The Economic Analysis of Biodiversity: An Assessment

Date: 01 March 2012

Biodiversity is complex, difficult to define, difficult to measure, and often involves international and intergenerational considerations. Biodiversity loss presents significant economic challenges. A great deal of economics is required to understand the issues, but a simple and important observation is that most species and ecosystems are not traded in markets, so prices are often absent and biodiversity is under-provided. Despite the formidable obstacles to high-quality economic analysis, economics has plenty to offer to biodiversity policy. First, economic valuation techniques can be employed to roughly estimate the value of the benefits provided by biodiversity and ecosystems. Second, assessing the ‘optimum’ amount of biodiversity involves recognizing that the conversion of natural capital into manufactured and human capital has so far generated vast amounts of wealth. While there may have been ...

Cameron Hepburn Dieter Helm

Economics of Sustainability

Economics of Sustainability

The Economic Analysis of Biodiversity: An Assessment


Type: paper

Helm, D. & Hepburn, C. (2012). 'The Economic Analysis of Biodiversity: An Assessment'. Oxford Review of Economic Policy, 28(1), pp.1-21.


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