The total net economic benefit, or economic surplus, is the sum of consumer surplus and
producer surplus.
Changes in net economic benefit can be equated with value of ecosystem services.
Application of the market
price method requires data to estimate consumer surplus and producer surplus. To estimate consumer surplus, the demand function must be estimated. This requires time series data on the
quantity demanded at different prices, plus data on other factors
that might affect demand, such as income or other demographic
data. To estimate producer surplus, data on variable costs of production and revenues received from the good are
required.