Our Environment - Mining and the Environment: From Ore to Metal - page 331

The notion that intact
ecosystems deliver multiple
benefi ts simultaneously, is often
overlooked in comparison
with mineral production and
usage, which constitute a more
traditional economic benefi t.

A supporting argument for the first point is that when both mining companies and gov-
ernments alike decide whether to clear land for mining, they focus on the minerals produced,
and pay little attention to lost ecological services. The notion that intact ecosystems deliver
multiple benefits simultaneously, is often overlooked in comparison with mineral production
and usage, which constitute a more traditional economic benefit. Host governments also base
their budget decisions solely on the basis of indicators such as tax receipts, GDP, or foreign
exchange balances, in which ecosystem values either do not appear or are not recognized as
such - indeed, perversely, GDP often identifies activities that destroy ecosystems as benefits.
Extensive legalized timber harvesting in many countries is a case in point.
A supporting argument for the second point is that there is rarely an existing mar-
ket value for a given ecosystem. Different approaches that discern value through more
intuitive means must be examined. Efforts to put an accurate dollar value on ecological
benefits are limited by the scientific understanding of natural systems, current economic
methods for establishing the values of the non-market benefits produced by ecosystems,
and, not surprisingly, by time and resources. The science of calculating economic values
for ecological services is still relatively new and evolving. New methods are being devel-
oped, refined, and enhanced. Putting values on naturally occurring services such as water
filtration, erosion control, sediment trapping, or carbon sequestration is a much newer
concept than valuing traditional consumptive or extractive uses such as mining, logging,
fishing, or hunting. It is, however, now widely accepted that natural areas possess substan-
tial economic value.
It is fair to say that in almost every effort to estimate value, additional challenges sur-
face. For example economic valuations are typically undertaken for the total of a specific
ecosystem benefit; estimating a small or marginal change in an ecosystem is more diffi-
cult. As such a change in the benefit within one corner of a forest area is more difficult
to value than loss of the entire benefit associated with the total forest area, as the change
may not be proportional to the area lost or degraded. For these reasons, instead of trying
to judge the total value of the ecosystem, the focus is often on calculating the net value of
specific ecosystem benefits that will be affected by change (such as mining). So rather than
attempting to calculate the total value of all ecosystem benefits now and in the future, a
few specific existing benefits may show a comparable value to a proposed alternative use.
Consequently, valuation efforts often determine only a fraction of an ecosystem's total
value, a partial valuation which is not always adequate for balanced decision-making.
Economic values can not and should not be the sole reason for making decisions about
natural resources and the environment. The most economically efficient choice is not
necessarily the most socially acceptable or environmentally beneficial choice. Ecosystems
simultaneously produce a number of benefits and unlike many traditional economic ben-
efits, a number of people can enjoy these benefits without the value to the individual being
in any way diminished. For example, society gains from clean water or air produced by
a forest, but only a few prosper from timber harvesting or forest clearing to allow mine
access. Economics however equip decision-makers with information that helps to make
better decisions and to plan appropriate action.

GDP often identifi es activities
that destroy ecosystems as
benefi ts.

Economic values can not and
should not be the sole reason for
making decisions about natural
resources and the environment.

7.9 INTERNATIONAL LAW PERTAINING TO NATURAL
AND ENVIRONMENTAL RESOURCES

People throughout the world are struggling to understand their local environment.
However, over the last few decades people have broadened their outlook to recognize that