Economic evaluation

This guide aims at making accessible the main concepts and methods of economic valuation of the monetary value of goods and services rendered by natural ecosystems in general. This text is designed for all actors involved in the economic valuation of ecological services. It was deliberately simplified in order to enable all economist and non-economist actors to take ownership of it. It allows quick understanding of the most commonly used economic valuation concepts and methods applied by natural ecosystem evaluators.

From Indian vultures to Chinese bees, Nature provides the 'natural services' that keep the economy going. From the recycling miracles in the soil; an army of predators ridding us of unwanted pests; an abundance of life creating a genetic codebook that underpins our food, pharmaceutical industries and much more, it has been estimated that these and other services are each year worth about double global GDP. Yet we take most of Nature's services for granted, imagining them free and limitless ...until they suddenly switch off.

UNDP's Environment and Energy Group is pleased to publish this Report which will be a cornerstone for future approaches and policy dialogue on the economics and management of ecosystem services. The Report highlights the economic contribution of biodiversity conservation and ecosystem services to development and equity in Latin America and the Caribbean. It is to serve as an economic tool for decision makers so that ecosystem services are considered in sectoral and national planning.