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Ecological services are basically the benefits that arise from the ecological functions of healthy ecosystems. These benefits occur from all living organisms such as animals, plants, with the inclusive of human creatures.Today; importance of ecological services to the society is highly recognized as the means of providing health, social, cultural, and economic needs. Ecological services include the purification of air and water, maintenance of biodiversity, decomposition of wastes, soil and vegetation generation and renewal, crops and natural vegetation pollination, recharge of ground water through wetlands, seed dispersal, greenhouse gas mitigation, and aesthetically pleasing landscapes (Cramer, 2000). The processes and products of ecological services are most of the time complex and occur over long periods of time. There is great concern that has risen over the ecological services and this because of the view that we are losing them at an unsustainable rate and thus land use professors need to find variety of tools in order to motivate the provision of ecological goods and services in general. As the population of human creatures continue to grow, so do the demand for the resources imposed on the ecosystems and the effects of our global footprint. The environmental effects of anthropogenic activities, which are processes derived from human activities, are becoming more apparent for instance, air and water quality are increasingly comprised, pollution of water through overfishing, pests and diseases are increasing beyond historical boundaries, and deforestation is causing flooding downstream (Cramer, 2000).
Environmental True Cost Pricing is an accounting and pricing technique that involves all costs into the price of a good or a service. Many goods tend to carry hidden environmental and social costs like air and water pollution, deforestation, and toxic waste. All these costs occur during production of the product, the use, and during the disposal of the product. Whereas the manufacturer internalizes revenue and profits from these products, the costs are externalized to society and the natural environment. Ecological services can be related to environmental true cost pricing in away that, True Cost Pricing enables the enhancement of nature, society, and the capital through the reduction of existing taxes on good things such as personal income and replacing them with new taxes and fees on wrong things such as pollution, consumption of natural resources, and bad working conditions. True cost pricing focuses on both the upstream and the downstream, positive and negative effects of a product at all the stages of its life cycle beginning from the production process, transportation,distribution, consumption, and waste absorption. The main purpose for True cost pricing is to reveal the hidden costs and in most cases in the form of negative effects to the consumer, the society surrounding the production of the product, and to the larger ecological commons (Marine, 2009). Neither the consumer nor the producer pays for these externalities in the price tag of the goods, however, the price has to be paid in other ways. For instance, during the production and the consumption of the industrial goods, the price is paid through environmental clean-up activities. True cost pricing also tends to look at the positive impacts of the good in all its stages of its life cycle and these benefits are seen as the reduction in true cost. Individual happiness, healthy ecosystems, and community security are examples of these benefits that lead to the reduction of true cost of a product or a service.
The concept of ecological services demonstrates how we make use of the environment in order to for it to provide better services for us and to also help the environment. The various types of ecological services include water and air purification, crop pollination, greenhouse gas mitigation, and decomposition of wastes among others. True cost pricing can be related with ecological services because it tries to reveal the hidden environmental and social costs like air and water pollution, deforestation, and toxic waste. All these costs occur during production of the product, the use, and during the disposal of the product.