Did you know: Economic importance of biodiversity to cities
Excerpts from eThekwini Municipality (Durban)’s Biodiversity Report
The economic value of biodiversity
“Because the goods and services provided by open spaces are not easily or frequently valued in monetary terms, there is a general failing by many people to understand the value of open space systems in cities. In most instances people who benefit from the natural resource base do so without having to pay for the goods and services that they use. International research has, however, made significant progress in estimating the cost of replacing the goods and services supplied by different ecosystems. If open space systems are conceptualised as ‘green infrastructure’ containing ecosystems that deliver a service much like a municipal water, road or community health system, then it becomes possible to value the open space system as a city asset in terms of its replacement cost. For example, what would it cost to build a canal to prevent flooding following the destruction of a wetland (i.e. a natural, existing and free flood attenuation asset)?
In general, more diverse natural landscapes have a greater value than, for example, landscapes invaded with alien plants, since they provide a wider range and greater number of services. Research in the field is ongoing, but currently available figures are widely accepted as a useful guide and tool for providing ‘order of magnitude’ estimates of the value of open space to people.
The replacement value of the environmental goods and services delivered by Durban’s 2002 open space system was conservatively estimated at R3.1 billion per annum. This excluded the value of Durban’s tourism sector, which was estimated to have a turnover of R 3.3 billion per annum (2001). If tourism turnover for Durban is assumed to be in large part related to the fact that tourists visit the area because of the sea, sun, beach and overall sub-tropical environment of the EMA, then a significant portion of the annual tourism-related turnover can be added to the R3.1 billion value of the environmental goods and services delivered by Durban’s open space system. A comparison between the eThekwini Municipality’s 2001/2002 operating (R 6.5 billion) and capital (R 2.78 billion) budgets and the 2003 value of environmental services (R 3.1 billion) reveals that open space plays a significant economic role in the day to day functioning of the city. Access to environmental goods and services therefore represents an important and generally undervalued requirement for the health and welfare of the Durban community.”
- Excerpts taken from Durban’s Biodiversity Report, 2007.
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