(c) Jessie Harris
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NPCC News Archive
(c) Priscilla Titus
(c) David Tibor
(c) John Game
(c) Susan Meyer
(c) Lori J. Makarick
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Conservation Economics
Effects of Conservation Policies on the Economy The study of the impacts of conservation policies on economies has grown rapidly in recent years. A number of quantitative methods for measuring these impacts are being developed and refined. The
Native Plant Conservation Campaign has produced a White Paper: Environment
vs. Economy, Fact or Fiction?, reviewing some of
the most widely used methods and presenting representative results.
There is a widely held theory that resource management practices and policies which protect the environment must necessarily harm the economy and reduce employment. However, empirical data supporting this theory are scarce. In recent years, economists and ecologists have increasingly begun to use quantitative methods to test this theory. Testing the Environment vs. Economy Hypothesis This report presents an overview of some widely used methods in the emerging field of ecological economics, and summarizes representative examples of results that are obtained. In the correlation method, quantitative indices of economic strength are compared with indices of environmental health and environmental policy strength across regions, states or nations. If strong environmental policies harm economies, these studies should show a negative correlation in which economic strength decreases as policy strength increases. Studies examining factory emissions, endangered species, air quality and other issues have found no evidence that economies suffer as environmental policy strength increases. On the contrary, numerous researchers have reported slight positive correlations between environmental and economic indices, suggesting that environmental health may help fortify economies. The "policy impact" method measures the impact of a change in environmental policy, such as a species listing under the endangered species act or a tightening of air or water quality regulations, on economic strength. In these studies too, evidence that increased environmental regulation damages economies or reduces employment is scarce. This report also reviews indirect estimates of the economic impact environmental policy or health. In the travel cost method, researchers estimate the economic value of rivers or wilderness by measuring how much visitors are willing to pay to travel to the area. In the contingent value method, surveys are used to determine how much people would be willing to pay for incremental increases in acreage in wilderness or in miles of clean river. The property value method measures differences between the value of real estate adjacent to clean water bodies, open space or in areas of high air quality, and similar real estate elsewhere. This provides an estimate the impact of ecosystem health on property values. These methods increasingly are being used to measure the value of clean water and air, and healthy wildlands throughout the United States and around the world. Estimated values vary widely, but studies agree that clean, fishable and swimmable waterways, clean air, diverse and vigorous native plant and wildlife populations, and open space are highly valued by the public and that the public is willing to pay to preserve and enjoy these resources. For example, homes within 300 feet of clean waterbodies have been found to be worth up to 28% more than similar homes. Ecosystem Services Another rapidly expanding field of study involves the valuation of so-called "ecosystem services". Ecosystem services are the processes by which the environment produces resources that we often take for granted such as clean water, timber, and habitat for fisheries, and pollination of native and agricultural plants. This report reviews some of the many recent studies estimating the values of ecosystem services for forests, wetlands, grasslands, and other ecosystems. One of the most widely cited analyses estimated the average aggregate global annual value of wildland ecosystem services at $33 trillion. Examples of values for individual services include a value of $4-7 billion per year for pollination in the United States and values of $1-2 billion per year for the 42 million roadless acres on National Forests in the lower 48 states. (for more on ecosystem services see below) Environmental Protection Produces Jobs Finally, economic analysis of the environment vs. economy hypothesis often ignore the fact that pollution control and other "green" industries are rapidly growing and are strengthening economies and producing new jobs every day. A recent report by the Environmental Protection Agency estimated that 1.3 million Americans are employed in "environmental technology". That figure does not include the hundreds of thousands of jobs nationwide in wildland ecosystem restoration and management. Conclusion There is little evidence to support the fear that strong environmental protection policies will harm the economy or destroy jobs. The increase in meticulous quantitative studies of this issue should help to replace the anecdote and hyperbole which frequently dominate environmental policy debates with dispassionate fact-based analysis, leading to improved policymaking. Standard cost-benefit analyses for polices such as clean water laws or for land use projects such as dam construction, logging, or housing development tend to ignore the value of ecosystem services that may be forgone if an ecosystem is damaged or destroyed. The growing body of scientific research in this area is making it steadily easier for project and policy analyses to quantify the economic effects of changes in ecosystem services flows. As the public and policymakers begin to incorporate this research into resource management laws and practices, the quality and sustainability of our lives and economies will improve. What Are Ecosystem Services?
Ecosystem Services: Benefits Supplied to Human Societies by Natural Ecosystems. Ecological Society of America Report by Gretchen C. Daily, Susan Alexander, Paul R. Ehrlich, Larry Goulder, Jane Lubchenco, Pamela A. Matson, Harold A. Mooney, Sandra Postel, Stephen H. Schneider, David Tilman, George M. Woodwell Communicating Ecosystem Services: a project of the Ecological Society of America and the Union of Concerned Scientists. Provides media toolkits and fact sheets on key ecosystem services including water purification, flood control, carbon storage, and pollination Species Protection: Economic Issues, Myths and Facts (California Native Plant Society pdf, 1997) International Society for Ecological Economics National Center for Environmental Economics New York Botanical Garden Institute for Economic Botany Wilderness Society: Report on Roadless Areas Values (pdf) Academy of Natural Sciences Report: Ecosystem Services: Free, Priceless or Negotiable?
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