Dynamic Non-Market Valuation of Ecosystem Services

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This study combines non market valuation and bio economic modelling in a dynamic model of ecosystem services.  First, because non market valuation and bio economic models use different concepts of valuation, the values of ecosystem services are defined. Next, an analytical solution is derived which includes a dynamic Lancaster demand system and new methods for welfare analysis.  Finally, both revealed and stated preference methods are proposed for estimating the value of ecosystem services.Results show that the value of ecosystem services is measured by scarcity rent. Estimation of non market values is simple if we avoid surveying consumers who degrade the ecosystem and instead consult owners who accrue the scarcity rent and conserve for the future.