Monetary Accounting Research Articles

Analyze the Effect of ESG Long Term Performance from an Accounting Perspective

This paper explores the effect of environmental, social, and governance (ESG) elements on long term overall performance of agencies, reading from the accounting perspective base on mechanisms and empirical proof. Firstly, this paper mainly looks at the outcomes of ESG overall performance on threat control and value reduction, emblem cost and marketplace recognition, long term funding returns, investor stress and compliance requirements, innovation and aggressive advantage, in addition to long-time period investor relations. Through instances and information evaluation, this paper demonstrates how ESG elements have an effect on the long-time period overall performance of agencies and applicable empirical research will offer assist. Secondly, this paper will demonstrate the combination of ESG elements into accounting practices, reporting and the demanding situations and possibilities in ESG reporting. This paper emphasizes the importance of monetary accounting specialists in making sure accurate, reliable, and obvious disclosure of ESG data to beautify stakeholders' consider and self-assurance in organization long-time period monetary statements. Finally, this paper offer proof from evaluation at the effect of ESG performance on organization long-time period overall performance. This paper will display the findings that agencies with positive ESG performance in all likelihood have better long-time period funding returns and go back on equity, decrease monetary dangers and costs, and much more likely to benefit investor assist and marketplace recognition. This paper presents insights for the effect of ESG elements on long-time period performance of agencies, presenting a few references and steering for commercial enterprise decision-makers and buyers.

Focusing on structural changes and future risks of ecosystems: An opportunity-cost based ecosystem service account for riparian ecosystems and its case study

The riparian is a buffer zone between the river and human society, and improper land development will increase the ecological vulnerability of the river basin. Different evaluation methods for the ecological impact of development behavior will produce different value perception results, which in turn will affect the judgment and choice of decision-makers and the public. Based on the construction of an opportunity-cost-based monetary valuation method in the SEEA-EA (System of Environmental Economic Accounting-Ecosystem Accounting), this study took the riparian under the influence of the Xiaolangdi Project of the Yellow River from 1990 to 2020 as the research object, and evaluated the impact of land development decisions on ecosystem services under the superimposed influence of major projects, policies and socio-economic changes. The results show that: (1) The inclusion of opportunity costs can reduce the distortion of ecological value caused by economic factors and supply–demand state. In the case study, the opportunity cost of each 5-year accounting period in 30 years reduced the total accounting value respectively by 196.76, 25.88, 80.57, 84.33, 27.96, and 577.48 million yuan. (2) Opportunity cost can effectively reflect the ecological profit and loss caused by land transformation between different ecosystem types caused by decision-making in different periods. From 2015 to 2020, the opportunity cost of ecosystems was high when the total ecological land in the riparian increased, which reflected the drastic changes in land use during the decision-making period. (3) Opportunity costs are included in the monetary account as part of the “stock reduction”, which directly reflects the risk of ecological land reduction and structural change caused by development behavior. This mixed account of physical and monetary stocks can reflect both physical changes in ecosystem services and ecological risks, thereby improving stakeholders’ scientific understanding of the fluctuations in the value of ecosystem services caused by riparian land use.

Introducing the Food Value Framework (FVF) to empower transdisciplinary research and unite stakeholders in their efforts of building a sustainable global food system

The global food system provides numerous benefits to humanity but also faces critical sustainability challenges with respective costs often burdened by society. As these costs are not sufficiently represented in market prices, increasing monetization efforts of externalities aim to reveal such hidden costs. However, monetary evaluation approaches have limitations such as conformity or including arguably unmonetizable impacts. Given that food production and consumption have been deeply embedded in human culture and behavior throughout millennia, systemic change is generally slow and precarious to enforce externally, especially given its existential role for daily survival. Rather than imposing relatively recent sustainability challenges, such as climate change, onto food systems, we hence suggest incorporating them into a core natural driver of human behavior: values. The objective of this research is to create a framework that can holistically address values associated with food in order to guide and unite stakeholders along the food value chain. Based on this human-centered bottom-up approach, empirical relevance of a respective framework to successfully translate into and guide sustainability efforts should be increased. We therefore combined established approaches of monetary accounting with a psychosocial perspective on basic human values and ethics to derive the Food Value Framework (FVF). We conclude that the FVF could address shortcomings of current evaluation methods and serve as a common foundation to empower transdisciplinary research, value-based policy-making, transparent production, and responsible consumption across the food value chain.

Accounting of marine and coastal ecosystems at the Ramsar Site, Estuarine Delta System of the Magdalena River, Ciénaga Grande de Santa Marta, Colombia

The Cienaga Grande de Santa Marta Ramsar Site (CGSM) is the most important Caribbean estuarine wetland in Colombia. The site represents a strategically important ecosystem supporting the national and local economy. However, their ability to provide ecosystem services has been seriously affected mainly due to changes in land use, disturbances of water flows, man-made climate change and interannual climatic variability. These circumstances led to its inclusion in the Montreux Record, a register of wetland sites on the ‘List of Wetlands of International Importance’ where variations in ecological character have happened, are happening or are likely to happen as an outcome of technological developments, pollution or other human interference. This paper presents the first account of marine and coastal ecosystems developed in Colombia at the Cienaga Grande de Santa Marta. Following the principles for ecosystem accounting of the System of Environmental-Economic Accounting—Ecosystem Accounting (SEEA EA), we developed accounting tables of extent and condition of ecosystems, biophysical and monetary flows of climate regulation and fishing supply and the monetary account of ecosystem assets. Results of the ecosystem account allow visualising the importance of ecosystem services of the wetland, its capacity to provide economic benefits, social welfare and livelihoods at local and national level. Finally, we identify main gaps of information, highlight the applicability of ecosystem accounting to policy- and decision-making on economic and environmental issues and evaluate the challenges to implement it.

From Biophysical Calculation to Financial Risk Assessment: Three Worlds of Accounting for Nature

The interactions between the economy and nature are little reflected in the management tools of capitalism. The impacts on the latter remain largely invisible to economic processes. This is the narrative behind the proposal to integrate nature into a central instrument of capitalism: accounting. However, nature accounting is shaped by a diversity of actors, practices, objectives and effects. Taking a chronological approach, we show how three successive approaches that we call “accounting worlds” have developed over time and coexist today. The first is public accounting expressed in biophysical, material and energy units, with the aim of exposing the exploitation and unequal exchange of natural resources as an extension of unbalanced trading relations. This was followed by the gradual development of natural capital monetary accounting projects, aimed at internalizing environmental externalities, initially at the national level and later extended to private accounting. A third and final project has recently emerged in connection with traditional accounting and financial standards. Its purpose is to measure the impact of nature and its degradation on the economic and hence financial performance of firms. Based on an analysis of these three worlds, we suggest that the growing influence of accounting thought and practices on nature, especially in their most recent forms, leads not so much to its commodification or financialization as to its invisibility or dilution in the logic of financial capitalist reproduction. Finally, we question the possible emergence of a unified regime of accounting for nature.

Setting priorities for greening cities with monetary accounting values for amenity services of urban green

Life Satisfaction Analyses in Germany reveal a significant positive correlation between the amount of green space within 1 km of residence and well-being. The comparison of the effects of green space and income on well-being allows the derivation of a monetary demand function for green spaces close to the place of home. This demand function was used together with land-use and population data to estimate the monetary value of green space close to home for every 2 km × 2 km grid cell in Germany. The results can be used in environmental economic accounting as a proxy for the (visual) amenity services of green spaces close to residences and provide urban planners with additional information on the strength and spatial distribution of demand for green spaces in residential areas. The study shows that, especially in densely populated areas where more than 30 per cent of the German population lives, the (simulated) exchange value of green spaces (price per additional hectare derived from the demand function) multiplied by the number of households that would pay this price, is higher than the price per ha that can be achieved on the real estate market. A comparison with the results of a Hedonic Price Analysis that estimates the effect of urban green space on property prices finds that the values of urban green spaces calculated with this method were 38 to 124 times smaller than the values calculated with the Life Satisfaction Analysis and far below building land prices. The reason for the relatively low impact of urban green on property prices can be explained by market imperfections in the housing market.

Spatially Explicit Seagrass Extent Mapping Across the Entire Mediterranean

The seagrass Posidonia oceanica is the main habitat-forming species of the coastal Mediterranean, providing millennial-scale ecosystem services including habitat provisioning, biodiversity maintenance, food security, coastal protection, and carbon sequestration. Meadows of this endemic seagrass species represent the largest carbon storage among seagrasses around the world, largely contributing to global blue carbon stocks. Yet, the slow growth of this temperate species and the extreme projected temperature and sea-level rise due to climate change increase the risk of reduction and loss of these services. Currently, there are knowledge gaps in its basin-wide spatially explicit extent and relevant accounting, therefore accurate and efficient mapping of its distribution and trajectories of change is needed. Here, we leveraged contemporary advances in Earth Observation—cloud computing, open satellite data, and machine learning—with field observations through a cloud-native geoprocessing framework to account the spatially explicit ecosystem extent of P. oceanica seagrass across its full bioregional scale. Employing 279,186 Sentinel-2 satellite images between 2015 and 2019, and a human-labeled training dataset of 62,928 pixels, we mapped 19,020 km2 of P. oceanica meadows up to 25 m of depth in 22 Mediterranean countries, across a total seabed area of 56,783 km2. Using 2,480 independent, field-based points, we observe an overall accuracy of 72%. We include and discuss global and region-specific seagrass blue carbon stocks using our bioregional seagrass extent estimate. As reference data collections, remote sensing technology and biophysical modelling improve and coalesce, such spatial ecosystem extent accounts could further support physical and monetary accounting of seagrass condition and ecosystem services, like blue carbon and coastal biodiversity. We envisage that effective policy uptake of these holistic seagrass accounts in national climate strategies and financing could accelerate transparent natural climate solutions and coastal resilience, far beyond the physical location of seagrass beds.

Carl Menger’s revisited theory of capital in opposition to the Classical and Marginalist scholars’

Among several contributions, Carl Menger proposed a division of economic goods in orders. This sets the foundations for the Austrian capital theory, usually maintained as a complex of higher orders goods in a production process. Curiously, Menger dismissed this concept of capital, in favor of one used in common parlance. This change of view is often overlooked, but represents a turning point in the field of capital theory. This paper assesses how Menger's popular notion of capital differs from the scientific one. To achieve this goal, we investigate the concept of capital in Classical and Marginalist economists. One of the implications is that the popular concept is related to the theory of capitalism. Capital, as used in business language for economic calculations, is better suited for analyzing the capitalist system, as it captures the usage in monetary economies and business accounting.

自然资本价值核算研究综述

目前国内外对自然资本价值核算的理论与方法尚未取得共识，无疑制约了自然资本核算在生态环境保护中积极作用的发挥。基于此，本文分别从自然资本内涵及其价值核算理论基础、国内外自然资本存量与流量核算方法实证研究、自然资本货币化价值核算的合理性等方面对已有文献进行梳理与分析，发现目前自然资本核算研究主要集中在生态产品的功能量与价值量核算而缺少生态资产货币价值量核算的研究；当前采用的生态产品价值量核算的生态系统类型系数表、本地化生态过程模型、能值当量替换三种方法在精度适用性、应用推广性和计算便捷性上各有优劣，尚待进一步的深入研究；最后对自然资本货币核算的一些争论进行了分析。通过上述研究和分析，提出如下新认识：（1）自然资本相关概念尚不统一，已经形成的认识包括：自然资本具有一定的稀缺性和使用价值，资本可分为存量资本（又称生态资产）和流量资本（又称生态系统服务）；（2）自然资本核算技术繁多，研究成果的横向比较性较差，需要通过标准化核算技术方法和建立生态环境资源数据库等措施，进一步提高核算结果的准确性和可比性；（3）相比于基于生态系统类型价值系数方法和基于非市场化货币的当量替代方法，基于本地化参数的生态系统服务过程方法更能够反映本地生态环境特征，评估分析的准确度更高，生态管理抓手更多；（4）尽管自然资本货币核算理论和实践应用仍存在一些争论，但各国政府和各类组织都在推动自然资本核算工作，自然资本的探索性核算成果已在各国生态补偿和生态损害修复等方面发挥积极作用。;At present, the theory and methodology of natural capital valuation have not reached a consensus domestically or internationally. This undoubtedly restricts the positive role of natural capital valuation played in the protection of the ecological environment. To address this issue, this paper analyzed the existing literature, including studies on the theoretical basis of value accounting, empirical accounting methods for stocks and flows, and the rationality of natural capital monetization. We found that natural capital valuation research tended to focus on product quantity, lacking exploration of the monetary value of ecological assets. Currently, three methods, including ecosystem type coefficient table, the localized ecological process model, and emergy-equivalent replacement for ecological product value, have been broadly adopted. They have their advantages and disadvantages in terms of precision applicability, application popularization, and calculation convenience, all of which need further study. In the end, this paper discussed some of the controversies surrounding the monetary accounting of natural capital. Through the above analysis, the paper puts forward the following conclusions:(1) the concepts related to natural capital have not been unified. The natural capital has a certain scarcity and use value, and capital can be divided into stocks (also known as ecological assets) and flows (also known as ecosystem services). (2) The variety of natural capital valuation techniques leads to poor horizontal comparison of research results. It is necessary to improve the accuracy and comparability of accounting results by standardizing techniques and establishing ecological-environmental resource databases. (3) Compared with the value coefficient method based on ecosystem type and the equivalent substitution method based on non-market valuation, the ecosystem service process method based on local parameters can better reflect the characteristics of local ecological and environmental conditions. The accuracy of evaluation and analysis is higher, and there are more ecological management channels. (4) Although there are still some debates about the theory and practical application of the monetary accounting of natural capital, governments and various organizations have promoted the work of natural capital valuation. The results of the exploratory accounting of natural capital have played a positive role in ecological compensation and restoration policies in various countries.

Value chain analysis of mangrove forests in central Mozambique: Uses, stakeholders and income

This study aims at documenting the value chain derived from mangrove forests in selected sites in central Mozambique (Zambezi Delta, Nhangau and Chiveve River), through the identification of the services delivered by mangrove forests and assessment of stakeholder’s engagement within the value chain. Furthermore, this work evaluates the income pathways as well as the current and potential benefits of different stakeholders and the socio-economic sustainability of mangroves in the three regions. Zambezi Delta is one of largest mangrove swamps in Africa and Chiveve is located in Beira City, impacted by Cyclone Idai in 2019. The main benefits obtained by the communities both in the Zambezi Delta and Nhangau were derived from commercially important wood extraction and honey production for domestic use. Within the Zambezi Delta, profit for small mangrove poles accrued at the wholesale level (82.6%), while that for large poles accrued to harvesters (125.0%), after a small initial direct investment. At Nhangau, small poles fetched profits of 17%, medium poles 11.5%, and large poles 24%; for charcoal, the greatest portion of profits went to retailers at 50%. Men were mostly involved in mangrove wood harvesting for commercial purposes, while women collected firewood mainly for domestic use. At the Chiveve, the community benefited predominantly from non-extractable services such as flooding control, water purification, nursery grounds for fisheries and aesthetic beauty. It is suggested that Mozambique mangrove forests are valued at USD 2 400 per hectare per year. This monetary accounting can be used to inform decision making on mangrove management and to improve the performance of the value chain and the wellbeing of local communities.

An Empirical Analysis of an Integrated Accounting Method to Assess the Non-Monetary and Monetary Value of Ecosystem Services

The process of ecosystem service value evaluation has developed from the use of a single economic value that only accounts for material products to an assessment of ecological value and the value of ecosystem services. However, due to the complexity of ecosystems and different understandings of ecosystem service values, different classification methods of ecosystem services and service values have been developed internationally, and this has resulted in a lack of clarity regarding the correlation between ecosystem service value and various ecosystems. The correspondence between the system and each value type is not clear; therefore, based on an analysis of the inadequacy of domestic and foreign ecosystem service classification systems and methods, this study constructed a new accounting framework for non-monetary ecosystem service functions based on emergy analysis and integrated monetary accounting methods. The practical application of the method was also researched. The research results re-classified the value of ecosystem services, established an accounting method for various ecosystem service values, clarified the principle of addition in accounting, and avoided double counting. In the empirical analysis, a large number of correlation coefficients, parameters, and index values found in the foreign literature were used, so, our method also has value for international use.

Features of payments in foreign currency in budgetary institutions

The article discusses the procedure for accounting for objects in a foreign currency. It is shown that foreign currency assets, liabilities, and other items are recorded simultaneously in foreign currency and in rubles. Analyzed the accounting treatment of exchange rate differences, it is shown that their records depend on the period. Examples of currency monetary and non-monetary accounting items and the specifics of their reflection in accounting transactions are given. Monetary assets and liabilities are recorded at the exchange rate at the date of recognition. The option of recognition at the reporting date is possible. Non-monetary assets and liabilities are recognized at the date of recognition and are no longer restated. An example of accounting for non-monetary assets accepted by an institution at fair value as an exception to their rules is given. The article reflects that the revaluation of such assets at the new exchange rate is made in cases when the fair value of the object changes. It shows the mechanisms for accounting for the return of advances in foreign currency and options when such debt is recalculated or not recalculated after being accepted for accounting.

Assessing the Financial Accountability of the Puntland State of Somalia Government Organizations

Building a sturdy monetary accounting machine is an crucial step in making the Puntland State of Somalia authorities (PSSG) a greater fantastic group that is able to supply fundamental public offerings to the people of Puntland. The purpose of this find out about is to determine the financial accountability in the PSSG. The learn about gathered data from six State institutions using questionnaires. Seventy civil servants participated in the study. The Data have been analyzed the use of descriptive data of imply and general deviation. The find out about discovered that the device of monetary accountability in the PSSG is improving. The learn about recommends to the PSSG to improve inner controls and economic reporting systems, put up tremendous finances records in a regular and well timed manner to the public; promote public participation in the price range method and strength the auditor usual to elevate out its functions effectively. Keywords: Accountability, Financial matters, Puntalnd State of Somalia Government (PSSG) Organizations. DOI : 10.7176/EJBM/11-34-02 Publication date: December 31 st 2019

Effect of IFRS Adoption on Income Smoothing in Indian Companies

The study aims to through empirical observation prove the influence of ordinary conversion of India monetary accounting to the International monetary coverage Standards (IFRS) on financial gain smoothing activities through investments and receivable's loss provisions of Indian firms for the 10-year amount. before IFRS implementation, investments and receivable's loss provisioning is that the issue, to social control manipulation, probably because of the weakness in generally accepted accounting practices that has a chamber for managers to manage earnings. We guess that the sturdy revealing necessities underneath IFRS may decrease financial gain smoothing activities of the IFRS adopters. Our paper inquires the results of IFRS adoption on Indian firms, as previous studies provide abundant attention to European Union (EU) sample case. The results indicate that here is not any concrete proof that IFRS, significantly IAS thirty-nine is related to mitigating financial gain smoothing activities of firms in India. However, financial gain smoothing activities do decline in usually listed firms of India once IFRS adoption.

Indonesian Small Pelagic Resource Accounting

Fish is one of natural resources, which is important for food security. Small pelagic fish is one of the sources of food, the most widely consumed by people of Indonesia, given the existence of a fairly abundant species, and are found in almost entire territorial waters of Indonesia, and also has a relatively affordable price. Management of pelagic fishery in the waters of Indonesia, thus becomes important, especially to maintain the sustainable industry. Optimal and sustainable fisheries industry can only be achieved with proper planning through the implementation of appropriate management instruments as well. Fisheries resources accounting is one of the planning instruments, which should be used as a main reference of Fisheries Management Plan. In general, fisheries accounting provide insights for policy makers on how the flow of the stocks of fish and its relation to changes in the dynamic of natural and economic activity of fishing. Small pelagic resource accounting is one of the mandates of agenda 21 UNCED recommendation, as formulated in the System of Integrated Environmental and Economic Accounting (SEEA). Besides, this is also a decree of Indonesian Law No. 32/2009 regarding the Management and Environmental protection. The paper discusses the fisheries account, both physical and monetary, for small pelagic fish. By using resource accounting, we can understand the dynamics of the availability of stocks of small pelagic fisheries in Indonesia for the sake of food security. The methods in use is the standard bio-economic modelling, using fox algorithm for parameter estimation, and resource accounting method of the System of National Accounts of FAO[1], adapted to the data existing condition. The results of the analysis, include measurement of standing stocks (physical assets account), fishable biomass, depletion, as well as monetary account. Paper also provides suggestion for management, as well as policy recommendation.Keywords: Small pelagic, Resource Accounting, Physical assets account, monetary account, Fisheries Management Plan, Bio-economic modeling, Policy recommendation.

Indonesian shrimp resource accounting for sustainable stock management

Abstract. Anna Z. 2017. Indonesian shrimp resource accounting for sustainable stock management. Biodiversitas 18: 248-256. Shrimp fisheries is a resource of important economic value, and is one of the high-demand commodities. Although regarded as a resource that has the ability to grow relatively quick and allows for a year-round production, these resources could experience declining production, or even extinction, if not managed properly. Planning the management of shrimp fishery stock requires basic information on the stock dynamics, both in terms of its natural production and utilization, through resource accounting, mandated by the Agenda 21 of United Nation Conference on Environment and Development (UNCED), formulated in the System of Integrated Environmental and Economic Accounting (SEEA). This study measures the accounting of the shrimp resources, both physical and monetary. In addition, the study also aims to measure the shrimp resource that can be utilized (fishable biomass), from the balance of resources. The approach used in this study is a standard bioeconomic model, with Fox model to estimate biological parameters, and methods of System of National Accounts of FAO (2004), named recursive model, adapted to the existing data. The results of the analysis, includes the calculation of standing stocks (physical asset account), fishable biomass, depletion, as well as monetary accounts. Result shows that the overall condition of the stock still in surplus, where the standing stocks from 1988 to 2014, are in the range of 200,000 to 900,000 tons yearly, with the monetary value between IDR 500 billion to 2 trillion. The intrinsic growth of shrimp tend to be positive in average, with values in the range of -258,000 tons to 263,890 tons. The trend estimation for the next five years (2015-2020), showed a decrease in the stock, and the stock closed as many as 350,000 tons in 2020. This paper also suggests the policy recommendations for the development and management of shrimp resources, in Indonesia.
 Keywords: Bio-economic modelling, fishery accounting, fishery stock management plan, monetary account, physical account, shrimp

CSR Monetary Accounting Impact Mechanism: A Conceptual Model

Companies adopt non-comprehensive accounting approaches to optimise their decision-making and reporting using mainly quantitative CSR impacts with less emphasis on monetising qualitative descriptive and physical impacts, despite those aspects being of significant concern to stakeholders. Thus, the study is motivated by the need for current sustainability accounting practice to develop a model that incorporates a full range of CSR-decision drivers; financial, environmental, social in addition to involving corporate governance drivers for the first time in the literature into decision-making and accounting systems to develop a comprehensive monetary accounting mechanism. Based on the theoretical and conceptual analyses, the CSR monetary accounting impact mechanism model is developed to provide sustainable accounting practices with comprehensive monetary measurement for stakeholders and organisations.

Quadrilemma Not Trilemma: Fiscal Policy Matters

This paper examines the interactions between fiscal policy and the open economy macroeconomic policy trilemma in a small open economy dynamic stochastic general equilibrium model. I show that the trilemma policy regime choices require fiscal accommodation. Otherwise, when future budget surpluses fail to stabilize government liabilities, fiscal imbalance generates exchange rate depreciation, regardless of monetary and capital account policy regimes. In this active fiscal policy regime, fiscal and monetary policy interact to determine the magnitude of exchange rate depreciation, while monetary policy and capital controls manage the timing of the depreciation.

Monetary accounting of ecosystem services: A test case for Limburg province, the Netherlands

Ecosystem accounting aims to provide a better understanding of ecosystem contributions to the economy in a spatially explicit way. Ecosystem accounting monitors ecosystem services and measures their monetary value using exchange values consistent with the System of National Accounts (SNA). We pilot monetary ecosystem accounting in a case study in Limburg province, the Netherlands. Seven ecosystem services are modelled and valued: crop production, fodder production, drinking water production, air quality regulation, carbon sequestration, nature tourism and hunting. We develop monetary ecosystem accounts that specify values generated by ecosystem services per hectare, per municipality and per land cover type. We analyse the relative importance of public and private ecosystem services. We found that the SNA-aligned monetary value of modelled ecosystem services for Limburg was around €112 million in 2010, with an average value of €508 per hectare. Ecosystem services with the highest values were crop production, nature tourism and fodder production. Due to the exclusion of consumer surplus in SNA valuation, calculated values are considerably lower than those typically found in welfare-based valuation approaches. We demonstrate the feasibility of valuing ecosystem services in a national accounting framework.

Changes in the global value of ecosystem services

In 1997, the global value of ecosystem services was estimated to average $33trillion/yr in 1995 $US ($46trillion/yr in 2007 $US). In this paper, we provide an updated estimate based on updated unit ecosystem service values and land use change estimates between 1997 and 2011. We also address some of the critiques of the 1997 paper. Using the same methods as in the 1997 paper but with updated data, the estimate for the total global ecosystem services in 2011 is $125trillion/yr (assuming updated unit values and changes to biome areas) and $145trillion/yr (assuming only unit values changed), both in 2007 $US. From this we estimated the loss of eco-services from 1997 to 2011 due to land use change at $4.3–20.2trillion/yr, depending on which unit values are used. Global estimates expressed in monetary accounting units, such as this, are useful to highlight the magnitude of eco-services, but have no specific decision-making context. However, the underlying data and models can be applied at multiple scales to assess changes resulting from various scenarios and policies. We emphasize that valuation of eco-services (in whatever units) is not the same as commodification or privatization. Many eco-services are best considered public goods or common pool resources, so conventional markets are often not the best institutional frameworks to manage them. However, these services must be (and are being) valued, and we need new, common asset institutions to better take these values into account.