World Resources 2005 -- The Wealth of the Poor: Managing ecosystems to fight poverty
How is environmental income calculated?
Environmental Income of a Small-Scale Fisher

Gross Value of Natural Resource

  • Value of fish consumed by producer (subsistence income)
  • Sales at market* (cash income)

Labor and Materials Costs

  • Labor Costs: fishing, repairing equipment, etc
  • Capital Costs: purchase or rental of nets, fishing rods, boats, etc.

TOTAL ENVIRONMENTAL INCOME =
Gross Value of Resource – Labor and Materials Costs

* Includes value added by producer through preparation such as smoking, preserving, etc.

Environmental income—the value of goods and services from ecosystems— can be difficult to measure. Typically, it is calculated as the gross value of natural resource goods minus the cost of labor and materials needed to collect and sell these goods (Vedeld et al. 2004:6). The environmental income for a family dependent on fisheries is illustrated above. The gross value of the natural resource (fish) would include both the value of the fish consumed by the household and the price of any fish sold at market. The total environmental income is calculated by subtracting from the gross value any labor and materials costs, such as rental fees for boats or the purchase price of fishing rods and nets.