Ecosystem services are goods and services that nature provides to humans at no cost. Human activity that modifies the environment can cause reductions in these services, which have a measurable impact on human economies and well-being. While ecosystem services have been well studied in most biomes, the arctic tundra has received little attention, despite covering a large proportion of the Earth’s land area. Using established methodology for estimating ecosystem services, we calculated the values for the Arctic National Wildlife Refuge (ANWR), a region that is virtually undisturbed by human activity, but one that is slated for oil and gas drilling in the future.
Results/Conclusions
We estimated the refuge is worth $2,052 USD per hectare per year, which translates to over $16 billion USD annually for the entire study area. Most of the ecosystem services values are concentrated in climate regulation (i.e. carbon storage), storage of soil nutrients, and aesthetics. Our results suggest the ecosystem services values of the arctic tundra are considerable, and given its expanse, this biome likely makes an important contribution to the global estimate for ecosystem services. Our analysis also indicates that the economic value of the ANWR to the world is greater than the economic benefits that may be realized from fossil fuel development. Interestingly, a survey we conducted of U.S. residents found that their willingness to pay (i.e. a contingency valuation) to maintain the refuge in its current state is comparable to the estimated value of the recoverable oil and gas deposits. Therefore, our study suggests that maintaining the ANWR in its current natural condition (i.e. de facto wilderness) is more beneficial to the world compared to development of the area for oil and gas resources.