Environmental Economics

Our Work

The importance of assessing the true value of nature and biodiversity to the economy and to society is becoming increasingly recognised by citizens and policy makers.

This, together with growing concern over the loss of biodiversity worldwide, has led to the development of the high level study on The Economics of Ecosystems and Biodiversity (TEEB). IEEP has been involved in this study from its early stages having led or partnered key supporting studies on the costs of policy inaction, the state of scientific knowledge on ecosystem services and the economic value of ecosystem services.

IEEP coordinated the TEEB for Policy Makers Report, and authored sections on key issues including subsidy reform, biodiversity banking, biodiversity and ecosystem service indicators, and the value of protected areas.

We have also carried out detailed work on the socio-economic benefits of Natura 2000 sites, and have developed tools to help assess the economic value of biodiversity within protected areas.

Our key work includes the following:

Since 2008 IEEP has been a key contributor to the The Economics of Ecosystem and Biodiversity (TEEB). Patrick ten Brink coordinated the 2009 TEEB report for National and International Policy Makers, which focused on the use of economics to communicate the importance of ecosystems and biodiversity. A book is due to be published in February 2011. We contributed to the TEEB Synthesis report being presented at the meeting of Parties to the Convention on Biological Diversity in Nagoya, Japan in October 2010. IEEP has also contributed to three important studies feeding into this work (Cost of Policy Inaction, Scoping the Science, and the Review on the Economics of Biodiversity Loss) and was part of the core team contributing to the drafting of the TEEB interim report presented at COP9 in Bonn in 2008 TEEB for Policy Makers with Report Chapters.

In 2007-08 IEEP collaborated with several partners in to a European study on the Cost of Policy Inaction (COPI): The case of not meeting the 2010 biodiversity target. This study for DG Environment provided an inventory of the economic valuations of biodiversity, linked to changes in land cover and land use, to analyse the cost to terrestrial ecosystems of not halting biodiversity loss. This was an important input to TEEB process.

In 2008-09 we carried out the study Further Developing Assumptions on Monetary Valuation of Biodiversity: Cost of Policy Inaction (COPI II). This study, commissioned by DG Environment, aimed to further develop the monetary figures used in the 2007-08 COPI study and to better explore the issue of substitutability of capital also fed into TEEB.

In 2009 IEEP was involved in a DG Environment study Socio-Economic Benefits of Natura 2000, in collaboration with WWF and RSPB. The project investigated the socio-economic benefits of nature conservation and specifically of Natura 2000, and explored effective ways of communicating these benefits to stakeholders at the local, national and European level.

Our ongoing work includes:

The DG Environment study Taking into Account Opportunity Costs when Assessing Costs of Biodiversity and Ecosystem Action. This work aims to estimate the costs of biodiversity actions in the EU, with special consideration of opportunity costs, for which there is currently only limited coverage in existing literature.

A current status of The study The Economic and Social Benefits of Natura 2000. This study aims to support DG Environment in obtaining an accurate estimate on the costs of managing the EU Natura 2000 network, increasing awareness of the socio-economic benefits associated with the network, and developing a methodology for the systematic updating and refinement of the costs and benefits linked to Natura 2000. An important conference examining both the costs and benefits of the network was held on 15-16 July 2010 in Brussels.

We are working with partners on a study of The Social Dimension of Biodiversity Policy. This aims to characterise the impact of biodiversity loss or enhancement on jobs and social inclusion both in Europe and worldwide. The study will make use of the Millennium Ecosystem Assessment framework to characterise the links between biodiversity, the level of provision of ecosystem services, and the welfare of the population that benefits from such services.

More about our work in this area...

Latest in Valuing Biodiversity & Ecosystem Services

Highlights

  • Cutting-edge Book on the Economics of Ecosystems Out Now

    Described by Nicholas Stern as a 'landmark' work, a full account of The Economics of Ecosystems and Biodiversity, edited by institute staff, is now published by Earthscan.

  • The Economics of Ecosystems and Biodiversity in National and International Policy Making

    The study demonstrates the value of ecosystems and biodiversity to the economy, society and individuals. It underlines the urgent need to transform our approach to natural capital, and demonstrates how we can practically take into account the value of ecosystems and biodiversity in policy decisions to promote the protection of our environment and contribute to a sustainable economy and to the wellbeing of societies.