RRalph Underhill, PIRC

Four reasons ecosystem services valuation might not be that awesome

1. It’s not actually possible

2. It undermines other arguments

3. It changes the way people feel

4. It won’t lead to better decisions for nature

1) It is not actually possible

How do we determine value?

There is no single correct view

Even the same individuals can answer differently

Economics is not a science – it is values laden

2) It undermines other arguments

The true value of nature can be shown for the very first time thanks to groundbreaking research. Its findings show that nature is worth billions of pounds to the UK economy, strengthening the arguments for protecting and enhancing the environment…”

“

… Traditionally, the common view has been that caring for the environment means extra financial burdens. However the UK NEA shows that there are real economic reasons for looking after nature.”

DEFRA press releaseJune 2011

“

3) Putting a price on something changes the way you feel about it

The new X517

It has 4 doors and a boot

It does 65 miles to the gallon

It is available in 4 colours

It costs £16,500

Markets & morals

No market – 46% let mouse die for 10 euros

Single market (Buyer and seller split 20 euros) – Most let the mouse die. 72% sellers would accept 10 euros or less.

Bigger market (7 sellers, 9 buyers) – 76% of sellers would accept 10 euros or less.

Falk & Szech, 2013

4) It won’t actually lead to better decisions

What influence do we currently have?

Gov identify a perceived problem

Gov decide on perceived cause

of problem

Initial idea about how to address issue

Informally consult key business

interests

Key economic parameters for

models set

Decision made on what requires

consultation

Consultation on ecosystem

valuation

NGO and Business respond

Gov “weigh up” responses

It will actually be easier to disregard nature in decision making not

harder

We shouldn’t be fitting nature into a broken system we should be seeking

to change the decision making system itself

Conclusion

Difficult Questions

Won’t the process be worse if we aren’t involved?

How do we talk about economic valuation without endorsing the approach?

How the hell do we change the decision making system?

Common Cause for Nature covers the issue in detail – Google it!