Abstract
Environmental compensation should address negative impacts from human activities on nature, including loss of biodiversity and ecosystem services. However, successful compensation, achieving no net loss, requires broad quantitative information on different types of losses and gains. We find that the scope of compensatory schemes varies in what is considered compensable, which makes it challenging to apply a conceptual approach consistently across schemes with different needs. We propose a flexible yet structured framework for determining which values should be compensated and how. Our framework focuses specifically on habitat deterioration and is illustrated with a case study involving loss of eelgrass habitat. The framework helps identify compensation needs and selects among suitable compensation options, merging science-based information with normative issues and local concerns. By integrating the ecosystem services cascade model, it encompasses aspects from biodiversity structure to human wellbeing. The framework prefers in-kind compensation because this targets the structure level and thus meets compensation needs in all subsequent levels of the cascade model; further, it is more likely to capture non-instrumental values (i.e. in nature) and reduce exposure to uncertainty. We highlight the importance of spatial aspects of ecosystem functions, services and their subsequent impacts on wellbeing. Although our selection hierarchy assumes a “similar and nearby” principle for habitat restoration (preference for in-kind/on-site), this criterion is not universal. We underscore the hierarchy’s implicit normative assumptions and suggest that apparent disagreement about who should benefit may be traced to an unresolved conflict between egalitarianism and utilitarianism.
Highlights
Human wellbeing1 is dependent on environmental assets and flows provided by nature
By addressing how changes in ecosystem structure and function affect the supply of ecosystem services and associated human benefits, our conceptual framework adheres to the cascade model developed by e. g
Existing frameworks for compensation face a challenge in balancing two goals: flexibility to suit the myriad of compensatory schemes found globally, versus consistency to ensure polluters’ environmental liability is measured consistently and fairly
Summary
Human wellbeing is dependent on environmental assets and flows provided by nature. Together, these contribute to the provision of ecosystem services, sometimes collectively referred to as natural capital (Haines-Young and Potschin, 2018; Hernandez-Blanco and Costanza, 2018; Missemer, 2018). Government policies that make visible nature’s contribution to welfare, such as the infor mation and signaling effects from environmental taxes, has likely contributed to engagement of the private sector through e.g., natural capital assessment accounting (Peiffer and Haustermann 2017) Broker functions such as habitat banks are for example set to help match sup pliers of ecosystem services with developers that need to invest in them (Froger et al, 2015; Boisvert, 2015; Hahn et al, 2015; OECD, 2018). It can be used to support national and local processes by sug gesting how actions to halt losses to biodiversity and ecosystem services can be identified and planned to address effects of human activities Given this overarching aim, the framework is applicable in a variety of environmental settings (terrestrial or aquatic), policy scenarios (e.g., expected damage ex ante or actual damage ex post), and regulatory contexts aligned with the global sustainable development goals (see below and Table 1).
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