Rethinking Ecosystem Services Valuation for Sustainable Development

It is widely acknowledged that the services of the ecosystem are continuously changing due to anthropogenic activities. The ever-changing ecosystem services, influenced by anthropogenic activities, necessitate effective decision-making for sustainability. In this scenario, the valuation of ecosystem services is necessary to make effective decisions and achieve sustainability. There are a number of books and articles which explain the different valuations of ecosystem services, but an assessment based on the context of sustainable development is limited. The majority of them are conventional methods like travel cost, hedonic pricing, contingent valuation, etc., which are not fully focused on the dimensions of sustainable development. An ecological economics approach, transcends conventional valuation techniques to address the contemporary imperative of achieving sustainability through a transdisciplinary lens. Against this background, the objective of the chapter is to discuss the different methods of ecosystem service valuations and the need for an alternative method of valuation. Through a systematic review, particularly of empirical papers and with the support of conceptual papers and books, the chapter elucidates the conceptual foundations of economic valuation for ecosystem services and emphasizes the case for an integrated approach to fostering sustainable development. Given the challenges posed by rising temperatures and climate change, especially in developing countries, maintaining environmental equilibrium and devising solutions for pollution and market failures becomes crucial. This chapter offers valuable insights for policymakers, researchers, and those grappling with similar issues to cross those challenges.