Valuation Flashcards
Ecosystem services
The multitude of benefits that nature provides to society. Biodiversity is the diversity amoung living organisms, which is essential to ecosystems function and services delivery.
Use value
Reflected in behaviour. The wtp for direct use of the enviro. Resource. Can be consumptive or non consumptive use
Passive use value
Not reflected in behaviour. Extistenve value: an individuals wtp. To preserve a resource that he or she will never use
Market values
When goods are traded in markets, prices and quantity demanded can be observed (demand curve). Used to calculate wtp
Non market values
Many enviro. Goods aren’t traded in markets. Don’t have prices but still have value.
Markets
Few enviro. Goods are traded within markets. The consumption of market goods can be used to estimate the value of a non market good.
Simulated markets
Create markets for goods that don’t already have markets
Travel cost
Uses of out of pocket costs and time costs to approx the valuation of the recreation experience( non market good)
Hedonic property values
Used to determine the value of enviro aspects that have the ability to reduce/increase property values
Hedonic wage values
Used to determine value of reduction in morbidity and mortality risk. Value of a statistical life
Averting behaviour
The purchase of g/s that allow ppl to avoid the effects of an enviro quality cauange. Provides a lower bound wtp
Contingent valuation
A hypothetical market to elicit ppls wtp for enviro g/s. Open ended format. Referendum format. Measures use values and passive use values
Attribute based stated choice
Hypothetical market used to elicit wtp values. Use and non use values. Used to value attributes of enviro goods
Value of a statistical life
Measured using hedonic wage values and attribute based stated choice models
