5.1. Values of the services vs. preservation cost: looking for efficiency
Confronted to the many uncertainties and controversies in the economic valuation of ecosystem, an alternative often proposed, rather than evaluating the cost of the destruction or degradation consists of estimating the preservation or restoration costs. This seemingly very comforting solution is actually a false good idea. Apparently, one is shifting from an assessment based on preferences too difficult to assess to a more reliable cost of technical supply. In reality, this approach provides a measure of cost that might be irrational, because much higher than the value of lost services. Following this fallacy, the analyst has lost the very principle of economic valuation: the search for efficiency.Nevertheless, this approach can be sometimes adequate.If the definition of objective appears out of reach of any economic analysis, as it is definitely the case in many situations, the search for efficiency should lead to achieve
the goal determined on other bases at lower cost, and analysing the costs of preservation, conservation, restoration or replacement, whichever is deemed possible. Ideally, economists may wish to put their analysis in a CBA framework, the only one to provide a measure of efficiency, but this would require being able to estimate all the costs, market and non-market, associated with every possible situation to determine what would be the best situation. At the optimum, the marginal value of services and the marginal costs of conservation would be equal. Such calculations are generally just unrealistic.
5.2. Evaluating potential
Most existing evaluation relate to services actually rendered by ecosystems here and now. If the objective is to assess whether the expected profits from the destruction of these environments will be greater than that of the lost ecosystem services, one must be careful to compare two
trajectories of the same nature, and not the reality of ecosystems that may have suffered other damage, with the uncertain promises of idealized projects. Given the optimism of developers about their projects, there is no reason to value biodiversity according to the present state
of ecosystem services, but rather in their expected state at the relevant time horizon under favourable management. As good practices in evaluation are to measure the differences between contrasting scenarios, it is of utmost importance to take into account values of ecosystem
services, which would be effective in a favourable scenario. The word ‘‘favourable’’ should not be construed as referring to a pristine wilderness that will not exist anymore, but as the result of changes in real ecosystems at a specific horizon, assuming that reasonable choices were made.
5.1. Values of the services vs. preservation cost: looking for efficiency
Confronted to the many uncertainties and controversies in the economic valuation of ecosystem, an alternative often proposed, rather than evaluating the cost of the destruction or degradation consists of estimating the preservation or restoration costs. This seemingly very comforting solution is actually a false good idea. Apparently, one is shifting from an assessment based on preferences too difficult to assess to a more reliable cost of technical supply. In reality, this approach provides a measure of cost that might be irrational, because much higher than the value of lost services. Following this fallacy, the analyst has lost the very principle of economic valuation: the search for efficiency.Nevertheless, this approach can be sometimes adequate.If the definition of objective appears out of reach of any economic analysis, as it is definitely the case in many situations, the search for efficiency should lead to achieve
the goal determined on other bases at lower cost, and analysing the costs of preservation, conservation, restoration or replacement, whichever is deemed possible. Ideally, economists may wish to put their analysis in a CBA framework, the only one to provide a measure of efficiency, but this would require being able to estimate all the costs, market and non-market, associated with every possible situation to determine what would be the best situation. At the optimum, the marginal value of services and the marginal costs of conservation would be equal. Such calculations are generally just unrealistic.
5.2. Evaluating potential
Most existing evaluation relate to services actually rendered by ecosystems here and now. If the objective is to assess whether the expected profits from the destruction of these environments will be greater than that of the lost ecosystem services, one must be careful to compare two
trajectories of the same nature, and not the reality of ecosystems that may have suffered other damage, with the uncertain promises of idealized projects. Given the optimism of developers about their projects, there is no reason to value biodiversity according to the present state
of ecosystem services, but rather in their expected state at the relevant time horizon under favourable management. As good practices in evaluation are to measure the differences between contrasting scenarios, it is of utmost importance to take into account values of ecosystem
services, which would be effective in a favourable scenario. The word ‘‘favourable’’ should not be construed as referring to a pristine wilderness that will not exist anymore, but as the result of changes in real ecosystems at a specific horizon, assuming that reasonable choices were made.
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