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Economics of biodiversity

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The biodiversity of the Masai Mara nature reserve in Kenya is a tourist attraction

Biodiversity plays an essential role in the global economy. [1] This includes its role in providing ecosystem services - the benefits that humans get from ecosystems. Biodiversity plays a major role in the productivity and functioning of ecosystems, affects their ability to provide ecosystem services.[2] For example, biodiversity is a source of food, medication, and materials used in industry. Recreation and tourism are also examples of human economic activities that rely on these benefits. In 2018, the WWF Living Planet Report estimated that ecosystem services contributed US$125 trillion a year to the global economy.[3]

The benefits of biodiversity are often evaluated in an anthropocentric way and the inherent value of biodiversity, outside of its benefits to humanity, has been debated by economists.[4][5] Despite these benefits, economic activities often result in harm to biodiversity, such as through deforestation.[1]

The majority of species have yet to be evaluated for their current or future economic importance.[6] Raw materials, pharmaceuticals and drug production all directly and indirectly depend upon biodiversity.[6]

Agriculture

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Main articles: Biodiversity and food and Agricultural biodiversity
See also: Crop diversity, Animal genetic resources for food and agriculture, and Genetic resources

Biodiversity plays an essential economic role in agriculture as the origin of all crops and domesticated livestock, contributing both to food security and to livelihoods.[7] Agricultural biodiversity (agrobiodiversity) refers to all the components of biodiversity that are relevant to food and agriculture, and that make up agricultural ecosystems.[8] This biodiversity provides income through food and raw materials for sale, as well as by supporting ecosystem services that are essential for agricultural productivity, including pollination, pest control, nutrient cycling, and climate regulation.[9] Estimating the monetary value of biodiversity (and the costs of its continued loss) in agriculture and through the use of wild species for food is challenging.

Income is generated from the harvest and sale of wild species, as well as from those that are cultivated and domesticated. For example, wild meat is harvested by rural households in some countries to support dietary requirements and as a source of subsistence income, though the practice is controversial.[10]

Biodiversity includes genetic diversity, providing genetic resources for food and agriculture. The term genetic resources refers to "genetic material of actual or potential value", according to the Convention on Biological Diversity.[11] These resources are important as the raw material for evolution by natural and artificial selection to enable the development of new cultivars with higher yields, greater tolerance to abiotic stresses, and greater resistance to pests and diseases.[12] They may also be used in biotechnology, such as for genetic engineering. Estimating the economic value of conserving these resources is difficult[13] and their global value is largely unquantified.[14]

Despite the importance of biodiversity to agriculture and its role in the global economy, the global food system is thought to be primary driver of biodiversity loss, according to the United Nations Environment Programme.[15]

Biological pest control

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A ladybird larva eating aphids
Main article: Biological pest control

An important ecosystem function associated with biodiversity is pest control.[16] Control species can suppress pest populations and reduce loss of crop yields without the negative impacts of chemical pesticides.[17] This has economic benefits and maintaining natural pest control is important to humanity's ability to grow crops.[18] It can also be applied within horticulture.[19]

Biological pest control can reduce economic losses incurred as a result of pests, disease vectors, and invasive species.[20] However, its use can have unintended effects where control species are introduced without adequate research.[21] For example, the cane toad was introduced to Queensland, Australia in 1935 to control cane beetles that attack sugarcane roots but are now regarded as an invasive species through their damaging impacts on native species.[21][22]

Horticulture

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Horticulture refers to the small-scale cultivation of plants, such as for use in gardening. These plants may be used for food, medicine, or aesthetic and ornamental purposes.[23] Horticultural plant biodiversity is therefore important to the economy and encompasses both domesticated and wild species, cultivars, genotypes, and alleles.[24] In the UK, growth of ornamental plants was worth £1.7 billion in 2023.[25]

Originally, plants for horticultural use were sourced from wild populations, but now tend to come from nurseries, botanical gardens, and private collections.[26]

Medication

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Main article: Biodiversity and drugs

A wide variety of plants, animals and fungi are used as medicine. Wild plant species have been used for medicinal purposes since before the beginning of recorded history. Over 60% of world population depends on the plant medicines for their primary health care.[27] For example, quinine comes from the cinchona tree has been used to treat malaria, digitalis from the foxglove plant treats chronic heart trouble, and morphine from the poppy plant gives pain relief.

According to the National Cancer Institute, over 70% of the promising anti-cancer drugs come from plants in the tropical rainforests. It is estimated that of the 250,000 known plant species, only 5,000 have been researched for possible medical applications. Ethnopharmacy is the branch of science that investigates traditional medicines.

Animals may also play a role, in particular in research. In traditional remedies, animals are extensively used as drugs. Many animals also medicate themselves. Zoopharmacognosy is the study of how animals use plants, insects and other inorganic materials in self-medicatation. In an interview with the late Neil Campbell, Eloy Rodriguez describes the importance of biodiversity:

"Some of the compounds we've identified by zoopharmacognosy kill parasitic worms, and some of these chemicals may be useful against tumors. There is no question that the templates for most drugs are in the natural world."[28]

Industry

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For example, fibers for clothing, wood for shelter and warmth. Biodiversity may be a source of energy (such as biomass). Other industrial products are oils, lubricants, perfumes, fragrances, dyes, paper, waxes, rubber, latexes, resins, poisons, and cork, which can all be derived from various plant species. Supplies from animal origin include wool, silk, fur, leather, lubricants, and waxes.

Animals may also be used as a mode of transport.

Biological material can provide models for many industrial materials and structures. For example, the inspiration for the infrared sensor came from the thermosensitive pit organ of rattlesnake. The modelling is considered as Biomimicry.

Tourism and recreation

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See also: Sustainable tourism and Ecotourism

Through cultural ecosystem services, biodiversity provides economic benefits in the form of recreation and tourism, while also benefitting human wellbeing.[29][30] Biodiversity influences the potential of ecosystems to provide recreational services.[31] This includes outdoor recreation, such as hiking, hunting, fishing, and wildlife watching.

Sumidero Canyon Ecological Reserve in Sumidero Canyon — in the state of Chiapas, Southwestern Mexico.
Sumidero Canyon Ecological Reserve in Sumidero Canyon — in the state of Chiapas, Southwestern Mexico.

Another form of recreation supported by biodiversity is tourism. Biodiversity is "at the heart of what drives the tourism industry", according to the United Nations Environment Programme.[32] The beauty of tourist destinations or the species they support can attract tourists to visit certain areas.[33] For example, destinations like rainforests, beaches, national parks, and nature reserves are attractive to tourists. The revenue generated through tourism is vital to many economies worldwide.[34]

Nature-based tourism, such as to visit protected areas, also has an important economic impact.[35] For example, ecotourism, where the motivation of tourists is to observe and appreciate nature and the cultures in natural areas, while supporting their maintenance.[36] In 2023, the global ecotourism market was estimated to be worth US$216.49 billion.[37]

Despite the economic benefits from biodiversity through tourism, the tourism industry has negative impacts on biodiversity.[33] For example, through habitat destruction and pollution. As a result, sustainable tourism emerged with the aim of reducing the negative impacts of tourism on the environment.[38]

See also

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References

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  1. ^ a b Millennium Ecosystem Assessment (MEA), Ecosystems and human well-being: synthesis, Island Press, Washington, DC, 2005, p. 137.
  2. ^ Tilman, David; Isbell, Forest; Cowles, Jane M. (2014-11-23). "Biodiversity and Ecosystem Functioning". Annual Review of Ecology, Evolution, and Systematics. 45 (1): 471–493. doi:10.1146/annurev-ecolsys-120213-091917. ISSN 1543-592X.
  3. ^ WWF. 2018. Living Planet Report - 2018: Aiming Higher. Grooten, M. and Almond, R.E.A.(Eds). WWF, Gland, Switzerland.
  4. ^ Gómez-Baggethun, Erik; de Groot, Rudolf; Lomas, Pedro L.; Montes, Carlos (2009-12-13). "The history of ecosystem services in economic theory and practice: From early notions to markets and payment schemes". Ecological Economics. 69 (6): 1209–1218. doi:10.1016/j.ecolecon.2009.11.007.
  5. ^ Seddon, Nathalie; Mace, Georgina M.; Naeem, Shahid; Tobias, Joseph A.; Pigot, Alex L.; Cavanagh, Rachel; Mouillot, David; Vause, James; Walpole, Matt (2016-11-01). "Biodiversity in the Anthropocene: prospects and policy". Proceedings of the Royal Society B: Biological Sciences. 283 (1844): 20162094. doi:10.1098/rspb.2016.2094. ISSN 0962-8452. PMC 5204156. PMID 27928040.
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  16. ^ Ives, A.R.; Klug, J.L.; Gross, K. (2000). "Stability and species richness in complex communities". Ecology Letters. 3 (5): 399–411. Bibcode:2000EcolL...3..399I. doi:10.1046/j.1461-0248.2000.00144.x. ISSN 1461-023X.
  17. ^ Bianchi, F.J.J.A; Booij, C.J.H; Tscharntke, T (2006-07-22). "Sustainable pest regulation in agricultural landscapes: a review on landscape composition, biodiversity and natural pest control". Proceedings of the Royal Society B: Biological Sciences. 273 (1595): 1715–1727. doi:10.1098/rspb.2006.3530. ISSN 0962-8452. PMC 1634792. PMID 16790403.
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  20. ^ Hanley, Nick; Roberts, Michaela (2019). Chan, Kai (ed.). "The economic benefits of invasive species management". People and Nature. 1 (2): 124–137. Bibcode:2019PeoNa...1..124H. doi:10.1002/pan3.31. ISSN 2575-8314.
  21. ^ a b Readfearn, Graham (2019-01-27). "Cane toads wouldn't have made it: inside CSIRO's biocontrol program". The Guardian. ISSN 0261-3077. Retrieved 2024-07-19.
  22. ^ Shine, Richard (2010). "The Ecological Impact of Invasive Cane Toads ( Bufo Marinus ) in Australia". The Quarterly Review of Biology. 85 (3): 253–291. doi:10.1086/655116. ISSN 0033-5770. PMID 20919631.
  23. ^ Kumar, Ashwani (2014), Nandwani, Dilip (ed.), "Role of Horticulture in Biodiversity Conservation", Sustainable Horticultural Systems, Sustainable Development and Biodiversity, vol. 2, Cham: Springer International Publishing, pp. 143–155, doi:10.1007/978-3-319-06904-3_7, ISBN 978-3-319-06903-6, retrieved 2024-07-19
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  27. ^ Kevin J. Gaston & John I. Spicer. 2004. Biodiversity: an introduction, Blackwell Publishing. 2nd Ed. ISBN 1-4051-1857-1
  28. ^ Campbell, N. A. (1996) Biology (4th edition). Benjamin Cummings NY. p.23 ISBN 0-8053-1957-3
  29. ^ Paracchini, Maria Luisa; Zulian, Grazia; Kopperoinen, Leena; Maes, Joachim; Schägner, Jan Philipp; Termansen, Mette; Zandersen, Marianne; Perez-Soba, Marta; Scholefield, Paul A.; Bidoglio, Giovanni (2014-04-08). "Mapping cultural ecosystem services: A framework to assess the potential for outdoor recreation across the EU". Ecological Indicators. 45: 371–385. Bibcode:2014EcInd..45..371P. doi:10.1016/j.ecolind.2014.04.018. ISSN 1470-160X.
  30. ^ "Economic Benefits of Outdoor Recreation And Tourism : WeConservePA Library". library.weconservepa.org. Retrieved 2024-07-19.
  31. ^ Mancini, Francesca; Coghill, George M.; Lusseau, David (2019-01-31). Wiersma, Yolanda (ed.). "Quantifying wildlife watchers' preferences to investigate the overlap between recreational and conservation value of natural areas". Journal of Applied Ecology. 56 (2): 387–397. Bibcode:2019JApEc..56..387M. doi:10.1111/1365-2664.13274. hdl:2164/13130. ISSN 0021-8901.
  32. ^ "No guilt trips: Tourism is part of the solution for nature". Convention on Biological Diversity. Retrieved 2024-07-19.
  33. ^ a b Jones, Peter (2022-08-25). "Tourism and Biodiversity: A Paradoxical Relationship" (PDF). Athens Journal of Tourism. 9 (3): 151–162. doi:10.30958/ajt.9-3-2.
  34. ^ Naseem, Sana (2021-08-18). "The Role of Tourism in Economic Growth: Empirical Evidence from Saudi Arabia". Economies. 9 (3): 117. doi:10.3390/economies9030117. hdl:10419/257275. ISSN 2227-7099.
  35. ^ Gupta, Anubhab; Zhu, Heng; Bhammar, Hasita; Earley, Elisabeth; Filipski, Mateusz; Narain, Urvashi; Spencer, Phoebe; Whitney, Edward; Taylor, J. Edward (2023). "Economic impact of nature-based tourism". PLOS ONE. 18 (4): e0282912. Bibcode:2023PLoSO..1882912G. doi:10.1371/journal.pone.0282912. PMC 10096494. PMID 37043462.
  36. ^ "Ecotourism and Protected areas | UN Tourism". www.unwto.org. Retrieved 2024-07-19.
  37. ^ "Ecotourism Market Size, Share, Growth | Various Trends [2032]". www.fortunebusinessinsights.com. Retrieved 2024-07-19.
  38. ^ Baloch, Qadar Bakhsh; Shah, Syed Naseeb; Iqbal, Nadeem; Sheeraz, Muhammad; Asadullah, Muhammad; Mahar, Sourath; Khan, Asia Umar (2023). "Impact of tourism development upon environmental sustainability: A suggested framework for sustainable ecotourism". Environmental Science and Pollution Research. 30 (3): 5917–5930. Bibcode:2023ESPR...30.5917B. doi:10.1007/s11356-022-22496-w. PMC 9389488. PMID 35984561.
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