Monetary valuation of natural capital, methods

Monetary valuation of natural capital is a method used to put a price tag on the cost of ecological services. This is done by placing a monetary value on the environment by assessing how much people are willing to pay for specific ecosystems, services, or environmental features. This method evaluates how important natural resources are to society and how much people are willing to pay for them. It can be used to compare the economic value of different services, such as the benefits of planting additional trees in an area. Valuing natural capital can help inform efficient policy decisions, inform land use choices, and recognize the financial benefits of preserving local natural resources. Different techniques can be used to value natural capital such as cost-benefit analysis, contingent valuation, hedonic pricing techniques, and benefits transfer.