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The Business Side of Ecosystem Services of Soil Systems

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The Business Side of Ecosystem Services of Soil Systems Review The Business Side of Ecosystem Services of Soil Systems Elena A. Mikhailova 1,*, Christopher J. Post 1, Mark A. Schlautman 2 , Gregory C. Post 3 and Hamdi A. Zurqani 1,4 1 Department of Forestry and Environmental Conservation, Clemson University, Clemson, SC 29634, USA; [email protected] (C.J.P.); [email protected] (H.A.Z.) 2 Department of Environmental Engineering and Earth Sciences, Clemson University, Anderson, SC 29625, USA; [email protected] 3 Economics Department, Reed College, Portland, OR 97202, USA; [email protected] 4 Department of Soil and Water Sciences, University of Tripoli, Tripoli 13538, Libya * Correspondence: [email protected]; Tel.: +1-864-656-3535 Received: 19 June 2020; Accepted: 20 July 2020; Published: 22 July 2020 Abstract: Current applications of the Ecosystems Services (ES) framework to soils are narrowly defined (e.g., soil-based, pedosphere-based, etc.), and focus on soil properties while treating soil as a closed system. Because soil is an open system, it receives and loses matter across its boundaries within Earth’s spheres (atmosphere, biosphere, hydrosphere, lithosphere, ecosphere, and anthroposphere), which also need to be accounted for in economic analysis. In market economies, the market transforms resources from the Earth’s pedosphere and related spheres into goods and services for societal welfare with non-market institutions mediating human and environmental interactions. These transformations and mediations can result not only in welfare but damages as well. The concept of soil ES and ecosystem disservices (ED) is a human-centered framework, which can be a useful tool in business decision-making. Soil ES (e.g., provisioning, regulation/ maintenance, and cultural) are used to produce goods and services, but the value of these ES and ED are not always accounted for as a part of business decision-making. The objective of this review is to illustrate the monetary valuation of ecosystem services of soil systems (SS) with examples based on the organizational hierarchy of soil systems. The organizational hierarchy of soil systems can be used in economic valuations of soil ES by scale (e.g., world, continent), time (e.g., soil, geologic), qualitative and quantitative degrees of computation (e.g., mental, verbal, descriptive, mathematical, deterministic, stochastic), and degree of complexity (e.g., mechanistic, empirical). Soil survey databases, soil analyses, Soil Data Systems (SDS), and Soil Business Systems (SBS) provide tools and a wide range of quantitative/qualitative data and information to evaluate goods and services for various business applications, but these sources of soil data may be limited in scope due to their static nature. Valuation of soil resources based on soil and non-soil science databases (e.g., National Atmospheric Deposition Program (NADP) databases, etc.) is critically needed to account for these ES/ED as part of business decision-making to provide more sustainable use of soil resources. Since most ecosystems on Earth have been modified by human activity, “soil systems goods and services” (SSGS) may be a more applicable term to describe soil contributions (benefits/damages) to economic activity, compared to a term such as “soil ecosystem goods and services.” Keywords: business ecosystems; information; intelligence; economics; market; pedosphere 1. Introduction Ecological economics developed the concept of soil ecosystem services [1] (provisioning, regulation/ maintenance, and cultural), which provide goods and services for various business systems [2], but its Earth 2020, 1, 15–34; doi:10.3390/earth1010002 www.mdpi.com/journal/earth Earth 2020, 1 16 Earth 2020, 1, FOR PEER REVIEW 2 valuesystems often [2], is but not its recognized value often due is tonot the recognized business community’sdue to the business unfamiliarity community’s with the unfamiliarity importance with of soilthe [ 3importance]. For example, of soil Watson [3]. For and example, Newton Watson (2018) and [2] conducted Newton (2018) a survey [2] conducted of business a survey dependencies of business on variousdependencies Ecosystems on various Services Ecosystems (ES) (including Services soil) in(ES) the (including English county soil) ofin Dorset,the English and foundcounty that of Dorset, many businessesand found indicated that many little businesses or no dependence indicated on little soil. or Indeed, no dependence the value on of soilsoil. ES Indeed, is difficult the tovalue measure of soil andES reportis difficult for theto measure business and community report for because the busi ofness the complexcommunity nature because of soil of [4the]. Whilecomplex some nature may of questionsoil [4].the While need some to monetize may question soil [4], the others need advocate to monetize the use soil of monetary[4], others valuation advocate as the a means use of to monetary engage thevaluation business as community a means to “to engage achieve the scalablebusiness solutions” community to soil“to achieve and environmental scalable solutions” degradation to soil [2 ,and3]. Theenvironmental word “scalable” degradation is key tounderstanding [2,3]. The word the “scalable” complexity is key of soil, to understanding both with its definition the complexity as well of as soil, its ES.both The with current its definitiondefinition of as soil well is “theas its layer(s) ES. The of generallycurrent definition loose mineral of soil and /isor “the organic layer(s) material of generally that are affectedloose mineral by physical, and/or chemical, organic and /materialor biological that processes are affected at/or nearby physical, the planetary chemical, surface and/or and usually biological hold liquids,processes gases, at/or and near biota the and planetary support plants” surface [5 and] (Figure usually1a). Thishold definition liquids, gases, is inclusive and biota of soils and on planetsupport Earthplants” and [5] other (Figure planets 1a). [5 ].This Traditionally, definition theis inclusive definition of of soils soil ison applied planet toEarth Earth, and which other implies planets “the [5]. multi-phaseTraditionally, dimension the definition of soil” of as soil a product is applied of interaction to Earth, ofwhich the Earth’s implies spheres “the multi-phase (atmosphere, dimension biosphere, of hydrosphere,soil” as a product lithosphere) of interaction (Figure1a). Theof the pedosphere Earth’s spheres (from the (atmosphere, Greek pedon biosphere,= ground) ishydrosphere, defined as “thelithosphere) soil mantle (Figure of the Earth”1a). The based pedosphere on the “concept (from the of soilsGreek as specificpedon = bodies ground) in natureis defined that developedas “the soil inmantle time and of the space Earth” in situ based at the on land the surface“concept due of tosoils processes as specific resulting bodies from in nature interactions that developed of soil-forming in time factors:and space parent in material, situ at the climate, land organisms,surface due topography, to processes and resulting time” [6] (Figurefrom interactions1b). According of tosoil-forming Mattson, 1938factors: [7], not parent all soils material, form as climate, a result oforganisms, the interaction topography, of the four and of thetime” Earth’s [6] (Figure spheres, 1b). and According two-sphere, to andMattson, three-sphere 1938 [7], combinations not all soils areform possible. as a result For of example, the interaction some organic of the four soils of are the formed Earth’s from spheres, Earth’s and three-spheretwo-sphere, combinations and three-sphere (atmosphere, combinations hydrosphere, are poss andible. biosphere) For example, (Figure some1b). organic soils are formed from Earth’s three-sphere combinations (atmosphere, hydrosphere, and biosphere) (Figure 1b). (a) (b) FigureFigure 1. 1.The The scope scope of: of: (a(a)) soil soil and and relationship relationship between between soil soil components components from from various various Earth’s Earth’s spheres;spheres; (b )(b formation) formation of two-sphere,of two-sphere, three-sphere, three-sphere, and four-sphere and four-sphere (e.g., pedosphere) (e.g., pedosphere) systems systems in nature in (Anature= atmosphere (A = atmosphere;; B = biosphere; B = biosphere;H = hydrosphere; H = hydrosphere;L = lithosphere) L = lithosphere) (adapted from (adapted Mattson, from 1938 Mattson, [7]). 1938 [7]). Humans use market and non-market tools to transform resources from the Earth’s spheres into goodsHumans and use services market for and societal non-market welfare, tools with to transform non-market resources institutions from mediating the Earth’s human spheres and environmentalinto goods and interactions services for[ societal8] (Figure welfare,2). These with transformations non-market institutions and mediations mediating result human not only and in welfareenvironmental but damages interactions as well, adding[8] (Figure another 2). These of Earth’s transformations spheres—the an anthroposphered mediations result (“realm not of only human society”)in welfare [6]. but damages as well, adding another of Earth’s spheres—the anthroposphere (“realm of human society”) [6]. Earth 2020, 1 17 Earth 2020, 1, FOR PEER REVIEW 3 Figure 2. Conceptual diagram of how the market transforms resources from the Earth’s spheres Figure 2. Conceptual diagram of how the market transforms resources from the Earth’s spheres (A = (A = atmosphere; B = biosphere; H = hydrosphere; L = lithosphere; P = pedosphere; Ecosphere, andatmosphere; Anthroposphere) B = biosphere; into goods H =
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