Methods for Quantifying the Economical Values of Natural Services

Rangelands are highly productive, biologically rich and providing many ecological services, therefore, theyare important to both biodiversity and economy. The science of calculating economic values for rangelands isrelatively new and methods are continually being refined and enhanced. Putting value on natural services suchas erosion control is a much newer concept than valuing traditional consumptive uses such as grazing. It isbecoming clear, however, that many natural areas, including rangelands, have substantial economic values.Methods to measure the economic benefits of rangelands are beginning to demonstrate the returns oninvestment from actions to sustain rangelands and the benefits that may be lost if they are degraded. The currentpaper investigates the economic valuation of rangelands, including the tools and methods used to value thesenatural features. Approaches can be divided into three categories: direct, indirect and proxy. The first twoapproaches generally provide more precise economic measures, while proxy methods are more usefulestimates when time and resources are limited. However, because of their ease of use, proxy methods arebecoming more popular. The most economically efficient choice is not necessarily the most socially acceptableor environmentally beneficial choice. Valuing the economic benefits of rangelands can help set priorities andallocate spending on conservation initiatives. Valuation can also be used to consider the public's values ofrangelands and encourage public participation in certain initiatives.

Keywords:

Functional ecosystems , rangelands , economic values , quantifying methods