Abstract

Wetlands are highly productive, biologically rich and providing many ecological services, therefore, they are important to both biodiversity and economy. The science of calculating economic values for wetlands is relatively new and methods are continually being refined and enhanced. Putting value on natural services such as water filtration and erosion control is a much newer concept than valuing traditional consumptive uses such as fishing or hunting. It is becoming clear, however, that many natural areas, including wetlands, have substantial economic values. Methods to measure the economic benefits of wetlands are beginning to demonstrate the returns on investment from actions to sustain wetlands and the benefits that may be lost if they are degraded. The current paper investigates the economic valuation of wetlands, including the tools and methods used to value these natural features. Approaches can be divided into three categories: direct, indirect and proxy. The first two approaches generally provide more precise economic measures, while proxy methods are more useful estimates when time and resources are limited. However, because of their ease of use, proxy methods are becoming more popular. The most economically efficient choice is not necessarily the most socially acceptable or environmentally beneficial choice. Valuing the economic benefits of wetlands can help set priorities and allocate spending on conservation initiatives. Valuation can also be used to consider the public's values of wetland systems and encourage public participation in certain initiatives