Defining Ecosystem Assets for Natural Capital Accounting

Area of Science:

• Environmental Accounting
• Ecological Economics
• Natural Capital Assessment

Background:

• Natural capital accounting traditionally values ecosystem assets based on the net present value of ecosystem services.
• Existing frameworks within the System of Environmental-Economic Accounting primarily focus on the flow of services.
• A broader conceptualization of ecosystem assets is needed for comprehensive ecosystem assessment and management.

Purpose of the Study:

• To propose and define additional conceptualizations of ecosystem assets: capacity, capability, and potential supply.
• To enhance the understanding of ecosystems as assets for improved ecosystem accounting and management.
• To support the development of robust measurement frameworks for natural capital.

Main Methods:

• Defining ecosystem capacity as sustainable use levels of multiple services.
• Defining ecosystem capability as prioritizing one service over others.
• Defining potential supply as the inherent ability of ecosystems to generate services, irrespective of demand.

Main Results:

• Introduced and defined ecosystem capacity, capability, and potential supply.
• Illustrated these concepts with examples from European and North American case studies.
• Demonstrated how these concepts complement the traditional flow-based valuation.

Conclusions:

• These new conceptualizations provide a more nuanced understanding of ecosystem assets.
• The proposed frameworks can significantly improve natural capital accounting and ecosystem management practices.
• This work contributes to the development of advanced measurement frameworks for natural capital assessment.