Difference Between The Direct And Indirect Economic Value Of Biodiversity

Direct economic value means the distribution of services and goods in which biodiversity is used or consumed by people while Indirect economical value means the services and goods that are origin through the non-removable products in nature.

Direct Uses Of Biodiversity

The direct value of biodiversity is the price we pay for its services. Products like food, firewood, medicine, linen, and wool have a direct impact on people’s lives. These items have value both as direct consumer goods and as research or trade commodities.

People eat a lot of the natural foods that grow in their area. However, we do not deal in or stock such items. These goods do not significantly help the country’s economy. The value of the use of biodiversity is the monetary worth of these goods. This is the benefit of being able to directly harvest and eat items from biodiversity: food, medication, clothing, and other necessities.

  • Humans consume a wide variety of plants from the wild for sustenance. It is estimated that there are 80,000 different types of edible plants out there. Over 90% of today’s food crops originally came from wild tropical plants that were subsequently tamed.

  • About 75% of the world’s population uses plant or herbal extracts as a primary or secondary source of medication. Penicillin, the wonder antibiotic, is generated from the Penicillium virus. Tetracycline, too, is derived from bacteria.

  • Malaria medication quinine is produced from the chinchona tree, whereas digitalin is used to treat heart problems and is derived from the digitalis plant.

  • Anticancer alkaloids were recently isolated from periwinkle (catarrin) plants, yielding the anticancer medications vinblastine and vincristine. It’s been speculated that several marine species possess anticancer characteristics that haven’t been properly examined.

  • Firewood from our forests has been utilized as fuel for centuries. Coal, oil, and natural gas are all fossil fuels that originated from prehistoric life. Privately gathered firewood is valuable since it is rarely sold and used directly by indigenous communities.


The direct value of biodiversity is the price we pay for the services it provides. Food, timber, fuel, medicines, linen, and wool are all examples of things of immediate worth. These items are useful for personal use and may be traded or studied to earn money.

Indirect Uses Of Biodiversity

The indirect value of biodiversity is consistent with the benefits it provides to society as a whole but is of little direct value to individuals or corporations. Such functions as pollination by bees, preservation of water and oxygen circulation by plants, decomposition of end matter by bacteria and viruses, worship of diverse flora and fauna, holy woods, and the aesthetic beauty of flora and fauna are all examples of indirect value.

Importance to Society

These are the beliefs that people have with regard to their communities, cultures, spirituality, and other such personal dimensions of their lives. Tulasi (holy basil), papal, mango, lotus, bael, etc. are just a few of the numerous plants revered in our culture.

Ethical Value

This is because of moral concerns, including the idea that “all life must be safeguarded.” The principle of “Live and let live” lies at the heart of it. Biodiversity is essential to human survival and must be safeguarded at all costs.

We may or may not choose to utilize a species based on our ethical principles, but our appreciation for nature is enhanced by the presence of all living things. The extinction of beloved species like the passenger pigeon and the dodo leaves us all feeling a little down.

Even though kangaroos, zebras, and giraffes aren’t in our family tree, we think they deserve a place in the wild. This suggests that there is moral or existential significance in all forms of life.

Aesthetic Value

The aesthetic value of biodiversity is high. No one wants to go to a huge desert where there is no life. Ecotourism is the growing trend of people from all walks of life spending significant amounts of time and money to go to natural areas where they may appreciate the aesthetic value of biodiversity.

The “ready to pay” principle, which underpins this type of ecotourism, even put a price on the aesthetic value of biodiversity. It is believed that the aesthetic value of biodiversity is nearly equal to the $12 billion in the yearly income generated by ecotourism.

Ecosystem Services

Only recently have people begun to appreciate the true worth of the ecosystem’s ability to sustain itself and provide essential services on its own. Ecosystem services include things like lowering the risk of global warming and lowering the risk of erosion and floods.


Some religions venerate these plants for their leaves, fruits, or blooms. Therefore, music, dance, and customs all have strong ties to the local fauna. Cows, snakes, bulls, peacocks, owls, and other creatures. It also holds a significant role in our psychological and spiritual lives, making it a topic of utmost significance. That’s why there are societal values attached to biodiversity that transcend the ideals of the dominant culture.


Some related questions are given below:

1 - What direct economic value does biodiversity have in this sense?

These assets have both immediate and long-term worth. Consumption values and productive use values are two examples of explicit values. Direct consumption of natural items with no intermediate market creates value.

2 - Do you know what else What is the gap between biodiversity’s direct and indirect economic value?

The direct value of biodiversity is the money made from selling biodiversity-related products, whereas the indirect value is the value that biodiversity itself provides to society. The value of biodiversity may be seen almost immediately upon encountering a new species. The culinary and medical industries are prime examples of the direct economic worth of variety.

3 - What is biodiversity’s indirect monetary value?

Organizations provide a valuable SERVICE that does not need the collection of indirect economic value. Medicine, food, and clothing all come from organisms, and they all need to be gathered. Likewise, organisms naturally provide flood protection.

4 - How does biodiversity help the economy?

Chemical pollutants and organic trash are decomposed by plants and bacteria, and the decomposed materials are recycled as fertilizers. Pollinators, such as bees and butterflies, also contribute to the diversity and productivity of agricultural and natural habitats, which has substantial environmental and economic advantages.

5 - What directs biodiversity?

Biological variety has social and cultural benefits that are sometimes overlooked. For example, in certain cultures, certain plants and animals are considered sacred and are therefore off-limits for human use. Plants that humans eat are an example of biodiversity’s direct usefulness, as are forests, whose wood is utilized as cooking fuel. The fact that medications may be derived from plants is also an instant benefit.

6 - What are the upsides of protecting natural resources?

Plant, animal, microbial, and genetic resources for food production, agriculture, and ecosystem activities including soil fertilization, nutrient recycling, pest and disease management, erosion, and crop and tree pollination are all safeguarded thanks to efforts to preserve biological diversity.

7 - How do animals help the economy?

The economic advantages of animals might be significant for the United States. Incorporating livestock into farming operations helps ensure their sustainability. Raising livestock may boost agricultural earnings by making better use of farmers’ land, labour, money, and management.

8 - What are the main threats to biodiversity?

There is a grave danger to biodiversity from human activity. Population expansion and resource consumption, climate change and global warming, habitat modification and urbanization, invasive alien species, excessive exploitation of natural resources, and environmental degradation are the greatest risks to our planet.

9 - What is the value of biodiversity?

Biodiversity and its importance. Humans place a high value on biodiversity because it is essential to our social, economic, and environmental well-being. Additionally, essential ecosystems, which humans rely on for survival, security, and health, cannot function without biodiversity as their foundation.

10 - How can one differentiate between direct and indirect costs?

Direct cost values are those that can be directly linked to a specific price (via a contract, project, or another identifier), whereas indirect cost values are those that cannot.


The direct use of plants and animals, for example in farming, contributes to the direct economic worth of these resources. One example of indirect value is the part that a thriving environment plays in maintaining the balance of the climate and the material cycle. It will be significantly more expensive to rebuild the consequences of a sick environment than it will be to sustain a healthy ecosystem.

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