Biodiversity What is it and Why is it Important? Jon D. Erickson University of Vermont Burlington, Vermont, USA.

BiodiversityBiodiversityWhat is it andWhat is it andWhy is it Important?Why is it Important?

Jon D. EricksonJon D. EricksonUniversity of VermontUniversity of VermontBurlington, Vermont, USABurlington, Vermont, USA

BiodiversityBiodiversityWhat is it andWhat is it andWhy is it Important?Why is it Important?

Jon D. EricksonJon D. EricksonUniversity of VermontUniversity of VermontBurlington, Vermont, USABurlington, Vermont, USA

Allocation of scarce resources Allocation of scarce resources toward alternative desirable endstoward alternative desirable ends

1.1. What are the desirable ends?What are the desirable ends?

2.2. What scarce resources are needed What scarce resources are needed to obtain those ends?to obtain those ends?

3.3. What ends get priority? (How do we What ends get priority? (How do we allocate?)allocate?)

Household Firms (production

Factor services

Goods

Investment(3)

Personal consumption(4)

Savings(3)

Imports(5)Exports(5)

(2)GovernmentSpendingTaxes(2) Government

Financial markets

Other countries

Wages, rents, interest, profits(1)

What’s Wrong with this Picture?

The Epoch of Fossil Fuel Exploitation(after Hubbert, 1969)

0-5 -4 -3 -2 -1 +1 +2 +3 +4 +5

Iron inMiddleEast

StonehengeBuilt

Parthenoncompleted

Pyramidsconstructed

Mayanculture

Inquisition

BlackDeath

Magellan'sCircumnavigation

Steam Engine

100

200

300

Tri

llio

n k

wh

per

yea

r

EMPTY WORLD MODEL

K

Allocated toAllocated toHumansHumans

Allocated toAllocated tothe Rest of Naturethe Rest of Nature

Time

Low

en

trop

y m

att

er

& e

nerg

y

No Structure = No FunctionNo Structure = No Function

Ecosystem Goods Ecosystem Servicesvs.

Knowledge

Certainty Risk Uncertainty Ignorance

Allocation of scarce resources Allocation of scarce resources toward alternative desirable endstoward alternative desirable ends

1.1. What are the desirable ends?What are the desirable ends?

2.2. What scarce resources are needed What scarce resources are needed to obtain those ends?to obtain those ends?

3.3. What ends get priority? (How do we What ends get priority? (How do we allocate?)allocate?)

Desirable Ends:

1. Sustainable Scale

MB >= MC

2. Just Distribution

3. Efficient Allocation

What are the characteristics of resources What are the characteristics of resources relevant to the allocation question?relevant to the allocation question?

Goods vs. Services (Flows vs. Funds)Goods vs. Services (Flows vs. Funds) SubstitutabilitySubstitutability IrreversibilityIrreversibility RenewabilityRenewability UncertaintyUncertainty ExternalityExternality

RivalnessRivalness ExcludabilityExcludability

ExcludableExcludable Non-ExcludableNon-Excludable

RivalRival

Non-Non-RivalRival

MarketMarketGoodsGoods

Open AccessOpen Access(tragedy of the commons)(tragedy of the commons)

Tragedy of theTragedy of theNon-commonsNon-commons

Pure PublicPure PublicGoodsGoods

Biodiversity: What is it andBiodiversity: What is it andWhy is it Important?Why is it Important?

Structure of the functionStructure of the function Our ultimate means and our ultimate endsOur ultimate means and our ultimate ends Characteristics that make market Characteristics that make market

allocation problematic, if not impossibleallocation problematic, if not impossible We are ignorantWe are ignorant Steps towards shifting “to a culture of Steps towards shifting “to a culture of

permanence, both for ourselves and for permanence, both for ourselves and for the biosphere that sustains us” the biosphere that sustains us” – E.O. Wilson– E.O. Wilson