On the Productive Value of Biodiversity

The paper investigates the value of biodiversity as it relates to the productive value of services provided by an ecosystem. The value of biodiversity is linked with a deterioration in the functioning of the ecosystem. The analysis examines how the value of an ecosystem can be "greater than the sum of its parts". First, we propose a general measure of the productive value of biodiversity. The measure involves an experiment that divides the ecosystem into sub-systems that are less diverse, keeping aggregate resources constant. Second, the value of biodiversity is decomposed into four components, reflecting the role of complementarity, scale, convexity, and catalytic effects. This provides new and useful information on the sources, determinants and dynamics of biodiversity value.