Integrating the valuation of ecosystem services into the Input-Output economics of an Alpine region

Traditional economic accounting mostly ignores the benefits provided by nature, and thus falls short in giving incentives for improving the way the economy uses natural resources. In this study, we develop a general framework for integrating the value of ecosystem services into an Input-Output Table. In particular, we integrate regionally valued ecosystem services on the supply side of an Input-Output Table to quantify what natural resources offer to economic development. Using several different indicators, we show the benefits of the ecosystem services under the status quo and a scenario for regional development. Our results suggest that economic activities should be encouraged to use the ecosystem services more intensively, while landscape development should aim at providing the required services. We conclude that such an approach can provide a platform for decision-makers to learn quantitatively about the dependency of the regional economy on natural services. (C) 2007 Elsevier B.V. All rights reserved.