The economic value of biodiversity

Hanley, N. and Perrings, C. (2019) The economic value of biodiversity. Annual Review of Resource Economics, 11, pp. 355-375. (doi: 10.1146/annurev-resource-100518-093946)

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Abstract

Biodiversity is declining worldwide, and the costs of biodiversity losses are increasingly being recognized by economists. 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. We then explain the ways in which protecting biodiversity generates economic benefits in terms of direct and indirect values. Empirical approaches to estimating direct and indirect values are presented, along with a selection of recent evidence on how substantial these values are. The use of asset accounting approaches to track biodiversity values over time is discussed, in the context of sustainable development paths. Finally, we review some important challenges in valuing biodiversity that remain to be solved.

Item Type:Articles
Status:Published
Refereed:Yes
Glasgow Author(s) Enlighten ID:Hanley, Professor Nicholas
Authors: Hanley, N., and Perrings, C.
College/School:College of Medical Veterinary and Life Sciences > School of Biodiversity, One Health & Veterinary Medicine
Journal Name:Annual Review of Resource Economics
Publisher:Annual Reviews
ISSN:1941-1340
ISSN (Online):1941-1359

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