Ecological Asset Value

Traditionally, economic systems have valued only certain natural resources, such as minerals, fuels, timber and food, with prices set according to the principles of supply and demand. Many natural resources, especially the ecosystem services that underlie all renewables, have been publicly owned and used. These resources have been treated as a natural birthright provided to all, yet owned and cared for only by a few. This imbalance has created a loss of supportive ecosystem services and has cost society in terms of globally reduced economic productivity and impacts to health and welfare.

Yet, the negative effects of this situation — as seen, for example, in over-harvesting, poor planning and uncaring attitudes — can often be reversed by efforts to create tangible value around planned improvements to ecosystem services.

In recognizing the dependence of renewable natural resources on the systems and process of nature, and our own dependence upon healthy ecosystem services, it's important that we appreciate, value and take responsibility for the quality and functionality of ecosystem services. Now it's easier than ever for companies, landowners and other individuals to participate in government, non-profit or voluntary private sector programs created to help correct this imbalance through an ecological economy.

An ecological economy is an economy based on producing goods and services in a sustainable way, reflecting the least social costs and greatest social benefits. It encourages preservation, enhancement, restoration and creation of healthy ecosystem services, by focusing on new patterns of consumption such as recycling, production of organic products, eco-friendly services, and energy efficiency. This new economy focuses not only on economic gain, but also on preservation of cultural identity and a sense of well being for humanity, for other species, and for the planet as a whole.

Government agencies can reward ecosystem service enhancements by offering subsidies designed to offset eco-restoration costs, or by offering tax incentives for the same purpose.

Non-profits (such as foundations) can stimulate ecological health by offering grants to achieve high-priority protection, enhancement, restoration or creation (PERC) of ecosystem services.

The private sector can achieve these same ends by promoting corporate stewardship, sustainable resource use & reuse, and by developing socially relevant programs (with appropriate incentives) for customers to adopt.

All such efforts should strive to privatize, at least in part, ecosystem services. Where ownership of eco-services can be ensured, and where market forces can be brought to bear on optimizing ecosystem performance, long-term ecological health can arise as a major component of global economic productivity.

Thus, environmental markets are now harmonizing with traditional economic frameworks in an attempt to reverse the depletion of natural capital, enhance sustainable economic growth and rebalance society's quality of life needs. For businesses or landowners who must abide by environmental regulations, this makes it possible to minimize compliance costs while producing pre-approved environmental enhancements. This can also help landowners maximize earnings by creating profitable commodities from previously undervalued properties.

Eco-asset development projects can also help our children, and our children's children, by inspiring creative fixes to air & water pollution, soil depletion and other seemingly intractable global concerns.

Environmental markets are quickly developing on scales from local to worldwide. These markets also now embrace all environmental media — air, land, water and biodiversity — and empower the industrial / commercial arena — especially eco-businesses and energy — making it not only possible, but also profitable, to foster ecosystem care.

To learn more about managing ecological assets, click here.