Lecture 15 Flashcards
Economic Valuation and Feasibility Assessment
FINANCIAL vs ECONOMIC ANALYSES
Financial
Price of Goods
market price
FINANCIAL vs ECONOMIC ANALYSES
Financial
Values
revenues and costs
FINANCIAL vs ECONOMIC ANALYSES
Financial
Net Values
net revenue (profit)
FINANCIAL vs ECONOMIC ANALYSES
Financial
Perspective
project/ firm
FINANCIAL vs ECONOMIC ANALYSES
Economic
Price of goods/service
shadow price
FINANCIAL vs ECONOMIC ANALYSES
Economic
Values
social benefits and costs
FINANCIAL vs ECONOMIC ANALYSES
Economic
Net values
net benefits (welfare)
FINANCIAL vs ECONOMIC ANALYSES
Economic
Perspective
society
process of measuring the
preferences of people for an environmental good or
against an environmental “bad”
Economic Valuation
Economic Valuation
process of measuring the
preferences of people for an environmental good or
against an environmental “bad”
direct use value + indirect use value + option value + bequest value + existence value
Total Economic Value
Total Economic Value
direct use value + indirect use value + option value + bequest value + existence value
Types of Economic Value
- USE VALUE
a. Direct use value
b. Indirect use value - NON-USE VALUE
b. Bequest value
c. Existence value
use value
values of goods and services to producers and consumers whise use or enjoy the environmental resources
values of goods and services to producers and consumers whise use or enjoy the environmental resources
use value
