Definition

Ecosystem services are those services provided by different ecosystems and natural capital that are critical to human welfare, such as the provision of clean water by wetlands, the absorption of carbon dioxide in forests, and the pollination of plants by insects. Existing economic models have not effectively valued ecosystem services. Internalizing the value of ecosystem services is a prerequisite for sustainability and for the health of the environment.

Keywords

externalities, valuing environment/ecosystem functions, ecological services, clean air, erosion prevention, pollination, flood defense, wetlands filtration, seed dispersal, decomposition, nutrient cycling, oxygen production, soil formation, natural life-support structure, pollution mitigation, economic value, valuing services, carbon sequestration, ecological costs, ecological economics, ecocentric, water purification, shadow pricing, public good