Accounting for benefits from natural capital: Applying a novel composite indicator framework to the marine environment

Emily Stebbings,Tara Hooper,Melanie C Austen,Eleni Papathanasopoulou,Xiaoyu Yan

doi:10.1016/j.ecoser.2021.101308

Abstract

Increased emphasis on the natural capital approach in the UK has led to greater demand for methods that link economic sectors with elements of natural capital, and that can provide evidence for sustainable management of the environment. However, factors describing the supply of benefits, and their links with economic sectors, are not well defined.This study develops a novel framework that investigates how the combination of different forms of capital (natural, financial, social, manufactured or human) provide a potential supply of benefits, and how changes in quality or extent of natural capital affects supply. Factors affecting the delivery of benefits are analysed, and indicators for each factor are selected. Indicators are ranked and weighted, and benefit supply is represented as a novel, composite index. The composite supply index is then linked as an input to a related economic sector.This framework is applied for the first time to four benefits from the marine environment in the UK: seafood, offshore wind energy, wildlife watching and water sports. The approach is compatible with national accounts, natural capital accounts, and established ecosystem service classifications. This study shows how linking economic sectors with benefits can provide new evidence in support of marine management.

Highlights

The importance of integrated assessments for natural capital assets, ecosystem services (ES) and the value of environmental benefits has been well established (Hooper et al, 2019)
Aspects of capital were used to estimate the supply of benefits in a way that has not been pre viously attempted; an approach of this sort could improve upon existing approaches within natural capital accounting (NCA) (Thornton et al, 2019, p. 55)
Benefits were identified as inputs to specific sectors in the marine economy, which has previously been carried out for the fishing sector, but not for recreation

Summary

Introduction

The importance of integrated assessments for natural capital assets, ecosystem services (ES) and the value of environmental benefits has been well established (Hooper et al, 2019). The marine and coastal environment provides unique benefits to humans and society. Seafood, raw materials and recreational enjoyment are all ways in which it is used and enjoyed by humans. Realisation of these benefits relies on both natural and human systems, and within these systems, living and non-living elements. The natural capital approach can be used to overcome these difficulties; environmental extent and condition are integrated into decision-making, as are the inter-dependencies between the environment, economy and society. Worldwide efforts have been made to measure natural capital assets, monitor ongoing condition, link with ES, and measure benefits they can provide

Methods

Discussion

Conclusion