Suppose you attend a town meeting at which some experts tell the audience that they have performed a cost-benefit analysis of a proposed transit system that would probably reduce overall air pollution and fossil fuel consumption. The analysis, however, reveals that ticket prices will not cover the cost of operating the system when fuel, wages, and equipment are taken into account. As a biologist, you know that if ecosystem services had been included in the analysis, the experts might have arrived at a different answer. Why are ecosystem services rarely included in economic analyses?
A) Federal laws of the United States exclude their inclusion in any cost benefit analysis.
B) They have a low value and are usually not cost effective.
C) Ecosystem services only take into account abiotic factors that affect local environments.
D) Their cost is difficult to estimate, and people take them for granted.

Question

Quizplus · Accepted Answer

Ecosystem services, such as air and water purification, waste decomposition, and pollination, provide vital contributions to human well-being and economic development. However, their value is difficult to estimate because they are often taken for granted, and their benefits are not usually reflected in market prices or financial transactions. This leads to ecosystem services being undervalued or ignored in economic analyses, resulting in incomplete or inaccurate evaluations of proposed projects or policies.

Suppose You Attend a Town Meeting at Which Some Experts