting and enhancing the environment…”
“
… Traditionally, the common view has been that caring for the environment means extra financial burdens. However the UK NEA shows that there are real economic reasons for looking after nature.”
DEFRA press releaseJune 2011
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3) Putting a price on something changes the way you feel about it
The new X517
It has 4 doors and a boot
It does 65 miles to the gallon
It is available in 4 colours
It costs £16,500
Markets & morals
No market – 46% let mouse die for 10 euros
Single market (Buyer and seller split 20 euros) – Most let the mouse die. 72% sellers would accept 10 euros or less.
Bigger market (7 sellers, 9 buyers) – 76% of sellers would accept 10 euros or less.
Falk & Szech, 2013
4) It won’t actually lead to better decisions
What influence do we currently have?
Gov identify a perceived problem
Gov decide on perceived cause
of problem
Initial idea about how to address issue
Informally consult key business
interests
Key economic parameters for
models set
Decision made on what requires
consultation
Consultation on ecosystem
valuation
NGO and Business respond
Gov “weigh up” responses
It will actually be easier to disregard nature in decision making not
harder
We shouldn’t be fitting nature into a broken system we should be seeking
to change the decision making system itself
Conclusion
Difficult Questions
Won’t the process be worse if we aren’t involved?
How do we talk about economic valuation without endorsing the approach?
How the hell do we change the decision making system?
Common Cause for Nature covers the issue in detail – Google it!