Loss of nature costs more than previously estimated

Loss of nature costs more than previously estimated - University of Exeter

young trees in guards in front of a backdrop of rolling hills and clouds skudding across a blue sky — Agroforestry in Aberfeldy, Scotland. Image: Matt Cartney/Crown

Researchers propose that governments apply a new method for calculating the benefits that arise from conserving biodiversity and nature for future generations.

The method can be used by governments in cost-benefit analyses for public infrastructure projects, in which the loss of animal and plant species and ‘ecosystem services’ – such as filtering air or water, pollinating crops or the recreational value of a space – are converted into a current monetary value.

This process is designed to make biodiversity loss and the benefits of nature conservation more visible in political decision-making.

However, the international research team says current methods for calculating the values of ecosystem services “fall short” and have devised a new approach, which they believe could easily be deployed in Treasury analysis underpinning future Budget statements.

Their approach, published in the journal Science, takes into consideration the increase in monetary value of nature over time as human income increases, as well as the likely deterioration in biodiversity, making it more of a scarce resource.

This contrasts with current methods, which do not consider how the value of ecosystem services changes over time.

“Our study provides governments with a formula to estimate the future values of scarce ecosystem services that can be used in decision-making processes,” said Moritz Drupp, Professor of Sustainability Economics at the University of Hamburg and lead author on this study.