Place and Environment Commons^™

Ecosystem Services: The Economics Debate, Joshua Farley

College of Agriculture and Life Sciences Faculty Publications

The goal of this paper is to illuminate the debate concerning the economics of ecosystem services. The sustainability debate focuses on whether or not ecosystem services are essential for human welfare and the existence of ecological thresholds. If ecosystem services are essential, then marginal analysis and monetary valuation are inappropriate tools in the vicinity of thresholds. The justice debate focuses on who is entitled to ecosystem services and the ecosystem structure that generates them. Answers to these questions have profound implications for the choice of suitable economic institutions. The efficiency debate concerns both the goals of economic activity and the …