The argument for monetizingor putting a monetary value onecosystem

Question

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.   1 
(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.

2 
(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

3 
(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

4 
(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.

Valhalla · Accepted Answer

Please comment on personal explanation:
1. D. Monetization can serve as a means of representing persuasively the value of environmental conservation.
Explanation: 
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.

2. C A wildlife preserve that draws many international travelers
Explanation: one has to show that  all ecosystems have economic value .

3. A The centrality of economic interests to people’s actions
Explanation: 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.
ie. economic interest = economic considerations; human behavior = people's action

4. C They have sometimes been charged with failing to use a particular strategy in their pursuit of conservational goals.
Explanation: Some critics blame this impasse on environmentalists, whom they believe fail to address 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).
ie. Critics say environmentalists did not consider Conservation can appear unprofitable when compared with economic returns derived from converting natural assets into explicitly commercial ones. ---> Critics questions environmentalists strategy

Lucy Phuong · Answer

I've just tried this one and got all 4 correct. Hope my sharing will help.

Q4. Which of the following can be inferred from the passage concerning the environmentalists mentioned in line 8?

Spot some sentences surrounding "environmentalists" in line 8, especially look carefully at the sentence including that word.

"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 asset(pristine coastlines, for example) into explicitly commercial ones (such as resort hotels)."

--> I believe that we may not need the missed line "the economic issues of environmental degradation" to answer, because in fact, I did got the question right without that information. Still, I searched on google and found the missing piece as above for your reference.

Summary of the above sentences: natural resources' depletion... lots of people know it .... but conservation is difficult without economics-related support... Environmentalists are blamed for the problem, because they fail to address "something". The following sentence "Conservation can appear unprofitable..." gives more details about "something". Information about conservation in that last sentence sounds quite negative, so I guessed that "something" is an obstacle in environmental conservation.

Now move on to 5 options

A. They are organized in opposition to the generation of income produced by the sale of ecological services.  
Totally wrong. Nowhere in the passage could we infer that environmentalists in line 8 go against someone/something. Hence, "income produced by the sale of ecological services" is mentioned later at the end of the passage, in which many environmentalists are unfamiliar to it, rather than oppose it. OUT.

B. They are fewer in number but better organized and better connected to the media than their opponents.  
Out of scope. Nothing related to number, manner of organization and connection to media of both environmentalists and their opponents could be inferred from the passage. OUT.

C. They have sometimes been charged with failing to use a particular strategy in their pursuit of conservational goals. 
Yes, this is the same as the above reasoning. Their opponents accuse environmentalists of conversational deadlock, for the reason that environmentalists do not deal with the problem/obstacle that is explained in the sentence "Conservation can appear unprofitable......" CORRECT!

D. They have been in the forefront of publicizing the extent of worldwide environmental degradation.  
Such a distortion. Environmental degradation issue is spread widely - Yes! But we definitely cannot infer that environmentalists lead this effort. Environmentalists are mentioned only as causing standstill situation of conservation. OUT.

E. They define environmental progress differently and more conservatively than do other organized groups of environmentalists.  
Neither "other organized groups of environmentalists" nor "definition of environmental progress" is discussed in the passage. Thus, the above information cannot be inferred. OUT.

The above is just my personal reasoning. Willing to hear your comment(s), if any. Thanks!

jabhatta2 · Answer

Hi - For the below question, i selected A but the OA was C.

Question : why isnt A the right answer ? The following reason is why i picked "A"

wording in passage " 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 "..........

Did not like C because counting the international visitors is quantifiable ...hence eliminated C..

In A, the impact of the good location on the hotel is not countable ...

Thoughts ?

---------------------------------------------

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

Lucy Phuong · Answer

Hi,

It would really help if you look closely at the sentence following your cited one:
 "To remedy this, says Pearce, one has to show that all ecosystems have  economic value —indeed, that all ecological services are economic services."

--> The "quantifiable value" should be understood from economics perspective. Frankly speaking, it's all about money.

C. A wildlife preserve that draws many international travelers 
-->  "Tourists visiting wildlife preserves, for example, create jobs and generate income for national economies;"  In order to facilitate good services for tourists, many companies specializing in transportation, tour guides and other kinds will emerge, thus creating jobs and generating income for national economies... These economic values cannot be realized immediately, but rather in the long-run. CORRECT

Regarding why option (A) is wrong:

A. A resort hotel located in an area noted for its natural beauty 
--> Yes, I agree with you that "In A, the impact of the good location on the hotel is not countable ..." as you said; however, the option should be understood as:  "A resort hotel...... ......"  most clearly represents an example of an “ecological service”. In other words, "resort hotel", instead of "natural beauty" of its location, is the example this option suggests. As you may know, "resort hotel" is not an "ecosystems". OUT.

The above is just my personal thought. I'm not sure how OG explains the correct answer, so you can read OG for clarification.

shra1raju · Answer

I have taken 2mins:15secs to read and write the point of the passage:

I took 
110secs - 1st Q - Wrong
70 secs - 2nd Q - Wrong
75 secs - 3rd Q - Right
12 secs - 4th Q - Wrong

The accuracy you see above tells you that I'm not an expert on the Topic. But this is what my analysis of my shortcoming:
Mistake#1:
Reading the passage: Thinking about reading the whole passage in 2mins kills the comprehension ability, I skim all the important decision points. Because of which, I have a different story about the passage in my head.

Q1: This is an inference Question
The context of the passage which you need to know to answer this Q lies between line 15 and 25. 
Analysis: Monetization has to elements in it, they are Environment and Economical benefits. So, Our Buddy David believes that Monetization is an environmental conservation strategy and it is difficult to prove the economic benefit of it. So, we should somehow to link this strategy to an economic benefit. And David give two examples to explain the same idea to dumb people like me, who don't understand complex structured sentences.

B- Nowhere in the whole passage, we see testing or not testing a strategy - Eliminate
C- This is complete crap because David told that we have to link the Environmental strategy like monetization to commercial benefits, but this choice talks about restricting to only ecological service. Moreover, GMAT authors think we test takers are idiots and add so heard words like tourism and recreation. Dumbasses like me chose this choice. Like I did, because of the wordings.
E- This choice is a clear NO because David's idea was to portray the ecological goals to commercial benefits - Eliminate

Two devil choices: D Vs A: 
A is good till the environmentalists but fails to reference indicate who are these Critics. We generally tend to think critics are opponents to Environmentalists, that not the case. A group of critics may comprise of Environmentalists and Economists. - Eliminate;

D- Correct.

Q2: This is a Specific Details Question
Read line 19 to 20 quickly to get the taste of what is being tested there. So, David believes that Services are ecological only when they provide economic benefits.

A- We are not sure, what is happening with this hotel, is it operating? People prefer to visit that? Are people working? No answers to these questions. - Eliminated
B- See the above reasons mentioned for A, the choices B C E, are all same with a different type of businesses, we are 100% sure that these businesses provide any economic/commercial benefits. Screw them - Eliminated.

But Choice D answers perfectly, Wildlife preserves- preserves wildlife = Environmental benefits & attracts tourist = Commerical benefit. Cool... This is the answer.

Q3: According to the passage,...... ---> Specific Q.
There are two steps to perform to answer a specific Question, 
Step1: Find the context, read the lines in the passage.
Step2: Answer choice you choose should comprehend the same as what you comprehended in step1

So, here Context is Daily's idea about monetization. It is easy to locate Names in the passage, with that you can see last 5 lines would be the place to have to read and comprehend. 
Frankly speaking, I could comprehend 100% of Daily's idea, but what I could get is the monetization effects human behavior.So, answer choice that talks about human behavior is A.

Q4: This is again an inference Q
Read the line 8 to get the context. My comprehension is that some critics blame environmentalists for the strategy of monetization is not have shown any improvement in conservation.
Hunting down the answers:
A- There is no income or financial aspect happened between some critics and environmentalists - Eliminated
B- We don't know about the number that group- Eliminated
D- We don't know who is the front seat and who is at the back - Eliminated
E - This talks about 'Groups' of environmentalists, can you name two names of groups- No then Eliminate this choice

C- references the right spot that Environmentalists sometimes need to take the blame because they might sometimes fail on strategies. - Correct

If you enjoyed and learned from my analysis-Good, but please point out any errors in my analysis. At the end of the day that is what matters the most, LEARNING NEW STUFF.

Hoozan · Answer

Hi,
 GMATNinja   mikemcgarry  please could you help me with the following OG question

2. Which of the following most clearly represents an example of an ???ecological service??? as that term is used in line 20?

We are looking for an answer choice that shows how the "ecological factors" create some economic value and thus be termed as "ecological services"

(C) it is clear cut an "ecological services" because the wildlife preserve that draws many international travelers will create job opportunity as well as income

But what about (A) A resort does create job opportunities and since it is located in an area of natural beauty can't we say that this natural beauty is responsible for a part of the income generation? and thus be termed as an "ecological service"?

Is this a far fetched assumption?

GMATNinja · Answer

While your point might be completely valid in the world outside of this passage, let's look at what the passage itself says about resort hotels: "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) ."

Here, we have a direct contrast between natural and commercial assets, with resort hotels listed as an example of a commercial asset. Because the author treats resort hotels as commercial assets, they are not great examples of “ecological services” that have not been previously monetized. Eliminate (A).

I hope that helps!

saby1410 · Answer

Hi,
 AnishPassiTGC  @abhimanha  GMATNinja   VeritasKarishma   ChiranjeevSingh  can you explain the usage of colon in this line , your understanding of this line or how you approached to understand this line because of so many punctuations in it.

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.
And what purpose of gretchen daily's view serves in the passage.

KarishmaB · Answer

The argument for “monetizing”—or putting a monetary value on—ecosystem functions may be stated thus:

Information in hyphens can be sidelined. This is an explanation of something already mentioned.

Here "or putting a monetary value on" is the definition of "monetizing" to help the reader understand.

Everything after the colon explains the "argument for monetising". Basically, all of it explains why monetising is beneficial. That why having a quantifiable number to the benefit of ecosystems is good. An example given in the passage explains this - "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."
So giving a monetary value of say 10 million dollars to an undisturbed forest helps make environmental decisions.

The passage is basically trying to say that since we derive economic benefit from environment (say cutting down a forest will help the govt earn a million dollars), we are not taking conservational decisions. Now, if you put a number to the value of the undisturbed forest (if it is removed, you will need to pay 10 million dollars to regulate water runoff and purify water), it will help us make decisions favouring conservation.

Gretchen Daily's view - if you put express economic value in terms of a single currency (as we did in terms of dollars above), you can make environmental decisions. 
Now that we have two figures to compare - '1 million benefit' vs '10 million loss' if we remove the forest - we will decide to keep the forest.

Jainam24 · Answer

VeritasKarishma   GMATNinja 
Q1 Reached to D through POE. But while reviewing the answer, cam't understand exactly what D means. Could you please elaborate? Specifically what does value refer to in D? Quantitative or qualitative value? Many thanks

KarishmaB · Answer

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.

The passage tells us that David Pearce says that because “services” provided by ecological systems are not traded on the commodities market, people believe that their services do not have a readily quantifiable value. But ecosystems have quantifiable economic value.

Monetization is putting a monetary value on ecosystem.

So David Pearce would endorse that monetization can serve as a means of representing persuasively the value of environmental conservation. That economic value can represent the value of environmental conservation and hence persuade people to conserve. 
This is what (D) says.

zoezhuyan · Answer

(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

dear  AndrewN , GMATNinja ,  GMATNinjaTwo ,

would you please clarify further about B and C?
from the passage, I got I need to find a choice that could reveal the ecologic systems are economic value, or ecological services are economic services.
for me , B is ok. because the water-purifying plant can bring economic value, because nontoxic chemical is one of the economic service.
C is also good for me. preserve draws many international travelers can bring economic value.

GMATNinja · Answer

Question 2 
 
Take a closer look at (B):

The problem with (B) is that the water-purifying process described is NOT an ecological one.

The passage mentions undisturbed forests and wetlands that act as water-purifying systems as examples of an ecological service. But (B) describes a man-made, water-purifying plant that uses chemicals  in addition to  natural processes. In other words, the chemicals, whether toxic or not, are not part of the natural process. Therefore, (B) does not describe an ecological service, and it can be eliminated.

I hope that helps!

CrackverbalGMAT · Answer

Question 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.  Monetization may represent a strategy that is attractive to environmentalist but the passage does not indicate who the critics are.

(B) Monetization is an untested strategy, but it is increasingly being embraced by environmentalists.  The passage doesn’t speak of strategies, tested or non- tested.

(C) Monetization should at present be restricted to ecological services and should only gradually be extended to such commercial endeavors as tourism and recreation.  Pearce has linked Environmental strategy to commercial benefits, but this choice talks about restricting to only ecological service.

(D) Monetization can serve as a means of representing persuasively the value of environmental conservation.   This option points out that it can be shown that ecological systems have economic value.  
 
(E) Monetization should inform environmental decision-making processes only if it is accepted by environmentalist groups.  Pearce's idea was only to portray the ecological goals of commercial benefits

Question 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  Pearce believes that services are ecological only when they provide economic benefits. We just know this resort is known for its beauty. We don’t know if it is operational or whether it has any economic benefits.

(B) A water-purifying plant that supplements natural processes with nontoxic chemicals  Not clear if there is any economic benefit

(C) A wildlife preserve that draws many international travelers   This option implies that the tourists will pay money to visit this preserve.

(D) A nonprofit firm that specializes in restoring previously damaged ecosystems  Nonprofit makes it clear that there is no financial benefit

(E) A newsletter that keeps readers informed of ecological victories and setbacks  Not clear if there is any economic benefit  
 
 Question 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   The passage clearly mentions that monetization reflects the fact that economic considerations play a major role in people’s actions.

(B) The reluctance of the critics of environmentalism to acknowledge the importance of conservation  The page just states that monetization is unpopular with many environmentalists. There is no reference to the critics of environmentalism

(C) The inability of financial interests and ecological interests to reach a common ideological ground  In contrast, Daily says that monetization has helped to “inform environmental decision-making processes.”

(D) The inevitability of environmental degradation  No such reference has been made by Daily.

(E) The inevitability of the growth of ecological services in the future  Daily has said that monetization has helped to explain the economic value in a manner that helps environmental decision-making processes. No reference has been made to the inevitability of the growth of ecological services in the future  
 
 Question 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.  They do not oppose making money with the sale of ecological services. They just haven’t taken into consideration that environmental degradation can have economic consequences.

(B) They are fewer in number but better organized and better connected to the media than their opponents.  We can’t infer about their number of their connection and organizational skills.

(C) They have sometimes been charged with failing to use a particular strategy in their pursuit of conservational goals.   This can be inferred because critics have blamed them for the lack of economic argument for conservational progress

(D) They have been in the forefront of publicizing the extent of worldwide environmental degradation.  In contrast, they have been have blamed them for the lack of economic argument for conservational progress

(E) They define environmental progress differently and more conservatively than do other organized groups of environmentalists.  This can’t be inferred.

- Nitha

Tanchat · Answer

Question No.4

I have read all replies but I understand that A B D and E are wrong but I don't understand why C itself is correct. I do want to know why C is correct (not just by POE) Actually I don't even understand why does C mean?

Thank you in advance

MartyTargetTestPrep · Answer

Here's choice (C) of question 4.

4. Which of the following can be inferred from the passage concerning the  environmentalists  mentioned in line 8?

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

Choice (C) means that the environmentalists have sometimes been accused of (charged with) not using (failing to use) a strategy they could have used for the purpose of achieving their goals.

That choice is supported by this sentence in the passage:

Some critics blame this impasse on  environmentalists , whom they believe fail to address the economic issues of environmental degradation.

What the passage is saying is that the "critics" accuse the environmentalists of "failing to use" the "strategy" of addressing "the economic issues of environmental degradation," with the result that, as the preceding sentence says, "this concern, in the absence of an economic argument for conservation, has not translated into significant conservational progress."

PriyamRathor · Answer

Hello Experts,
Why Choice A is wrong in question no 1?
 GMATNinja   AndrewN   KarishmaB

My reasoning - 
According to DP if we show that  all ecosystems have economic value—indeed, that all ecological services are economic services.  then it will persuade the common people to save the environment.

Consequently , both the environmentalist and their critics will be satisfied.

Thanks.

AndrewN · Answer

Hello,  PriyamRathor . You seem to be going about this all wrong, stringing together a chain of logic to justify the answer you want to choose. Stick to what the passage says. The less creative you get, the better. Environmentalists, for example, are never described as pushing for monetization, so we cannot stuff words into their mouths and say that monetization would be  attractive  to this group. Rather, we are told in the beginning of the passage that  critics  of monetizing ecosystem functions believe that these environmentalists  fail to address the economic issues of environmental degradation . Then, toward the end of the passage, when another person, Gretchen Daily, has entered the picture (meaning that the passage has moved on from David Pearce), it explicitly states that  monetization,  while unpopular with many environmentalists , reflects the dominant role that economic considerations play in human behavior  (my italics). We cannot infer that other environmentalists would therefore find monetization  attractive . It could just as easily be the case that the remaining environmentalists are neutral to the issue—if the passage does not supply a reasonable interpretation, then we cannot invent one to suit our purpose.

I will not seek to justify the correct answer, but perhaps (A) looks a little less enticing to you now. Thank you for thinking to ask.

- Andrew

KarishmaB · Answer

The argument mentions multiple times that environmentalists do not like the monetization strategy. 
eg. "Some critics blame this impasse on environmentalists, who they believe fail to address the economic issues of environmental degradation"
"In Gretchen Daily’s view, monetization, while unpopular with many environmentalists, reflects..."

So we are given that environmentalists do not favour monetization.

Option (A) says, "Monetization is attractive to environmentalists."
This is not true and the argument does not imply that David Pearce believes it to be true. David says that if we show that all ecosystems have economic value then we can persuade the common people to save the environment. He believes that monetization strategy could help save the envorinment. He doesn't say anything about what environmentalists think about monetization. He may believe that environmentalists SHOULD LIKE monetization because it could help them save the environment but we are not given that he believes that monetization IS attractive to environmentalists.

The argument for monetizingor putting a monetary value onecosystem

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The argument for monetizingor putting a monetary value onecosystem

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