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Chapter 3 Valuing The Environment: Methods 1. Introduction Main Contents: Examine the valuation methods Identify and discuss the various valuation techniques that are used to value environmental resources. Discuss the strategies that exist for using economics to protect the environment when valuation information cannot reliably be obtained. 2. Valuing Benefits 2.1 Types of Values 2.2 Classifying Valuation Methods 2.3 Valuing Human Life 2.4 Issues in Benefit Estimation 2.5 Approaches to Cost Estimation 2.6 A Critical Appraisal 2.1 Types of Values Economists have decomposed the total economic value conferred by resources into three main components: Use value(使用价值) Option value(选择价值) Nonuse value(非使用价值) 2.1 Types of Values Use value (使用价值)reflects the direct use of the environmental resource. Fish harvested from the sea Timber harvested from the forest Water extracted from a stream for irrigation Scenic beauty conferred by a natural vista Pollution can cause a loss of use value. 2.1 Types of Values Option value (选择价值)reflects the value people place on a future ability to use the environment. Option value reflects the willingness to preserve an option to use the environment in the future even if one is not currently using it. Whereas use value reflects the value derive from current use, option value reflects the desire to preserve a potential for possible future use. 2.1 Types of Values Nonuse value (非使用价值)reflects the common observation that people are more than willing to pay for improving or preserving resources that they will never use. 2.1 Types of Values These categories of value can be combined to produce the Total Willingness to Pay(TWP,总支付意愿): TWP=Use Value+Option Value+Nonuse Value 2.2 Classifying Valuation Methods 2.2 Classifying Valuation Methods Direct revealed preference methods (直接揭示偏好法)are those which are based on actual observable choices and from which actual resource values can be directly inferred. Direct stated preference methods (直接陈述偏好法)might
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