Natural capital

Natural capital is the ascribing of monetary value in valuing the natural environment. An example is as such- estimates by contingent valuation methods from The Economics of Ecosystems and Biodiversity (TEEB) for Business Coalition came to US$200 billion for the pollination of flowers by bees, which is one form of ecological service which has been provided for free by Mother Nature.

 

Quantifying the value of nature, even if it is just a close estimate, can help towards influencing environmental sustainable behaviors among businesses. By ascribing a monetary value, it provides a more objective focus which enables a more vivid imagery of losses presented, propelling a sense of urgency and swifter responses. The unbelievably high costs estimated of ecological services can cause emotional reactionspotentially creating long-lasting impacts in attitudes towards the environment.

Areas for improvement

However, quantifying the value of nature or its processes are but mere estimates. Hence, some may not be keen to rely on such values, thus limiting the influence of natural capital to some extent. This limitation can be minimized by making the contingent valuation methods more transparent and thus, increasing the credibility of the estimated monetary values.