The value of the world's ecosystem services and natural capital Hot

Abstract: The services of ecological systems and the natural capital stocks that produce them are critical to the functioning of the Earth's life-support system. They contribute to human welfare, both directly and indirectly, and therefore represent part of the total economic value of the planet. We have estimated the current economic value of 17 ecosystem services for 16 biomes, based on published studies and a few original calculations. For the entire biosphere, the value (most of which is outside the market) is estimated to be in the range of US$16-54 trillion (10¹²) per year, with an average of US$33 trillion per year. Because of the nature of the uncertainties, this must be considered a minimum estimate. Global gross national product total is around US$18 trillion per year.

Constanza et al (1997) attempt to put a first-order approximation to the world's ecosystem services and natural capital to try and address the need for concrete monetary values for policymakers. Yes, this paper is over 10 years old, and yet over 1600 citations help augment its  seminal attempt at clarifying the oft-neglected picture of eco-economics. A plethora of follow-on papers argue the weighting of certain criteria at the detriment of others, and perhaps the most pointed observations surround the discussion of the "discount rate" and the perspective through with you pursue these hairy questions: micro or macro. A fun read, and perhaps an essential one for those that are angling towards policy.