17.11 Recommendations for Future Work to Advance Integrated Ecosystem Assessments
253
considered to be better for society. However, ecological assessment is concerned with links back to
the environment from the economy and society. If
more output, income, and employment lead to a degraded environment, this implies a decline even in
these economic variables in the long run and hence
a decline in human welfare. Also, some declines in
quality of life aspects are not fully captured by economic variables. To the extent that models can be
made dynamic (or at least comparative static) and
feedbacks to the environment are included in the
models, this trend could be measured quantitatively. This should be a goal of analysts involved
in this field.
17.9 Steps in Model Building to
Link the Ecological and
Natural Resources to the
Economic System
The following steps are involved in linking natural
resources to the economic system.
1. Work within the temporal and spatial aggregations specified for the ecological assessment.
For reasons explained previously, economic
regions may be larger than ecological regions.
In such a case, ecological regions should nest
within economic regions.
2. Delineate sectors of the economy that will be
recognized in the economic impact analysis
(sectorization) .
3. Develop an inventory of assets in the natural
resource and environmental sectors (usually
this is done in physical terms).
4. Collect market prices on the natural resource
goods and services traded in organized markets.
5. Calculate market values of the priced goods
and services related to natural resources.
6. For nonmarket goods and services (including
amenities), develop value estimates based on
expenditures (by sector) required to secure the
product.
7. Develop input-output accounts appropriate to
the region.
8. Develop an input-output modeling system.
9. Run the model for the region, time period, and
sectorization scheme specified in the assessment. If the model does not contain all data
needed, some primary data collection may be
required.
10. Develop multipliers in the economic dimensions
(e.g., output, income, and employment) desired.
11. Apply multipliers to quantify expected economic effects in the future.
12. Check for ecological feasibility of future expected economic changes. If economic changes
are not ecologically feasible, then it is necessary to scale back the multiplicands applied to
the multipliers.
Steps 7 to 12 are discussed in Chapter 21.
17.10 Conclusions
Three conclusions appear evident from the preceding exploration.
1. Economic impact assessment is a necessary and
required part of ecological assessment. This type
of assessment provides measures of economic
contributions of natural resources. Economic
impacts are necessary to link ecosystems with
the human population.
2. Economic accounts constitute the information
system used in economic models to generate
broad-scale ecological assessment guidelines.
Of the various economic accounting systems,
the most useful for impact analysis is the input-output type. Producer prices are generally
used in this accounting system, although partial
analysis can be completed with physical data.
3. Lack of regional ecological accounts severely
hinders economic analysis of environmental resources.
17.11 Recommendations for
Future Work to Advance
Integrated Ecosystem
Assessments
1. We need to progress to the point of estimating
changes in wealth and other stocks (including
quantity and quality of natural resources). We
have not yet arrived to this point and are not
likely to in the foreseeable future, given the
amount of resources devoted to data collection.
Lack of stock accounts seriously limits economic impact assessments and hence limits policy implications that can be drawn from any ecological assessment.
2. Ecologists need to develop regional accounts of
ecological linkages. An input-output framework could be useful in guiding this effort.
3. Efforts need to be accelerated in valuing environmental assets and flows. In particular, more
253
considered to be better for society. However, ecological assessment is concerned with links back to
the environment from the economy and society. If
more output, income, and employment lead to a degraded environment, this implies a decline even in
these economic variables in the long run and hence
a decline in human welfare. Also, some declines in
quality of life aspects are not fully captured by economic variables. To the extent that models can be
made dynamic (or at least comparative static) and
feedbacks to the environment are included in the
models, this trend could be measured quantitatively. This should be a goal of analysts involved
in this field.
17.9 Steps in Model Building to
Link the Ecological and
Natural Resources to the
Economic System
The following steps are involved in linking natural
resources to the economic system.
1. Work within the temporal and spatial aggregations specified for the ecological assessment.
For reasons explained previously, economic
regions may be larger than ecological regions.
In such a case, ecological regions should nest
within economic regions.
2. Delineate sectors of the economy that will be
recognized in the economic impact analysis
(sectorization) .
3. Develop an inventory of assets in the natural
resource and environmental sectors (usually
this is done in physical terms).
4. Collect market prices on the natural resource
goods and services traded in organized markets.
5. Calculate market values of the priced goods
and services related to natural resources.
6. For nonmarket goods and services (including
amenities), develop value estimates based on
expenditures (by sector) required to secure the
product.
7. Develop input-output accounts appropriate to
the region.
8. Develop an input-output modeling system.
9. Run the model for the region, time period, and
sectorization scheme specified in the assessment. If the model does not contain all data
needed, some primary data collection may be
required.
10. Develop multipliers in the economic dimensions
(e.g., output, income, and employment) desired.
11. Apply multipliers to quantify expected economic effects in the future.
12. Check for ecological feasibility of future expected economic changes. If economic changes
are not ecologically feasible, then it is necessary to scale back the multiplicands applied to
the multipliers.
Steps 7 to 12 are discussed in Chapter 21.
17.10 Conclusions
Three conclusions appear evident from the preceding exploration.
1. Economic impact assessment is a necessary and
required part of ecological assessment. This type
of assessment provides measures of economic
contributions of natural resources. Economic
impacts are necessary to link ecosystems with
the human population.
2. Economic accounts constitute the information
system used in economic models to generate
broad-scale ecological assessment guidelines.
Of the various economic accounting systems,
the most useful for impact analysis is the input-output type. Producer prices are generally
used in this accounting system, although partial
analysis can be completed with physical data.
3. Lack of regional ecological accounts severely
hinders economic analysis of environmental resources.
17.11 Recommendations for
Future Work to Advance
Integrated Ecosystem
Assessments
1. We need to progress to the point of estimating
changes in wealth and other stocks (including
quantity and quality of natural resources). We
have not yet arrived to this point and are not
likely to in the foreseeable future, given the
amount of resources devoted to data collection.
Lack of stock accounts seriously limits economic impact assessments and hence limits policy implications that can be drawn from any ecological assessment.
2. Ecologists need to develop regional accounts of
ecological linkages. An input-output framework could be useful in guiding this effort.
3. Efforts need to be accelerated in valuing environmental assets and flows. In particular, more