Valuation and use of complex ecosystems: An economist's view

AbstractThis paper surveys approaches to the economic valuation of ecosystems and the determination of their optimal utilisation. The components of the value of ecosystems are defined and methods of measurement are presented. Also discussed is a simple model of the economic use of a dynamic ecological system. Economically optimal trajectories are shown and scenarios are presented in which it is economically optimal to destroy the ecosystem. Particular problems arise if the ecosystem is a common-property resource as is often the case with marine ecosystems. This issue is also addressed. Moreover, the paper presents some extensions of the model that add complexity and uncertainty