ABSTRACT
This chapter reviews the state of the art of the economics literature on biodiversity value. Functions of biodiversity include insurance, carrier of future options or underpinning of ecosystems – in other words, 'functions' are the particular ways through which biodiversity influences human well-being. Two qualifications should be made regarding the studies included in the categories Genetics and Species. Willingness-to-pay for biodiversity can be determined in two ways: either in an isolated way, where only biodiversity is valued, or in an embedded way, where biodiversity is the main valuation object, but is nevertheless valued as one attribute among many of a given ecosystem. 'Isolated' biodiversity valuation is comparatively frequently done by means of CV. The chapter presents the important strand of the economics literature concerned with biodiversity, which has to do with the measurement of diversity and has its origins in axiomatic social choice theory.
