Conceptual framework for the economic valuation of biodiversity

This chapter discusses a conceptual framework of the economic value of biodiversity and methodological recommendations. It offers a characterisation of valuation object biodiversity. The chapter discusses the sources of biodiversity's economic value, such as, insurance value, option value, spill-over value and aesthetic value. It is important to note that biodiversity does not really contribute to human well-being directly – instead, one should rather say that it is valuable insofar as it 'promotes useful properties'. Various elements of an ecosystem provide goods and services to humans, thus influencing their well-being. The idea behind biodiversity's spill-over value is related to the maintenance of life cycles of migratory species or nursery-service in TEEB classification. Total economic value (TEV) in its most common form consists of three main value categories: use values, non-use values and option value. Biodiversity scored relatively high in the assessment of relative importance of various forest functions; stability and habitat were considered more important and relevant than aesthetics and options.