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1、2019ICMProblemE:WhatistheCostofEnvironmentalDegradation?Economictheoryoftendisregardstheimpactofitsdecisionsonthebiosphereorassumesunlimitedresourcesorcapacityforitsneeds.Thereisaflawinthisviewpoint,andtheenvironmentisnowfacingtheconsequences.Thebiosphereprovides
2、manynaturalprocessestomaintainahealthyandsustainableenvironmentforhumanlife,whichareknownasecosystemservices.Examplesincludeturningwasteintofood,waterfiltration,growingfood,pollinatingplants,andconvertingcarbondioxideintooxygen.However,wheneverhumansaltertheecosy
3、stem,wepotentiallylimitorremoveecosystemservices.Theimpactoflocalsmall-scalechangesinlanduse,suchasbuildingafewroads,sewers,bridges,houses,orfactoriesmayseemnegligible.Addtothesesmallprojects,large-scaleprojectssuchasbuildingorrelocatingalargecorporateheadquarter
4、s,buildingapipelineacrossthecountry,orexpandingoralteringwaterwaysforextendedcommercialuse.Nowthinkabouttheimpactofmanyoftheseprojectsacrossaregion,country,andtheworld.Whileindividuallytheseactivitiesmayseeminconsequentialtothetotalabilityofthebiosphere’sfunction
5、ingpotential,cumulativelytheyaredirectlyimpactingthebiodiversityandcausingenvironmentaldegradation.Traditionally,mostlanduseprojectsdonotconsidertheimpactof,oraccountforchangesto,ecosystemservices.Theeconomiccoststomitigatenegativeresultsoflandusechanges:polluted
6、rivers,poorairquality,hazardouswastesites,poorlytreatedwastewater,climatechanges,etc.,areoftennotincludedintheplan.Isitpossibletoputavalueontheenvironmentalcostoflandusedevelopmentprojects?Howwouldenvironmentaldegradationbeaccountedforintheseprojectcosts?Onceecos
7、ystemservicesareaccountedforinthecost-benefitratioofaproject,thenthetrueandcomprehensivevaluationoftheprojectcanbedeterminedandassessed.YourICMteamhasbeenhiredtocreateanecologicalservicesvaluationmodeltounderstandthetrueeconomiccostsoflanduseprojectswhenecosystem
8、servicesareconsidered.Useyourmodeltoperformacostbenefitanalysisoflandusedevelopmentprojectsofvaryingsizes,fromsmallcommunity-basedprojectstolargenationalprojec
