AN OVERVIEW OF PRINCIPLES AND METHODS FOR THE VALUATION OF ECOSYSTEM GOODS AND SERVICES

Nature is the source of numerous goods and services that make the life on Earth possible. Ecosystem goods and services usually do not have a price and are considered free of charge. Nevertheless, they are actually billions of dollars and make a significant contribution to the economy and human wellbeing. The contemporary economic systems and policies do not value the environment and natural resources adequately. Valuation of ecosystem goods and services is one of the main areas of interest of environmental economics. It enables the estimation of market and non market economic values of ecosystem goods and services. The main purpose of the valuation of ecosystem goods and services is to make their benefits visible thus pointing out their importance and enable their consideration in decision-making processes. This paper provides an insight into the types of economic values of ecosystem goods and services, the valuation process and available methods, including examples of the valuation of ecosystem goods and services in Croatia.