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Assessing the value of the negative effects of closing the trestle bridge: Method 1-Óthe worthÓ of having the bridge.

Assessing the value of the negative effects of closing the trestle bridge: Method 2- the Òopportunity costÓ of not having the bridge for 1 month 25 years from now.

Assessing Storm risk costs

Assessing additional costs for 3 Ò100-year stormÓ

Table. Present value of estimated costs & negative effects

Questions relating to the performance of public undertakings

Comparison of B/C and Cost Effectiveness

Introduction to Ecosystem Functions & Services

	Ecosystem Functions and Services
	Ecosystem functions are the physical, chemical, and biological processes or attributes that contribute to the self-maintenance of an ecosystem; in other words, what the ecosystem does. Some examples of ecosystem functions are provision of wildlife habitat, carbon cycling, or the trapping of nutrients.  Thus, ecosystems, such as wetlands, forests, or estuaries, can be characterized by the processes, or functions, that occur within them.
	Ecosystem services are the beneficial outcomes, for the natural environment or people, that result from ecosystem functions. Some examples of ecosystem services are support of the food chain, harvesting of animals or plants, and the provision of clean water or scenic views.  In order for an ecosystem to provide services to humans, some interaction with, or at least some appreciation by, humans is required. Thus, functions of ecosystems are value-neutral, while their services have value to society. BUT ecosystems have value regardless of human interaction!

Difficulties with Environmental Valuation

Ecosystem Services Glossary

Glossary

Glossary

Glossary

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Why are estimates of ecosystem benefits needed?

			To justify and decide how to allocate public spending on conservation, preservation, or restoration initiatives.
			To consider the publicÕs values, and encourage public participation and support for environmental initiatives.
			To compare the benefits of different projects or programs.
			To prioritize conservation or restoration projects.
			To maximize the environmental benefits per dollar spent.
			To assess tradeoffs and resource allocations even for decisions involving ESA, health and safety issues where economic considerations are secondary.

Important questions that various governmental agency staff must answer:

	When and how should agency staff attempt to answer ecosystem benefit questions?
	What criteria and methods are being used to make spending decisions, and what is the justification for these criteria and methods?
	Are the benefits of a project or program greater than the cost to taxpayers?
	Is agency spending being managed to maximize environmental benefits?
	How do different projects compare to each other in terms of ecosystem benefits?
	When should agency staff provide dollar-based estimates of ecosystem benefits?
	When should they answer questions about benefits only by demonstrating that they are using reasonable benefit-based project ranking criteria?

Some overview comments on Ecosystem Valuation

	Conventional economics –> measures of economic value based on what people want (Òmarket economiesÓ), individuals, not government,  should be the judge
	Maximum amount a person is Òwilling to give up to get more of something else is fair measure of relative ÒvalueÓ of the two things to that person
	Measuring of values of ES in $ does not require they be bought & sold in markets – just estimates of Òwillingness to give up to getÓ
	Non-$ measures include ranking or prioritizing the expected benefits of environmental benefits
	Indicator-based valuation tools are often less expensive & require less time to apply

Some practical issues of Ecosystem Valuation

	Easy to spend lots of $ to assign $ values
	Easy for environmental program managers/decision makers to misuse results & undermine even their best programs
	Risky for managers to ignore demands for more fiscal accountability (government especially, but also private sector)
	ÒBest professional judgment,Ó Òbest available scienceÓ and/or Òobjective scientificÓ project ranking criteria that ignore beneficial outcomes to people are prone to being extremely unpopular (CAO???)

Basic Concepts of Economic Value

Supply Curve & Producer Surplus

Typology of Ecosystem Services Complications

	Natural resources & environment associated with market failure
	Ecosystem services are often public goods
	Overuse common if property rights are not clearly defined
	Ecosystem services often affected by externalities