A Cost Analysis Model Based on Ecosystem Service Value Assessment
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DOI: 10.23977/gefhr.2019.068
Corresponding Author
Hanyu Ren
ABSTRACT
With the continuous deterioration of the ecology, traditional economic theories have exposed more and more defects. To alleviate the crisis, we establish a calculation and evaluation system based on the value of the ecosystem services. According to the Ecological Economics, we establish the Economic Value of Ecosystem Services (EVES) model to estimate the total ecosystem assets in monetary terms. Through data processing and theoretical analysis, we determine the economic value per unit area of ecosystems, deriving the computing formula of EVES. Moreover, the true economic costs of the land project is a combination of Ecological Economic Costs (EEC) and non-ecological economic costs. And the former is defined as the reduction of EVES before and after the project. Furthermore, our model provides theoretical support and reference standards for decision makers. Most importantly, a mechanism is offered for cost analysis, which has great practical guiding significance. In addition, as the time goes, our models will change mainly in the EVES model, where the prices of natural resources will change within certain limits. In general, our model can provide planning and guidance for cost calculation of a land project.
KEYWORDS
Ecosystem services, Economic value, Ecological economic costs, Calculation and evaluation system, Cost analysis