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Historically, environmental policies have largely failed to value either biodiversity itself, or the many outputs such as ecosystem services to which biodiversity contribute. Government institutions and agencies, the private sector and conservation NGOs require information relating to the worth that society and individuals place on different aspects of biodiversity in order to make sensible and defendable decisions when weighing up alternative and competing management options. Often, however, the information required is absent, incomplete or misleading, in part because the natural science community has not fully engaged in developing appropriate valuation approaches. As a result, there is an urgent need for the NERC science community to contribute to valuation studies, for instance, by providing a more thorough understanding of the bio‐physical processes and their dynamics (often non‐linear) that link biodiversity to human welfare. By improving the science base for valuing biodiversity‐related benefits, the NERC community will help to ensure that the real value of natural systems is represented in management decisions and that the wider positive and negative consequences of those decisions are fully understood.
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... The first area of risk comes from applying part-values to the whole: by looking just at " what nature does for us " rather than " what nature does " , by applying fixed and unwieldy ecosystem service categories to the interlinked and dynamic phenomena of the human-environment system, and by restricting ourselves to quantification in monetary terms. All of this errs towards undervaluing the natural world on which we depend (yet it is the fear of " double-counting " that appears as a theme in most Ecosystem Approach documents – [19,2324). As a synthesis of the three critical articles, the applicable scope of economic (monetary) valuation meets its limits: Where there is insufficient fundamental process understanding or environmental data to support an informed valuation (= most cases); Where values determined in one context are applied to another (i.e., benefits transfer), with insufficient validity testing (= most cases); Where " individual " services are considered in isolation: the functions and processes of a wellfunctioning ecosystem cannot be disassembled; Where there is already scarcity, or a serious risk of non-linearity in ecosystem response (= many cases): environmental economics works for marginal changes, not for " once-and-for-all " circumstances; In the future: values determined in the past are unlikely to be stable (but this has barely been tested for environmental benefits); and while some features of ecosystems might be predictable with process models, economic (equilibrium) models are not intended to predict benefits. ...
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