Conservation and Markets Flashcards
Total economic value
Use + non use value
Use values
Direct/consumptive& indirect/ non consumptive
Non use values
Existence & option
Direct use
Direct sensory contact with the environment
Indirect use
Sensory contact with the environment that is used in the production of another resource
Non use value
Value of knowing something exists without having sensory contact
Existence value
Value of knowing something exists even if you don’t use it
Option value
Value of not using the resource so as to have the option of using it in the future
Quasi option value
Value of waiting to make a decision about resource use as more info becomes available when there is an irreversible decision
5 conservation externalities
- Common resources
- Information
- Public goods
- Transboundary
- Technological change
Common resource stock externality
Insufficient allocation of resources due to overexploitation
To address: pigovian taxes, ITQs
Asymmetric information
Consumers & producers do not have the same information
To address: eco-label, certification
Public good externality
The public good is impure- it is a private good + has a jointly produced public benefit
To address: Pigovian taxes, ITQs and certification
Transnational externality
To address: multilateral cooperation, quantity controls
Technological change externality
Insufficient R&D or adoption
To address: technology standards
