Ecosystem Services and Green Growth

"Ecosystem services" has
become a catch-phrase for the complex connections between
the natural environment and human well-being. This paper
considers the impact of changes in the supply of ecosystem
services, and programs to increase their supply, on
near-term growth of gross domestic product. It focuses on
the relationship between locally generated versus
transboundary services and growth in developing countries,
where the highest rates of ecosystem degradation tend to be
found. There is a common perception that there is a tradeoff
between environmental protection and economic growth,
especially in the near term. This perception can make
policymakers reluctant to support environmental protection.
Where the environment is a source of economically important
services, then environmental protection may stimulate growth
of gross domestic product instead of reducing it. The paper
considers evidence on the economic value of regulating
services; the degree to which ecosystems actually supply
some of the services they are commonly assumed to supply;
and the near-term growth implications of restoring
ecosystems, and reducing their loss. This leads to a
discussion on the effectiveness of programs intended to
reduce ecosystem loss, with a focus on protected areas and
payments for ecosystem services, and the effects of these
programs on poverty alleviation.