Abstract

The formalization of the economic damage from the deterioration/destruction of ecosystem services is carried out. On this basis, its output component is designated: the indicator of harm to ecosystem goods and services as assets of natural capital. For the first time, meaningful content of economic damage from the loss of ecosystem goods and services is revealed. Its content is based on the cost estimation of the total amount of harm caused to them (1), the volume of relevant public expenditure and financial resources to replace certain types of ecosystem services, which are lost in whole or in part (2), the costs necessary to prevent harm from the negative socioeconomic and environmental consequences of the loss of ecosystem services (3) and the elimination of these losses (4), as well as lost profits from lost opportunities (income) due to degraded ecosystem services and the resulting social costs (5). It is substantiated that in determining the overall rate of economic damage from environmental pollution by the ecosystem objects, its key parameter is exactly the cost measurement of the value of ecosystem services on the basis of an economic assessment of the degradation changes of ecosystem producers. A consistent parameterization of the economic value of ecosystem services is presented and the applied results of cost estimation of ecosystem services are generalized. These results provide reference methodological support for similar evaluation by other developers, in particular, professional appraisers licensed by the Ministry of Ecology and Natural Resources of Ukraine. The author introduces into scientific use the provisions on determining the economic value of ecosystem services and their contribution to well-being, which were set out in the four most important constitutional official documents developed by the United Nations Statistical Commission, FAO, the IMF and the World Bank in 2012-2017. For the first time, the estimated cost of ecosystem services for the Dnipro river Basin within Ukraine, including the Kiev Region, is calculated. A double excess of the value of ecosystem services of Kiev area (as the region of the middle reaches of the Dnipro Basin) over the value of the regional gross product for the same time period was found. The author proves the necessity to take into account the significant contribution of ecosystem services (or, conversely, their losses) to public income in order to create a scientifically plausible basis for making more substantiated and credible practical decisions when forming and implementing the socio-economic and environmental policies.

Full Text
Published version (Free)

Talk to us

Join us for a 30 min session where you can share your feedback and ask us any queries you have

Schedule a call