Insurance Value of Ecosystems: An Introduction

Abstract

The notion of insurance value of ecosystems has both conceptual and practical appeal. However, the operationalisation of the concept does not yet match the typical assumptions about the governance of ecosystems and ecosystem service provision. The articles in this special section provide the first comprehensive effort to address this challenge by offering conceptualizations and examples of metaphorical, analytical and operational applications of the concept of insurance value. Together with this introduction, the articles exemplify the varied uses of the concept of insurance value and the ways in which it is positioned in relation to governance. This introduction highlights that when designing governance solutions for the provision of insurance value from ecosystems, the state of the ecosystem and the activities through which its insurance value generation will be targeted should be clear. The introduction also highlights the importance of considering the assumptions and framings regarding how insurance value is generated in the ecosystems, through preservation, sustainable use or restoration, or through a combination of these strategies. Because of the distinct analytical and governance implications of these strategies, future research should specifically address the institutional conditions for applying any one of them.

Introduction

Well-functioning ecosystems support humans and societies in several ways. In the sub-discipline that has formed around the theory and empirical valuation of ecosystems and biodiversity, the term insurance value has emerged in several ways. Most often, insurance value is used as a metaphor for ecological sustainability and resilience (Bengtsson et al., 2003; Abson and Termansen, 2011; Kumar, 2012), which is also reflected in empirically observed perceptions of decision-makers (Primmer et al., 2017). A more ambitious way of addressing insurance value has been an analytical formalization of uncertainty and potential loss as well as their economic value (Baumgärtner, 2007; Baumgärtner and Strunz, 2014), for example in agroecosystems (Baumgärtner and Quaas, 2010; Pascual et al., 2015). A third approach is operational, aligning with the new policies on biodiversity emphasizing integration to other policy areas such as climate change and urban planning (Gómez-Baggethun and Barton, 2013; Green et al., 2016), promoting nature-based solutions (Nesshöver et al., 2016).

Although the notion of insurance value has conceptual appeal and it has been demonstrated to help bridge different perspectives on environmental governance for example with regard to biodiversity (Primmer et al., 2017), the operational application of the concept does not yet happen in a way that would match the assumptions about the governance of ecosystems or ecosystem services (Paavola, 2007; Fisher et al., 2008; Primmer et al., 2015). Actually, the effort to mobilise an understanding of insurance value of ecosystems to support governance of its provision has barely started. As a starting point for this effort, this special section provides the first comprehensive collection of articles. The articles offer conceptualizations and examples of applications of insurance value and its governance metaphorically, analytically and operationally, and position them against governance of insurance value provision. Further, the articles highlight how insurance value provision can be pursued through preservation, sustainable use or restoration of ecosystems and the governance arrangements to advance these strategies.