Principles of Economics

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Ecosystem Services

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Principles of Economics

Definition

Ecosystem services are the direct and indirect benefits that humans derive from the natural environment and healthy ecosystems. These services are crucial for supporting and fulfilling human well-being and economic activities.

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5 Must Know Facts For Your Next Test

  1. Ecosystem services can be categorized into four main types: provisioning, regulating, supporting, and cultural services.
  2. Provisioning services include the production of food, fresh water, timber, and other raw materials from ecosystems.
  3. Regulating services include the regulation of climate, water purification, flood control, and disease prevention.
  4. Supporting services, such as nutrient cycling and soil formation, are necessary for the production of all other ecosystem services.
  5. Cultural services include the non-material benefits people obtain from ecosystems, such as recreational, aesthetic, and spiritual experiences.

Review Questions

  • Explain how the concept of ecosystem services relates to the topic of international environmental issues.
    • The concept of ecosystem services is crucial in the context of international environmental issues because many of these services, such as climate regulation, biodiversity, and the provision of natural resources, transcend national borders. Degradation or depletion of ecosystems in one country can have significant impacts on the availability and quality of ecosystem services in other countries, leading to international conflicts and the need for global cooperation in environmental management and conservation.
  • Describe how the tradeoff between economic output and environmental protection is influenced by the concept of ecosystem services.
    • The tradeoff between economic output and environmental protection is heavily influenced by the value placed on ecosystem services. When the economic benefits of exploiting natural resources or degrading ecosystems are prioritized over the preservation of those ecosystems, it can lead to the loss or impairment of valuable ecosystem services that support human well-being and economic activities in the long run. Conversely, recognizing the economic value of ecosystem services can provide a stronger justification for environmental protection and sustainable resource management, even if it means accepting lower short-term economic output.
  • Analyze how the concept of ecosystem services can be used to inform decision-making and policy development in the context of balancing economic and environmental considerations.
    • The concept of ecosystem services can be used to inform decision-making and policy development by providing a framework for quantifying and valuing the benefits that humans derive from natural ecosystems. By assigning monetary or non-monetary values to ecosystem services, policymakers and decision-makers can better assess the trade-offs between economic development and environmental protection, and develop policies that aim to maintain the long-term sustainability of essential ecosystem services. This can involve incentivizing the conservation and restoration of ecosystems, implementing payment for ecosystem services schemes, or incorporating the value of ecosystem services into cost-benefit analyses for development projects. Ultimately, the integration of ecosystem services into decision-making can help strike a more balanced and sustainable approach between economic output and environmental protection.

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