ECOSYSTEM SERVICES Economics and Policy STEPHEN MUDDIMAN Palgrave Studies in NATURAL RESOURCE MANAGEMENT Palgrave Studies in Natural Resource Management Series Editor Justin Taberham London, UK This series is dedicated to the rapidly growing field of Natural Resource Management (NRM). It aims to bring together academics and profes- sionals from across the sector to debate the future of NRM on a global scale. Contributions from applied, interdisciplinary and cross-sectoral approaches are welcome, including aquatic ecology, natural resources planning and climate change impacts to endangered species, forestry or policy and regulation. The series focuses on the management aspects of NRM, including global approaches and principles, good and less good practice, case study material and cutting edge work in the area. More information about this series at http://www.palgrave.com/gp/series/15182 Stephen Muddiman Ecosystem Services Economics and Policy Stephen Muddiman Harwood Biology Great Harwood, UK Palgrave Studies in Natural Resource Management ISBN 978-3-030-13818-9 ISBN 978-3-030-13819-6 (eBook) https://doi.org/10.1007/978-3-030-13819-6 Library of Congress Control Number: 2019931930 © The Editor(s) (if applicable) and The Author(s), under exclusive license to Springer Nature Switzerland AG, part of Springer Nature 2019 This work is subject to copyright. All rights are solely and exclusively licensed by the Publisher, whether the whole or part of the material is concerned, specifically the rights of translation, reprinting, reuse of illustrations, recitation, broadcasting, reproduction on microfilms or in any other physical way, and transmission or information storage and retrieval, electronic adaptation, computer software, or by similar or dissimilar methodology now known or hereafter developed. The use of general descriptive names, registered names, trademarks, service marks, etc. in this publication does not imply, even in the absence of a specific statement, that such names are exempt from the relevant protective laws and regulations and therefore free for general use. The publisher, the authors and the editors are safe to assume that the advice and information in this book are believed to be true and accurate at the date of publication. Neither the publisher nor the authors or the editors give a warranty, express or implied, with respect to the material contained herein or for any errors or omissions that may have been made. The publisher remains neutral with regard to jurisdictional claims in published maps and institutional affiliations. Cover credit: Peacock Graphics/Alamy Stock Photo This Palgrave Macmillan imprint is published by the registered company Springer Nature Switzerland AG The registered company address is: Gewerbestrasse 11, 6330 Cham, Switzerland Contents Introduction 1 Basics 25 Parallels and Function 71 Valuing Ecosystems 97 A New Model 129 Effects and Applications 151 Index 161 v List of Figures Introduction Fig. 1 G lobal GDP (Source World Bank national accounts data and OECD national accounts data files) 7 Fig. 2 J apan GDP (Source World Bank national accounts data and OECD national accounts data files) 10 Fig. 3 Duck or rabbit? (Source Jastrow) 13 Fig. 4 Aristotle’s solar system 14 Fig. 5 Ptolemy’s solar system 15 Fig. 6 Copernicus’s solar system 16 Basics Fig. 1 C lassification of Ecosystem Services (Source Millenium Ecosystem Assessment). Note Darkest arrows show greatest potential for mediation by socio-economic factors. Widest arrows show greatest intensity of linkage 37 Fig. 2 Types of regulating service 41 Fig. 3 Global tourism revenue (Source statistica.com) 44 Fig. 4 U S government debt (Source Tradingeconomics.com | US Department of the Treasury) 50 vii viii List of Figures Parallels and Function Fig. 1 U K debt to GDP (Source tradingeconomics.com | Office for Budget Responsibility, UK) 74 Fig. 2 The economic cycle 80 Fig. 3 U S annualised changes in GDP (Source National Bureau of Economic Research) 81 Fig. 4 Hierarchy of needs (Maslow) 89 Fig. 5 Global oil and gas EROI (Source Gagnon et al.) 94 Fig. 6 Productivity GDP per capita (Source Bawerk.net) 95 Valuing Ecosystems Fig. 1 V alue of GBP vs. USD (Source Federal Reserve Bank of St. Louis) 99 Fig. 2 U S Dollar purchasing power change over time (Source US Bureau of Labour Statistics) 99 Fig. 3 U S credit market debt (Source Board of Governors of the Federal Reserve) 100 Fig. 4 Research effort in taxonomic groups (Source Troudet et al.) 101 Fig. 5 U S climate related research spending (Source US Office of Management and Budget and Congressional Research Service) 102 Fig. 6 UK distribution of Great Crested Newt (Source JNCC) 119 Fig. 7 Commodity based model of Ecosystem Services 124 List of Tables Introduction Table 1 Predicted Global Species Diversity 5 Table 2 Causes of GDP growth 8 Basics Table 1 Austrian and mainstream economic worldviews 64 Parallels and Function Table 1 Social grades 90 ix Introduction The Importance of Knowledge There can be little doubt that the collective advancement of knowledge and understanding is a key driving force in the development of modern civilisations. Major advancements in agricultural, industrial, scientific and technological knowledge have been the main hallmarks of advanced civilisations throughout history. In a perfect world, all of the foundations of civilisations would be logical and rational. Development would be based upon the solid foun- dation of accurate, verifiable and objective truth. It is, however, inher- ent in the development of greater knowledge that certain facts can be interpreted in a variety of ways to provide a particular world view. It is only by the addition of further knowledge that this view can be either strengthened, modified or superseded by a new set of ideas. For exam- ple, it has long been known that growing the same crop on an area of land for many years leads to a gradual decline in yield. The concept of leaving an area of land fallow in order for it to recover its fertility has been common practice since biblical times. The precise reasons for this practice in terms of nutrient cycles and the ongoing accumulation © The Author(s) 2019 1 S. Muddiman, Ecosystem Services, Palgrave Studies in Natural Resource Management, https://doi.org/10.1007/978-3-030-13819-6_1