The argument for monetizingor putting a monetary value onecosystem

The argument for “monetizing”—or putting a monetary value on—ecosystem functions may be stated thus: Concern about the depletion of natural resources is widespread, but this concern, in the absence of an economic argument for conservation, has not translated into significant conservational progress. Some critics blame this impasse on environmentalists, whom they believe fail to address the economic issues of environmental degradation. Conservation can appear unprofitable when compared with the economic returns derived from converting natural assets (pristine coastlines, for example) into explicitly commercial ones (such as resort hotels). But according to David Pearce, that illusion stems from the fact that “services” provided by ecological systems are not traded on the commodities market, and thus have no readily quantifiable value. To remedy this, says Pearce, one has to show that all ecosystems have economic value—indeed, that all ecological services are economic services. Tourists visiting wildlife preserves, for example, create jobs and generate income for national economies; undisturbed forests and wetlands regulate water runoff and act as water-purifying systems, saving millions of dollars worth of damage to property and to marine ecosystems. In Gretchen Daily’s view, monetization, while unpopular with many environmentalists, reflects the dominant role that economic considerations play in human behavior, and the expression of economic value in a common currency helps inform environmental decision-making processes.

(Book Question: 415)
1. Information in the passage suggests that David Pearce would most readily endorse which of the following statements concerning monetization?

(A) Monetization represents a strategy that is attractive to both environmentalists and their critics.

(B) Monetization is an untested strategy, but it is increasingly being embraced by environmentalists.

(C) Monetization should at present be restricted to ecological services and should only gradually be extended to such commercial endeavors as tourism and recreation.

(D) Monetization can serve as a means of representing persuasively the value of environmental conservation.

(E) Monetization should inform environmental decision-making processes only if it is accepted by environmentalist groups.


(Book Question: 416)
2. Which of the following most clearly represents an example of an “ecological service” as that term is used in line 20?

(A) A resort hotel located in an area noted for its natural beauty

(B) A water-purifying plant that supplements natural processes with nontoxic chemicals

(C) A wildlife preserve that draws many international travelers

(D) A nonprofit firm that specializes in restoring previously damaged ecosystems

(E) A newsletter that keeps readers informed of ecological victories and setbacks



(Book Question: 417)
3. According to the passage, Daily sees monetization as an indication of which of the following?

(A) The centrality of economic interests to people’s actions

(B) The reluctance of the critics of environmentalism to acknowledge the importance of conservation

(C) The inability of financial interests and ecological interests to reach a common ideological ground

(D) The inevitability of environmental degradation

(E) The inevitability of the growth of ecological services in the future


(Book Question: 418)
4. Which of the following can be inferred from the passage concerning the environmentalists mentioned in line 8?

(A) They are organized in opposition to the generation of income produced by the sale of ecological services.

(B) They are fewer in number but better organized and better connected to the media than their opponents.

(C) They have sometimes been charged with failing to use a particular strategy in their pursuit of conservational goals.

(D) They have been in the forefront of publicizing the extent of worldwide environmental degradation.

(E) They define environmental progress differently and more conservatively than do other organized groups of environmentalists.